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  • Work now, qualify later: Germany’s Recognition Partnership Visa

    Work now, qualify later: Germany’s Recognition Partnership Visa

    What is the recognition partnership?

    The recognition partnership is a specific kind of residence and work permit for Germany. It enables non-EU citizens to come to Germany in order to improve their professional qualification further while working at the same time. It may provide the basis for a permanent residence permit in Germany.

    Video: The recognition partnership

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    Goal: Obtain the right qualification in Germany

    Germany has made a deliberate decision to facilitate the immigration of persons who have a qualification that is considered useful for the German economy. It has defined what these qualifications are. People who do not quite meet these criteria must qualify further to be able to come to Germany. For a long time, they had to do that from abroad. They had to study or obtain a professional qualification in their own country or another country. Only after they had done that, they could obtain a visa and residence permit for Germany. This procedure was long and cumbersome and deterred many people.

    This is why the procedure was changed and the so-called recognition partnership was introduced on 1st of March 2024. Recognition partnership means that people who have qualifications that do not quite match the requirements for a specific job in Germany can find an employer in Germany, come to Germany and cooperate with him to improve their qualification and bring it up to the required level. 

    In most cases, that means that the person works for this employer and at the same improves his or her qualification so that they match the requirements for a residence permit. So, other than before, the person can come to Germany immediately and can also start working immediately. Since the person can work and get a salary, the requirements in terms of finances are much less stringent. 

    Who is eligible?

    Qualification

    So, who can enter a recognition partnership? You must have undergone full-time professional training for a period of at least two years in another state. This training must be recognised by the state in which you have obtained it 

    Or, you must have a university degree which is recognised in the state in which you obtained it.

    In the procedure, you must prove that you meet these requirements. That is done via a statement by a German authority, the so-called Zentralstelle für ausländisches Bildungswesen, which means Central Office for Foreign Education. 

    This body has the task to establish whether foreign qualifications or degrees are recognised by the state in which they have been issued. In short, they want to make sure that the degrees and diplomas are legit. 

    You submit your degrees or certificates to the Central Office for Foreign Education; then the Central Office for Foreign Education issues a kind of digital declaration to the effect that your qualification or degree obtained can in principle be recognised in Germany. 

    If you have a university degree, the Central Office of Foreign Education will issue a so-called “Statement of Comparability”. 

    If you apply with a vocational qualification, it will issue a so-called Confirmation of State Recognition. 

    This confirmation is not a  valid recognition yet. It just means that the degree can in principle be recognised. This confirmation is a requirement to obtain a visa. When you have entered Germany with the visa, you will initiate the procedure for formal recognition of his qualification. 

    Job or valid job offer

    You must already have a job. That means you must either have an employment contract or  a verifiable, concrete job offer. The job which you are going to do must be connected to the qualification you have obtained, it must be in the same field of work. In the context of the recognition partnership, you cannot get a visa to do a job which is unrelated to his or her qualification or education.

    Recognition partnership agreement

    However, the contract which you conclude with the employer goes beyond a mere labour contract. 

    There are additional obligations for both parties. You and the employer conclude a recognition partnership agreement. By that agreement, the employer enters an obligation to support you in obtaining the additional qualification you need. This can for example mean that the employer gives you days off to participate in courses, that the employer provides on-the-job-training, that he helps you identify offers for training which may be useful and so on.

    You enter an obligation to initiate  the procedure for the recognition of the certificates or degrees obtained abroad immediately. You also enter an obligation to participate actively in activities which are designed to bring your skills to the required level, for example by taking courses and exams, participating in on the job training and so on. 

    There is an authority in Germany which is competent for various administrative questions regarding employment, the Bundesagentur für Arbeit, which translates to Federal Agency for Employment. This Federal Employment Agency checks if the recognition partnership agreement meets the requirements. It also checks if the employer is suitable. That means if the employer has the necessary skills to provide the training which is required.

