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Federal Republic of Germany · entrepreneur

Commercial self-employment — Section 21(1)

By · Last reviewed:

Guidance updated 15 November 2026. Full-review date shown above.

Discretionary business residence based on economic or regional interest, positive economic effects and secured implementation financing.

Substantiated economic or regional-interest business case, implementation financing and personal conditionsConditional PR application pathwaySection 21(4) limits the relevant initial residence permission to up to three years. The actual purpose, grant and renewal conditions control; there is no automatic permanent status at expiry.In flux
Processing time
There is no national application-to-decision clock. The Federal Foreign Office says national visas can take several months. Local review, appointments and card production are separate; Berlin’s four-to-six-week electronic-card period begins after the appointment.
Government fees
Where required, the standard adult national-visa charge is EUR 75 and the standard initial residence-permit charge is separately EUR 100. Actual statutory exemptions or reductions and document costs must be checked; a company’s registration or capital costs are different expenses.
Typical duration
Section 21(4) limits the relevant initial residence permission to up to three years. The actual purpose, grant and renewal conditions control; there is no automatic permanent status at expiry.
Required support
Substantiated economic or regional-interest business case, implementation financing and personal conditions
Leads to permanent residency
Conditional — separate application
Reviewed Official German federal legislation portal — Gesetze im Internet ↗

In short

Discretionary business residence based on economic or regional interest, positive economic effects and secured implementation financing. Guidance updated 15 November 2026. Costs, application stages and eligibility conditions are set out with their sources below.

Cite this: https://visaatlas.org/visas/germany/commercial-self-employment#answer

What is the Commercial self-employment — Section 21(1) in Federal Republic of Germany?

Substantiated economic or regional-interest business case, implementation financing and personal conditions. Follow the actual Section 21 basis, authority procedure and issued work conditions. Indicative government fees are Where required, the standard adult national-visa charge is EUR 75 and the standard initial residence-permit charge is separately EUR 100. Actual statutory exemptions or reductions and document costs must be checked; a company’s registration or capital costs are different expenses; indicative processing time is There is no national application-to-decision clock. The Federal Foreign Office says national visas can take several months. Local review, appointments and card production are separate; Berlin’s four-to-six-week electronic-card period begins after the appointment; typical duration is Section 21(4) limits the relevant initial residence permission to up to three years. The actual purpose, grant and renewal conditions control; there is no automatic permanent status at expiry. A business residence permit is temporary. Section 21(4) provides a separate discretionary settlement assessment after the qualifying actual self-employment period and the required successful, sustainable activity, family livelihood and other conditions. Three calendar years alone are insufficient.

Primary guidance checked with Official German federal legislation portal — Gesetze im Internet on 15 November 2026.

Overview

Section 21(1) is the ordinary commercial self-employment basis. It requires economic interest or regional need, expected positive economic effects and financing through own capital or a loan commitment. The assessment considers the viable business idea, entrepreneurial experience, capital, employment/training effects and contribution to innovation or research. Competent business/professional bodies participate. Company formation, share ownership or a nominal director appointment does not itself grant the individual residence or work permission.

Additional sources

Eligibility

Typical criteria

Common blockers

Typical evidence

Application pathway

  1. Select the correct Section 21 basis

    Distinguish ordinary commercial admission from freelance, related graduate/researcher or funded-founder provisions.

  2. Substantiate the business and financing

    Prepare the concept and evidence for the authority and involved business/professional bodies.

  3. Complete the actual entry/residence process

    Use the responsible mission or lawful local filing branch and obtain the required permission.

  4. Operate within the grant and assess renewal or settlement separately

    Maintain the actual authorised activity and evidence. Three years alone does not establish permanent residence.

After approval: prepare for your next step

For Commercial self-employment — Section 21(1), use the actual decision and the issuing authority’s instructions to establish what has been granted. A successful application, permission to enter, permission to work and a residence document are not interchangeable.

  1. 1. Check the decision. Confirm the name, passport, status granted, start date and any next action. Resolve an error with the authority before relying on the document for travel or employment.
  2. 2. Establish the travel step. Read any entry window, activation, collection or in-country registration instruction. For an extension or change of status, do not assume leaving the country is required or safe while a further step remains pending.
  3. 3. Confirm what you may do. Check whether employment, self-employment, remote work or study is permitted under the status granted. Do not infer unrestricted work rights from the absence of an employer sponsor.
  4. 4. Organise the household. Check each accompanying person’s permission separately, then arrange healthcare, accommodation, access to money and the relevant local registrations. A tax number or bank account does not by itself prove a right to work.
  5. 5. Keep the ongoing conditions visible. Record the actual expiry, renewal process, permitted absences and any duty to report changes. An initial grant does not automatically establish permanent residence or citizenship.
Official Commercial self-employment — Section 21(1) instructionsBuild my moving plan for this routeMoving to GermanyFirst steps after arrivingDestination moving checklist

Plan the practical side of your stay

Once you have checked the official route, you can prepare for day-to-day life in Germany. These optional services are separate from the application and do not establish visa eligibility.

Official application links

Where to actually go next

Government links only

These are the official pages to use for this route. Open them before preparing documents: the forms, fees, appointment systems, and sponsor steps can change without warning.

  1. Official guidanceApplicant
    Establish the actual commercial admission process ↗

    Present the business, financing and personal case to the competent authority.

    Federal Office for Migration and Refugees (BAMF) · verified

  2. Official guidanceApplicant
    Read Berlin’s commercial procedure as a local example ↗

    Berlin describes chamber involvement, business documents and its online review/appointment process.

    Berlin Immigration Office (LEA) · verified

  3. Official guidanceApplicant
    Check any required national visa ↗

    Company registration does not replace the individual entry and residence process.

    German Federal Foreign Office · verified

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Frequently asked questions

Is there one universal investment or jobs price?+

The cited statute sets an assessed economic/regional-interest, positive-effect and financing test with specified factors. It does not establish one universal investment amount or jobs target that automatically buys residence. Company-law capital requirements are a different matter.

Does a company registration authorise me personally to work?+

No. The legal entity and the individual’s immigration/work permission are different. Check the actual grant and any professional or other required permissions before starting.

Is this the same as the freelance branch?+

No. Section 21(1) is the ordinary commercial assessment; Section 21(5) is the liberal-profession branch. The correct classification changes the evidence and later settlement analysis.

Can a successful business support settlement after three years?+

Section 21(4) provides a separate discretionary assessment based on the qualifying actual self-employment period, the activity’s success, duration and sustainable prospects, family livelihood and the other actual conditions. It is not an automatic conversion of every three-year permit.

Need tailored advice?

We do not provide legal advice. For an application that depends on your exact circumstances, consult a regulator-listed immigration advisor.

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How we verified this

We check every figure on this page against the primary government source, record the date it was last checked, and re-check it on a regular schedule. Rules change, so always confirm time-sensitive details with the official source before you rely on them. Visa Atlas is an information-only publication and does not give legal advice.

Primary source: Official German federal legislation portal — Gesetze im Internet

Last checked: 15 November 2026

See the full evidence trail and methodology

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