Consultation under:

0221 - 80187670

Residency by founding a business or a company in Germany

Areas of Expertise

Helmer Tieben

Rechtsanwalt Employment and Labour Law

Starting a business in Germany: Residence permit for non-EU citizens

If you are planning to set up a company in Germany in order to obtain a residence permit, we are your competent partner. With our comprehensive expertise in residence and company law and years of experience in the application process, we will support you every step of the way. An experienced residence permit lawyer will assist you with your visa application and clarify all outstanding issues with the relevant authorities. This allows you to concentrate on the essentials - your company.

Comprehensive support with the application

We take care of communication with the German embassies and consulates as well as the relevant immigration authorities. In addition, we coordinate the necessary steps with other relevant authorities such as the Chamber of Industry and Commerce (IHK), the Trade Licensing Office or the competent registry courts involved in the establishment of your company. An experienced aufenthaltsrecht lawyer will ensure that all documents are submitted correctly and on time.

Collaboration with experts

When setting up a company, we work with experienced tax advisors, notaries and business experts to create a viable business plan. This professional support ensures the successful launch of your company in Germany. Our Online law firm enables you to process all formalities quickly and efficiently.

Requirements for non-EU citizens

While EU citizens enjoy the right to freedom of establishment in Germany, setting up a company for non-EU citizens is subject to special requirements. To set up a company, you need either:

  • a temporary residence permit or
  • an unlimited settlement permit.

An experienced lawyer for residence permits can help you obtain the right residence permit for your business plans.

Who can apply for a residence permit?

Non-EU citizens can obtain a residence permit for self-employment if they:

Requirements for a residence permit for business start-ups

A residence permit according to § Section 21 Residence Act is granted if the following requirements are met:

  • There is an economic interest or a regional need.
  • The planned activity will have a positive impact on the economy.
  • Financing is secured through equity or a loan commitment.

In some cases, the residence permit is also granted if significant investments are made (e.g. from €250,000) and jobs are created. The Chamber of Industry and Commerce (IHK) can issue an opinion on this, but the final decision is made by the competent authority.

Temporary and permanent residence permit

The residence permit for a business start-up is initially limited to three years. If the business is successfully managed, it can then be converted into a permanent settlement permit. Depending on the progress of the business, a permanent residence permit is issued after 2, 3 or 5 years.

Residence permit for business start-ups

Examination of the requirements and necessary documents

The requirements for a residence permit are checked by the responsible German embassy or consulate in the applicant's home country. The local immigration authority is involved in this process, which in turn consults specialised bodies such as the Chamber of Industry and Commerce (IHK) or the Chamber of Crafts and other relevant authorities.

Documents to be submitted

The following documents must be submitted to the embassy or consulate:

1st business plan:

  • Capital and financing plan
  • Earnings forecast for the next three years
  • Liquidity plan
  • Proof of capital or loan commitments

2. curriculum vitae

3. proof of qualification:

  • B. University degrees or professional experience

4. evidence of co-operations:

  • Letters of intent or expressions of interest from potential business partners or customers

5.management contract (if the company is a corporation)

Additional documents (if available)

  1. Rental agreement for commercial properties

2. for GmbH, UG or AG:

Additional documents for existing companies

  • Balance sheets for the last two years
  • Business management analysis (BWA) for the last six months
  • Income statement if no balance sheet has been prepared
  • Tax assessment notices for the last three years (if available)

The business plan

The business plan is a key document for foreign entrepreneurs who wish to apply for a residence permit in Germany. It provides a comprehensive description of the company and covers important areas such as finances, marketing, products, target customers and potential risks.

Why the business plan is important

A well-structured business plan is crucial to prove to the German authorities that the applicant has a clear, realistic and sustainable business concept. It shows that the entrepreneur has the skills to run the company successfully, taking into account the German market.

The business plan also helps the entrepreneur to prepare for the start-up and everyday business life in Germany. A professional business plan can also convince investors and potential business partners to invest in the company or enter into co-operations. This emphasises that the company has realistic growth opportunities and has been well researched.

Content of the business plan

The business plan should take the following aspects into account:

  • Entrepreneurial experience and professional suitability of the applicant,
  • Economic interest or regional need,
  • Positive effects on the (regional) economy,
  • Contribution to innovation and research,
  • Effects on the employment and training situation,
  • Amount of the capital investment,
  • Securing the financing of the company.

