Different visa options to work self-employed
How can an individual secure a visa to establish a business entity in Germany? This is the question I am going to deal with in this blog post.
Germany provides a range of visa options for individuals intending to engage in self-employed activities within the country. This includes visas designated for individuals who plan to initiate a commercial enterprise in Germany, permits for those who wish to practice a liberal profession, such as an architect or lawyer, and provisions for researchers or scientists who intend to utilize their expertise to launch a business venture.
Business visa for non-EU-citizens
This discussion will concentrate specifically on the visa and residence permit procedures for applicants who seek to enter Germany for the purpose of starting a business. The stipulations detailed herein are exclusively applicable to citizens from non-EU countries.
EU citizens benefit from the principle of freedom of movement within the European Union, consequently rendering this specific category of visa or residence permit unnecessary for them.
The pathway to obtaining a visa and a residence permit for individuals aiming to operate a business in Germany is open to those who possess an existing enterprise abroad and wish to relocate it to Germany, as well as to prospective entrepreneurs who seek to initiate a new business entirely from its inception.
Requirements
The qualification criteria remain consistent for both scenarios: Non-EU citizens who are interested in a visa for operating a business in Germany must address three fundamental inquiries:
- Is there a genuine demand for your proposed business?
- Will the endeavor contribute positively to the German economy?
- Do you possess the necessary financial resources to commence the business?
The first consideration is whether a need exists for your business venture. The German Aufenthaltsgesetz—which translates to the Residence Act—stipulates that a visa for establishing a business may be issued if there is an economic interest or a regional demand for the specific type of business.
A criterion that holds significant weight in assessing the presence of an economic interest is, for instance, whether the business will result in the creation of employment positions. Historically, a regulation existed where the visa was virtually assured if an investment of €250,000 was made and 5 jobs were generated. This explicit rule is no longer in effect today. Currently, the focus is placed upon the quality of your business proposition—however, these historical figures can serve to provide a general indication of the level of commitment the responsible authorities are expecting.
Additional considerations will encompass whether the business operates within a sector that offers particularly favorable prospects for economic expansion, such as the technology field. Furthermore, the authorities will evaluate if the business is projected to contribute to vocational education and training or if it will advance innovation and research.
In the context of the requirement that the business must satisfy a regional demand, the authorities will specifically investigate whether a sufficient number of businesses already provide the same goods or services or if the new enterprise might effectively address a current deficiency. For example, should a specific region lack an adequate number of roofing businesses, a regional demand for this type of business may be established, even though roofing might not represent a futuristic sector like Artificial Intelligence or environmental technology.
Checking the economic impact
Role of professional bodies
When undertaking the assessment of whether there is an economic interest in the business and if there is a corresponding regional demand, the German authorities are mandated to involve pertinent entities, such as the Chambers of Industry and Commerce (Industrie- und Handelskammer – IHK) or the Chamber of Crafts (Handwerkskammer). These bodies are tasked with delivering their official assessment on the question of whether an economic interest exists in the business that the foreign national intends to found or if the business concept fulfills a regional requirement. These expert evaluations provided by the Chamber of Industry and Commerce or other bodies are not legally binding upon the German authorities. Nevertheless, in practical terms, they exert a highly significant influence. The authorities typically adhere to the assessment provided by the relevant body.
Importance of business plan
To secure a favorable opinion from these bodies, your submitted business plan must be demonstrably robust. It is required to incorporate a three-year revenue projection, a precise liquidity plan demonstrating that the business will maintain sufficient cash flow, and a comprehensive market analysis. A strong emphasis will be placed on your curriculum vitae and professional qualifications—you must unequivocally establish that you are the most suitable individual for this specific business concept.
Consequently, for prospective business owners, it is highly advisable to dedicate substantial effort to the quality of the documents that comprehensively detail their business idea and their projected strategy.
Economic impact and financing
The second mandatory requirement is that the activity which the business owner intends to pursue must exert a positive impact on the overall economy. This specific requirement largely corresponds with the influential factors previously enumerated.
Finally, the business owner must provide irrefutable evidence that the financing for the business is fully secured. This mandates that the applicant must either possess adequate capital resources or hold a valid contract for financing with a recognized bank or an external investor, among other options.
This financial security is, naturally, an element that ought to be addressed comprehensively within the business plan as a matter of due course.
Applicants who are older than 45
If the applicant has reached the age of 45 or older, a critical fourth prerequisite is introduced: the provision for your retirement (angemessene Altersversorgung) must be securely documented. This is typically substantiated either with private pension insurance that guarantees a fixed monthly payout beginning after the age of 67, or by providing evidence of possessing sufficient private assets.
The specific financial thresholds that are required are subject to change over time. As a current administrative guideline, processing offices will presently expect either a monthly payout of approximately €1,560 or total verifiable assets of around €225,000.