Business immigration to Germany is a government program for investors and businessmen that allows you to obtain a residence permit and the opportunity to develop your business in the country. It is not difficult to register a business in Germany. The main criterion for obtaining a residence permit is the absence of tax debts and a stable income for several years.
In 2012, amendments were made to the law on business immigration, the requirements for foreign businessmen were simplified: the limits on job creation and the amount of investment disappeared.
Basic business requirements for obtaining a residence permit in Germany
- The business plan must be economically attractive for the region or state of Germany;
- The business plan must be reviewed by the regional German Chamber of Commerce;
- A businessman must have sufficient financial resources to conduct business at the expense of his assets or guarantees of creditors;
- The entrepreneur must prove his professionalism and personal qualities, which guarantee the success of the business idea.
The most common ways of business immigration to Germany
- Transferring your business to Germany or setting up a subsidiary;
- Creation of a new company in Germany within the framework of an existing business;
- Opening a new direction for your business and creating an independent company in Germany;
- Purchase of a share in a German company or acquisition of a ready-made business in the country.
Business immigration procedure to Germany
Approval of the application
In the first step, the applicant must submit a detailed business plan for consideration by local officials. The future immigrant will have to convince the local authorities that the proposed business will be useful for this region.
The business plan should indicate:
- The name of the company. It must not violate copyright or duplicate existing titles. You can check this on the website of the German Patent Office or in the German Federal Trade Register;
- Goals and objectives of the business, its form, the amount of investment;
- Specific steps for business development;
- Forecast of income receipts, calculation of profit and loss, forecast of solvency;
- Market research and analysis of the position of competitors;
- Advantages over competitors;
- Experience, qualifications, and business qualities of the project participants;
- Staffing table, wages, and working conditions;
- Marketing strategy;
- Sources of financing;
- An explanation of the positive impact the project will have on innovation and research (if applicable).
The business plan must be written in good German without grammatical errors. A serious plus will be the conclusion from an international auditing company on the possible implementation of the business plan.
Choosing a form of doing business
- Self-employed – Selbstständig (self-employed), Freiberufler (liberal professions, freelancers) and Gewerbe (private enterprise);
- A simplified form of a limited liability company is a mini-GmbH or Unternehmergesellschaft (UG) with an authorized capital from 1 euro to 25 thousand euros. Annual deduction of a quarter of the company’s profits before the formation of the authorized capital of 25 thousand euros and the transformation of UG into GmbH. It is more difficult for UG to open a bank account and obtain a tax number.
- Limited Liability Company (GmbH) with an authorized capital of 25 thousand euros. A memorandum of association is required, the director may be a non-resident;
- Joint-stock company (AG) with a statutory fund of 50 thousand euros, upon registration, 12,500 euros must be paid. The number of shareholders is not regulated. The AG board may be chaired by a non-resident.
To register a business in Germany, the legal address must be indicated in the constituent documents. A businessman can rent an office or legal address in Germany – Tagesbüro (about 150 euros per month).
Choosing a visa category
A business visa can be short-term (C) or long-term (D) depending on the purpose of the trip.
Business visa C allows you to stay in the Schengen countries for 90 days within six months. Such a visa is obtained for short-term visits to Germany to sign documents, conduct negotiations, open a bank account and deposit the authorized capital, and obtain a number in the country’s trade register.
To apply for a business visa, documents must be submitted to the German Visa Application Center. The applicant provides an invitation from partners in Germany (Einladung), business registration documents, bank account statement, extract from the commercial register Handelsregister B not older than 6 months, as well as a standard package of documents for a Schengen visa.
Business visa D is issued for full-fledged business, obtaining a residence permit, and, in the future, German citizenship. This is a national visa valid for three to six months with the possibility of renewal at the office for foreigners in Germany. The visa is extended for a year, in case of a successful business – for another three years. The visa processing time is from 8 to 12 weeks, its cost is 75 euros.
List of documents for a long-term visa D
- 2 applications in German for a national visa;
- 3 biometric photos 35×45 mm;
- Passport and 2 copies of the page with personal data;
- Civil passport and 2 copies of all pages with the entered information;
- Biography in German, presented in the form of a table without gaps between time intervals (with 2 copies);
- Founding document of Gründungsurkunde (original and 2 copies), certified by a notary;
- Memorandum of Association Gesellschaftsvertrag (original and 2 copies) certified by a notary;
- Certified list of members or shareholders – Gesellschafterliste (with 2 copies);
- Employment contract with the commercial director – Geschäftsführervertrag (if applicable), 2 copies;
- Extract from the commercial register – Handelsregisterauszug – (with 2 copies);
- Business plan in German (with 2 copies);
- Proof of knowledge of the German language – a certificate from a language school;
- Medical insurance, 2 copies;
- Proof of financing with equity or credit;
- Proof of financial security in old age: pension, property, investments, and other sources – at least 159,823 euros for people over 45 years old, pension insurance for 12 years for people over 67 years old.
All documents not in German must be translated into German. For translations made by a sworn translator in Germany, notarization is not required.
Actions of a business immigrant upon arrival in the country
Upon arrival in Germany, a business migrant must register at the place of residence, receive an internal and European tax number (Steuernummer, Ust-Identnummer), as well as an insurance identification number – Betriebsnummer. This stage takes about a month.
After the registration of the company and after 18-24 months of its activity, the businessman submits documents for obtaining a residence permit for himself and his family.
An important condition for the renewal of a residence permit in Germany is the provision of financial statements for the year.
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