Creating a business in Germany is not difficult (the most difficult part is running it). I started my own Berlin-based company in 2015 without speaking a word of German.
For me there are 10 important steps:
Make sure Germany is the best place for your business (culture, talent pool, taxes, regulation etc.)
Find the best legal form. It could be a corporation, a partnership or a single-person structure, it depends on the nature of your business.
Go to the notary to officialize the articles of association or any official document
Open a bank account with a German bank
Enter the Chamber of Commerce’s register
Open your bookkeeping
Register the business at the Trade Office
Register your employees and open the payroll
Register with the professional association
Choose an insurance for the founders
Most of the steps are doable by yourself. Step 1 to 5 doesn’t need external help, especially if you choose to create a standard UG or GmbH.
At step 6 (open the bookkeeping), I would recommend to start working with an accountant. They can also help on all following steps and of course for the future accounting of your company.
Concerning the country pros and cons, that’s my own analysis:
What makes Germany good for business:
it’s not hard to start a company as mentioned above and cheap to do it,
the country has a very good talent pool and attracts many international talents too (especially in Berlin),
the comfort of life is great, German people are very respectful and open, the healthcare system is one of the best in the world, and the country is beautiful when you get to know it,
What are the challenges:
the regulation and bureaucracy may be very heavy and slow-moving sometimes,
having cheap employees like interns for example is very difficult and heavily regulated,
the market is specific in some cases. For example Germans are very concerned about data protection or other topics that are not necessarily important in other markets.
A special mention on the language. The German language barrier may be seen as both a pro and con. On one hand, you can attract international people that don’t speak German and they should not be afraid about living here. On the other hand, they would feel more comfortable if they learn some basis of the language on the long run.
Overall, if you plan to open your business in Germany and you think that the market is attractive for this, I would recommend you to do it. And I would recommend even more Berlin, if you’re looking for a city to settle in!