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Self-employed non-EU citizens
According to the provisions of the new Residence Act (Aufenthaltsgesetz) of 1.1.2005, foreigners may be granted a (temporary) residence permit (Aufenthaltserlaubnis) for the purpose of self-employment subject to the following conditions (Section 21 Residence Act):
1. if an overriding economic interest or a special regional need applies,
2. if the activity is expected to have positive effects on the economy, and
3. if they have sufficient funding for their business concept, either from their own resources or through a promise of credit
The prerequisites 1. and 2. are generally deemed to have been met when the investment is at least EUR 1 million and ten jobs are created. If this is not the case, the assessment as to whether the conditions have been met (and with that the question of whether a residence permit can be issued) will be made after considering the following points:
1. the sustainability of the underlying business concept,
2. the applicant's entrepreneurial experience,
3. the amount of capital invested,
4. the effects on the domestic labour market and education situation and
5. the contribution made to innovation and research.
The local bodies responsible for the planned activity, the trade supervision authorities, the public law professional associations and the authorities responsible for admission to a trade or profession will be involved in the decision.
Foreign applicants aged over 45 must prove that they have made adequate provision for their old age as an additional prerequisite for a residence permit to be issued.
The foreign applicant has to supply the required proof of the above mentioned prerequisites.
If the foreign applicant successfully implements his business idea and his subsistence is assured, he may be apply for a (permanent) settlement permit (Niederlassungserlaubnis) after just three years instead of the normal five years.
Special provisions exist for the Dominican Republic, Indonesia, Iran, Japan, the Philippines, Sri Lanka, Turkey and the USA:
Germany has signed treaties of friendship, trade and on residence with these countries with provisions granting favourable or most-favoured nation status. These treaties and provisions mean that citizens of these countries can be granted a residence permit for the purposes of self-employment subject to conditions differing from those mentioned above. The treaties reduce the authorities' margin of discretion, requiring them consider applications with the maximum possible goodwill. They cannot, for example refuse an application for a residence permit simply on the grounds that it fails to meet a public need.
Bulgaria and Romania:
Applications by nationals of these two countries are privileged due to Association Agreements between them and the EU. Applicants need merely show genuine intent to pursue a self-employed activity. This and the general profession and trade restrictions are all that need be checked. It is no longer permissible for the authorities to check whether the activity meets a public need.
However, the residence permit (Aufenthaltserlaubnis) issued in this way does not grant access to the general labour market either.
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