Contents in detail

The business idea

  • What is the name of your company?
  • What products or services do you offer?
  • What distinguishes your company from others?
  • Where should your company be located? In which city or region in Germany?
  • Is it mainly an online business or will there be a physical shop?
  • What legal form should the company take?
  • How high is the share capital?

Product/service

  • How is your product or service defined?
  • How does it differ from the existing market offering?
  • What marketing strategies do you pursue?
  • Do you have the necessary licences and permits?
  • Are there any copyrights, patents or trade marks?
  • Is the product ready for the market or still under development?
  • Was the product tested before it was launched on the German market?

Competition

  • Who are your competitors?
  • What are your company's strengths and weaknesses?
  • How can you successfully tackle weaknesses?
  • What gap in the market are you filling?

Customers and market

  • Which target group are you addressing? Have you carried out a demographic analysis?
  • Is there a market for your product or service in your region?
  • Is the market dominated by a few large companies?
  • What advertising measures are you planning to reach your target audience?

Finances

  • What are your short and medium-term sales forecasts?
  • What are the sales forecasts for the first year?
  • Does your company have sufficient financial resources to avoid potential liquidity problems?
  • What is the total capital requirement?
  • How is your company financed?

Foundation of the company

Setting up a company in Germany is a complex process in which the creation of a business plan is only the beginning. It is necessary to register the company with the relevant authorities, register with the tax office and trade office as well as the Chamber of Industry and Commerce and, depending on the type of company, make an entry in the commercial register.

The Choosing the legal form of your company forms an essential basis for the success of the company. However, it is important to always bear in mind that a currently optimal legal form can become disadvantageous due to later developments, such as expansion or a higher liability risk. You should therefore regularly check whether the chosen legal form is still appropriate or whether an adjustment would be necessary.

Contact Us

If you need advice and representation, please call us without obligation on 0221 - 80187670 or send us an email at or send an email to info@mth-partner.de info@mth-partner.de

Starting a Business in Germany: Residence Permit for Non-EU Citizens

If you plan to start a business in Germany to obtain a residence permit, we are your reliable partner. With our comprehensive expertise in immigration and business law, as well as years of experience in the application process, we support you every step of the way. We assist you in applying for your visa and handle all inquiries with the relevant authorities, allowing you to focus on what matters most – your business.

Comprehensive Support with the Application Process

We handle communication with the German embassies and consulates as well as the relevant immigration offices on your behalf. Additionally, we coordinate the necessary steps with other relevant institutions such as the Chamber of Commerce (IHK), the trade office, or the appropriate registry courts involved in setting up your business.

Collaboration with Experts

When establishing your business, we work with experienced tax advisors, notaries, and business experts to create a viable business plan. This professional support ensures a successful start for your business in Germany.

Requirements for Non-EU Citizens

While EU citizens enjoy the right to freedom of establishment in Germany, starting a business for non-EU citizens comes with specific requirements. To establish a business, you will need either:

Who Can Apply for a Residence Permit?

Non-EU citizens can apply for a residence permit for self-employment if they are:

Requirements for a Residence Permit for Business Establishment

A residence permit under § 21 of the Residence Act is granted if the following conditions are met:

  • There is an economic interest or a regional need.
  • The planned activity has a positive impact on the economy.
  • The financing is secured by equity or a loan commitment.

In some cases, a residence permit may also be granted if significant investments are made (e.g., starting at €250,000) and jobs are created. The Chamber of Commerce (IHK) may provide an opinion on this, but the final decision rests with the relevant authority.

Temporary and Permanent Residence Permit

The residence permit for business establishment is initially granted for three years. Upon successful business operation, it can then be converted into a permanent settlement permit. Depending on the business performance, an unlimited residence permit may be issued after 2, 3, or 5 years.

How to I apply for a residence title by founding a company in Germany

Review of Requirements and Necessary Documents

The review of the requirements for a residence permit is conducted by the responsible German embassy or consulate in the applicant’s home country. The local immigration authority is involved in this process, which in turn consults expert institutions such as the Chamber of Industry and Commerce (IHK), the Chamber of Crafts, as well as other relevant authorities.

