Here you learn ...
the requirements of the respective visas for self-employed persons
the difference between the Entrepreneur Visa and the Start-Up Visa
how much you have to invest for an investor visa
the prerequisite for a settlement permit for self-employed persons
Written by:
lawyer
Publication date:
December 17, 2024
Reading time
7 minutes
Table of Content
1. Visa for self-employment Germany
2. Entrepreneur Visa Germany
3. Start-Up Visa
3.1 Necessary steps for setting up a business for foreigners
3.2 Difference between Start-Up Visa and Entrepreneur Visa
4. Investor visa
4.1 What is the investor visa?
4.2 Requirements for the investor visa in Germany
4.3 Visa for the purchase of real estate
5. Permanent settlement permit for self-employed persons in Germany
5.1 Requirements for permanent residence permit for self-employed persons
5.2 Successful realization of independence
5.3 Pension provision settlement permit
6. FAQ
1. Visa for self-employment Germany
Germany is an attractive location for entrepreneurs and self-employed people from all over the world. With a flourishing economy, strong medium-sized businesses and innovative strength, the country attracts many talented people. In particular, the need for innovative business models and investments in technology-driven industries in major cities such as Berlin offers great opportunities (see, for example , the activities of Berlin-Partner on this topic ). According to a recent study by the OECD, Germany is one of the countries with the highest immigration rates of qualified specialists and entrepreneurs.
Germany offers a wide range of options for self-employed people who want to live and work here with a visa. Although there are no legally defined subcategories for these visas, they can be divided based on the target group and requirements. These categories are primarily derived from legal practice and are intended to provide guidance for visa applications. In principle, there are the following visa options for self-employed people in Germany ( Section 21 AufenthG ):
Entrepreneur Visa: The Entrepreneur Visa is specifically designed for business founders who want to bring innovative business models to Germany. Approval often depends on how the company creates jobs and contributes to the economy.
Start-up visa: This visa is aimed at founders in the tech and innovation sector. Cities such as Berlin, Munich and Hamburg actively promote start-ups that operate internationally. A convincing business plan and often support from an incubator or accelerator are an advantage here.
Investment visa: The investment visa is aimed at foreign investors who want to invest large amounts of capital in Germany and create jobs. Solid business plans, a high investment sum and the economic benefit for the region are key criteria.
Freelancer visa: The freelancer visa is ideal for freelancers such as creatives, consultants or IT experts. There are special requirements for this type of visa, which we explain in detail in our VISAGUARD article for freelancers .
This article describes in more detail the requirements for individual visas for self-employed persons according to Section 21 of the Residence Act.
2. Entrepreneur Visa Germany
The entrepreneur visa is aimed at business people who want to start or take over a company in Germany. The focus is on the economic added value that these people create through their business, e.g.:
Establishing a business with the aim of creating jobs.
Expansion of existing structures , e.g. through new branches or business areas.
Capital-intensive projects that strengthen the economy in Germany.
The legal form plays a minor role here. However, many entrepreneurs opt for the GmbH or UG because this structure conveys seriousness and makes it easier to enter the German market.
In order to receive the entrepreneur visa, Germany must have an economic interest in the activity. However (contrary to popular belief) it is not necessary for the company to create jobs . Nevertheless, the creation of jobs is very positive for an entrepreneur visa application. Another requirement of the entrepreneur visa is that financing is secured (e.g. through equity or loan commitments from banks).
CONTACT US
Are you looking for a lawyer in German immigration and foreigners law? Our lawyers will be happy to support you in residence procedures before embassies, immigration authorities and administrative courts in Germany..
Contact us to book a consultation via video call! with a German Attorney for immigration law!
VISAGUARD.Berlin Legal Services
Which documents are required for the entrepreneur visa differs depending on the embassy and immigration authorities. In most cases, however, at least a business plan , a financing plan , the business registration or an extract from the commercial register and proof of qualifications (e.g. degree certificates) must be presented. Further information on the required documents can be found on the homepage of the State Office for Immigration in Berlin and the Berlin Chamber of Industry and Commerce , for example. If you have difficulties applying for the entrepreneur visa, one of the cooperating VISAGUARD lawyers will be happy to help you .
3. Start-Up Visa
Many foreigners are interested in the start-up visa because Germany is one of the leading countries for innovation and technology in Europe. This is especially true for Berlin as a business location and the digital economy in Berlin . With a stable economic system, a strong start-up scene (see, for example, Start-Up Incubator Berlin ) and attractive funding programs (see, for example, Innovation Funding Berlin ), the location offers optimal conditions for founders .
