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Residence for self-employed foreigners in Germany
All VISAGUARD information for setting up your own business as a foreigner in Germany.
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More and more foreigners want to take the step into self-employment in Germany – but the path to obtaining the right residence permit is complex. There are numerous differences in the requirements and procedures between start-up visas, freelancer status, and investor residency. Those applying under Section 21 of the Residence Act (AufenthG) must not only submit a convincing business plan and proof of capital, but also demonstrate patience: Processing can take months. Our article explains what types of residence permits are available for the self-employed, what documentation is crucial, and how to deal with long waiting times or inactivity on the part of the authorities.
Table of Contents
1. Different types of residence permits
2. Evidence and preparation (Section 21 Residence Act)
3. Securing a livelihood as a hurdle
4. Long processing times and lawsuits for failure to act
5. FAQ § 21 Residence Act
6. Conclusion Section 21 Residence Act
1. Different types of residence permits
Many foreign nationals wish to apply for a residence permit in Germany to pursue self-employment. The requirements vary considerably depending on the type of visa or residence permit sought. For example, there are special visas for company founders, start-ups, freelancers, and investors. Each of these visas has its own requirements, particularly regarding capital, qualifications, and business idea.
Another key difference is whether the residence permit is applied for abroad as a visa or in Germany as a residence permit . While a visa application abroad requires the documents to be submitted to the German embassy, an application in Germany is made directly to the relevant immigration authority. In both cases, it is crucial to familiarize yourself with the required documents and proof in advance on the respective websites .
2. Evidence and preparation (Section 21 Residence Act)
In practice, it is particularly important for self-employed applicants to provide complete and verifiable evidence of all requirements. This includes not only a detailed business plan and proof of capital, but also formal registration with authorities – such as the trade registration office or the tax office. Incomplete documentation can quickly lead to rejection of the application.
In addition, it may be advisable or even necessary to obtain an opinion from the relevant Chamber of Industry and Commerce (IHK) . Immigration authorities generally do not assess the company's viability themselves, but rather rely on the professional assessment of these chambers. A positive assessment can therefore be crucial for the successful approval of the application.
3. Securing a livelihood as a hurdle
One of the biggest problems when applying for a residence permit for self-employed persons concerns securing a livelihood ( Section 5 of the Residence Act ). The authorities carefully examine whether applicants are able to support themselves permanently. This includes proof of sufficient income, payment of rent , and existing health insurance . In addition, the authorities usually calculate around 500 euros per month for general living expenses such as food and other expenses.
Securing a livelihood also impacts other areas of residence law. Without a secure livelihood, for example, family reunification is not possible. Likewise, the granting of a subsequent settlement permit depends on demonstrably successful business operations. Those who cannot demonstrate the economic viability of their business risk being denied a permanent residence permit, despite having resided for several years.
4. Long processing times and lawsuits for failure to act
Another common problem is the long processing times at the authorities. The procedures can be significantly delayed because the immigration authorities often have to obtain additional approvals from other bodies – such as chambers of commerce or economic development agencies. Patience is therefore required, especially with complex business models.
In some cases, especially for freelancers, applications remain unprocessed for months. If the authority remains inactive for an excessively long time, those affected often have no choice but to file a so-called action for failure to act . This action can be used to enforce a court decision on the application. Even if this involves additional time and expense, it is often the only way to get a stalled procedure moving.
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