{"id":3086,"date":"2021-10-04T12:15:18","date_gmt":"2021-10-04T10:15:18","guid":{"rendered":"https:\/\/zellerseyfert.com\/?page_id=3086"},"modified":"2021-12-07T15:46:23","modified_gmt":"2021-12-07T14:46:23","slug":"entrepreneur","status":"publish","type":"page","link":"https:\/\/zellerseyfert.com\/en\/expertise\/expat-law\/business-visa-law\/entrepreneur\/","title":{"rendered":"Entrepreneur"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"3086\" class=\"elementor elementor-3086\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-24034a4 mb-section-medium mb-margin-bottom-75 elementor-reverse-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"24034a4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7338073\" data-id=\"7338073\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bcca584 elementor-widget elementor-widget-image\" data-id=\"bcca584\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/zellerseyfert.com\/wp-content\/uploads\/Bild-farbig_Entrepreneur-1024x576.jpg\" class=\"attachment-large size-large wp-image-3888\" alt=\"\" srcset=\"https:\/\/zellerseyfert.com\/wp-content\/uploads\/Bild-farbig_Entrepreneur-1024x576.jpg 1024w, https:\/\/zellerseyfert.com\/wp-content\/uploads\/Bild-farbig_Entrepreneur-300x169.jpg 300w, https:\/\/zellerseyfert.com\/wp-content\/uploads\/Bild-farbig_Entrepreneur-768x432.jpg 768w, https:\/\/zellerseyfert.com\/wp-content\/uploads\/Bild-farbig_Entrepreneur-1536x864.jpg 1536w, https:\/\/zellerseyfert.com\/wp-content\/uploads\/Bild-farbig_Entrepreneur.jpg 1600w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29cc9f3 mb-links-none elementor-widget elementor-widget-text-editor\" data-id=\"29cc9f3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default elementor-inline-editing pen\" contenteditable=\"true\" data-elementor-setting-key=\"title\" data-pen-placeholder=\"Type Here...\">Residence Permit for Entrepreneurs\u200b<\/h2><p>In attempting to become more friendly to global entrepreneurs, Germany introduced changes in the Residence Act in 2012, in which residence permits can be issued when starting a viable business in the country. Entrepreneurs can receive a residence permit for self-employment according to \u00a7 21 (1) of the Residence Act.<\/p><p>\u00a0Qualified candidates should fulfill the following requirements:<\/p><ul><li>Be able to prove a legitimate commercial interest or regional demand for the product or service that the business offers.<\/li><li>Be able to present positive impacts on the economy based on the business\u2019 activity.<\/li><li>Establish the proper financing (based on the capital amounts mentioned in the respective\u00a0<a href=\"https:\/\/zellerseyfert.com\/expertise\/expat-law\/business-visa-law\/company\/\">commercial entity types<\/a>).<\/li><li>If the applicant is over 45 years of age, proof of adequate retirement provisions is provided.<\/li><\/ul><p>In-depth details on the requirements and procedures can be found on our\u00a0<a href=\"https:\/\/zellerseyfert.com\/expertise\/expat-law\/business-visa-law\/\">Residence Permits in Germany<\/a>\u00a0page.<\/p><p>One attractive business type embraced by entrepreneurs and start-ups is the\u00a0<strong>UG<\/strong>\u00a0<strong>entrepreneurial company with limited liability<\/strong>\u00a0(or\u00a0<em>Unternehmergesellschaft (haftungsbeschr\u00e4nkt)<\/em>\u00a0in German). It is similar to the more common\u00a0<a href=\"https:\/\/zellerseyfert.com\/expertise\/expat-law\/business-visa-law\/company\/\">GmbH (<em>Gesellschaft mit beschr\u00e4nkter Haftung<\/em>, or limited liability company)<\/a>, with the main exception being the lower required capital to start the company.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f8486ff mb-links-none elementor-widget elementor-widget-text-editor\" data-id=\"f8486ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>UG vs GmbH: Which is better for entrepreneurs?<\/h2><p>There are certain factors to consider when deciding between establishing a UG or GmbH company. First, there are some basic shared similarities:<\/p><ul><li>Both are commercial entity types with limited liability.<\/li><li>Both are private legal entities with individual shareholders.<\/li><li>Both must be represented by at least one managing director, who is either the shareholder or a 3rd party separate from the company. This individual can even be a non-German.<\/li><\/ul><p>Now let\u2019s consider the differences:<\/p><ul><li><strong>Starting Cost<\/strong>: UGs are very attractive based on the considerably low cost required to be established. It is sometimes known as the \u201c1-Euro Company\u201d since you can theoretically start the business with just \u20ac1 in cash. This is a stark contrast to the \u20ac25,000 minimum shared capital that a GmbH must have (although only \u20ac12,500 of the capital is required at signing). Nevertheless, entrepreneurs should consider all the additional costs required to open their business beyond the minimum requirements for the share capital. Furthermore, contributions to the share capital of a GmbH can be made in cash and various other assets (such as equipment or property value). On the other hand, the share capital of a UG can only be made in cash.<\/li><li><strong>Credibility<\/strong>: Being the standard entity type in Germany, the GmbH is widely respected domestically as well as abroad. Conversely, there is a certain reputation that comes with UGs, stemming from the low initial investment cost. If the product or service is more on the inexpensive end, or if you only intend to test the market, then it is reasonable to establish it as a UG. However, starting the company with very little funding may signify to investors or business clients that there is \u201cno money in the company\u201d. This may prove to be a challenge for startups who intend to provide a complex, expensive service or achieve big sales.<\/li><li><strong>Profit accumulation obligation<\/strong>: UGs must allocate 25% of its cash profit each year as a reserve until it reaches the \u20ac25,000 minimum. Once a UG\u2019s annual profit has reached \u20ac25,000, it can become a regular GmbH. However, in reality, it may be more costly to convert a UG to GmbH than to just register as a GmbH from the beginning.<\/li><\/ul><p>While we support entrepreneurs with any range of capital, overall we recommend opening a GmbH over a UG in most cases. Aspiring company founders interested in legal assistance are welcome to contact our experienced German bilingual attorneys to help navigate through the bureaucratic process.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Residence Permit for Entrepreneurs\u200b In attempting to become more friendly to global entrepreneurs, Germany introduced changes in the Residence Act in 2012, in which residence permits can be issued when starting a viable business in the country. Entrepreneurs can receive a residence permit for self-employment according to \u00a7 21 (1) of the Residence Act. \u00a0Qualified [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4785,"parent":2680,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[44],"class_list":["post-3086","page","type-page","status-publish","has-post-thumbnail","hentry","tag-expertise-template"],"acf":[],"_links":{"self":[{"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/pages\/3086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/comments?post=3086"}],"version-history":[{"count":5,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/pages\/3086\/revisions"}],"predecessor-version":[{"id":5785,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/pages\/3086\/revisions\/5785"}],"up":[{"embeddable":true,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/pages\/2680"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/media\/4785"}],"wp:attachment":[{"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/media?parent=3086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/categories?post=3086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zellerseyfert.com\/en\/wp-json\/wp\/v2\/tags?post=3086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}