Settlement permit: Establishment with a non-EU passport

Published on: July 29,2019Categories: Working world, Start-up & foundingKeywords: company formation UG , UGReading time: 2 min.

Christina Schröder writes about legal topics for the Love & Law blog at Recht 24/7.

Under certain conditions, founders with a non-EU passport can obtain a residence permit and then also live in Germany. However, there are restrictions. The settlement permit offers more freedom.

The settlement permit has been a residence status under German immigration law since 2005 and is relevant for citizens who do not come from EU countries or the EEA. The settlement permit has decisive advantages for entrepreneurs. It is unlimited in time and therefore creates planning security. Unlike the residence permit, however, it cannot be applied for for the purpose of setting up a business, but is based on other residence permits.

Requirements for a settlement permit

The settlement permit must be applied for in writing at the Foreigners' Registration Office and a number of requirements must be met for approval. The main criterion is that the applicant already has a temporary residence title - such as a residence permit. The settlement permit must be granted to a foreigner in accordance with §9 Para. 2 AufenthG if:

He has held a residence permit for five years,
his livelihood is secured,
he has made at least 60 months of compulsory or voluntary contributions to the statutory pension insurance scheme,
he is exempt from punishment and poses no danger,
he is permitted to work,
he is in possession of the other permits required for the permanent exercise of his gainful employment,
he has sufficient knowledge of the German language,
he has a basic knowledge of the legal and social order and living conditions in the Federal Republic of Germany and
he has sufficient living space for himself and his family members living with him in the same household.

Reasons with a settlement permit

With a settlement permit, any professional work can be carried out, even with a non-EU or EEA passport you can then easily set up a UG or GmbH online. Once the settlement permit has been issued, it remains valid even if you lose your job and can no longer earn a living. But be careful! However, there are certainly reasons for revoking the settlement permit, e.g. if

the person concerned leaves Germany for longer than 6 months,
there are grounds for expulsion,
or if there is evidence of deception in the application.

Conclusion: The settlement permit allows you to stay in Germany indefinitely and carry out any activity. If you have a settlement permit, you can set up a GmbH or UG online without any restrictions or complications.

Is a business account always necessary?

For the legal forms of GmbH, UG, AG and Kommanditgesellschaft (KG), maintaining a business account is required by law. Only when the required share capital has been deposited in the business account does the notary responsible arrange for the company to be entered in the commercial register.