Report sector-specific investments in German companies for certain defense equipment and IT security products

Are you based outside Germany and want to invest in a German company? Then you need the approval of the Federal Ministry for Economic Affairs and Energy if it is a notifiable investment in a sector-specific area.

If you want to invest in a German company and are not based in Germany yourself, the Federal Ministry for Economic Affairs and Energy (BMWE) can review your investment and approve it, prohibit it or attach conditions to it. If your investment is subject to notification, you may only carry it out once it has been approved by the BMWE. Until approval is granted, there is a so-called prohibition of execution.

The BMWE can examine whether your investment is likely to impair the essential security interests of Germany or the public order or security of Germany or the European Union (EU). Whether you have to report your investment to the BMWE - i.e. whether there is an obligation to report - depends on what kind of German company you want to invest in.

• If you are based outside Germany and want to invest in a German company in a particularly security-sensitive sector, you must report the acquisition if you hold 10 percent or more of the voting rights and the BMWE may initiate an investigation. This includes, for example, companies from the defense industry or IT security.
• If you are based outside the EU or the European Free Trade Association (EFTA) and wish to invest in a German company that is part of the critical infrastructure or provides other particularly security-relevant services, you must report the acquisition if you hold 10 percent or more of the voting rights and the BMWE may initiate an investigation. This includes, for example, particularly important companies in the energy, water, food, information technology, telecommunications, health, finance, insurance, transportation and traffic sectors, as well as media companies.
• If you are based outside the EU or EFTA and wish to invest in a German company that provides other security-related services, you must report the acquisition if you hold 20 percent or more of the voting rights and the BMWE may initiate an investigation. This includes, for example, manufacturers of particularly important medicines and companies that are active in the field of particularly important key technologies.
• If you are based outside the EU or EFTA and want to invest in another German company, you do not have to report the acquisition. Irrespective of this, the BMWE can initiate an examination if 25 percent of the voting rights are acquired within 5 years. In order to obtain clarity more quickly as to whether your acquisition is likely to be impaired, you can submit a voluntary application for a clearance certificate.
• You will then usually receive a decision from the BMWE within a maximum of 6 months. Most examination procedures can be completed within 2 months. In individual cases, however, it may take considerably longer.

• The company in which you wish to acquire voting rights is domiciled in Germany.
• You yourself are not domiciled in Germany or the European Union (EU) or the European Free Trade Association (EFTA).
• You wish to acquire voting rights and achieve
  • 10, 20, 25, 40, 50 or 75 percent in the case of particularly security-sensitive companies,
  • 10, 20, 25, 40, 50 or 75 percent in the case of critical infrastructure companies,
  • 20, 25, 40, 50 or 75 percent for companies with other security-relevant services,
  • at least 25 percent for other companies.
• Their acquisition is not likely to impair the essential security interests of Germany, public order or the security of Germany or the EU.

• Action before the administrative court

You should submit the notification for investments online via the federal portal at the Federal Ministry for Economic Affairs and Energy (BMWE).
If, in exceptional cases, this is not possible or reasonable for you, you can also submit the information by other means. You can find detailed information on this on the BMWE website.

Online registration:

• Go to the website of the federal portal verwaltung.bund.de and call up the online application.
  • Note: To submit the declaration online, you will need an electronic ID document, for example the online function of your ID card.
• The online application will guide you step by step through the required information.
• Upload the required documents as a file (PDF, XLS, DOC, JPEG, PNG, maximum 10 megabytes per file) and send the application.

The rest of the process is as follows:

• The BMWE will check your details and documents.
• If the BMWE does not open a review procedure within 2 months of receiving your notification, the approval is deemed to have been granted (so-called fictitious approval).
• If the BMWE opens a review procedure within 2 months of receiving your notification, you will receive a corresponding notification. The BMWE will inform you which documents you need to submit.
• The subsequent examination procedure will vary in length depending on the complexity of the case, but usually takes a maximum of 4 months. As a rule, you will therefore receive a decision from the BMWE within a maximum of 6 months from the date of notification. In individual cases, however, a significantly longer review period is also possible.
• If the BMWE finds no probable impairment, you will receive a release. If, on the other hand, the BMWE determines a probable impairment, it can either prohibit your investment or attach conditions to it.

Comments on the application deadline:

• You must notify a reportable investment immediately as soon as you have concluded the contract under the law of obligations (signing).
• There is no deadline for a voluntary application for a clearance certificate.

Comments on the deemed approval:

• The BMWE can initiate a review procedure within 2 months of learning of your investment. An extension of the deadline is possible if all parties involved agree.
• If all information and documents have been received in full and the BMWE decides to examine your investment, it has 4 months for the examination procedure. This period can be extended in the following cases
  • in the event of particular difficulties: an additional 3 months
  • if your investment affects Germany's defense interests: an additional month
  • An extension is also possible if all parties involved agree
  • if the BMWE asks questions, the deadline is suspended until you have answered them

Fee from 800,00 EUR to 32.500,00 EUR (Information on cost composition can be found here)