Germany does not have a single visa category officially called a "startup visa."
In practice, the term is commonly used to refer to the residence permit for self-employment under Section 21 of the German Residence Act (AufenthG). Non-EU founders may use this route to establish and operate a business in Germany.
Two Main Application Routes
There are two main pathways under Section 21.
General Self-Employment Route — Section 21(1)
This route applies broadly to self-employed individuals, including founders, freelancers, and small business operators.
Applications are generally assessed based on factors such as the economic need for the proposed business, its expected contribution to the German economy, and the viability of the business plan.
Startup and Innovation-Related Route — Section 21(2a) and (2b)
Certain founders with a stronger connection to Germany's academic or research ecosystem may qualify under separate provisions.
These may include graduates of German universities, researchers, or founders supported through public startup programs such as EXIST.
In these cases, the innovative nature of the business, its connection to research or technology, and the founder's academic or professional background may play a particularly important role.
The first step is therefore to determine which route is most appropriate based on the founder's background and the nature of the proposed business.
Four Key Factors Considered During Review
A German startup residence permit is not granted simply because a company has been incorporated.
In practice, the application process is largely about demonstrating, through supporting documentation, why the proposed business is commercially viable and why it makes sense to operate it in Germany.
1. Economic Interest and Market Need
Authorities will consider whether the proposed business addresses a genuine market need and is capable of contributing to the German economy.
The application should clearly explain the company's market positioning, competitive advantages, and relevance to the German market.
2. Viability of the Business Plan
The business plan should be supported by concrete assumptions and figures, including:
- Market analysis
- Target customers
- Revenue model
- Operating plan
- Medium- and long-term financial projections
Authorities are generally more interested in whether the business can realistically be implemented than in broad claims about future growth potential.
3. Ability to Finance the Business
The founder should be able to demonstrate sufficient financial resources to cover both the initial operating costs of the business and personal living expenses in Germany.
Relevant evidence may include:
- Bank statements
- Investment agreements
- Financing commitments
- Other documentation showing available capital
4. Founder Qualifications and Professional Background
The founder's academic background, professional experience, and project history may also be taken into account.
A stronger connection to Germany — such as a German degree, research experience, participation in a local startup program, or partnerships with German institutions or businesses — may also support the application.
Application Process
A typical process may include the following steps:
- Prepare the business plan and financial projections
- Apply for a national D visa for self-employment through the German Embassy or other competent German mission
- Enter Germany and complete local address registration (Anmeldung)
- Apply for a residence permit for self-employment under Section 21 through the competent immigration authority (Ausländerbehörde)
- Complete the company incorporation process and establish the necessary tax, accounting, insurance, and operational framework
- Commence business operations
A residence permit for self-employment may generally be granted for a limited period and, where the business develops successfully and the statutory requirements are met, may later provide a pathway to a settlement permit (Niederlassungserlaubnis).
Planning to Start a Business in Germany? Review the Structure First
Entering Germany as a startup founder involves more than obtaining a visa.
The appropriate residence route, business plan, company structure, financing arrangements, and long-term residence strategy should be considered together from the beginning.
DECENT Law Firm's Global Business Practice Team assists Korean founders with German market entry by coordinating immigration, company formation, and long-term residence planning as part of a single cross-border strategy.
Early legal and structural review can help reduce avoidable delays and improve the overall quality of the application.