The coalition agreement “Responsibility for Germany” for the 21st legislative period contains various innovations through which the new federal government wants to make things easier for start-ups as the “hidden champions and DAX companies of tomorrow“.
In the following, we have summarized the main projects planned in this context, all of which are subject to financing:
Formation
- In order to facilitate the establishment of start-ups, a so-called “start-up protection zone” is to be set up to simplify notarial procedures, introduce digital certification processes and enable automatic data exchange between the notary’s office, tax office and trade office. To this end, a “one-stop store” is planned, which will digitally bundle all applications and administrative procedures on one platform and enable companies to be founded within 24 hours.
- As women are currently underrepresented as founders of start-ups, a stronger focus is to be placed on supporting and specifically promoting female founders.
Corporate management
- By the end of 2025, obligations for small and medium-sized enterprises to appoint company representatives are to be abolished and the training, further training and documentation requirements significantly reduced.
- The national Supply Chain Due Diligence Act (LkSG) is to be replaced by a so-called “Act on International Corporate Responsibility“, which implements the European Supply Chain Directive in a “low-bureaucracy and enforcement-friendly” manner.
- The reporting obligation under the LkSG is to be abolished immediately and completely eliminated. The existing statutory due diligence obligations under the LkSG are not to be sanctioned until the new law comes into force, with the exception of “massive human rights violations“.
- Finally, the German government is planning “massive investments” in the cloud and AI infrastructure in Germany as well as the connection of AI and robotics.
Financing
- The entire start-up financing architecture will be subjected to an “efficiency check”. In this context, the participation opportunities for institutional investors are to be increased in order to improve the availability of venture capital for start-ups. Furthermore, the new German government intends to reduce the capital requirements for infrastructure projects and venture capital, among other things, by advocating an amendment to Solvency II and its practical implementation.
- The new German government would like to open up public financing programs for security and defence technologies. In this context, the Federal Agency for Leapfrog Investments SPRIND is also to be strengthened and enabled to operate in the defense sector.
- Moonshot technologies are to be supported via milestone-based financing instruments.
- The existing “Future Fund” is to be made permanent beyond 2030. The aim is to more than double the investments made by investors in the Initiative for Growth and Innovation Capital for Germany (WIN Initiative), a broad alliance of business, associations, politicians and the Kreditanstalt für Wiederaufbau (KfW), to over 25 billion euros and to further leverage the investment capital available via the Future Fund with guarantees from the federal government.
- In addition, a so-called “Germany Fund”, consisting of federal funds as well as private capital and guarantees, is to be created to close existing financing gaps in the area of growth and innovation capital, particularly for SMEs and scale-ups. For this fund of funds with an investment focus in Germany, at least EUR 10 billion of the federal government’s own funds will be provided through guarantees or financial transactions, which are to be leveraged to at least EUR 100 billion with the help of private capital.
- In combination with public guarantees and private capital, an investment fund for energy infrastructure is also to be set up to provide equity and debt capital, although the coalition agreement does not specify the investment volume here.
Taxes
- As an immediate measure, the electricity tax for companies should be reduced to the European minimum level and levies and grid fees should be reduced in order to permanently reduce the burden on companies by at least five cents per kWh.
- The “investment booster” announced in the coalition agreement in the form of a declining balance depreciation on equipment investments of 30 percent in 2025, 2026 and 2027 can also be used by start-ups, which often do not (yet) generate profits, by means of loss carryforwards (within the framework of minimum taxation).
Employee share ownership
Employee share ownership schemes are to be strengthened through the practical structuring of tax and social security law.
Direct orders from the federal government
For start-ups “with innovative services“, the value limit for direct orders from the federal government for supplies and services is to be increased to EUR 100,000 in the first four years after foundation.
We will keep you up to date on the further progress of the projects planned for start-ups in the coalition agreement and the resulting legislative initiatives.