    If the job requires a professional practice license (e.g., in healthcare), the employer must meet additional strict criteria. They must be either bound by a collective bargaining agreement (Tarifbindung),  or be a licensed care institution pursuant to § 72 SGB XI, or be an employer of church law to be eligible to enter into a Recognition Partnership

    Required language skills

    Finally, you must have sufficient knowledge of the German language. In general, that means that you must have knowledge at least the level A 2 of the European Reference Framework. However, it is noteworthy that this is only the minimum requirement set out in law. In practice, you will not go very far with knowledge at level A 2 – neither for the purposes of your job nor in everyday life in Germany. So, it is desirable to have a better command of the German language. If you obtained your visa with A 2, you should start working on your German skills as soon as possible when you arrive in Germany. 

    Procedure

    Obtaining a visa

    These are the requirements. So, how does the procedure work?

    If you are interested in obtaining a visa and residence permit in the frame of a recognition partnership, you should first get a pre-liminary assessment that your training, education or degree can be recognised. They must obtain a digital declaration from the Central Office for Foreign Education.

    Then or parallel to that, you should find an employer who will offer you a job and a recognition partnership. Obviously, that can be difficult. There is not one central portal of all employers which are offering jobs in the frame of a recognition partnership. Rather, there are several portals and channels via which you can find an employer or a job offer, there are private agencies offering support, unofficial networks and so on. 

    If you already have a declaration from the Central Office for Foreign Education, that may make it easier to find a potential employer, because then the employer knows that he can continue with you.  It also shows that you have done your homework. 

    Once you have found an employer, you conclude the recognition partnership agreement with him. 

    The next step is to obtain a visa. That can be done in two ways. There is the classic way and there is the accelerated procedure. 

    The classic way is a follows: 

    Your future employer will  fill out a number of documents and forms and send them to you. You are going to need them when you submit your visa application.

    You submit your application for a visa in the context of a recognition partnership at the embassy of your country of residence. In this application you include inter alia copies of the agreements you have concluded with your future employer and the paperwork that your future employer gave to you. 

    The embassy or other competent authority will then forward your application to the Federal Agency for Employment. The Federal Agency for Employment checks if all requirements for a recognition partnership are satisfied, for example if, based on your agreement with the future employer it can be assumed that you will obtain the qualification you need.

    The Federal Agency for Employment then gives its approval (or, if things do not go well, it does not) and sends this response to the embassy. The assessment by the Federal Agency for Employment is binding on the embassy. If the assessment is positive, you will be issued a visa. With that visa, you can enter Germany. 

    The second possibility is the accelerated procedure: In this procedure, the employer is entrusted with most of the formalities. The employer enters an agreement with the local immigration office. This authority initiates the procedure for recognition of the education obtained and the approval by the Federal Agency for Employment. The Immigration Office issues a preliminary approval. This is sent to the applicant, who submits it to the German embassy in his country of residence. Since all checks have already been carried out, the visa is usually issued fast.

    Next steps in Germany

    With the visa, the applicant enters Germany.

    Once you are in Germany, you must submit a request for formal recognition of your foreign qualification immediately. 

    In addition to that, you request a residence permit at the local Immigration Office, that is the authority competent for issues related to foreigners in Germany. The Immigration Office will in most cases issue a residence permit for twelve months. This can be renewed up to a maximum stay of three years. 

    And you start working as agreed with your employer. If things work as planned, you will bring your training or education up to the standards which are required under German law and can obtain a permanent residence permit. Should you not achieve full equivalence within the maximum three-year limit, you may be eligible to transition to a residence permit for Experienced Professionals (Berufserfahrene) to secure your continued employment.  

  • Obtaining a visa for establishing a business in Germany

    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.

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    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:

    1. Is there a genuine demand for your proposed business?
    2. Will the endeavor contribute positively to the German economy?
    3. 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.

  • Create a GmbH in Germany online

    Introduction

    Is it possible to create a GmbH in Germany without going to Germany? This is the topic I am going to deal with in this post. For those who prefer watching a video, here is a short Video on this question.

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    Background

    Popularity of the GmbH

    More than one million businesses in Germany operate as a “GmbH” (Gesellschaft mit beschränkter Haftung, or company with limited liability). This makes the GmbH one of the most popular legal forms for conducting business.

    The primary feature of a GmbH is that it limits the personal liability of the business owner. A GmbH is a separate legal entity with its own legal personality. Consequently, the GmbH can enter into contracts, and the GmbH itself bears the obligations arising from these contracts. As a result, the person or persons running the business are not personally liable, and their personal assets are shielded from liability.

