Employing before Receiving Business Residency Permit

The VGH Baden-Wurttemberg had to discuss the question whether you must have hired at least five employees before you receive your residence permit for opening a business (judgment of March 17, 2008, re 11 S 2353/07)

The applicant wanted to start a business and so obtain a residence permit for such (§21 AufenthG). He planned to invest € 500,000 and hire up to 10 part-time employees. The foreigners office and the lower court denied his application. VGH Baden-Wurttemberg affirmed the application for self-employment.

First of all, the court stated that only full-time employees count, because only they show the promised positive impact on the labor market and German economy. Part-time or minor employments do not meet the requirements of the law.

§21 I 2 AufenthG does not require that at the time of granting already five full-time employees have been hired. However, a sustainable business plan has to show that in the foreseeable future this will happen. The requirements for granting a residence permit for self-employment rely on a prognosis on the development of the business. This is supported by the perception that it is hardly possible and reasonable for a foreigner to initiate his business idea in the legally required scope, when he cannot be here during the founding and developing period.