Visa or Residence Permit - What is required in Germany?
When setting up business in Germany, the residence title depends on the person's country of origin, the length of the intended stay and planned business activity in Germany.
Different Residence Titles for non-EU Citizens
Germany offers various residence titles. For those considering business expansion into Germany the following titles are the most relevant:
- Schengen visa
- Residence permit
- Settlement permit
Schengen Visa
Citizens of non-EU countries generally require a Schengen visa for entry and short-term stays in Germany. A Schengen visa is sufficient for conducting most business and administrative activities that need to be organized prior to locating to Germany. It authorizes the holder to enter and stay in Germany for a temporary period (up to 90 days in any 180-day period).
Nationals of certain non-EU countries are exempted from the visa requirement for short-term stays in Germany. The Federal Foreign Office (Auswärtiges Amt) provides detailed information on entry requirements into Germany for different countries.
Setting Up a Company with a Schengen Visa
For non-EU nationals, a Schengen visa is generally sufficient for most steps required to set up a company in Germany. Setting up a company in Germany using a Schengen visa does not alone warrant residence permit issue at a later date. If necessary, a residence permit for self-employment or employment should be applied for in due time. A residence permit must also be applied for if the incorporation phase exceeds 90 days.
Residence Permit
A residence permit authorizes the holder to stay for the long term (i.e. more than 90 days in any 180-day period) or to work on a self-employed basis or as an employee in Germany. It is granted for a limited time, e.g. up to four years for skilled employees. Depending on the planned activity, there are different options available to foreign companies planning to set up business in Germany and their employees. For details please refer to Residence Permit for Self-Employed Entrepreneurs and Residence Permit for Employees.
Settlement Permit
A settlement permit is an unlimited permit for residence and gainful occupation in Germany. Depending on the type of residence permit this can be granted e.g. after holding a residence permit for three years as a skilled employee or a self-employed person. The EU Blue Card offers even more beneficial granting requirements.
Application Process: Visa/Residence Permit
Schengen visa generally has to be applied for at the competent German embassy or consulate general prior to entering Germany. For detailed information on visa regulations please refer to the website of the German Federal Foreign Office and the competent German embassy or consulate.
Where a residence permit is sought, the application for a national visa must usually be submitted to the relevant German embassy or consulate general before entering Germany. A national visa allows entry to Germany where a residence permit can be issued.
Some non-EU nationals may apply for a residence permit (self-employed or employed) after entry into Germany without a national visa. This only applies to nationals of Australia, Canada, Israel, Japan, New Zealand, South Korea, UK, and the United States.
The application fee is in general EUR 80 for a Schengen visa and EUR 75 for a national visa. Additional fees of up to EUR 100 for a residence permit are also payable.
Accelerated Administrative Procedure
A German employer can initiate an accelerated administrative procedure for an employee recruited from abroad. The procedure can be applied for at the local foreigners authority for an additional fee. The foreign employee must agree to the accelerated procedure. The employee must still apply for the national visa/residence permit.
Moreover, an extensive agreement between the employer and the immigration office must also be concluded.
EU Citizens
Citizens of the European Union (EU) and the European Economic Area (EEA) do not require any residence title to be able to enter, settle or work in Germany. A registration at the local registration office (Einwohnermeldeamt) is sufficient, if they move to Germany.
Swiss nationals have to notify the local immigration office about their long-term stay in order to obtain a residence permit certifying their right to free movement.