    This makes the GmbH a preferred choice for running a business, including for individuals residing abroad who wish to establish a company in Germany. However, the formation of a GmbH involves many formalities. Many people considering the formation of a German GmbH wonder if they have to travel to Germany to do so.

    The short answer is “no.”

    Requirement of notarization

    Relevance

    The key legal point is that the articles of association of a GmbH must be notarized. The articles of association constitute the founding document of the GmbH—the fundamental document that specifies the purpose of the GmbH, its mode of operation, its seat, and so forth. These articles of association must be notarized.

    This means that a notary public must confirm that the individuals named in the articles of association genuinely intend to found a GmbH using these specific articles.

    In Germany, notaries public play a significant role in many areas of contract law. Their task is, in particular, to ensure that documents are authentic, meaning that the signatures on the documents are genuine. Notaries public verify the identity of the persons who are parties to a contract and confirm that these persons have signed or concluded the contract. A specific law, the German Notarization Act, specifies how notaries must proceed when notarizing and which rules they must follow.

    When a document is notarized, public trust in that document is significantly enhanced.

    For certain types of documents, the law stipulates that they must be notarized to be valid. The articles of association of a GmbH are among these documents. This means that the articles of association must be notarized; otherwise, they are invalid.

    For a long time, notarization required the physical presence of individuals before the notary public. Persons wishing to conclude a contract would meet in the notary’s office. The notary public would inspect their identity documents, such as their passports or identity cards, to verify their identity. He would then witness them signing the contract and confirm with his own signature that they had concluded the contract.

    Possibility to notarize online

    This changed in 2022. The German legislature introduced the possibility of notarizing the formation of a GmbH online.

    The main reason for this change was an EU Directive, specifically the “Directive on digital tools and processes in company law.” This directive aimed to promote the use of digital tools in the context of company formation and to simplify the process of creating companies. Among other things, it obliged EU member states to ensure that companies could be formed entirely online.

    This was an EU directive, which means that EU member states had to transpose it into their national law. They were required to pass legislation that was in line with the requirements of the EU directive and that implemented the directive.

    Germany has done this and amended certain laws to ensure that a GmbH can be created online, as required by the EU directive.

    The German legislature did not abolish the notarization requirement. This means that the notarization of a GmbH’s articles of association is still legally required. However, the legislature added additional methods for conducting notarization to make online notarization possible.

    Firstly, the legislature introduced new provisions into the law governing the GmbH, the German Act on Limited Liability Companies. These provisions expressly clarify that notarization can be conducted online.

    The legislature also included a template in the law that is specifically designed for the online formation of a GmbH. This template contains articles of association and language for the formation of the GmbH.

    If founders wish to create a GmbH online, they and the notary public can follow this template.

    In addition, the legislature amended the law governing notarization, the Notarization Act. This act now states that notarization can be conducted via a video communication system and clarifies the procedural requirements.

    A specific video communication system must be used. There is a Federal Chamber of Notaries, which is an association overseeing the activities of notaries. This Federal Chamber of Notaries has made a specific video communication system available. This system must be used for the notarization of the formation of a GmbH.

    Therefore, the online formation cannot be conducted via Zoom, MS Teams, or any other system, but exclusively via the specific system provided by the Federal Chamber of Notaries.

    The founders do not need to concern themselves with this; once they have chosen a notary public and engaged him to carry out the notarization, the notary will send them a link.

    The founders will need a computer with a camera and a microphone and a stable internet connection. They will also need a smartphone with NFC functionality and must download an app provided by the Chamber of Notaries, which the notary will specify.

    It is crucial that the founders have sufficient identity documents. The purpose of notarization is for the notary public to verify the identities of the parties to a contract and to confirm that they have concluded the contract.

    This purpose does not change when notarization is conducted online. Therefore, the notary public is only authorized to proceed with the notarization if he is satisfied that he has verified the identity of the persons entering into the contract.

    Within the EU, a number of states have agreed on which identity documents are considered sufficient and will be recognized in other states. The discussions on this matter are ongoing, and the list is being expanded.

    For nationals of other countries, it is advisable to discuss early in the process exactly what documents are needed to confirm the identity of the founders.