Fortunately, the German legislature has come to realize foreign entrepreneurs and investors often establish themselves in Germany with great success and therefore contribute a significant proportion to the economic success of Germany, even when they do not always directly invest on a large scale, or immediately create new jobs. Since § 21 of the Residence Code entered into force on the 01.08.2012, a residence permit for self-employment can already be issued if a (simple) economic interest or a (simple) regional need exists. The law does not regulate a minimum amount of investment, nor require a minimum number of jobs be created. In addition, this law has made it easier for graduates from German universities to become self-employed after graduation. In lieu of this new law, foreign investors and entrepreneurs have a much better chance at realizing innovative ideas in Germany.
Pursuant to § 21 section 1 of the Residence Code, individual entrepreneurs and active partners in a partnership are eligible to receive a residence permit to pursue self-employed work. Even statutory representatives of legal persons (for example Ltd, Stock Company) can obtain permits of residence as self-employed if they bear their own entrepreneurial risk in connection with their work, in accordance with § 21 of the Residence.
Compliance with the above mentioned conditions is reviewed by the immigration authorities, as well as specialized agencies, such as the Ministry of Economics or the Senate Department for Economics and Chambers of Commerce. This review requires the submission of a complete company profile, i.e. a structured and detailed description of a business idea (business plan).
Three years after the issuance of such a residence, in accordance with § 21 section 1 of the Residence Code, the viability of your company will be reassessed and in lieu of a positive outcome of this assessment a permanent residence permit will be issued.
