Legal form, project structure and location control
For day-to-day operations, it often makes sense to set up a German GmbH. Depending on the investment and financing structure, it may also be advisable to establish a property company, a project company or to arrange intra-group financing and supply relationships. The articles of association, managing director, powers of attorney, bank account and tax registration should be in place and operational before the first major orders are placed.
The land or industrial unit may be purchased, leased on a long-term basis or utilised under a leasehold. Before committing to a site, particular attention must be paid to ownership, easements and encumbrances, building restrictions and the local development plan, contaminated sites, access and utility rights, potential expansion areas, technical infrastructure, and electricity, gas, water, sewage and data connections.
Purchase or lease agreements should include conditions relating to planning permission, funding, financing and technical due diligence. An unconditional commitment to a site before the feasibility of obtaining planning permission has been clarified shifts the project risk unilaterally onto the investor.
