Residence permit for entrepreneurs: How the visa for the self-employed works

International entrepreneurs who wish to set up a company in Germany or establish themselves as self-employed persons require a Residence permit for self-employed activity. This title allows you to do business and live permanently in Germany.

Here you can find out which Prerequisites must be fulfilled, which Documents are necessary and how the Application procedure works.

1 What residence permits are available for entrepreneurs?

Visa for self-employed persons according to § 21 Residence Act (AufenthG)
There are two main types of residence permit for entrepreneurs:

a) Residence permit for self-employed persons (Section 21 (1) AufenthG)

-For founders of companies (e.g. GmbH, UG, sole proprietorship)
-Particularly suitable for investors who are setting up a company in Germany
-Allows permanent residence after 3 years if the company is running successfully

b) Residence permit for freelancers (Section 21 (5) AufenthG)

-For freelancers (e.g. consultants, artists, doctors, architects)
-Only applies to certain professions that are not considered commercial activities
-Extension possible if the activity continues to be successful

Tip: Anyone who founds a corporation (e.g. GmbH or UG) is subject to the regulation for Self-employed entrepreneurs. Anyone who works as a freelancer requires the Freelancer visa.

2. requirements for the entrepreneur visa

In order to obtain a residence permit for self-employed persons, certain Economic and financial criteria be fulfilled.

Important requirements:
-Viable business concept - The business plan must make economic sense
-Relevance for the German economy - The company must create jobs or promote innovation
-Proof of sufficient financing - Equity or secured financing through loans or investors
-Choice of location in Germany - A business address or a rental agreement for business premises must be available
–Tax and legal registration - Registration with the tax office and, if applicable, the commercial register

Additional conditions for older applicants:

• Who over 45 years old is, a Retirement provision in order to be financially secure in the long term.

Tip: Anyone who founds a company in a structurally weak region or invests in innovative sectors has a better chance of obtaining approval.

3. which documents are required for the application?

Documents required for the entrepreneur visa:
Passport (valid for at least 6 months)
Detailed business plan with market analysis, financial planning and investment plan
Proof of financing (equity, loan commitment or investor commitments)
Commercial register entry or business registration
Proof of health insurance (private or statutory insurance in Germany)
Curriculum vitae with professional qualifications
Rental agreement for business premises or confirmation of a co-working space

Additional documents for certain industries:

• Freelancer: Proof of qualification (e.g. diplomas, licenses)
• Investors: Proof of previous business success and origin of capital

Tip: All documents must be German or with a certified translation be submitted.

4. step-by-step: Application for an entrepreneur visa

Step 1: Application at the German embassy in your home country

• Entrepreneurs from non-EU countries must apply for the visa before entering Germany at the German embassy or consulate request.
• Editing can be up to 3 months last.

Step 2: Entering Germany and registering your business

• After entering the country, the company must be officially registered (e.g. business registration, entry in the commercial register).
• If necessary, a Tax number at the tax office can be applied for.

Step 3: Apply for a residence permit at the immigration office

• Within 90 days of entry, the Residence permit for self-employed persons at the local Immigration office can be applied for.
• If all requirements are met, the Residence permit for 1-3 years issued.

Step 4: Extension of the residence permit or settlement permit

• After 3 years the residence permit can be converted into a Permanent settlement permit be converted if the company Successful and the livelihood is secured.

5. taxes and obligations for self-employed entrepreneurs

Important tax obligations for entrepreneurs:
– Trade tax (for commercial activities) - depending on the location
– Value added tax (VAT) - usually 19 % or reduced 7 % for certain products
– Income tax or corporation tax - depending on the type of company
– Compulsory health insurance - either statutory or private

Tip: Anyone who founds a GmbH or UG must register in the Commercial register and register a Tax number at the tax office request.

6. alternative opportunities for international entrepreneurs

If the classic entrepreneur visa is not an option, there are alternative options:

a) EU Blue Card for highly qualified entrepreneurs

• For people with a university degree and a job offer with Minimum salary of €45,000 per year

b) Investor visa for large investors

• If a Major investment of several million euros into the German economy may, under certain conditions, be subject to a Residence permit as an investor be issued.

c) Residence permit for digital nomads and freelancers

• Germany does not offer a special "digital nomad" visa category, but freelancers can apply for a Visa for self-employment apply if they can prove that they German customers have.