Residence permit for entrepreneurs and self-employed persons under § 21 AufenthG

Germany is an attractive location for entrepreneurs, investors and self-employed professionals from around the world. Third-country nationals who wish to start a business, acquire a stake in a company or work in a liberal profession in Germany generally require a residence permit under § 21 of the German Residence Act (AufenthG).

This residence permit is demanding and is carefully examined by the immigration authorities. Thorough preparation and a convincing presentation of the project often determine success or rejection. As an attorney specialising in immigration law, I guide you through the entire process - from the initial assessment to the granting of the permit.

"With § 21, capital alone rarely decides the matter - what decides it is how convincingly the project is presented. A strong business plan is half the approval."

— Tom Beisel, Attorney

Who can obtain a residence permit under § 21 AufenthG?

§ 21 AufenthG essentially distinguishes between two groups:

• →Self-employed entrepreneurs who wish to take up a commercial activity or found or acquire a company in Germany (§ 21 para. 1 AufenthG)
• →Members of the liberal professions, such as doctors, engineers, artists or consultants (§ 21 para. 5 AufenthG)

In addition, there are facilitations for certain situations, for example for graduates of German universities or for researchers who wish to become self-employed.

The key requirements

For a permit under § 21 para. 1 AufenthG, three requirements essentially must be met:

1. Economic interest or regional need

There must be an economic interest or a regional need for the planned activity. This means the project should have a recognisable positive effect - for example through jobs, investment or innovation.

2. Positive effects on the economy

The activity must be expected to have positive effects on the economy. This depends on a viable business idea, solid financing and a realistic profitability forecast.

3. Secured financing

The financing of the project must be secured through equity or a loan commitment. The authority wants to see that the project rests on a sound economic footing.

⚠ Important: the former rigid threshold no longer applies. Previously, fixed threshold values applied (such as a certain investment sum and number of jobs). These rigid requirements no longer exist - today, an overall assessment of the individual case is decisive. This creates flexibility but makes a convincing presentation all the more important.

The role of the business plan

The heart of a successful application is a robust business plan. To assess it, the immigration authority often obtains opinions from competent bodies - such as the Chamber of Industry and Commerce (IHK), the Chamber of Crafts or other industry representatives.

A convincing business plan should in particular contain:

• →A clear description of the business idea and the market
• →A realistic revenue and profit forecast
• →A comprehensible financing plan
• →Information on planned jobs
• →A presentation of your own qualifications and experience

Weaknesses in the business plan are one of the most common reasons for rejection. Careful preparation pays off here.

Liberal professions under § 21 para. 5 AufenthG

Somewhat different standards apply to liberal professions. Here, personal qualification is in the foreground, not the overall economic effect. The decisive factors are usually:

• →The required professional licence or authorisation, where the profession is regulated
• →Proof of professional aptitude and qualification
• →Secured means of subsistence

What rights does the permit grant?

The residence permit under § 21 AufenthG is initially granted on a temporary basis, usually for up to three years. If the self-employed activity is carried out successfully and the means of subsistence are secured, a settlement permit (Niederlassungserlaubnis, permanent residence) under § 21 para. 4 AufenthG may subsequently be considered - often after just three years.

Family reunification is also generally possible, so that a spouse and children can come along.

Common reasons for rejection - and how to avoid them

In practice, applications often fail due to avoidable points:

• →A vague or unrealistic business plan
• →Insufficiently demonstrated financing
• →Missing or incomplete documents
• →A negative opinion from the IHK or Chamber of Crafts
• →Doubts about the viability of the business idea

With careful preparation and a convincing presentation, these risks can be significantly reduced.

How I support you

As an attorney for immigration law, I guide entrepreneurs, investors and self-employed persons through the entire procedure under § 21 AufenthG:

• →Initial assessment of the prospects of your project
• →Preparation and review of the application documents
• →Coordination with the immigration authority, IHK and other bodies
• →Representation in the procedure and in the event of rejection through appeal or court proceedings

I advise in German, English and Russian and represent clients throughout Germany.

Frequently asked questions

How high does the investment have to be?

There is no longer a fixed minimum sum. Rigid limits used to apply; today, an overall assessment is decisive: business idea, financing, economic impact and viability. A convincing overall picture matters, not a single figure.

Do I absolutely need a business plan?

In practice, yes. The immigration authority bases its decision largely on the viability of your project, and this is best demonstrated with a well-founded business plan, which is often also assessed by the IHK or Chamber of Crafts.

Can my family come with me?

Yes, family reunification with holders of a residence permit under § 21 AufenthG is generally possible. A spouse and minor children can join under the general conditions.

What happens if my application is rejected?

A rejection is not the end. Depending on the situation, an appeal or a lawsuit can be filed against a negative decision. Often an application can also be resubmitted with improved documents. It is important to analyse the reasons for rejection precisely.

Can I obtain permanent residence after a few years?

Yes. If the self-employed activity is carried out successfully and the means of subsistence are permanently secured, a settlement permit under § 21 para. 4 AufenthG may be considered - often after just three years.