Documents to be Submitted

The following documents must be submitted to the embassy or consulate:

1.Business Plan:

  • Capital and financing plan
  • Revenue forecast for the next three years
  • Liquidity plan
  • Proof of capital or credit commitments

2.Curriculum Vitae

3.Proof of Qualifications:

  • For example, university degrees or professional experience

4.Proof of Cooperation:

  • Letters of intent or expressions of interest from potential business partners or customers

5.Managing Director’s Contract (if it is a corporation)

Additional Documents (if available):

For GmbH, UG, or AG:

Additional Documents for Existing Companies:

  • Balance sheets for the last two years
  • Operational analysis (BWA) for the last six months
  • Profit and loss statement if no balance sheet was prepared
  • Tax assessments for the last three years (if available)

The Business Plan

The business plan is a key document for foreign entrepreneurs applying for a residence permit in Germany. It provides a comprehensive description of the business and covers essential areas such as finances, marketing, products, target customers, and potential risks.

Why the Business Plan is Important

A well-structured business plan is crucial to demonstrate to German authorities that the applicant has a clear, realistic, and sustainable business concept. It shows that the entrepreneur has the necessary skills to successfully manage the business while considering the German market.

Moreover, the business plan helps the entrepreneur prepare for the business start-up and daily operations in Germany. A professional business plan can also convince investors and potential business partners to invest in the company or enter into collaborations. This underscores that the business has realistic growth potential and has been thoroughly researched.

How to I draft a businessplan for a company in Germany to get residence

Contents of the Business Plan

The business plan should cover the following aspects:

  • Entrepreneurial experience and professional qualifications of the applicant,
  • Economic interest or regional demand,
  • Positive impact on the (regional) economy,
  • Contribution to innovation and research,
  • Impact on the employment and training situation,
  • Amount of capital investment,
  • Securing the financing of the company.


Detailed Contents

The Business Idea

  • What is the name of your company?
  • What products or services do you offer?
  • What sets your business apart from others?
  • Where will your company be based? In which city or region in Germany?
  • Will it mainly operate online or will there be a physical store?
  • What legal form will the company take?
  • What is the initial capital?

Product/Service

  • How is your product or service defined?
  • How does it differ from existing market offerings?
  • What marketing strategies will you pursue?
  • Do you have the necessary licenses and permits?
  • Are there copyrights, patents, or trademarks?
  • Is the product market-ready or still in development?
  • Has the product been tested before entering the German market?

Competition

  • Who are your competitors?
  • What are your company’s strengths and weaknesses?
  • How can you successfully address weaknesses?
  • What market gap are you filling?

Customers and Market

  • Who is your target audience? Have you conducted a demographic analysis?
  • Is there a market for your product or service in your region?
  • Is the market dominated by a few large companies?
  • What advertising measures do you plan to reach your target audience?

Finances

  • What are your short- and medium-term sales forecasts?
  • What are the revenue projections for the first year?
  • Does your company have sufficient financial resources to avoid liquidity problems?
  • What is the total capital requirement?
  • How will your company be financed?

Establishing the Business

Starting a business in Germany is a complex process, and creating a business plan is just the beginning. It is necessary to register the company with the relevant authorities, such as the tax office and the trade office, and the Chamber of Industry and Commerce (IHK), and depending on the legal form, a registration in the commercial register may be required.

Choosing the legal form of your company is a crucial foundation for the success of the business. However, it is important to always keep in mind that the optimal legal form at the time may become disadvantageous due to later developments, such as expansion or higher liability risks. Therefore, you should regularly review whether the chosen legal form is still appropriate or whether an adjustment would be necessary.

Contact Us

If you need advice and representation, feel free to contact us at 0221 – 80187670 or send an email to info@mth-partner.de.

This is what the process looks like for us

01

Contact us

You can call me on 0221 - 80187670 and describe your legal problem

02

Initial consultation
We will discuss your problem in an initial telephone consultation and, depending on the initial assessment, further steps will follow

03

Initial consultation / meeting
Once an appointment has been made, a meeting will take place at the law firm in order to conduct the necessary further discussions or a consultation

04

Results
Legal representation is carried out in close consultation with you in order to achieve the best possible result for you