Summary: if you plan to start your own business in Germany or work as a freelancer, the self-employment residence permit (Section 21 of the Residence Act) is your route. The Foreigners’ Authority checks that your activity has an economic benefit or need, is financially secured and is reasonably viable. For Iranians this route currently has to be examined through the Tehran embassy and the “other purposes” group; details are in the visa guide.
Gewerbe or Freiberufler?
Business (Gewerbe): commercial activity such as a shop, manufacturing, restaurant, services; requires business registration (Gewerbeanmeldung) at the office and usually membership of the chamber of commerce.
Freelancer (Freiberufler): liberal professions such as doctor, engineer, architect, lawyer, translator, artist, writer and many IT freelancers. You do not need to register a Gewerbe but must register at the tax office (Finanzamt).
The differences lie in tax, registration and insurance; talk to a tax advisor before starting (tax guide).
Main requirements
- Economic benefit or regional need: the activity must benefit the German economy or the region; for example creating jobs, innovation or providing a service that is in short supply.
- Positive effect and financing: the plan must be realistic and profitable and be financed (personal capital, a loan or an investor).
- Necessary permits: some occupations (restaurants, healthcare, teaching, regulated professions) require a licence or professional qualification.
- Livelihood and insurance: show that you can pay your living costs and have health insurance.
- Over age 45: you usually must show reasonable provision for retirement, unless special circumstances apply.
The business plan (Businessplan)
It is the most important document in the file. It usually includes: the idea and customers, market and competitor analysis, marketing approach, financial plan (start-up capital, costs, revenue and profitability for the first three years), proof of your experience and skills, and, if any, initial contracts or customer letters of intent. The authority seeks the opinion of the chamber of commerce or a specialist body; their positive opinion is very helpful.
Steps
- Market research and drafting the business plan; where possible, start-up advice or advice from the chamber of commerce.
- Check permits and the legal form (sole proprietor, GbR, GmbH, etc.). Guide to starting a business.
- Prepare documents: passport, qualifications and experience, the plan, proof of capital, insurance, CV.
- Apply for the national “self-employment” or “other purposes” visa and register on the waiting list.
- After entry: register your address, apply for the residence card at the Foreigners’ Authority, register the Gewerbe or with the Finanzamt, and open a business bank account.
Duration of residence and permanent residence
The first residence permit is usually granted for up to three years. If the business is successful and supports you, you can obtain permanent residence after about three years (even earlier in special circumstances). Extension depends on profitability and continued activity. Permanent residence guide.
Common mistakes
- A weak and unrealistic plan, or one copied from the internet.
- Lacking the required permit for a specific field.
- Not accounting for the cost of insurance, tax and the period without income.
- Starting work before receiving permission to work (working without a valid residence permit is illegal).
Frequently asked questions
What is the minimum capital?
There is no fixed legal amount; the authority judges based on the plan and the type of activity. Insufficient capital is a common reason for rejection.
Can I be an employee at the same time?
The self-employment residence permit is issued for that activity; any other work may require permission or a change of residence.
What about IT freelancing?
IT freelancers often fall into the Freiberufler or Gewerbe category; clarify the classification with a tax advisor.
Note: this guide is general information (last reviewed: October 2026) and is not legal or immigration advice. Laws, amounts and embassy procedures change constantly, especially for Iranian applicants. Before taking any step, read the lists of documents and the official notices (Auswärtiges Amt, Make it in Germany, BAMF) and, for complex cases, consult a lawyer or authorised immigration advisor.
