Document background
The Investment Contract For Small Business is a crucial document used when investors seek to provide capital to small and medium-sized enterprises (KMU) in Germany. This agreement is specifically designed to comply with German corporate law requirements and investment regulations, providing a structured framework for capital injection while protecting both investor and company interests. It becomes necessary when a small business seeks external funding for growth, expansion, or operational needs, and requires detailed documentation of the investment terms, shareholding structure, and governance arrangements. The document must comply with German notarization requirements where applicable and includes specific provisions required under German commercial law. It typically addresses key aspects such as capital contribution, share issuance, shareholder rights, management participation, and exit strategies, all within the context of German legal and regulatory framework.