3.1 Necessary steps for setting up a business for foreigners
However, founders from abroad face the challenge of overcoming legal and bureaucratic hurdles when setting up a start-up. However, with the right start-up visa and a clear plan, this can be managed. The following steps are necessary to apply for the relevant start-up visa:
1. Establish a company: Choose a legal form (e.g. GmbH or UG) and have your partnership agreement certified by a notary.
2. Entry in the commercial register: Capital companies such as GmbHs and UGs must be entered in the commercial register .
3. Business registration: For many activities you must register a business with the responsible municipality (see, for example , business registration in Berlin ).
4. Entry in the Transparency Register: Make sure that the beneficial owners of your company are registered in the Transparency Register .
5. Information for the tax office: Apply for a tax number and register for sales tax (see Tax Offices/Tax Office Search in Berlin ).
6. Apply for a residence permit for start-up founders: Submit a business plan, the commercial register extract and proof of financing for your project to the immigration office (in Berlin, for example, this is done via the LEA contact form ).
3.2 Difference between Start-Up Visa and Entrepreneur Visa
Compared to the entrepreneur visa, applying for a start-up visa is much easier, as less proof is required. Start-ups founded by foreigners who have studied at a German university or worked as scientists in Germany are particularly privileged (Section 21, Paragraph 2a of the Residence Act). In these cases, a turnover of just 24,000 euros per year (in Berlin) can be enough to successfully apply for a start-up visa.
If you have any questions about the start-up visa, a VISAGUARD-certified lawyer will be happy to assist you.
4. Investor visa
Germany is a globally recognized investment location. The real estate sector and future-oriented industries such as technology and renewable energies in particular attract international investors. But what options do investors have to obtain a residence permit in Germany?
4.1 What is the investor visa?
The investor visa is aimed at people who want to make an economic contribution to Germany through their investments and thus secure their stay in Germany. Although the Residence Act (AufenthG) does not explicitly define the term, the investor visa falls into the category of self-employed activities ( Section 21 AufenthG ).
4.2 Requirements for the investor visa in Germany
In order to obtain the investor visa in Germany, investors must create positive economic effects through their project, for example:
job creation.
promotion of innovative technologies.
Investments in local infrastructure projects.
To implement these projects, the focus is often on setting up a company or acquiring larger assets (e.g. real estate). The requirements for an investor visa depend heavily on the amount and type of investment. In case law and general administrative practice, an amount of 250,000 euros is often used as a guideline. However, this amount can vary depending on the region and project.
4.3 Visa for the purchase of real estate
Buying a house alone does not usually qualify you for an investor visa. However, if the property purchase is linked to a larger investment, this can be taken into account when applying for a visa. Buying a house alone does not justify a residence permit unless it is part of a larger investment with economic added value. One of the independent VISAGUARD lawyers will be happy to advise you on this .
5. Permanent settlement permit for self-employed persons in Germany
The settlement permit is a permanent residence permit that offers self-employed people in Germany a long-term perspective. The settlement permit for self-employed people is regulated in Section 21 Paragraph 4 Sentence 2 of the Residence Act . It is a great advantage, especially for entrepreneurs who have already successfully established themselves on the market , as it means fewer official requirements and more planning security. However, the requirements, particularly in the area of securing a livelihood, are high. There are also repeated misunderstandings in certain points of the application for a settlement permit for self-employed people. The most common stumbling blocks are explained below.
5.1 Requirements for a permanent residence permit
The formal requirement for the issuance of a permanent residence permit to self-employed persons is that you have held a residence permit for self-employed persons for three years . In principle, it does not matter which residence permit for self-employed persons it is, as long as the legal basis is Section 21 of the Residence Act. Unfortunately, this often leads to serious misunderstandings. The option of applying for a settlement permit after three years does not apply to freelancers . Freelancers are also regulated in Section 21 of the Residence Act, but the regulations for freelancers are systematically arranged after the regulations on settlement permits (namely Section 21 Paragraph 5 of the Residence Act). The prevailing opinion concludes from this that freelancers can only apply for a settlement permit after five years ( Sections 9, 9a of the Residence Act ).
