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If you walk around the trendy area of Neukoelln, Kreuzberg and Prenzlauer Berg and look at the signs of the door bells, you cannot fail to notice that Berlin is booming. Hardly any city comes up with so creative company names as this one. You might ask the questions: “Where is the trend is in a time of worldwide recession? Where is the boom?” Its all about connecting people through the way people connect nowadays: the internet.

So why Berlin?

Berlin is a buzzing city with the reputation of being the hub for creativity & creative people. Its easy to understand why if you know about the history of the town. Berlin has a rich european history, its heydays in the golden 20s, the influence of the allied forces after WWII, the craziness of being a town in 2 countries and the complete mix up & recreation after the reunification.

So what attracts entrepeneurs to Berlin?

The vast amount of affordable office spaces, the overall cheap living costs, the quality of life, the good infrastructures, the creative atmosphere, the ease of networking and the availability of funding through banks, business angels and grants all make  Berlin an attractive place for entrepreneurs. In terms of recruitment, Berlin definately has the pull factor, whether it’s for non-Berliners or foreigners. Being a city of creative minds, Berlin has lots of freelancers and places where you can work comfortably with all the amenities without having an office, the so called co-worker spaces.

Are there any downsides to Berlin?

Germany is famous for being a very regulated country. This comes with a vast amount of forms to fill in and a jungle of rules to consider. My personal experience as a Finance Professional: Civil service workers in Germany have job security and their salaries do not relate to their performance but merely to their senority. Staff might be rude, badly cross-trained (if your question is beyond their job spec, they might not know or want to know) and not very friendly towards foreigners. So, please be patient.

So who is here?

Berlin is Germany’s city of media & internet. As I can’t mention all the companies that operate in this field, I just focus on the following 3 below, all based in Prenzlauer Berg.

1. StudiVZ: is a kind of European facebook for students. The name stands for Studentenverzeichnis (students directory). Founded in 2005, it has 200 employees.
2. Wooga: develops high quality social games you can play on Facebook. It claims to have around 8m daily users. Found in 2009, it has over 120 employees.
3. SoundCloud: is a music platform that lets artists upload their music with a distinctive URL. This contrasts to MySpace, which hosts music only on the MySpace site. By allowing sound files to be embedded anywhere, SoundCloud can be combined withTwitter and Facebook to increase its audience reach. SoundCloud distributes music using widgets and. users can place the widgets on their own websites or blogs. Then it automatically notifies its members everytime a track is uploaded. SoundCloud has an API that allows other applications or smartphones to upload or download music and sound files. Apps are available for the iPhone, iPad, and Android platforms. Found in 2008, the company has 90 employees at the moment.

What kind of companies are common?

The most common companies in Germany are  GmbH (Limited liability companies).

What registrations do you need?

You will need a tax number, a VAT number (if you offer taxable services and reach the treshold), and you will have to register your firm with the Handelsregister (company house), where any changes toset up of  your companie(s)  need to be recorded, e.g. new investor, change of director.

What about company taxes & filing requirements?

You will have to file VAT returns (standard rate is 19%, reduced 7%) on a monthly basis. But an Annual VAT return, Corporation tax (c. 15% of your profits) and Trade tax return (c. 15% of your profits) need to be filed as well. Some other forms of taxes may apply, but these taxes depend on the set up of your firm, e.g. type of service (s) you provide or buy in.

Depending on the size of your company you will need an audit. You will need to publish your annual accounts on the Bundesanzeiger. You can do that online for c. EUR 40.

As an employee, you will have a whole range of deductions from your salary, e.g. income tax, some kind of East/West surcharge fee (Solizuschlag), health insurance, care insurance, state pension. This can easily make up 50% of your gross salary. You dont need to hire someone to calculate and file all the monthly returns. Its common to outsource this.

Where can you read up on the tax rules?

You can find all the necessary information here: Bundeszentrale fuer Steuern

Are there any memberships you are obliged to have?

You have to take out annual memberships with IHK (chamber of commerce) and VBG (insurance firm for accidents in the company).

How to finance a start-up company?

 Its all about “Show me the money”. You will need to have a good concept. Cool if you think big, but be realistic. If you get a loan you will need to pay it back with interests, so dont cheat yourself into a shitty situation. Sales figures are vital, but they should be based on something. Contracts with customers or letters of intent are good to have. Next thing: how much will it cost you? What are the costs that incur only if you produce your product (variable costs)? What are the costs you will have even if you dont produce anything (fix costs)? And how much of these are investments, hence over EUR 410 / item and used longer than 1 year?

