Germany Lists Conditions for Foreigners to Start Their Own Business in the Country

• Germany's official immigration portal outlined two routes for foreigners who want to run their own business in the country
• Foreigners who want to set up as self-employed entrepreneurs must prove commercial interest, economic benefit, and secured funding
• Applicants over 45 face an additional requirement, while graduates of German universities are exempt from some conditions

Germany has outlined the requirements foreign nationals must meet before they can set up and run their own business in the country, according to guidance published on the government's Make it in Germany portal.

Foreign nationals have two options when starting a business in Germany: registering as a freelancer (Freiberufler) or establishing a commercial enterprise (Gewerbe) as a self-employed entrepreneur.

Both paths require the applicant to hold the appropriate residence permit, but the conditions attached to each differ.

Germany: Requirements for self-employment residence permit

Those who want to register as self-employed entrepreneurs must apply for a residence permit specifically for self-employment. The application must show that there is genuine commercial interest or regional demand for the proposed product or service, that the business is likely to benefit the German economy, and that the applicant has secured funding through personal capital or a confirmed loan.

Germany advises prospective applicants to consult business associations in their target region to help determine whether they meet these conditions before applying.

However, foreigners who completed a degree at a German university, or who already hold a residence permit for research purposes, and want to start a business related to that academic or research background, also need a self-employment residence permit but are not required to satisfy the three criteria above.

All applicants, regardless of category, must demonstrate that they can support themselves financially while living in Germany. Those aged above 45 must go a step further and provide proof of adequate pension provisions.

Permit duration, settlement, and fees

A self-employment residence permit is initially granted for up to three years. If the business proves viable and the applicant can sustain a livelihood for themselves and their family, the permit can be extended. After three years, a successful applicant becomes eligible for a settlement permit, which allows them to remain in Germany indefinitely.

Fees apply at each stage of the process. A residence permit costs a maximum of €100, a settlement permit up to €147, and a standard visa fee is €90. Exact amounts vary depending on location, the length of the stay, and its purpose. Applicants are advised to confirm the applicable charges with the relevant foreigners' authority or German mission abroad.

When submitting a residence permit application, the following documents are generally required: a completed application form, a valid passport, a business plan, and proof of health insurance. Researchers and academics must include their current employment contract, while German university graduates must attach a copy of their degree certificate. Applicants above 45 must provide evidence of sufficient pension provisions. Additional supporting materials, such as professional references and proof of entrepreneurial experience, are also recommended.

Legit.ng has also published residency years for foreigners who want to become Qatari citizens.

Citizenship: Australia mentions residency years for foreigners

Meanwhile, Legit.ng previously reported that Australia's Department of Home Affairs outlined the residence requirement foreigners must meet before applying for citizenship.

Applicants must have lived in Australia on a valid visa for a number of years before the date they apply for citizenship.

The rules also specify how much time applicants are allowed to have spent outside Australia during that period.