Company Registration and Immigration for Germany

The trade registration

The company of a trade is permitted basically each (principle of the freedom of trade). Nevertheless, the beginning must be announced and is defeated by legal regulations.

Principle of the freedom of trade
Our economic system is based on the principle of the freedom of trade. Each the access to the commercial activity is open what does not exclude that juridical restrictions can exist concerning the exercise of the trade. Businessmen can be imposed certain duties. One of these duties is fixed in paragraph 14 industrial code (GewO) after which every businessman must deliver an announcement about the admission of his commercial activity no matter, in which legal form the company should be led.


What is a trade?

Trade is every independent, level-according, on a continuing basis and profit achievement invested activity. A trade exercises who is personally independent and is subjected to no foreign instructions and performs a permissible activity which is not forbidden as for example professional receiving of stolen goods. The activity must be performed regularly, not only now and then and against remuneration. A profit must be aimed. It does not depend on whether this is really achieved.

Although these signs apply in themselves, scientific, artistic, teaching, curative and legal-advisory activities as well as other similar services of higher kind which require a higher education not than trade for the purposes of the industrial code, but as so-called "independent professions" are looked traditionally. Under this fall, for example, lawyers, patent attorneys, chartered accountants, tax advisers, architects, scientists, artists and engineers with her planning offices and design engineering departments. Also freelance doctors, other remedial occupations are active like remedial practical person, independent midwives and nurses.

The companies of the primary production are also not looked as - industrial concerns-. Scenery and forestry, horticulture and wine-growing, fishing and mining belong to it. Companies of the primary production can sell her products without having to indicate a trade after paragraph 14 the industrial code. The bare use and management of own property, in particular the renting and lease of property (if very extensively and working-luxuriously) is as a rule no industrial concern, because generally usual use of the property. An industrial concern is given when to the bare use surrender into three parts special circumstances (for example, constant change come by renting of holiday apartments or other services).


Trade registration

According to the regulations of the industrial code only businessmen must carry out a trade registration with beginning of the industrial concern. Also are to be indicated the foundation of an unindependent company site (branch) or branch establishment. If several company sites are in a place in different addresses, every single one must be announced. With the change or enlargement of the activity or by a transfer of the company within the place an Ummeldung has to go, by the transfer of the company beyond the place as well as the job of a commercial activity a trade-juridical notice of departure must be carried out.

In the course of the trade notification procedure the locally responsible trade registration office automatically sends a copy of the process to the responsible tax office, so that there an additional announcement must not be carried out. It is different, however, with the independent professions, the companies of the primary production and the administration of property. These must be announced by the owner directly with the tax office. On this occasion, doubt questions can be cleared for the demarcation between trade and non-trade with the tax office because the regulations according to tax law clear the recognition as "an independent profession" often finally.

A nonobservance of these regulations can be avenged within the scope of a breach of the law procedure with a fine.

For the trade registration necessary documents:

The following documents are to be presented at a trade announcement to the trade registration office:

Identity card documents for the person of the application plate, identity proof by identity card or passport, if necessary (private-written) proof of the authority to the action for a third (natural or legal entities). With managers, boards of directors or authorised attorneys permissions are to be presented to commercial register extract of the enterprise, if necessary like craft map, broker's permission et cetera.
A foreign citizen has to present a residence permit of the responsible foreign authority which contains the permission to take up an independent employment.


Proofs of the company site:

An enterprise registered in the commercial register has to prove the commercial register registration by commercial register extract. An enterprise registered in a foreign commercial register also has to present the suitable registration documents. Moreover, a German translation is to be presented. At a foreign enterprise or with manager resident in the EU foreign countries the information of a domestic authorised representative as well as a home address of the company site is required. The domestic authorised representative has to present an authority being in him. In cases of doubt if, for example, the address of the announcing person deviates from that of the company the lease of the company rooms must be proved by presentation of a hire contract or confirmation of the renter. Also the requirement of a certificate of good conduct or the information from the trade central register can be necessary with reasonable occasion.

Residence permit for self-employment in Germany - paragraph 21 Residence

A residence permit for self-employment (paragraph 21 Residence Act) is interesting for foreigners who want to start a company in Germany. Germany is of interest to investors: Germany has a strong political system for decades, has a good infrastructure and a strong economy - is highly regarded worldwide. The legal situation of the investing foreigners is difficult: The residence permit is at the discretion of the immigration authorities. The investment risk is high. Because the law also determines the amount of invested capital on the success. To be successful, you need to include a lot of patience and a good investment strategy. We already have many clients advised in cases of this kind Which investments are worthwhile? Do I have found the company or I can also buy an existing business? Satisfies the management of own assets (eg property management)? Learn more about this in this post.

First Under what circumstances can I get a residence permit for self-employment in Germany?
Second Can I get a residence permit if the company is still in the start-up phase?
Third The states for which there is facilitation?
4th For how many years the residence permit is issued? It shall be issued for a wife and children?
5th Which legal form lends itself to self-employment?

First Under what circumstances can I get a residence permit for self-employment in Germany?

The conditions for granting a residence permit for the establishment of self-employment are regulated by law. Generally, a residence permit may be granted only if

an overriding economic interest or a special regional need exists,

The activity is expected to have positive effects on the economy and

funding to implement is secured by equity or a loan commitment

As part of the process of granting the Aufenhaltserlaubnis is to check to see if a domestic public interest in the issue of the residence permit is.

These are - just see - the impact of the investment on the economies examined. In that examination, other domestic authorities are used. For example, requests from the local Chamber of Commerce and Industry made and carried out checks by the local authority sector. These authorities will then deliver its opinion. They have to explain themselves as to whether objection to the grant of a residence permit to be levied. Regular residence permit will only be granted if those opinions are positive.

Second Can I get a residence permit if the company is still in the start-up phase?

A particular problem in obtaining a residence permit for self-employment is that the residence permit is issued regularly only when actually a company with registered office, business, customer base, etc. exists and this is also demonstrated. The construction of such a corporate structure requires a certain time. And during that time, the foreign company founder has not (yet) have a long-term residence permit. For these reasons, it is then regularly imperative that the foreign company founder bridged the start-up phase of the company with a short visa (business visa). This business visa allows at least short stays in Germany, so that the business can be managed in its early stages at least partly in Germany.

Third The states for which there is facilitation?

Is facilitation of the issuance of the permit for self-employment, for certain countries with which the Federal Republic of Germany has signed special contracts. States with the following contracts have been concluded:

  • Dominican Republic
  • Indonesia
  • Iran
  • Japan
  • Philippines
  • Sri Lanka
  • Switzerland
  • United States of America (USA)

4th For how many years the residence permit is issued? It shall be issued for a wife and children?

The immigration authorities decide positively, the permit shall be issued initially for a maximum of up to 3 years. Thereafter, the issue of a residence permit, so a permanent residence permit - possible.

The Aufenhaltserlaubnis for self-employment is initially issued to the person who makes the investment. This person often has an interest in getting even for spouses and children a right of residence Germany. By law these persons may also be granted a residence permit.

5th Which legal form lends itself to self-employment?

There is no statutory form of society. There can therefore be a sole proprietorship, a limited liability company or a corporation. Limited partnerships are also conceivable.

Often, the GmbH is selected as type of company. The initial capitalization of 25,000.00 EUR has to be paid on a business account. The articles of incorporation of the company must set up a notary. This memorandum of association is then forwarded to the Commercial Register at the District Court for entry. Only if the entry has been made, the company may validly act. The limited liability company is the most affordable form of establishment of a corporation and therefore a legal person. The advantage of a corporation lies in the limitations of liability.