Introduction
Navigating the process of business immigration to Germany can be surely overwhelming. Whether you’re considering a short-term business activity or a long-term business establishment or just look for any possible way to emigrate to Germany, this guide provides you with the necessary information and options.
Short-Term Business Activities in Germany
Overview of the 90-Day Business Visa
The 90-day business visa is ideal for those looking to explore business opportunities in Germany, attend meetings, or initiate preliminary business activities without committing to a long-term stay. This can also be your ideal first step to set up a business in Germany which later will be the base of a future long-term visa and your stepping stone to full immigration to Germany.
Suitable Business Activities for a 90-Day Visa
Short-term business activities include market research, attending trade fairs, meeting potential clients or partners, and setting up initial business operations like starting and running a limited liability company (GmbH).
How to Apply for a 90-Day Business Visa
To apply for a 90-day business visa, you will need:
- A valid passport
- Proof of business activities (e.g., invitation from a German company)
- Sufficient financial means for the stay
- Health insurance coverage
How to use a 90-Day Business Visa for long term immigration goals
Initially, you can enter Germany to set up your company, open a business bank account, and complete necessary registrations. During this period, focus on establishing operations, building a client base, and generating revenue to prove the viability of your business. Do your bookkeeping and reports to the tax authorities yourself (with a bookkeeping software of your choice) or with a bookkeeper or tax accountant. Your records will later be important to proof your business case toward the chamber of commerce when you apply for a long term visa.
Once your business is running successfully and you can show that it supports your livelihood and can show a trajectory to have a “regional importance” to the German economy through your business plan, you can apply for a national long-term visa. It is helpful to work with professional business consultants with experience on writing this kind of business plans to be successful. Besides some formal documents this business plan is the only important document the foreigners office (based on the approval of the regional chamber of commerce) will base her decision on. Make sure to have additional financial means or any form of pension plan when you are over 45 years of age.
Long-Term Business Establishment in Germany
Assessing Your Motivation and Goals
Decide whether your primary goal is to establish a business in Germany and move for that reason or if you want to move to Germany anyhow and just consider a business as one of the options you have.
Choosing the Right Visa: Business Visa vs. Other Visa Options
If your main objective is business, a direct business visa might be suitable, provided you meet the stringent requirements. Alternatively, starting with an employment or student visa and transitioning to a business visa can be more feasible for many, especially if they want to start their business part time first to establish it (the other visa option sometimes allow this outright or can allow it after applying for it).
Detailed Pathways for Long-Term Business in Germany
Strategic Approach for Gradual Transition
Starting with Employment or Student Visa:
Work or study in Germany while planning your business and starting it part time, as soon as you are eligible to do so. You can start small, manage a side business, and gain traction to later make a case for a long term visa. Once established, apply for a business visa with proven success.
Special advantage of a student visa approach
As a student you have a second and probably the easiest option and that is to start a company later outright that is connected to your finished studies in Germany! This allows you to stay in Germany no matter how bad your actual business plan! The only think that’s needs to be proven is that you can sustain to live in Germany and that it is connected to the degree that you got in Germany. You also have the benefit to look for a job and run a business a full 1,5 years before you even have to apply for a long-term business visa; enough time to further proof your case.
Direct Approach for Entrepreneurs
Requirement:
For entrepreneurs aiming to establish a business in Germany directly, the process involves several critical steps and considerations. Firstly, you ideally demonstrate substantial business experience or work experience in the field you want to establish the business and prepare a detailed business plan that outlines your market analysis, financial projections, and overall business strategy. Additionally, you need to provide proof of financial resources to support your initial operations. Ideally you speak German already in a way to deal with clients and other stakeholders unless you can make the case that this will work in English just fine. You also need to show how your presence in Germany is needed to run the business successful! Ideally you have already set up a GmbH in Germany from abroad with the help of specialists in this area.
Steps:
- Demonstrated business experience or work experience in your field of business
- Detailed business plan which shows regional importance to the German economy
- Proof of financial resources
Financial Considerations: A key financial requirement is the minimum capital needed, typically ranging from €12,500 to €25,000 for a GmbH (“Gesellschaft mit beschränkter Haftung”; the standard German Limited Liability Company). You must also have sufficient funds to support the initial phases of your business operations and livelihood.
- Minimum capital requirements (e.g., €12,500 to €25,000 for a GmbH)
- Sufficient funds to support initial operations
- Minimum funds for livelihood
Your Business Plan Essentials: Your business plan should include a comprehensive market analysis, financial projections, and a clear business strategy. This plan should not only guide your business development but also serve as a crucial document for your visa application, demonstrating the viability and regional economic impact of your business. It is advised to do this with expert consultants who know the German market and the requirements of the chambers of commerce’s for approval.
