We have extensive expertise in residency and corporate law, as well as many years of experience in managing application processes. We are happy to handle the entire visa application process for you and clarify any open questions with the relevant authorities so that you can fully focus on your core tasks.
We handle the communication with the embassy/consulate as well as with the relevant immigration authorities or other agencies that need to be involved in the establishment of your company (e.g. Chamber of Industry and Commerce, Trade Office, or the relevant registration courts).
When founding the company, we collaborate with external tax advisors, notaries, and an economic expert to create a viable business plan.
Your contact for the foundation of a company is Lawyer Helmer Tieben. Lawyer Tieben was admitted to the bar in 2005 and is an expert on immigration and company law. You can reach Mr Tieben by email on info@mth-partner.de or by phone on 0221 – 80187670.
Requirements for Non-EU Citizens
While EU citizens have the right to freely choose their occupation and workplace, enjoying the so-called freedom of establishment or freedom to provide services, the establishment of a company for non-EU citizens is subject to formal requirements. They need either:
Foreign nationals can obtain a residence permit for self-employment if they are:
- company founders,
- sole proprietors, or
- managing directors and legal representatives of partnerships or corporations with entrepreneurial responsibility.
A residence permit for starting a business under Section 21 of the Residence Act can be granted if:
- there is an economic interest or regional demand,
- the activity is expected to have positive effects on the economy, and
- financing is secured through equity or a loan commitment.
A residence permit is often granted if significant investments (e.g., starting from €250,000) are made and jobs are created. The Chamber of Industry and Commerce (IHK) can provide an opinion on whether these conditions are met. However, the final decision is made by the relevant authority.
The residence permit for starting a business is initially limited to three years. Afterward, it can be converted into a permanent settlement permit. Depending on the progress, an unlimited residence permit may be granted after 2, 3, or 5 years.
Examination of Requirements and Documents
The verification of requirements is carried out by the competent embassy or consulate in the applicant’s home country. These offices involve the local immigration office, which in turn consults the expert authorities (IHK or Chamber of Crafts) and other agencies and institutions.
The applicant must submit the following documents to the embassy/consulate:
- Business plan (including capital and financing plan, earnings forecast for three years, liquidity plan),
- Proof of capital or loan commitment,
- Curriculum vitae,
- Proof of qualifications (e.g., university degrees, work experience),
- Proof of cooperation, letters of intent, or expressions of interest from potential business partners or clients,
- For corporations: management contract.
Additional documents, if available:
- Lease agreement for commercial premises,
- For GmbH, UG, or AG: founding document, articles of association, commercial register extract, or notarial registration for the commercial register,
- Business registration.
For already existing companies, the following must also be submitted:
- Balance sheets of the last two years,
- Business management evaluation (BWA) for the last six months,
- Income-surplus calculation, if no balance sheet is available,
- Tax assessments for the last three years (if applicable).
Business Plan
The business plan is a crucial document for foreign entrepreneurs applying for a residence permit in Germany. It provides a detailed description of the business and covers all aspects such as finances, marketing, products, customers, and risks.
Importance of the Business Plan
A business plan is essential to demonstrate to German authorities that the applicant has a clear, realistic, and sustainable business concept. It shows that the entrepreneur is capable of successfully running a business in Germany. Additionally, the business plan helps the entrepreneur prepare for the challenges of establishing a business in Germany.
A well-developed business plan can also convince potential investors and business partners to invest in the company or become partners. It demonstrates that the business owner has done thorough research and that the company has realistic growth prospects.
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.
