Business immigration to Germany, myths and reality.
In Russia, you can see a large number of newspaper ads offering everyone a so-called “business immigration to Germany.” German law offices also often apply to those wishing to conduct commercial activities in the territory of Germany, but living in the republics of the former Union. Most people, as it turns out, are not interested in actual business activity, but are counting on justifying the place of permanent residence in Germany, which is the ultimate meaning of the whole event. Since the addressees often have incorrect information, we will devote this material to some aspects of this topic.
To this question, you must find an answer first for yourself, and then for your lawyer. In principle, we can distinguish two groups of potential Russian entrepreneurs seeking to justify their business in the FRG: those who chose this country for some objective reasons rooted in the professional or personal situation of the person, and those whose desire is “simply to get a chance to live and work in the West.
The latter category by definition has a choice, and they could say that Germany is not an ideal country for implementing such a wish. The reasons are that in Germany, for example, fairly stringent legislation is in force to justify the permanent residence in this country. In principle, German laws, with rare exceptions, do not provide for “working” or “commercial” immigration. But there are legal provisions prohibiting the recruitment of foreign labor and even putting such actions under criminal punishment.
Suffice it to say that in Germany, unemployment has reached a record for this state of scale and is approaching 5 million.
mark. To each of these almost five million the state renders various kinds of material support, from which, of course, the budget suffers. Finding jobs or opportunities for self-employment for these “domestic” unemployed is one of the main tasks of both the German policy and the competent administrative authorities in the field. With such a picture, the attraction of a labor force or entrepreneurs from abroad, to put it mildly, is undesirable. Of course, an entrepreneur can “promise” Germany to create additional jobs for its citizens than contribute to the fight against unemployment, and a potential employee – to seek a job, for which for various reasons there are no specialists inside the country. However, even such a situation, even if it is obvious, meets with hostility. An exceptional example is the introduction of a “green card” for computer specialists, from the absence of which the German economy actually suffered.
The “births” of the relevant legislative base in the German parliament were painfully heavy, and the end result was so full of restrictions, quotas and bureaucratic barriers that in the end few highly qualified specialists, even from third world countries, decided to go to work in Germany for all these conditions – they preferred to stay at home or accept job offers from other states, in particular, from the United States.
If there is a choice, Germany and for independent business is far from being an ideal country. One of the main reasons is high taxes. Unlike America, where to start work in most cases it is enough to inform about this.
fact, the relevant government agency, in Germany, it is required almost a staff of employees for the sole registration of all necessary legal documentation. Note that the passage of all these obstacles “threatens” the entrepreneur only in the event that,
if he was given permission to conduct business in the Federal Republic of Germany. And this is not a rule, but an exception. In addition, at present Germany is experiencing the largest wave of bankruptcy of enterprises since the Second World War. Prosperous and creating jobs.
business has become a rarity even among the giants of the industry.
How to become a businessman in Germany.
If, despite the above-mentioned “horror stories”, any Russian entrepreneurs have not lost the desire to establish or expand their business in the Federal Republic of Germany, then let’s talk about this.
So, you are permanently residing in the former USSR, would like to work in Germany and have a residence permit for this purpose in this country.
You are not afraid of strict immigration restrictions, as well as the fact of “lack of” any clear legislative framework for obtaining permanent residence on the fact of “business immigration”. Well, in that case, you should know that, on the other hand, there is not a single German law to explicitly prohibit the provision of permanent residence in Germany to this circle of persons. From this follows the principle possibility of achieving your goal.
To obtain permanent residence you must apply to the German embassy or consulate in your state of permanent residence. Under the current procedural legislation for a stay in Germany for more than three months, the consent of the foreign affairs office at the place of your intended stay is also required. Therefore, the embassy / consulate will accept your application and give you a decision on it, but will independently use this agency. The company’s constituent contract must be attached to the application if it is wholly or its parent organization should be located in the FRG or an application for the registration of a commercial unit in the German commercial register if it is a question of establishing a branch of an enterprise located in another country. The procedure is complicated by the fact that the provision of permanent residence before the establishment of an enterprise in Germany is impossible. In the beginning it is necessary to do the constituent work and only then apply for permanent residence. It is necessary to take into account the risk of rejection of permanent residence, despite the presence of the company or its branch in Germany.
