At a glance
Requirements
A residence permit may be granted if there is an economic interest or a regional need, if the activity is expected to have a positive effect on the economy and if the financing of the implementation is secured by equity capital or a loan commitment (§ 21 Abs. 1 Satz 1)
Assessment criteria
The assessment is based, among other things, on the viability of the underlying business idea and on the amount of capital invested (§ 21 Abs. 1 Satz 2)
Graduates and researchers
Any person who has successfully completed a course of study in the federal territory at a state or state-recognized university or comparable educational institution is to be granted the residence permit by way of derogation from paragraph 1 if the activity shows a connection with the knowledge acquired there (§ 21 Abs. 2a). The same applies to researchers and scientists holding one of the titles named there, if the activity shows a connection with the work as a researcher or scientist
Over 45 years of age
The residence permit is to be granted only if you have adequate provision for old age (§ 21 Abs. 3)
Time limit
For a maximum of three years (§ 21 Abs. 4 Satz 1). This maximum period does not apply to liberal professions (§ 21 Abs. 5 Satz 4)
Settlement permit
After three years, a settlement permit (Niederlassungserlaubnis) may be granted notwithstanding § 9 Abs. 2 AufenthG if the requirements of § 21 Abs. 4 Satz 2 are met. This path does not apply to liberal professions (§ 21 Abs. 5 Satz 4)
Visa
National visa before entry (§ 6 Abs. 3 AufenthG) with the prior approval of the immigration authority responsible for the intended place of residence (§ 31 Abs. 1 AufenthV). The information decisive for the issuance must already be stated in the visa application (§ 5 Abs. 2 AufenthG). Nationals of the eight states named in § 41 Abs. 1 AufenthV may obtain the required residence title in the federal territory
Residence titles and self-employment
Anyone who holds a residence title may pursue an economic activity unless a law provides for a prohibition. The economic activity may be restricted by law, and anything going beyond a prohibition or a restriction requires permission. Self-employment is also such an economic activity. Every residence title must show whether the economic activity is permitted and what restrictions this permission is subject to, which is often not observed. We examine in the individual case whether your planned activity in the company is such an economic activity.
A widespread misconception is that entry without a visa or with a Schengen visa is sufficient to take up the activity in your own company. Nationals of the third countries listed in Annex II to Regulation (EU) 2018/1806 are exempt from the visa requirement for a stay of no more than 90 days in any 180-day period. For entry and for the short stay, however, these nationals and holders of a residence title or national visa for a longer-term stay issued by a Schengen State are not exempt from the requirement of a residence title.
If you are granted a residence permit for another purpose, or if you already hold such a residence permit, for example a residence permit for economic activity, you may be permitted under § 21 Abs. 6 AufenthG to pursue a self-employed activity while retaining this purpose of residence. If your residence title was issued for the purpose of pursuing a specific employment, pursuing another economic activity is prohibited under § 4a Abs. 3 Satz 4 AufenthG for as long as and to the extent that the competent authority has not permitted the other economic activity. A self-employed secondary activity is often not raised until the title is extended, although the breach of this prohibition already exists at the moment the secondary activity is pursued without permission.
Requirements for the residence permit for self-employment
Under § 21 Abs. 1 AufenthG, the residence permit may be granted to you if there is an economic interest or a regional need, if your activity is expected to have a positive effect on the economy and if the financing of the implementation is secured by equity capital or a loan commitment. For graduates of a state or state-recognized university or comparable educational institution in the federal territory and for researchers and scientists holding certain titles, the residence permit is to be granted by way of derogation from this, as explained below under the frequently asked questions. The bodies designated by law are to be involved in the examination, and this involvement is often underestimated when the timeline is planned. We examine whether your project meets these requirements before the application is filed.
Decisive for the assessment of these requirements are, among other things, the viability of the underlying business idea and the amount of capital invested. A particular investment sum does not secure the residence title, because capital alone does not replace the remaining requirements. We agree with you on the documents that support your project.
