The promotion of innovation and entrepreneurship is an important component of the German Residence Act. People who set up companies, act as sole proprietors, act as managing directors or act as legal representatives of partnerships and corporations enjoy special privileges in accordance with Section 21 of the Residence Act. This section stipulates that before applying for a residence permit, the concept of the company must be carefully examined and adapted to the requirements of the law. Although this preliminary work takes time, it usually pays off.

Self-employed people can obtain a residence permit under easier conditions. However, certain criteria must be met in order to recognize the planned self-employment under German law:

• The activity must correspond to an economic interest or regional need.

• The activity must have a positive impact on the economy.

• Financing must be secured through equity or a confirmed loan commitment.

The assessment of whether these conditions are met is carried out by the competent authority based on various factors such as:

• The stability of the underlying business plan.

• The applicant's relevant experience in management.

• The total of planned investments in Germany.

• The impact of the company on the employment and training situation.

• The project's contribution to promoting innovation and research.

Simplified requirements apply to graduates of educational programs or holders of a German university degree, as well as to researchers and scientists working in Germany. In these cases, the application does not necessarily have to meet all of the above conditions, as long as the planned activity is closely related to the qualification acquired.

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Advantages of a residence permit according to Section 21 of the Residence Act:

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Self-employed people with a well-thought-out business plan are not obliged to prove German language skills or special professional qualifications. In addition, there is no set minimum investment amount for them. A residence permit in accordance with Section 21 of the Residence Act also offers the prospect ofa permanent settlement in Germany. Under certain conditions, the self-employed person can receive a permanent residence permit after just three years and acquire German citizenship after six years. Furthermore, the self-employed person's spouse and minor children receive the right to family reunification with this residence permit.

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Procedure for obtaining a residence permit for self-employed people:

In view of the detailed review of the intended self-employment by the competent authority, it is advisable to submit the application for a residence permit for self-employed people in the following steps:

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• Adaptation of the business idea to the legal requirements of the German residence law.

• Presentation of a general company profile as well as a detailed business concept, capital requirements plan and financing plan. The business plan should be as coherent and detailed as possible.

• Revision of the business plan in coordination with the regional chamber of commerce and industry before submitting the application for a D visa.

• Establishment of the company according to the necessary steps (e.g. establishment of a GmbH as a German counterpart to a Ltd).

• After the visa has been issued and entry into Germany, you must register with the local immigration authority.

• Finally, you apply for a residence permit in accordance with Section 21 of the Residence Act, whereby all necessary documents for the company must be submitted.

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To date, Nova Mediation has successfully supported countless customers from all regions of the world in setting up their businesses. Due to this in-depth expertise in this area, we have extensive experience. We warmly invite you to contact our team in order to benefit equally from their competent and committed support.