5.2 Successful realization of independence
In order to apply for a residence permit for self-employed persons, you must also have “ successfully carried out ” the self-employed activity (Section 21 Paragraph 4 Sentence 2 of the Residence Act). This is the case if the activity, particularly due to its success and duration, allows for further sustainable development of the business. In other words: another important requirement when applying for an unlimited residence permit for self-employed persons is that you are successful. You can prove this, for example, by creating jobs, high sales or economic expansion.
5.3 Pension provision for self-employed persons with permanent residence permit
Finally, you must prove that you can secure your livelihood in order to receive a permanent settlement permit for the self-employed. This is a particularly important point because the test criteria for a settlement permit are stricter than for other residence permits. You must prove that your income from self-employment is sufficient on a long-term basis to secure a livelihood for yourself and, if applicable, your family. The authorities use a forecast to assess whether your income will remain stable in the long term. However, there are also repeated misunderstandings when it comes to securing a livelihood. The law does not state that retirement provision (e.g. pension insurance) is necessary to secure a livelihood for self-employed people who apply for a permanent residence permit. Nevertheless, most immigration authorities interpret sufficient retirement provision as a necessary prerequisite for securing a livelihood. In practice, you must therefore provide evidence of retirement provision if you apply for a settlement permit as a self-employed person. As a rule, you are considered to have sufficient retirement provision if your assets or pension entitlements total more than 250,000 euros .
Further information on applying for a permanent settlement permit for self-employed persons (e.g. necessary documents, application procedure, application (PDF)) can usually be found on the homepage of your immigration authority (see e.g. Applying for a settlement permit for self-employed persons in Berlin at the State Office for Immigration (LEA) ).
If you have any further questions, one of our independent VISAGUARD lawyers will be happy to assist you .
CONTACT US
Are you looking for a lawyer in German immigration and foreigners law? Our lawyers will be happy to support you in residence procedures before embassies, immigration authorities and administrative courts in Germany..
Contact us to book a consultation via video call! with a German Attorney for immigration law!
VISAGUARD.Berlin Legal Services
6. FAQ
What visa options are there for self-employed people in Germany?
Germany offers various visa options for self-employed persons, which are regulated under Section 21 of the Residence Act: entrepreneur visas, start-up visas, investment visas and freelancer visas. Each category has specific requirements and target groups.
What are the requirements for the entrepreneur visa?
For the entrepreneur visa, Germany must have an economic interest in the company. A business plan, proof of financing and often proof of a positive economic contribution (e.g. job creation) are required.
How does the start-up visa differ from the entrepreneur visa?
The start-up visa is specifically tailored to technology-oriented and innovative founders. It generally requires less proof and privileges foreigners who have studied in Germany or worked as scientists (Section 21 Paragraph 2a of the Residence Act).
What are the requirements for an investment visa?
The investment visa requires larger capital investments (often starting at 250,000 euros) that create economic added value, for example by creating jobs or promoting technologies.
Can buying a property justify an investment visa?
Simply purchasing a property is usually not enough to obtain an investment visa. The investment must be linked to economic added value, such as job creation.
What are the requirements for a permanent residence permit for self-employed persons?
Self-employed people can apply for a settlement permit after 3 years (Section 21 Paragraph 4 Sentence 2 of the Residence Act) if their activity is successful and their livelihood is secure. Freelancers, on the other hand, have to wait 5 years (Sections 9, 9a of the Residence Act).
What does “successfully completed activity” mean for the settlement permit for self-employed persons?
Self-employment is considered to have been successfully implemented if it is economically stable, jobs have been created or high sales have been achieved and sustainable development can be expected.
Is retirement provision required for a settlement permit?
Pension provision is not explicitly required by law for the self-employed, but many immigration authorities require proof of pension provision, which is often valued at a minimum of 250,000 euros. The reason given for this (contrary to the wording of Section 21 Paragraph 4 of the Residence Act) is that pension provision is part of securing a livelihood. There are legitimate doubts about this interpretation of Section 21 Paragraph 4 Sentence 2 of the Residence Act, since Section 9 of the Residence Act explicitly distinguishes between securing a livelihood and contributions to pension insurance.
What documents are necessary to apply for an entrepreneur visa?
A business plan, proof of financing, business registration or commercial register extract and proof of qualifications are usually required. The exact requirements may vary depending on the authority.
This may also interest you
Further Information
Literature: NK-AuslR/Hocks, 3rd edition 2023, Residence Act § 21
Literature: Huber/Mantel AufenthG/Dippe, 3rd edition 2021, AufenthG § 21
