Beginning self-employment in Germany as a non-European citizen

The fundamental law which ensures the freedom to choose and carry out ones career is known as a “citizens-right”. This means that it is only valid for German citizens. There is however, another statutory provision which ensures each persons rights to freedom of trade (§ 1 Abs. 1 GewO). As a result, non-European citizens also have this right, but there are certain restrictions written down in German law regarding aliens.

Non-European citizens have to consider the German Residence Act if they wish to start and carry out self-employment in Germany. This states that foreigners basically need a valid visa to enter and stay in the Federal Republic of Germany. Unfortunately, this visa usually doesnt allow the individual to conduct business. Therefore, it is necessary to apply for a visa which also allows self-employment. This is obtained at the relevant aliens authority in Germany.

To speed up proceedings, it is highly recommended to hand in the questionnaire for the application for the issue of residence permit to begin self-employment together with all required documents. This application form as well as other documents is offered as a download on this page.

As a rule, the relevant aliens authorities in Germany are responsible for questions and decisions about visa applications. The local responsibility depends on the place where the applicant intends to take up residence. Addresses of the relevant aliens authorities in Frankfurt am Main, Hochtaunuskreis and Main-Taunus-Kreis are to be found at the bottom of this page.

Self-Employment:

Self-employment is usually considered as an employment which has as its the goal, the making of profit; it is carried out in ones own name, using ones own invoices as well as being carried out in personal and functional independence. Furthermore, a fully liable partner in a limited partnership and every member of an oHG or a GbR also count as being self-employed.

In addition, functionaries of a corporate body who are entitled to representation, such as managing directors or board members of a joint stock company who, although not carrying on self-employment themselves, are treated as such due to their activity. Furthermore, proxy and executives with full power of attorney are also treated as self-employed.

Exceptions:

Foreign investors who possess a permanent residence permit are allowed to carry out business activities free of any licensing requirements and orders.
Executives, general managers i.e. foreign investors who work as executives with full power of attorney or proxy, executives of a company also active outside of Germany, require only a valid visa.
Foreign corporate bodies, such as joint stock companies do not require special permission to become active in the Federal Republic of Germany.

Applications for the issue of a residence permit to begin self-employment:

If a non-European citizen is self-employed and intends to start a business, they will be permitted to do so as long as:

there is a superior economic motive or special regional requirements.
the activity promises to effect the economy positively.
the business is securely financed either through its own capital or credit approval.

For this, as a rule, the following proofs have to be provided:

an extensive concept with verification, such as already existing references.
a financial and business plan including documentation of the planned financing of the enterprise.
appropriate qualifications supported by relevant educational or other certificates.

These requirements are basically fulfilled if five people are employed and 250.000 Euro is invested. If this is not the case, the local authorities, as a rule, have a margin of discretion that is based on the business idea, the investors entrepreneurial success and experience, the capital, the consequences on employment and training in the region as well as the potential contribution to innovation and research. Foreigners who are older than 45 years have to prove, in addition, an appropriate provision for their old age.

Decisions regarding the application:

Visa applications must be approved by the relevant aliens authority in Germany, i.e. the aliens authority in the place where the applicant intends to take up residence. It decides accord to its best judgment and isnt bound to the statements of other economical institutions. Therefore, the statement of the IHK has only an internal character. The decision will be reported to the applicant in written form.

The residence permit is generally issued for 3 years. After this, the non-European citizen may get a permanent residence permit if the planned business has been realised and their livelihood is assured (§ 9 Abs. 2 AufenthG)

Addresses of the relevant aliens authorities in the IHK- region Frankfurt a. M.:

In The City of Frankfurt:

Stadt Frankfurt am Main

Ordnungsamt

Ausländerbehörde

Rebstöcker Straße 4
60326 Frankfurt am Main

Tel: +49 (0)69 212 42485

Tel: +49 (0)69 212 44133

Telefax: +49 (0)69 212 42216

E-Mail: auslaenderbehoerde@stadt-frankfurt.de

Tel.: ++49 (0)69 212 44422

In Hochtaunuskreis:

Allgemeine Landesverwaltung

Ludwig-Erhard-Anlage 1-4

61452 Bad Homburg v.d. Höhe

Tel.: ++49 (0) 6172/999-0

Einreisestelle.: ++49 (0) 6172/999-3231

http://www.hochtaunuskreis.de

In Main-Taunus-Kreis:

Allgemeine Landesverwaltung

Am Kreishaus 1-5

65719 Hofheim

Tel.: ++49-(0) 6192-201-0

http://www.mtk.org

Downloads:

Useful links:

Federal Ministry of Economics and Technology – business start-up portal: www.existenzgruender.de/englisch/
More information about the immigration and establishment of a company: www.gtai.com/homepage
Information and downloads about visa applications and establishment of a company: www.frm-united.de