I have currently finished the thesis of my master program from a state university in Germany. Now I want to open a pizza shop with my friend, who is a German. As a foreigner, can I open a pizza shop with my partnership? If NOT, can you explain the reason and if YES, what is the process to follow?
As a graduate of a Germany university, you can either work as a freelancer /independent profession (“Freiberufler”) or set up a business as a self-employed entrepreneur (“Gewerbe”). Being self-employed or independent makes a difference with regard to certain formalities and also has an impact in your company’s legal structure. Your local tax office will decide whether your profession is considered “freiberuflich” or “gewerblich”, once you register your business at the latest four weeks after you started your activities. Here you will find out more about the two different ways of setting up a business.
First of all, as a citizen of the European Union you are free to start up your own business.
If you are a non-EU citizen, in order to set up your own business you need a residence permit allowing you to exercise a self-employed activity (“selbstständige Tätigkeit”). You can apply for this to your local foreign nationals' registration office. We recommend that you ask which documents you need to bring with you before submitting your application. If you are planning to set up is related to what you learned during your studies, you will usually be granted a residence permit. Once you have set up your business, you must register it with your local trade office (“Gewerbeamt”). Initially, the residence permit entitling you to self-employment is temporary. If your business idea is successful and you are able to support yourself and your family, there will be no problem about getting your residence permit extended. After just three years, you are entitled to a permanent residence permit, which entitles you to stay in Germany for an unlimited period. More about the requirements to set up a self-employed business you will find on “Make it in Germany”.
If you want to be self-employed in one of the independent professions (“freiberuflich”), apply for a residence permit that will allow you to exercise this kind of activity. To do so, you will usually need to supply your CV, your final examination diploma, a description of the activity you intend to take up and a financial plan. We recommend that you ask your local foreign residents’ registration office which additional documents you need to submit. Initially, the residence permit entitling you to work as an independent professional is temporary. If your business idea is successful and you are able to support yourself and your family, there will be no problem about getting your residence permit extended. If you work as an independent professional, you do not have to register with the trade office (“Gewerbeamt”). However, you do have to register your activity with the tax office (“Finanzamt”). More about requirements to set up a freelance business you will find on “Make it in Germany”.
For information on advisory services for entrepreneurs, please visit the Website "Make it in Germany".
Please note: The information presented here is a general service offering. Only the German missions and the foreigners’ authorities are responsible for the issuance of visa resp. residence permits.
For further questions, please contact directly the respective authority.
Source: Your Make it in Germany-team
Projekt „Make it in Germany“
Institut der deutschen Wirtschaft Köln e.V.
September 2018
