Many families around the world have ancestors who were forced to leave Germany during the Nazi regime between 1933 and 1945.

In 2021, Germany introduced new provisions in its nationality law allowing descendants of victims of Nazi persecution to obtain German citizenship today.

If your parents, grandparents or great-grandparents fled Germany due to Nazi persecution, you may be eligible to reclaim German citizenship.

This opportunity exists even if your ancestors were not German citizens at the time, but lived in Germany and were forced to emigrate due to racial or political persecution.

Legal Basis: Section 15 of the German Nationality Act

The legal basis for these applications is Section 15 of the German Nationality Act (Staatsangehörigkeitsgesetz – StAG).

This provision was introduced to address historical injustices caused by the Nazi regime.

Under this regulation, descendants of persons who lost their residence in Germany in connection with Nazi persecution may obtain German citizenship.

Importantly, the law applies not only to former German citizens but also to persons who lived in Germany and were persecuted due to their religion, ethnicity or political beliefs.

This includes many Jewish families who were forced to flee Germany before or during the Second World War.

Who Is Eligible for German Citizenship?

Many descendants of refugees from Nazi Germany qualify for German citizenship today.

Typical cases include:

• Jewish families who fled Germany after the rise of the Nazi regime in 1933
• Families who left Germany following the Kristallnacht pogroms in 1938
• Persons whose ancestors were persecuted due to their religion or political beliefs
• Families who lived in Germany but held another nationality at the time (for example Polish or Eastern European citizenship)

German citizenship may be granted not only to children of persecuted persons, but also to grandchildren and later generations.

In many cases, the family history includes:

• residence in Germany before 1933 or before the Second World War
• persecution by the Nazi regime
• emigration between 1933 and 1941

German Citizenship for Jewish Descendants

Many applicants seeking German citizenship today are descendants of Jewish families who were forced to flee Nazi Germany.

Thousands of Jewish families left cities such as Berlin, Düsseldorf, Frankfurt, Hamburg or Cologne between 1933 and 1939.

Even if these families had another nationality at the time, they were still victims of racial persecution under the Nazi regime.

The current German nationality law explicitly recognizes this historical injustice and allows their descendants to reclaim German citizenship today.

What Documents Are Required?

Applications for German citizenship based on Nazi persecution usually require historical documentation.

Typical documents include:

• birth certificates
• marriage certificates
• documents showing residence in Germany
• emigration records or passenger lists
• archival records from German city archives
• restitution files (Wiedergutmachungsakten)

Post-war compensation files can be particularly helpful because they often contain official findings regarding Nazi persecution.

Application Procedure

Applications under Section 15 StAG are processed by the Federal Office of Administration (Bundesverwaltungsamt) in Germany.

The procedure usually involves the following steps:

1. Legal assessment of eligibility
2. Research of family history and archival documents
3. Preparation of the application
4. Submission to the German authorities

The processing time may vary depending on the complexity of the case. Well documented cases are typically processed within 12 to 18 months.

Benefits of German Citizenship

Obtaining German citizenship offers many advantages.

German citizens may:

• live and work in Germany
• move freely within the European Union
• establish a business in any EU Member State
• travel visa-free to many countries

German citizenship can also be passed on to future generations.

German Citizenship Lawyers – How We Can Help

Applying for German citizenship based on Nazi persecution often requires extensive historical documentation.

Our law firm assists clients worldwide in preparing and submitting applications for German citizenship.

Our services include:

• legal evaluation of eligibility
• archival research in Germany
• obtaining historical documents
• preparation of the citizenship application
• communication with German authorities

If you believe that your family may qualify for German citizenship due to Nazi persecution, we would be happy to evaluate your case.

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Düsseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law Rechtsanwaltsgesellschaft mbH

Attorney at Law Hülya Oruç Aslan, LL.M.

Uhlandstraße 42

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is a law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

We speak your language

The modernisation of citizenship law is an important step towards promoting social participation and is intended to make it easier to acquire German citizenship.

In 2022, 168,545 people applied for a German passport. However, at 1.1%, the naturalisation rate in Germany has so far been low compared to other European countries.

This is now set to change with the Act on the Modernisation of Citizenship Law (StARMoG). The law was passed by the Bundestag on 19 January 2024 and will come into force in spring 2024.

The key points of the reform include:

Dual citizenship

In future, naturalisation will generally take place with the acceptance of multiple citizenship, i.e. the renunciation of the previous citizenship(s) is therefore no longer necessary. The loss of German citizenship when acquiring a foreign citizenship no longer applies, meaning that a retention authorisation pursuant to Section 25 StAG old version is no longer required.

Similarly, the loss of German citizenship upon adoption by a foreigner in accordance with Section 27 StAG old version no longer applies.

German citizenship by birth

The new law generally allows children born in Germany to foreign parents to have multiple nationalities (so-called ius soli acquisition). This means that they no longer have to choose between German and foreign citizenship when they come of age. The option obligation will be abolished. These children will receive both the German and the nationality of their parents from birth. The required legal and habitual residence of a foreign parent in Germany will be reduced from eight to five years, cf. section 4 (3) of the Citizenship Act  (new version).