The procedure of “registration” of a firm in Germany depends on its legal form. To select the most favorable form for the founders, drafting of the memorandum of association, its initial implementation and registration, one should use the services of German lawyers and notaries with the appropriate specialization. Some forms of enterprises, for example, a limited liability company, require a minimum fixed capital (25,000 euros). Further, the enterprise or its branch is registered in the commercial register. Details and package of necessary documents depend on the legal form of the enterprise, but your lawyer will take care of correct registration in the register. 0 cost of his services and the amount of all other expenses ask him the same. As a rule, these amounts do not exceed the monthly earnings of an ordinary German employee and should not frustrate entrepreneurs with plans for international economic activity.
After the application was received by the embassy or consulate of the Federal Republic of Germany and was handed over to the local department for foreigners, the Chamber for Economic and Industrial Affairs is connected to the process. The Chamber considers the above documentation and makes its verdict on whether the planned entrepreneurial activity of foreign businessmen is a special (that is, beyond the usual) economic interest for the German state or not. The Chamber, I must say, is not clairvoyant, therefore this interest should be presented to it by a foreign businessman in the appropriate form. This is perhaps the most important element of the entire procedure for obtaining permanent residence through entrepreneurship, so let us dwell on it in more detail.
A special benefit for the German economy and other obstacles.
So, a foreigner intending to obtain permanent residence for doing business in the Federal Republic of Germany must give convincing and documented arguments that it is in his case that an exception should be made to the rule consisting, in a simplistic way, of preventing foreign labor and businessmen from entering the country . To avoid disappointment, a useless waste of effort and money and other troubles, you should at this point objectively evaluate your entrepreneurial abilities and capabilities. Since the life of the pest is diverse, one can only explain on some concrete and life-like examples, when it is worth advising people to send these same forces and money for any other purposes than “business immigration” in Germany. For example, such a common type of activity, as trade in consumer goods in a tent of three square meters, will not lead you to the desired result. The same should be said to those who are looking for “legal addresses” for their firm in the apartments of their friends and acquaintances living in Germany who, moreover, often keep this apartment and themselves with social assistance. Perhaps, disappointments are also avoided for those entrepreneurs whose main problem is the amount of German registration fees or minimum fixed capital for legal entities.
If the way of immigration to Germany is considered along with the “establishment of a firm”, then the prospect of seeking political asylum is considered, without looking, choose the latter: it is just as useless for the final result, but it lasts less and costs less.
It should also be borne in mind that unsubstantiated good intentions can be very commendable, but for “business immigration” are inadequate. This is addressed to those; who is going to back up his statement with assurances of the invaluable benefits for the German society of his presence in the territory of the Federal Republic of Germany, the creation of a multitude of jobs and other benefits, while at the same time being unable to formulate without hesitation what kind of activity is meant, and on closer examination, turns out to be Russian Belarusian, Ukrainian, etc.) unemployed or a person with casual earnings.
Further, one should realize that the invaluable benefit for the FRG economy and (the unenforceable, because unintended by the laws) the desire to receive from this state any kind of final indulgences, benefits, and also to employ only “on a basis” are not comparable by definition. The same is true for those applicants for “business immigration,” who do not know where, and what means he will live in Germany.
It should be said that the term “business immigration” is used precisely in this form and in quotation marks because the equivalent term in German law does not exist at all. It is taken from numerous advertisements in Russian newspapers and magazines from Russian law firms (so, in all probability, lawyer bureaus are called in Russia). Just in case, it is worthwhile to refer to the work of these institutions with a healthy share of criticism, and if possible, when solving questions from the field of German law, to connect German lawyers to this. This, at least, is logical.