If you are over 45 years of age, the residence permit under § 21 Abs. 3 AufenthG is to be granted only if you have adequate provision for old age. This provision does not name an amount. This proof requires lead time and in many cases is not obtained until the application is already pending.
Visa, approval by the immigration authority and visa-free entry
A national visa is required for a longer-term stay and is issued before entry, and the requirements for the residence permit are already examined in the visa procedure. Because you intend to pursue a self-employed activity in the federal territory, the visa requires, under § 31 AufenthV, the prior approval of the immigration authority responsible for the intended place of residence.
Nationals of the eight states named in § 41 Abs. 1 AufenthV, among them the United States of America and Japan, may also enter without a visa for a stay that is not a short stay and may obtain the required residence title in the federal territory. Under § 41 Abs. 3 AufenthV, the application is to be filed within 90 days after entry, and this period ends early if you are expelled or your stay is limited in time under § 12 Abs. 4 AufenthG. In this case as well, self-employment itself requires a residence title that permits this activity. The application deadline is often overlooked because entry itself was possible without a visa.
Time limit and the path to the settlement permit
The residence permit for self-employment is limited to a maximum of three years. After three years, a settlement permit may be granted to you notwithstanding § 9 Abs. 2 AufenthG if you have been self-employed for three years and the further requirements of § 21 Abs. 4 Satz 2 AufenthG are met. This includes in particular that the activity currently pursued gives reason to expect, in terms of its success and its duration, a further sustained development of the business activity, and that the means of subsistence for you and for the family members living with you in a family household to whom you owe maintenance are secured by sufficient income. Many people assume that this path requires five years of residence permit and 60 months of pension contributions, but these are requirements of the general path to the settlement permit, from which the provision for self-employed persons departs. We examine with you whether your activity meets the requirements before the three years expire.
Neither the maximum period of three years nor this path applies to activities in the liberal professions. For liberal professions, the settlement permit may be considered under the general requirements. We clarify the path suitable for you in the individual case.
Frequently asked questions about setting up a business in Germany
Can I enter with a Schengen visa and build up my company?
Under § 6 Abs. 2a AufenthG, a Schengen visa does not entitle the holder to pursue an economic activity. A national visa is required for a longer-term stay and is issued before entry. Nationals of the third countries listed in Annex II to Regulation (EU) 2018/1806 are exempt from the visa requirement for a stay of no more than 90 days in any 180-day period. For entry and for the short stay, however, these nationals and holders of a residence title or national visa for a longer-term stay issued by a Schengen State are not exempt from the requirement of a residence title.
I work in a liberal profession. Do the same requirements apply to me?
For an activity in a liberal profession, the residence permit may be granted under § 21 Abs. 5 AufenthG by way of derogation from the requirements of paragraph 1. If a license is required for your profession, that license must have been granted or its grant must have been assured. The time limit of a maximum of three years and the path to the settlement permit after three years do not apply to liberal professions. What then comes into consideration is in particular the settlement permit under the general requirements of § 9 Abs. 2 AufenthG with five years of residence permit. Whether your activity counts as an activity in a liberal profession is not governed by § 21 AufenthG. We clarify this for your profession in the individual case.
I studied in Germany. Do the requirements apply to me as well?
If you have successfully completed your studies at a state or state-recognized university or comparable educational institution in the federal territory, a residence permit for self-employment is to be granted to you under § 21 Abs. 2a AufenthG by way of derogation from the requirements of paragraph 1. The same applies if, as a researcher or scientist, you hold a residence permit under §§ 18b, 18d, 19c Abs. 1 AufenthG or an EU Blue Card. The intended self-employed activity must show a connection with the knowledge acquired in the course of your university education or with your work as a researcher or scientist. Details on the study stay and on the move into working life can be found on the Education and Higher Education page. We examine the presentation of this connection with you before the application is filed, because this presentation is often too brief in the application.
Last updated: September 8, 2026. Professionally responsible: Gülay Tasli, lawyer and, specialist lawyer for migration law and social law (Fachanwältin für Migrationsrecht und Sozialrecht).
