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Business Immigration In Germany

In this article, our colleague from Gurcan Partners Düsseldorf Office, Ms Att. Hülya Oruc will mention Business Immigration in Germany with all the required steps and processes. Corporate Immigration in Germany.

The following discussion contains sufficient guidelines and knowledge on immigration for business purposes in Germany. Our multinational team has expertise in immigration and corporate law and is ready to provide you with efficient and quality services.

Also, to ensure that the procedures tailor-made for you (based on your current circumstances) are simple and cost-effective.

The reason that a Schengen Visa is sufficient for establishing a company in Germany a national visa is not required for business people who want to invest in Germany.

Schengen Visa covers 26 Countries. These countries:

1. Austria,
2. Belgium,
3. The Czech Republic,
4. Denmark,
5. Estonia,
6. Finland,
7. France,
8. Germany,
9. Greece,
10. Hungary,
11. Iceland,
12. Italy,
13. Latvia,
14. Liechtenstein,
15. Lithuania,
16. Luxembourg,
17. Malta,
18. Netherlands,
19. Norway,
20. Poland,
21. Portugal,
22. Slovakia,
23. Slovenia,
24. Spain,
25. Sweden, and
26. Switzerland

The Schengen Visa permits a max 90-day stay in Germany within any 180-day period. Regularly a company is formed within 3 months if the German authorities work fast. (With tax number) Germany is a very bureaucratic country meaning that a lot of paperwork must be done by Attorneys and afterwards be checked by the authorities.

You can check our article about Company Formation in Germany.

A Schengen visa is not enough when it is planned to live and work in Germany. In a lot of cases, we first incorporate a company for our clients and then apply for a national visa for the purpose of self-employment. This can be a good way if a company with a minimum share capital shall be incorporated. But it is possible and reasonable to make such an application when a company with high share capital is planned.

The most common company form in Germany is the Gesellschaft mit beschränkter Haftung (GmbH). With more than one million companies, the formerly popular partnerships are overtaken now by this form of company (as of 2013). The GmbH is a legal entity that has its own rights and obligations. (Limited Liability Company)

In consequence, the GmbH is an independent legal personality, e.g. it can sue and be sued independently from the shareholders. The GmbH itself can be the owner of movable properties. Bodies of the GmbH are:

1. The managing director,
2. The shareholders,
3. The meeting of the shareholders,

Further, under certain circumstances, a board of directors can be appointed.

The share capital of a GmbH must amount to at least EUR 25.000,00. According to § 7 GmbH-Law half of the share, capital must be contributed when the notary applies for registration at the commercial register. The company has the obligation to hold the minimum share capital.

It is quite important to have accurate company documents on hand during the residency application. Due to the unprofessional incorporation process, it is too possible to get a refusal. Gurcan Partners provides tailor-made incorporation and business immigration services in Germany.

This capital can be provided in cash or kind. Upon the registration of the company, the managing director must assure that the minimum regular share capital has been paid. Opening a bank account can be difficult for foreigners who are not residents of Germany. Many banks have strict conditions. So there are banks that want to get to know their customers in person. However, there are also banks that open a bank account after the legitimacy of the customer at an official place without the premise of entering Germany.

The GmbH is represented by one or more managing directors who can be appointed indefinitely or for a certain time by the shareholders in the Articles of Association with the formation or afterwards. Managing directors can only be natural persons, who are absolute sui iuris (unlimited legal capacity). Managing directors are subject to special and due diligence requirements that have to be met, amended by responsibilities developed by case law.

The formation of the association is not bound to the nationality of the shareholders or the managing directors.

Even foreigners can establish an association or be appointed managing director without authorization. It makes it easier Corporate Immigration in Germany.

Business operators who are from non-EU countries and who manage their company on location in Germany as self-employed persons require a residence permit for the purpose of self-employment (Aufenthaltserlaubnis für selbständige Tätigkeit).

This is generally issued if:

• An economic interest or a regional need regarding the intended business activity exists,
• Positive economic consequences are to be expected from the investment project,
• The planned investment has secure financing in place

The local immigration office (Ausländerbehörde) individually assesses to what extent these criteria are met. It takes into account the following aspects:

• Viability of the underlying business idea
• Investor’s entrepreneurial experience
• Level of capital investment and availability of capital
• Effects on the regional employment and (employee) training level
• Contribution towards innovation, research, and development in Germany.

The immigration office consults the local trade office (Gewerbeamt) as well as local trade and business associations e.g.:

1. Local Chambers of Industry and Commerce (Industrie- und Handelskammer) or
2. The Chambers of Skilled Crafts (Handwerkskammer).

Regular accounting services are quite important for residency applications. Every GMBH must have a licensed accounter.

Gurcan Consultancy provides accounting and virtual office assistance in Germany.

Foreign business operators are considered to be self-employed if they are (e.g.):

• Sole traders (including freelance professionals)
• Partners in a partnership
• Managing partners who are no employees of the company
• Managing directors or managerial employees with the proxy or the full power of attorney who personally carry a business risk.

The application for this kind of visa has mandatory be made in the country of origin in one of the representations of the Federal Republic of Germany.

Besides the application, the consulates require a lot of documents, for e.g. a well-prepared business plan among other documents has to be submitted. Due to a lot of requests problems regarding an appointment can arise. The application will be sent to the local immigration office which will make a decision on the documents submitted. This process can last at least 8 to 10 weeks.