But back to our main topic. Adequate documentation to substantiate the special economic interest of Germany in the presence of a foreign businessman can be, for example, documents on past activities of an entrepreneur in the countries of the former Soviet Union, in particular, on the volume of turnover, profit dynamics, balance sheet documents, recommendatory confirmations of German or other Western European firms about the fact and scope of cooperation. The entrepreneur must justify the need to move his business to Germany or expand his activities to cover the territory of this country.
Economic interest can be reinforced by two more important factors: investments and the creation of new jobs. And the volume of investment in the economy of Germany, and the planned labor agreements with the German workforce must be documented. At least from the documented commercial activities of an entrepreneur in the past should indirectly follow that in Germany this businessman will invest in the economy worthy of mentioning funds and will not be able to do without hired labor.
When this is all told and proven, the following question arises: why would a Russian (Kazakh, etc.), certainly successful and useful for the state entrepreneur, who wants to deploy his activities in the territory of Germany, needed to permanently reside in this country? And this question should be answered by the applicant for permanent residence in “business immigration”: for example, to justify and confirm that successful work requires the presence of this particular person in Germany, since his personal professional knowledge, experience, qualities is impossible with the same effect to apply without the presence of permanent residence in Germany (for example, by obtaining a one-year visa for the purpose of traveling as necessary, appointing a deputy residing in Germany, etc.). Or, say, no one, except this particular person, is professionally or objectively able to carry out due control over economic activity, which is required every day and, with all modern means of communication, is not realizable at a distance.
The one who once committed a wrongful act on the territory of Germany or any other member state of the Schengen Agreement and, for this reason, “got into the computer”, that is, in the corresponding register there is a ban on the entry of this foreigner into the Schengen territory or specifically to Germany . Then first you need to understand the removal or restriction of the time of this prohibition, as well as the reason for its appearance. Here, perhaps, it is superfluous to explain that, say, a delay of a visa for three and a half hours and criminal acts with a sentence of imprisonment are two big differences.
If this issue is resolved, then the matter remains for small: family entrepreneurs probably will not want to stay in Germany alone, and therefore will have to apply for reunification with the spouse and underage children. Here, however, everything is not so difficult. The reason to justify it is not necessary: even strict German legislation on the entry and stay of foreigners in the country proceeds from the naturalness of the desire of a family person to have a family home. It is necessary, however, to prove that all members of the family can reside in Germany with funds from entrepreneurial activities of a foreign businessman and will not need any kinds of state support. For a foreigner who has already proved his special economic benefit to Germany, this by definition should not be particularly difficult. Just in case, let us mention that members of the family in the concept of German legislation on foreigners are mom and dad and their juvenile offspring. Adult children, parents, brothers, sisters, etc. in this concept German laws are not included (there are, however, rare exceptions).
The Chamber for Economic and Industrial Affairs expresses its opinion on the existence or absence of special economic benefits from the stay of the applicant for “business immigration” to Germany, as well as the objective necessity of the alien’s stay in Germany in the presence of special benefits. This verdict is sent to the Office for Foreigners, which gives or does not give its consent to the arrival of the foreigner to Germany with the purpose of substantiating the permanent residence with respect to the embassy or consulate of Germany in the country of residence of the alien.
Then the embassy or consulate sends an official response to the applicant for his application, that is, a positive or negative decision. In case of a positive decision, a foreigner is issued a visa, as a rule, for a period of three months with the desired purpose – justification of permanent residence for business. With this visa, an entrepreneur arrives in Germany, is in the foreign affairs department at the place of residence in Germany and receives a residence permit there, usually for a year. After the expiration of the annual period, the residence permit is subject to extension if the conditions under which it was issued initially (the entrepreneurial activity is really being maintained, the workplaces are created, the special economic benefits are brought, etc.) are preserved. If this is not documented, the extension may be refused. Refusal can be appealed.
The initial refusal to issue a visa for “business immigration” is also subject to protest in the usual administrative procedure, including in court. How much the chances for success of such protest will be told to you by the lawyer, having analyzed the circumstances of the case. In conclusion, I would like to wish success to those who, despite all the difficulties described above, have not abandoned their decision to choose Germany for the development of their business.