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    Understanding Immigration Policies in Germany: Entry, Residence, and Work Permits

    Embark on a seamless journey by expertly navigating immigration policies in Germany for a smooth transition and successful integration into the German business ecosystem.

    Germany classifies residence titles based on the duration of stay and the country's intended purpose (including business activities). These include:

    • Visa (Schengen visa and national visa)
    • Residence permit in Germany
    • Settlement permit

    A visa allows the holder to enter and stay in Germany for short periods (up to 90 days within 180 days). A residence or settlement permit is necessary for extended stays exceeding 90 days in 180 days or for engaging in self-employment or employment in Germany. The specific type of residence title needed depends on the investor’s nationality and the particular business activities planned in Germany. Generally, a residence permit in Germany is not required for company incorporation, but it becomes necessary when the foreign individual intends to operate the business locally.

    Types of Residence Titles in Germany

    Germany offers different legal statuses based on the duration and purpose of stay:

    • 1. Schengen Visa (Short-Stay Visa) – Valid for up to 90 days within a 180-day period
    • 2. National Visa – Grants initial entry for long-term stays
    • 3. Residence Permit – For extended stays (employment or self-employment)
    • 4. Settlement Permit – Permanent status after years of successful residence

    Generally, a Schengen business visa is sufficient for initial company formation activities. However, if business operations exceed 90 days or involve active management, a residence permit in Germany becomes necessary. A company incorporation visa in Germany is suitable for foreign nationals involved in foundational tasks such as registering a GmbH or signing contracts.


    Who Needs a Residence Title?

    EU citizens and individuals from Iceland, Norway, and Liechtenstein can settle and work in Germany without needing a residence title. Swiss nationals, however, must inform the German immigration office (Ausländerbehörde) of their extended stay in Germany to obtain a residence permit confirming their right to free movement.

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    Non-EU Citizens: Entry and Short-term Stays

    Non-EU citizens typically need a Schengen visa for entry and short-term visits to Germany. Nevertheless, specific regulations vary for certain nations. For instance, individuals from Argentina, Australia, Brazil, Canada, Israel, Japan, Mexico, New Zealand, South Korea, the UK, the USA, and Hong Kong can enjoy a visa-free stay of up to 90 days within any 180 days in Germany.

    Non-EU Citizens: Long-term Stays

    For long-term stays, non-EU citizens require a residence permit in Germany or a settlement permit. The local German mission initially issues a national visa for entry into Germany. The national visa is converted into a residence permit by the competent German immigration office (Ausländerbehörde).

    Non-EU citizens from countries exempt from short-term visa requirements also require a national visa when entering Germany for long-term purposes.

    There are specific arrangements in place for citizens of Australia, Canada, Israel, Japan, New Zealand, South Korea, the UK, and the USA, enabling them to undertake extended stays in Germany without requiring a national visa. These individuals can apply for the necessary residence or settlement permit at the German immigration office (Ausländerbehörde).

    residence permit
    residence permit

    Application Procedure

    Typically, individuals must request their residence title at the appropriate German embassy or consulate general before arriving in Germany. The corresponding visa is subsequently issued in the applicant’s home country. The standard application fee is EUR 80 for a Schengen visa and EUR 75 for a national visa. Additional fees of up to EUR 100 for a residence permit in Germany may exist.

    Visa for Incorporation

    A business visa for Germany—such as a Schengen visa—is adequate for most tasks during the initial phase of company incorporation in Germany. It grants the bearer a 90-day stay, allowing them to undertake essential establishment activities. However, using a company incorporation visa in Germany does not automatically guarantee the issuance of a residence permit. If needed, an application for a residence permit for self-employment or employment should be submitted promptly.


    A residence permit must also be sought if the incorporation process extends beyond 90 days.


