Self-Employment in Germany
Achim Heuser
HEUSER Recht und Steuern
Am Kiekenbusch 15
47269 Duisburg
[email protected]
www.heuser.de
Germany provides business men, entrepreneurs, companies from all over the world the opportunity to establish a permanent business in this country, that effects the economy in a positive way.
Being self-employed in Germany is necessarily tied to residence. Without a residence permit it will be difficult, if not impossible, for an individual to establish a business in which they are self-employed.
Residence permits are usually easily granted for highly specialized professionals, e.g.: scientists, professional experts or specified senior managers etc. However, other qualified professionals can also be granted residence permits.
If you want to move to Germany and be self-employed and you meet certain criteria, then you most likely will be automatically issued a residence permit (for both you and your family) if you can show that your business will have a positive effect on the German economy.
This criterion is usually related to the type of business, your qualifications and whether or not you may be doing something that could be done by a German national or some other qualified resident. The local Foreigners Office (Ausländerbehörde) will ask for certain documentation and then check with the local Chamber of Commerce (Handelskammer) or other responsible local organization to see whether or not your business is specialized enough and economically viable. If your business is deemed acceptable you will be issued a residence permit. However, there may be limitations as to what you can do and where you can do it. In other words, your permit may restrict you to a certain type of self-employment in a certain geographical area. This decision is up to the local authorities.
Business
The product or the business is needed from an economical point of view or in a special region. Unfortunately, there is no catalogue of needed businesses or regional needs available. Each federal state in Germany, each county may consider this condition differently.
Impact on German Economy
The business has a positive impact on the German economy. This is also a very general term, which is interpreted differently in each German federal state. Sometimes the creation of new working places is highly welcomed, sometimes the payment of taxes. There is no catalogue of positive impacts available.
Self-reliance
The most important condition is that the investor can prove sufficient funds for his project. Again, there is no absolute amount of money, which is regarded as sufficient. Each federal state in Germany has a different opinion on that. However, an amount of Euro 500.000.- is often regarded as sufficient. But sometimes even much lower budgets were accepted, if and when it was clear that the available funds are enough to cover the starting period. It is absolutely necessary to present a plausible and valid proof of the available funds.
Pension
Applicants older than 45 years of age need to provide a pension plan, which they can rely on.
Business Plan
The core piece of the application is the business plan, which needs to show plausibly how the business is intended to grow and develop. It is of utmost importance that the calculations are plausible, thorough and complete. Ideally, it passes the test of the German Industry and Commerce Chamber without any remarks.
All documents need to be prepared properly and certified depending on the country of origin.
Application Procedure
The application procedure is divided into two different steps. The visa application needs to be done at the embassy or a competent consulate in the country of origin. The authority will grant a visa that allows entry into Germany. Once the applicant arrives in Germany, he has to initiate the second step within 90 days: the application for the residence permit. The authorities will ensure that the applicant complies with all local rules.
Typically, this period is necessary to establish the business, form a company, apply for a tax number, a business number and so on.
HEUSER RECHT UND STEUERN is among other things specialized in aiding in the process of applying for a visa, a residence permit and a work permit. The counsel HEUSER RECHT UND STEUERN provides is not only an assessment of the legal situation but is also complemented by recommendations on how to proceed in the most economic and efficient way. Clients can rely on the exhaustive support for carrying out relocations of any kind regarding all legal situations.
Assistance includes collecting the needed documents for the application, draft a viable business plan and the application process itself to give you your best chances of succeeding in establishing your business in Germany.