Company forms for visa

These types of companies are particularly suitable for a self-employment visa.

About this Page

which forms of companies exist in Germany
what the German Limited is (GmbH visa)
which company form foreigners should choose
what applies to sole proprietors

Table of Contents

1. Limited liability companies

2. Partnerships

3. Sole proprietor

4. Overview of corporate forms

5. FAQ

6. Conclusion

1. Limited liability companies

Corporations such as the GmbH ( GmbHG ) or the UG (limited liability company) pursuant to Section 5a GmbHG are particularly well-suited for a self-employment visa because their limited liability means they pose a lower personal risk for founders. The GmbH requires a share capital of at least €25,000 (see Section 5 GmbHG ) and is considered the classic legal form for foreigners wishing to establish a business in Germany. It offers a high degree of trustworthiness, which is viewed positively by both banks and the immigration authorities.

The Unternehmergesellschaft (UG), also known as a mini-GmbH , can be founded with as little as one euro of share capital. It is therefore a cost-effective alternative for founders who don't have a large amount of initial capital at their disposal. From the perspective of visa authorities, the UG also meets the requirements for a corporation if a viable business plan is presented. For many self-employed people from abroad, the UG is the first step, which can later be converted into a GmbH.

2. Partnerships for visa

In addition to corporations, there are various partnerships in Germany, such as the GbR ( §§ 705 ff. BGB ), the OHG ( §§ 105 ff. HGB ) or the KG ( § 161 HGB ). They are often easier to set up, as no minimum capital is required. In return, the partners are personally and unlimitedly liable with their private assets. This can be critical for a visa, as authorities often look at the long-term viability and legal certainty of the chosen company form. GbR and OHG are therefore not as well regarded by immigration authorities as GmbH or UG.

A GbR (German Civil Code) is suitable for small businesses with at least two people, but is often less suitable for international business operations . Limited partnerships or general partnerships are also conceivable. For self-employment visas, a corporation is generally preferred because it provides a clearer distinction between the entrepreneur and the business. The formal establishment effort and the share capital also demonstrate that the foreign national has sufficient liquidity and experience to successfully apply for a visa in Germany under Section 21 of the Residence Act.

Are you looking for a lawyer specializing in German immigration and visa law? We are happy to assist you with residence procedures before embassies, immigration authorities, and administrative courts. Contact us to book an online appointment with a German immigration lawyer!

Book appointment

3. Sole proprietorship for visa

The sole proprietorship is the most common form of business in Germany, especially for smaller projects or starting a business independently. It is particularly easy to establish and requires no minimum capital. However, sole proprietors are fully liable with their entire personal assets, which can be problematic for risky business ideas. The sole proprietorship is often synonymous with the business activities of freelancers .

For foreigners who wish to apply for a self-employment visa, a sole proprietorship is only conditionally recommended . Authorities often favor the establishment of a corporation, as this offers a clearer liability system. Anyone who nevertheless wishes to start as a sole proprietor should submit a coherent business plan that realistically presents the business idea's chances of success. In some cases, registration as a registered merchant (eK) may also be advisable. However, sole proprietorships are often accepted for freelance work.

4. Overview of corporate forms

Germany offers a variety of company forms , which differ in terms of liability, capital requirements, and establishment costs. In addition to the well-known limited liability companies (GmbH) and UG (UG), as well as the partnerships (GbR), OHG (OHG), and KG (KG), there are also special forms such as the GmbH & Co. KG (GmbH & Co. KG) or the Aktiengesellschaft (AG). For most foreign founders, however, the GmbH is the preferred legal form because it offers security and recognition.

The choice of the appropriate legal form depends largely on individual goals, available capital, and planned business scope. For a self-employment visa, it is advisable to carefully consider the decision and have it legally reviewed. Generally speaking, the clearer the structures and the more secure the financing, the better the chances of success in the visa process .

Book appointment

Lawyer explains German immigration law to his client.

5. FAQ Company types Visa

Which legal form is best suited for a self-employment visa?

The GmbH is the most commonly chosen form of company because it conveys security and integrity. A UG is also an option if less capital is available.

Can you get a visa with a sole proprietorship?

Yes, but the authorities prefer corporations. A convincing business plan is especially important here.

Do I need to have a minimum capital?

For a GmbH, €25,000 is required, while for a UG, just €1 is sufficient. No minimum capital is required for partnerships or sole proprietorships.

Do freelancers have to start a business?
No, freelancers do not need to establish a company or register a business. Applying for a tax ID is sufficient.

Can all types of companies have employees?
Yes, whether employees can be employed does not depend on the company form.

6. Conclusion Types of companies Visa

The choice of legal form plays a crucial role when applying for a self-employment visa in Germany. While the GmbH offers the greatest legal security and is preferred by authorities, the UG can also be a suitable entry point. Partnerships and sole proprietorships are possible, but they carry higher risks. Foreign founders should therefore choose their legal form strategically and focus on a long-term, sustainable corporate structure.