Don’t be afraid to speak with investors? If you can show them that your concept will not just eat up their money, but bring them a nice return at a stage not too far in the future. They will show interest. Check with the big banks, e.g. Volksbank, Landesbank Berlin (Sparkassen), Commerzbank, Deutsche Bank. There are a range of business angels, if you fancy having a partner “in crime”. And also check for grants from KfW or Investitionsbank Berlin.

Good luck!

Here some links:

Berlin Startup Jobs

Startup Forum

SmartPlanet

Setting up a business

Business Angels Berlin

Start up in Berlin

Starting a business in Berlin (German only)

Grants

Starter Centre of IHK

Investitionsbank Berlin

KfW

Buergschaftsbank Berlin

Venture Capital Fond for Creativity

Venture Capital Fond for Technology

Research Fond

Science Centre “Adlershof” in Berlin

Charite University Hospital

The studio Babelsberg, located in Potsdam – Babelsberg, just outside Berlin, is the oldest large scale film studio in the world with 25,000 square metres.

Founded in 1912, with its 100th aniversary coming up next year, it was deeply connected to a very moving history, with the Golden 20ties, Nazi time, Socialist time, post Socialist restructuring time and now the new Hollywoold connections.

All started on 12. February 1912, when the first film was made in the over-dimensional glass house, of a firm that just moved out from Berlin in the search of space and good light, the ”Dance of the Dead” by the Danish director Urban Gad, followed by “The Student of Prague”, 1913 and Nosferatu, 1922 among others.

1917 the Universum Film AG, short UFA, was found. Initially an advertising instrument of the emperor, it grew into an entertainment group that took over the Babelsberg Studios in 1921.

Then the time of inflation came, which actually encouraged investments in buildings and film studios. Huge projects such as Lang’s Nibelungen with a huge artificial forest, that made it hard to even find the actor, and Lange’s Metropolis (enormous vision of cities and technology of the future) were realized in 1926.

The competition with Hollywood started. Although Hollywood lead in terms of light technology, Babelsberg lead in the work with miniature models and Karl Freund develops the first camera that can move on wheels. During this time the young British jdirector Alfred Hitchcock comes to Babelsberg to brush up his knowledge about film technology, mentioning later “All that I have learned about making movies I have learned in Babelsberg”.

The first German sound stage in Babelsberg, the Tonkreuz, was built during 1929. Melody of the Heart with  Willy Fritsch was the first German full-sound film. This was followed in 1930 by the premiere of The Blue Angel, which made Marlene Dietrich as nightclub singer Lola the star of her time.

Then the time of National Sozialismus started, UFA is taken over by the government and used by Goebbels for propaganda. This was a very difficult time for all in the film industry. Many actors spoke German only and were left with limited chances to make a living outside Germany. They then had to try to fit in, often pushed into playing roles, that they would otherwise not have taken on, which left many of them on the black list of engagement after the war ended, such as the actor Ferdinand Marian, who had to play the lead role in the anti-Semitic movie “Jud Suess”, 1940. Others, that had made themselfes a name already, such as Lang, Dietrich and Billy Wilder took the chance and left for Hollywood.

From 1933 to 1945, around 1,000 feature films were made in the studios and on the studio lot. Goebbels arranged for a lot of movies to be shot, which highlighted the beauty of Germany and German values, romantic movies, which took the peoples minds of the war.

On May 17, 1946, the DEFA – Deutsche Film AG – was established. It produced over 800 feature films, including 150 children’s films. In addition, over 600 films were made for television from 1959 to 1990.

After the fall of the Berlin Wall, the Treuhand took over the responsibility for the privatisation of the former DEFA. In August 1992, the Treuhandanstalt sold the former DEFA ilm studios in Babelsberg to the French group Compagnie Générale des Eaux. Over the following 12 years the company invested around €500 million updating the studio’s infrastructure.

But Babelsberg made a comeback. 2001 Roman Polanski shot the “The Pianist” and whole Babelsberg celebrates the Oscar with him. Movies like “The Bourne Identity”, “V like  Vendetta”, “Speed Racer”, “Valkyrie”, “The Reader”, “The Constant Gardener” and Tarantinos “Inglorious Basterds” follow and bring stars like Matt Damon, Natalie Portman, Tom Cruise, Kate Winslet and Brad Pitt to the Babelsberg Studios.