- Overall business strategy
- Market analysis and Marketing strategy
- Financial projections
Sole Proprietorship and Freelancer Visas
Sole Proprietorship
For those looking to start a small-scale business in Germany without the need for significant initial capital, the sole proprietorship is an excellent option. Unlike the GmbH, which requires a minimum capital investment, a sole proprietorship allows you to begin your business operations without any upfront financial commitments. The process of setting up a sole proprietorship is similar to that of a GmbH, involving company registration, opening a business bank account, and completing necessary local registrations. However, the main advantage is that you can establish your business without the financial burden of capital requirements, making it ideal for small-scale entrepreneurs.
Requirements and Steps:
- Demonstrated business experience
- Detailed business plan
- Proof of financial resources
Financial Considerations:
- No minimum capital requirements
- Sufficient funds to support initial operations and living costs
Freelancer Visa („Freiberufler“ Visa)
The Freelancer Visa, known in Germany as the „Freiberufler“ visa, is one of the easiest and most straightforward paths for certain professionals to immigrate to Germany. This visa is particularly suited for specific professions such as lecturers, English teachers, artists, doctors, and lawyers. It requires a job offer or contract from a German institution, along with a basic financial forecast.
Key Benefits:
- No initial capital requirement
- Simplified business plan requirements
- Direct pathway for specific professions
Example: Language Teacher
Consider the example of an English teacher aiming to move to Germany as a freelancer. The process involves securing a contract with a German school or language institute. Along with this job offer, the teacher needs to prepare a short business plan, primarily focusing on a financial forecast that demonstrates the ability to sustain a living in Germany.
Steps and Requirements:
- Job Offer or Contract: Secure a contract from a German institution (e.g., a language school).
- Financial Forecast: Prepare a basic financial forecast to demonstrate sufficient income.
- Proof of Clients: Provide evidence of secured clients or contracts.
- Application Documents: Complete the visa application form, submit a valid passport, biometric photos, and proof of health insurance.
- Proof of Qualifications: Submit proof of professional qualifications or degrees.
- Proof of Accommodation: Provide evidence of accommodation in Germany.
- Registration with Tax Office: Once in Germany, register with the local tax office (Finanzamt) as a freelancer.
Other Typical Professions for Freelancer Visa:
- Lecturers: Academic professionals who have secured teaching positions at German universities or institutions.
- Artists: Visual artists, musicians, and performers who can demonstrate engagements or contracts.
- Doctors and Lawyers: Medical professionals and legal advisors who meet the German qualification requirements.
The Freelancer Visa is an attractive option due to its relatively straightforward requirements and the ability to start working in Germany quickly. For many professionals, it represents the easiest and most viable pathway to long-term immigration and career development in Germany.
Creating a Strong Business Plan
For every long-term business visa, except for “Freelancers”, the business plan is the most important document. A business plan is essential for obtaining a business visa in Germany. It demonstrates your business’s viability, financial sustainability, and strategic planning. The foreigners‘ office will send your business plan to the regional Chamber of Commerce, which must attest to its feasibility and regional economic impact. Only with this endorsement can the foreigners‘ office approve your visa application. Additionally, a well-crafted business plan shows your commitment and preparedness, significantly increasing your chances of a successful immigration process. Using professionals for this step is highly adviced.
Key Elements of a Successful Business Plan
A compelling business plan includes:
- Executive Summary: An overview of your business and its objectives.
- Market Analysis: Insight into your target market, competitors, and market needs.
- Organizational Structure: Details about your company’s management and staffing.
- Product or Service Line: Information about what you’re selling and its benefits.
- Marketing and Sales Strategies: Plans for attracting and retaining customers.
- Financial Projections: Forecasts of your revenue, expenses, and profitability.
German professional consultants can help draft a business plan that meets these requirements. Their expertise ensures your plan is comprehensive, realistic, and aligned with local expectations, significantly enhancing your chances of successful immigration.
Professional Assistance and Support
Invest in professional help to create a strong business plan. This is crucial for your visa application and future business success. Most professionals focused on this issue can also help you with a lot of other tasks, like registrations, finding an address or office, communication with the foreigners office and of course finding the right strategy in the first place. Of course understanding regional markets and local regulations is key and to tailor your business plan to reflect this help from local professions is helpful.
Additional Legal and Administrative Steps
Registering Your Business in Germany
Choose the right legal structure (e.g., GmbH or sole proprietorship) and complete the necessary registrations with local authorities.
Financial Proof and Funding Requirements
Demonstrate financial stability and secure the required funding for your business.
Navigating Regional Differences and Authorities
Be aware of regional variations in business regulations and practices. Some areas might be more favorable for your business model than others.
Services and Support of Our Professional Consultants
Comprehensive Business Setup Assistance
We assist with every step of setting up your business, from initial consultation to registration.
Business Plan Development
Our team of experts helps you create a convincing and comprehensive business plan.
Ongoing Support and Strategic Planning
We offer ongoing support and strategic planning to ensure your business thrives in Germany.
Conclusion
Choosing the right path for business immigration to Germany requires careful planning and strategic decision-making. By understanding your options and seeking professional assistance, you can successfully establish your business and achieve attaining a business visa for Germany.