UG foundations for foreigners

Even if you have a foreign passport, you can easily set up a GmbH or UG online. However, if you want to settle in Germany with company formation , you may also need a corresponding residence permit.

Setting up a company and becoming self-employed is linked to certain requirements that every founder must fulfill, regardless of nationality. It must be clarified whether the formal entry requirements - such as appropriate training with a recognized qualification - are met for the planned activity. These requirements in Germany can differ greatly from those in other countries.

company formation for EU citizens

Once the formal requirements have been met, the further procedure differs depending on the nationality of the founder. For citizens from EU countries, the EEA and Switzerland, this is quite simple: they have freedom of establishment, they can settle anywhere in the EU - including Germany - and can of course also set up a UG or GmbH online without any complications. All you have to do is comply with the obligation to register with the relevant authorities.

With the business idea to the residence permit

For founders from non-EU countries, the route is via a residence permit. This is always for a specific purpose and limited in time and must be applied for in writing at the immigration office. Very important for founders: A residence permit does not automatically include a work permit; this must be explicitly granted in the residence permit.

Section 21 of the Residence Act regulates whether a residence permit can be issued for business start-ups and self-employment; the requirements are that

• there is an economic interest or a regional need,
• the activity is expected to have a positive impact on the economy and
• the financing of the implementation is secured through equity or a loan commitment.

A detailed business plan is usually required for the evaluation. Positive effects and economic interest can be, for example, the creation of jobs and strengthening the local economy. These aspects are also examined in detail, in particular the viability of the concept - i.e. the chance of being able to live off the business idea in the long term - is looked at closely. The applicant must be able to earn a living without drawing on state funds.

If the corresponding residence permit is granted, a permanent settlement permit can be applied for after three years at the earliest and under certain conditions.

Conclusion: It is also possible to set up a company in Germany as a foreign citizen. With a viable business idea, founders from non-EU or EEA countries can obtain a residence permit and settle in Germany.

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