Want to know more?

http://www.deutsche-kinemathek.de/

The Deutsche Kinemathek offers a range of exhibitions on the topic Movie Making in Germany. Until 29 April 2012 there is also an exhibition about “On the Set” Photography. Admission under EUR 10/ person. Deutsche Kinemathek, Potsdamer Strasse 2, 10785 Berlin

http://www.studiobabelsberg.com/en/public-relations/studio-tour/

The Studio in Potsdam – Babelsberg also offers a 1.5 – 2 hours tour ”Behind the scenes” for groups of 8 -25 for EUR 25/ person. Starting April 2012. Upon request only, 14 days advance notice, email to tours@studiobabelsberg.com

http://www.filmpark-babelsberg.de/index.php?id=137

Filmpark Babelsberg - for EUR 21/ person not the cheapest option, but packed with entertainment for a fun day out. Starting April 2012. Grossbeerenstrasse August-Bebel-Straße 26-53 14482 Potsdam

http://www.filmmuseum-potsdam.de/en/350-0.htm

Filmmuseum Potsdam, offers a range of exhibition about films, also an exhibition about 100 years of Babelsberg Studios, which started in November 2011 (if you dont want to wait until April 2012 for the other exhibitions in Potsdam!). Filmmuseum Potsdam Breite Straße 1A, Marstall, 14467 Potsdam

Its the 2nd advent this weekend, hence time to give you a briefing of how we celebrate xmas in Germany.

I have to give a timeline. It starts in October, when xmas sweets start to appear in the larger supermarkets, then we have the 4 advents, Sankt Nikolaus on the 6th Dec and xmas eve on the 24th Dec and the two following xmas bank holidays.

The xmas season in Germany starts with the 1st of the 4 advents. These are the 4 weekends leading up to xmas. It is custom to have an “Adventskranz” (advent wreath) with 4 candles. Each advent another candle will be lit up. You start with 1 at the first, 2 at the 2nd and so on. And its also the start of the xmas market season. You go there to meet up with your friends for some tasty food and drinks to keep you warm. In Berlin its mostly sausages, mushrooms stews, Flammkuchen - a pizza from the French Alsace area, Langos – a kind of hungarian pizza and malt wine.

The best xmas markets in Berlin are at Potsdamer Platz (Austrian style with some austrian food & toboggan run), Gendarmenmarkt and Schloss Charlottenburg. I personally really like the Charlottenburg one, the setting in front of the city’s castle is just great and it has a variety of beautiful stalls, where you can get some inspiration for the xmas gifts for family and friends.

My recommendation for you is a visit of the Castle restaurant “Kleine Orangerie”, Spandauer Damm 20. Its a cosy place, beautifully decorated and gives you the feeling of being in the castle itself. Its inspired by Queen Luise of Prussia, who lived 1776 – 1810 and was famous for her beauty as well as for being down to earth. And … try one of the restaurants many duck dishes. I had 1/4 duck with red cabbage and potato dumplings. It is the food Germans eat on xmas day and trust me my mum can’t make it any better than this restaurant. For EUR 11.50 it is a good deal.

If you want to get out of town, you might want to have a look at Dresden. Dresden is famous for the rebuild “Frauenkirche” a stunning church, that exploded in WWII, when the Brits wiped out the town and was rebuid, financed by lots of donors. The city is situated on the Elbe riverbank, featured in lots of paintings by Canaletto and can call the stunning Semper – Opera its own. Dresden is the place where the German xmas cake “Stollen” comes from and has a beautiful xmas market.

Another place to go would be Erfurt, being an old medieval trading town, it features lots of timberframe houses. Beside the modern one it hosts a medieval xmas market (just follow the smell of garlic … yummy). The setting on the bottom of two big churches is grand. And once you are there, try the local specialty, fried Thuringian sausages.

Xmas is the seaon of sweets, so what is there in Germany. We have lots of chocolate, gingerbread and marzipan sweets. If you loos for something traditional go for “Stollen“, the xmas fruitcake from Dresden, “Printen” a gingerbread type from Aachen, “Marzipan“ from Luebeck or “Lebkuchen & Obladen“ from Nurnberg.

What about decoration? Germans love decoration. In many places in Europe you rent your flat furnished, in Germany this is not common. Hence we tend not to move very often and therefore put our personality into our furniture and decoration. There are a few traditional xmas decoration items. Most of them are from an area in the mountains, called Erzgebirge. What you can buy on the xmas markets are mostly ”Schwippbogen” – a nativity play setting made of wood, with several candle holders on the top, “Weihnachtspyramide“ - a revolving xmas setting with candle holders that make the pyramide spin, “Rauchermaennchen“- a little wooden man, which is empty inside, you put a cone of incence in him and the smoke comes out of his mouth,  and “Nussknacker” – a nutcracker.

Another thing xmas-y, I noticed my co-worker from China didnt know, is the xmas calendar, where you open a door every day and get your daily fix of chocolate until the 24th Dec. In Germany there is also the version with socks made of fabrik that you can fill in yourself.

Hope that gave to you a little introduction. Happy discovering !!