    Incorporation Activities with a Schengen Business Visa:

    • Adopting and notarization of articles of association
    • Registration in the commercial register
    • Trade office registration (provided at least one representative is on-site in Germany)
    • Other preparatory activities (e.g., contract finalization)

    Residence Permit for Self-Employment

    Entrepreneurs from non-EU countries planning to oversee a business in Germany as self-employed individuals require a self-employment residence permit Germany. This permit can be obtained if the proposed business is anticipated to have a positive economic impact and possesses secure financing.

    It entails a comprehensive evaluation of the business venture, considering:


    • Viability of the business concept
    • Entrepreneur’s prior experience
    • Amount of capital invested
    • Regional economic interest or demand

    The self-employment residence permit in Germany is initially valid for up to three years. After this period, a settlement permit (permanent) may be granted if the investment project has been successfully implemented and demonstrates a stable income outlook.


    Who is typically considered self-employed?


    • Entrepreneurs, including freelance professions
    • Partners within a partnership
    • Primary shareholders of a GmbH who concurrently serve as managing directors

    Residence Permit for Employment

    In March 2020, the Skilled Immigration Act was implemented, expanding access to the German labor market for skilled workers and outlining the criteria for qualified professionals outside the EU seeking a work visa in Germany for non-EU citizen applicants.

    These professionals include:

    • University graduates
    • Individuals who have completed high-quality vocational training

    The Act emphasizes the importance of:

    • Recognizing foreign qualifications
    • Obtaining pre-approval from relevant authorities
    • Leveraging the new fast-track application process for employers at the German immigration office (Ausländerbehörde)

    EU Blue Card Germany

    The EU Blue Card Germany streamlines the entry process for highly qualified professionals holding a university degree. Non-EU citizens qualify when they:

    • Hold a German or equivalent degree
    • Have a job offer in Germany
    • Earn a gross salary of at least EUR 56,400 (2022), or EUR 43,992 for shortage professions (e.g., IT, engineering)

    A permanent settlement permit can be obtained after 33 months, or 21 months for individuals with adequate German language skills.

    employment in germany
    ICT Card Germany

    Germany has also simplified the process for long-term intra-corporate transfers through the ICT Card Germany. This allows for seamless transfer of staff from a non-EU entity to a host company in Germany.


    • Managers and specialists employed for at least 6 months before transfer
    • Assignment within the same corporate group
    • Proper documentation: employment contract and transfer letter
    • Prior approval from the Federal Employment Agency (FEA)

    Applications must be submitted through the German mission abroad, and final approval is granted by the German immigration office (Ausländerbehörde).


    At HIBS Germany, we specialize in helping entrepreneurs, investors, and skilled professionals smoothly navigate immigration policies in Germany. Based in Hannover, our expert team provides complete support for obtaining your residence permit — including business visas, self-employment residence permits, the EU Blue Card, or the ICT Card — exclusively for individuals who are in the process of opening a company in Germany.

    FAQ

    1. What is the difference between a Schengen visa and a residence permit in Germany?
    A Schengen visa allows short stays in Germany for up to 90 days within a 180-day period, mainly for travel or business meetings. A residence permit in Germany is required for longer stays, employment, or managing a business locally.
    2. Do I need a business visa to start a company in Germany?
    Yes. A business visa for Germany (Schengen or national visa) allows you to enter and carry out initial company formation tasks. If you plan to manage the business on-site, you must apply for a self-employment residence permit in Germany.
    3. Who qualifies for the EU Blue Card in Germany?
    The EU Blue Card Germany is for non-EU professionals with a university degree and a valid job offer. The salary must meet the required threshold and the job must match the applicant’s qualifications.
    4. Can I apply for a residence permit in Germany without leaving the country?
    Citizens from countries like the US, Canada, and Australia can enter Germany visa-free and apply for a residence permit at the local German immigration office (Ausländerbehörde). Others must apply from their home country.
    5. What is the ICT Card, and how is it used in Germany?
    The ICT Card Germany allows non-EU specialists and managers to transfer to a German branch within their company group. It requires prior employment, transfer documentation, and approval from the Federal Employment Agency.

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