Self-employment and starting a business in Berlin

Residence permit for self-employment – federal law

The legal basis nationwide is § 21 AufenthG. Under paragraph 1, a residence permit for self-employment can be granted if "there is an economic interest or a regional need, the activity can be expected to have positive effects on the economy, and the financing of the implementation is secured by equity or by a loan commitment". According to the text of the law, the assessment takes into account in particular the viability of the business idea, the entrepreneurial experience of the applicant, the amount of capital invested, the effects on the employment and training situation, and the contribution to innovation and research; competent chambers, professional organizations, and authorities are to give their opinion on this. Paragraph 2a eases access for persons who have completed their studies at a German university or held a residence title as a researcher or scientist, provided the self-employed activity is related to the knowledge acquired in their studies or research. For persons over 45 years of age, the permit under paragraph 3 is only to be granted if adequate old-age provision exists. Paragraph 4 limits the residence permit to a maximum of three years; thereafter a settlement permit can be granted if the self-employed activity has been successfully implemented and the household's livelihood is secured. Paragraph 5 provides eased criteria for freelancers: it suffices that positive economic or cultural effects are to be expected and that the permit required to practise the profession has been granted or assured – the more elaborate examination of economic interest and financing under paragraph 1 does not apply here.

§ 21 procedure – Berlin implementation at the LEA

In Berlin, only the Landesamt für Einwanderung (LEA, State Office for Immigration) decides on applications under § 21 AufenthG; since an announcement of 04.02.2026 on the official Berlin.de immigration page, applications can only be made online; a mere appointment request via contact form does not replace the online application. To assess the economic interest, the LEA according to its own description involves expert bodies – named are the Senatsverwaltung für Wirtschaft (Senate Department for Economics), the IHK Berlin, and Berlin Partner für Wirtschaft und Technologie. The IHK Berlin describes its own role as an "expert body" (fachkundige Stelle) which, at the LEA's request, gives an opinion on the project – not legally binding – after the LEA has checked the basic formal requirements; the contact person at the IHK Berlin, according to its own procedure page, is Franziska Henning (Fasanenstraße 85, 10623 Berlin, tel. 030 31510-296, [email protected]). Required documents include a business plan (in German, or in English with a German summary), proof of capital or loan commitments, CV and proof of qualifications, cooperation agreements or letters of customer interest, and – for existing businesses – annual financial statements of the last two years, business evaluations of the last six months, and tax assessments of the last three years. For managing directors of corporations, the IHK Berlin procedure page names, among other things, a minimum shareholding of 50 % and an annual net income of 41,000 euros (single source, see Attention). After a successful examination, the LEA issues the residence permit for one to three years.

Trade registration – Berlin implementation, no central trade office

Berlin has no central trade office: responsible in each case is the Ordnungsamt (public order office) of the Bezirksamt (district office) in whose district the business is located – Berlin is divided into twelve districts, each with its own district office. The legal basis of the registration obligation is § 14 Abs. 1 Gewerbeordnung (GewO, Trade Regulation Act). Registration can be made online via the Berlin e-government portal (eMeldung), in writing, or in person. According to the ServicePortal Berlin, the fees are: 15 euros for online registration, 26 euros per natural person or partner for registration in person/in writing, 31 euros for legal entities with one authorized representative, and 13 euros for each additional authorized representative. Required are an identity document (not needed for electronic registration), for nationals of non-EU countries the residence title, for companies already registered a current extract from the commercial register, and for newly founded corporations the notarized articles of association and the partners' declarations of consent.

Special case of freelancers – no trade registration, registration with the Finanzamt

Anyone practising a liberal profession within the meaning of § 18 Einkommensteuergesetz (EStG, Income Tax Act) – for example listed professions such as doctor, lawyer, tax adviser, engineer, architect, journalist, interpreter, or a self-employed artistic, literary, teaching, or educational activity – does not need to register a trade. Instead, registration is made informally or via the electronic "Fragebogen zur steuerlichen Erfassung" (tax registration questionnaire) directly with the competent Finanzamt (tax office), mandatorily electronically via ELSTER since 1 January 2021, within one month of starting the activity. Unlike traders, freelancers do not pay trade tax (Gewerbesteuer). For the responsibility of the tax office, the place-of-residence principle generally applies to natural persons in Berlin: according to the Senatsverwaltung für Finanzen (Senate Department for Finance), the 17 regional tax offices in the Berlin districts are responsible for taxing natural persons (sole proprietorships, freelancers) – which of them is responsible depends on the registered place of residence. A separate, central "freelancer tax office" for all of Berlin was not found in the available sources (see Attention); only for corporations are there separate, specialized tax offices for corporate bodies.

Path to the settlement permit

Under § 21 Abs. 4 AufenthG, after three years with a residence permit under § 21 Abs. 1 or Abs. 2a AufenthG, the LEA can grant a settlement permit if the self-employed activity has been successfully implemented and the livelihood of the applicant and their dependent family members is secured. According to the ServicePortal Berlin, additional requirements include sufficient health insurance cover, adequate old-age provision (since 1 July 2025 either a monthly pension entitlement of 1,612.53 euros or assets of 232,204 euros on reaching the age of 67), no relevant criminal record, and a main residence in Berlin. According to the ServicePortal Berlin, the fee totals 124 euros (62 euros on application, 62 euros on issuance); for Turkish nationals, different, lower fees apply under the ARB 1/80 agreement (EU-Turkey Association Council Decision). For freelancers, the same source gives a different period of five years (see Attention on the unresolved exact legal basis of this differentiation).

Data gaps

On the exact legal basis of IHK participation in § 21 applications, on a possible differing procedure at the Handwerkskammer Berlin, and on the precise statutory basis of the five-year period for freelancers for the settlement permit, no confirmed information is available. These gaps are expressly named here rather than filled in.