To obtain a residence permit as a self-employed entrepreneur, you do not need to invest large capital in the local economy or hire at least five German employees. It is enough to present a well-thought-out business plan that will demonstrate that the planned activity is of interest and benefit to Germany. It is also important to have enough money for business development.
This way of moving to Germany is suitable for those who have really decided to settle in Germany, run their own business in this country, or choose a long-term prospective start up. In return you get free education for children, opportunity to obtain permanent residence and citizenship, and a chance for state subsidies and freedom of movement within the EU countries.
The official website of the program
Paragraph 21 of the Aliens Act (§ 21 AufenthaltsG) states that a long-term residence permit can be obtained by an entrepreneur whose activities:
There are no universal requirements for the hiring of workers, the type of business, and the size of turnover. Each region decides for itself which project is interesting to it. The law states that the applicant must have “sufficient capital” for development. The specific amounts have not been determined, but, according to the experience of legal practice, the start is from € 100 thousand per family.
The main task of an entrepreneur is to prepare a well thought out business plan and to protect it, which means to convince officials that the project will be useful for the region. By promising to hire local staff, the said above protection may be avoided.
The following factors increase the chances of success: previous experience in entrepreneurship, promotion of innovations, starting a business in undeveloped regions, an impressive size of the authorized capital.
The term of a residence permit based on entrepreneurial activity is three years. In case of successful implementation of the business plan and sufficient income for the family, you can then get a permanent residence permit. If the economic indicators "fall far short", permanent residence is issued five years after passing the language exam. The right to apply for citizenship appears after seven years of continuous stay in the country with a residence permit and a permanent residence permit.
The plan should indicate the sustainability and usefulness of the business idea, the applicant's entrepreneurial experience, sources and means of financing, the company's impact on the situation in the region (especially on tax revenues and employment), the use of new technologies.
It is possible to provide information on an approved long-term loan covering a part or the whole amount of the authorized capital.
When registering the most popular form of enterprise in Germany (GmbH), the authorized capital should be at least € 25 thousand, and 50% should be paid at the stage of company registration.
The applicant must demonstrate sufficient capital to start a business and live in Germany. According to the experience of lawyers, it is worth focusing on the amount of €100,000. Moreover, the total family budget is taken into account.
You must have residential real estate in Germany. It is not necessary to own it - a long-term lease agreement will do.
You need to have a health insurance policy.
Adult citizens of any country can apply for a German residence permit for self-employment. At the same time, education and experience must correspond to the field of activity that the investor claims. Knowledge of German is an advantage.
A residence permit is issued to foreigners over 45 years old only in case of sufficient pension provision (can be confirmed by a bank account, investments, property, shares, etc.). If the applicant is over 67 years old, then the pension insurance for a period of 12 years is needed.
Minor children and spouses receive a residence permit together with the applicant, the latter will also have the right to work.
When applying for a national visa and residence permit, state fees are charged. The total amount will be about € 300-400 per person.
The services of a lawyer, a consultant for the preparation and protection of your business plan will cost around €10,000-20,000.
The applicant must purchase a health insurance policy (from €1,000 per year), as well as purchase or rent accomodation for a long time period.
Read more about the procedure for buying real estate in Germany and related costs here.
The applicant has the right:
The applicant must: