In response to global trends, Germany significantly tightened its foreign direct investment (FDI) screening process in 2021. The scope of mandatory FDI screening has expanded to cover a broader range of sectors — such as military-related goods, critical infrastructure, and emerging technologies including AI and semiconductors — and applies to acquisitions by foreign investors outside the EU and EFTA. Furthermore, the notification process has become more formalized and demanding, requiring detailed disclosures about both the target and the acquirer, including personal data and corporate structures. Non-compliance with FDI regulations carries serious consequences: implementing a transaction without clearance is prohibited, and premature actions such as exercising voting rights or sharing sensitive information can result in criminal penalties, including up to five years of imprisonment. These sanctions are aimed not only at companies but also at individuals in decision-making roles. Given the complexity and potential legal risks, early planning and careful legal assessment are strongly recommended for any cross-border M&A involving German entities. This quick guide outlines the requirements for the German FDI procedure in view of the risks stipulated above.