What options do I have as a foreign entrepreneur to start a business in Germany?
July 28, 2023 | 50,00 EUR | answered by Leonie Eiserfelder
Dear lawyer,
My name is Theodor Sauer and I am a foreign entrepreneur. I am planning to establish a company in Germany, but I am unsure about the exact steps and possibilities available to me as a foreigner.
Currently, I am in a situation where I would like to expand my business activities to Germany. I have already conducted some research and found that there are various forms of business establishment, such as establishing a GmbH or a sole proprietorship.
My biggest concern is that as a foreigner, I may face bureaucratic hurdles that could make it difficult for me to establish my company. I am unsure whether I need a residence permit to operate as an entrepreneur in Germany, and what requirements I must meet to obtain such a permit.
Therefore, my question to you is: What options do I have as a foreign entrepreneur to establish a company in Germany? What specific steps do I need to take to build my business in Germany, and what legal regulations do I need to consider? Are there any special funding programs or support options for foreign entrepreneurs that I can take advantage of?
I would greatly appreciate it if you could help me with this and provide possible solutions to successfully implement my plans to establish a company in Germany.
Thank you in advance for your support.
Sincerely,
Theodor Sauer
Dear Mr. Sauer,
Thank you for your inquiry regarding establishing a business in Germany as a foreign entrepreneur. I understand completely that you may feel uncertain about possible bureaucratic hurdles and legal regulations, and I would like to help you in detail.
As a foreign entrepreneur, you have various options for establishing a business in Germany. One of the most common legal forms for companies in Germany is the GmbH (limited liability company). When founding a GmbH, you must provide a minimum share capital of 25,000 euros and appoint a managing director who has German citizenship or a residence permit. Alternatively, you can also establish a sole proprietorship, where you as the sole proprietor are liable for your business.
With regard to the residence permit, it is important to know that foreign entrepreneurs typically need a residence permit to operate as an entrepreneur in Germany. This can be applied for if you can present a specific business concept that is economically viable and contributes to job creation. Additionally, you must have sufficient financial resources to ensure your livelihood and that of your company.
To establish your business activities in Germany, you should first create a business plan outlining your project and financial plans. You can then contact the local trade office to register your company and learn about further legal regulations such as trade registration, taxes, and insurance.
There are also special funding programs and support options available for foreign entrepreneurs that you can take advantage of. These include, for example, funding from the KfW banking group or regional economic development agencies. Additionally, there are advisory services such as the Chamber of Industry and Commerce (IHK) or the Rationalization and Innovation Center of the German Economy (RKW) that can assist you in the establishment and development of your business.
I hope that I could help you with this information and am available for further questions. I wish you success in establishing your business in Germany.
Best regards,
Leonie Eiserfelder