Shortened periods of prior residence

The requirements for naturalisation in accordance with Section 10 (1) sentence 1 of the Citizenship Act (old version) have been amended: The minimum period of legal and habitual residence in Germany will be reduced from eight to five years. This means that foreigners are entitled to naturalisation and German citizenship after just five years of residence in Germany. This also happens while retaining the nationality of the home country, provided the home country allows multiple nationality. This regulation makes the acquisition of German citizenship more attractive than ever before.

The period of residence can be shortened to three years if there are special integration achievements. These are, in particular, good educational, vocational or professional achievements or civic engagement, which must be proven to the naturalisation authority. The applicant must be able to support themselves and their dependants within the meaning of Section 8 (1) No. 4 of the old version of the Citizenship Act. In addition, proof of language proficiency at level C1 of the Common European Framework of Reference for Languages must be provided.

Specific grounds for exclusion

Previously, the naturalisation requirement of „integration into German living conditions“ was an abstract concept. Now, concrete grounds for exclusion replace this requirement. Naturalisation is excluded if someone lives in a polygamous marriage or disregards the equal rights of men and women (see Section 11 sentence 1 no. 3 of the new version of the Citizenship Act). In addition, anti-Semitic, racist or inhuman acts will lead to rejection of naturalisation (Section 10 (1) sentence 3 of the new version of the Citizenship Act).

How can we help you?

The law firm O. Law advises its clients on applying for naturalisation and provides the necessary documents. We are a renowned law firm specialising in naturalisation law. By nature, there are many questions before applying for German citizenship and due to the changing legal situation. The German authorities are known for their bureaucratic and sometimes complicated procedures. We are happy to advise and support you on your path to German citizenship. Please do not hesitate to contact us if you need help.

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Düsseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law – International Law Firm

Attorney at Law Hülya Oruç, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is a law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

We speak your language.

The EU Blue Card is a special residence permit for highly qualified non-EU professionals who want to work and live in Germany. It was introduced in 2012 to promote the immigration of talent to Germany and to meet the demand for skilled workers.

From 18 November 2023, the EU Blue Card will be subject to a number of changes that have been adopted by the Immigration Act for Skilled Workers. The changes are designed to make the local labour market more attractive for well-qualified workers and to address the shortage of skilled workers.

New requirements for issuing the EU Blue Card

The requirements for the issue of the EU Blue Card are regulated in detail in Section 18g (1) of the Residence Act. Here is an overview of the requirements for the residence permit with the most important changes:

1. Completed university degree or tertiary education programme:

The applicant must hold a German or foreign university degree. If the degree was not obtained in Germany, it must be recognised in Germany or represent a comparable course of study. Alternatively, qualifications may also have been obtained through a tertiary education programme. The training qualification must be equivalent to a university degree. The minimum duration of the training programme is three years. The level of training must correspond to at least level 6 of the International Standard Classification of Education (ISCED 2011) or level 6 of the European Qualifications Framework.

• Employment contract or binding job offer: The duration of employment must be at least six months and the employment must be appropriate to the qualification. Whether this is the case is assessed according to the circumstances of the individual case.

• Minimum gross salary:
  
  
• For the „big“ EU Blue Card, the gross salary of the job in Germany must be at least EUR 45,300.00 per year / EUR 3,775.00 per month (in 2024). The approval of the Federal Employment Agency is not required for the issue of the EU Blue Card.

• The „small“ EU Blue Card is issued for so-called bottleneck professions (e.g. doctors, nurses, teachers, educators, engineers and engineering scientists) and young university graduates. A low salary threshold applies for these in comparison to the big EU Blue Card. They must have a gross annual salary of at least EUR 41,041.80 / EUR 3,420.15 per month (in 2024). The German or equivalent foreign university degree of the young graduates must not have been obtained more than three years before applying for the EU Blue Card. The approval of the Federal Employment Agency is required for the issue of the EU Blue Card.

Special feature: The EU Blue Card for IT specialists

According to Section 18g (3) AufenthG, an EU Blue Card can also be issued to skilled workers without a university degree. This is intended to facilitate and promote the immigration of highly qualified IT specialists from non-EU countries.  The following conditions must be met: 

1. The IT profession must belong to groups 133 or 25 according to the International Standard Classification of Occupations. This includes the following:

133 Managers in the provision of information and communication technology services

25 Academic and comparable professionals in information and communication technology

251 Software and application developers and analysts

2511 System analysts

2512 Software developers

2513 Web and multimedia developers

2514 Application programmers

2519 Software and application developers and analysts, not elsewhere classified

252 Academic and similar database and network professionals

2521 Database developers and administrators

2522 System administrators

2523 Academic and comparable computer network specialists

2529 Academic and comparable database and network specialists, not elsewhere specified

• A gross annual salary of at least EUR 41,041.80 (in 2024) must be provided through a concrete job offer.

• Knowledge must have been acquired in the last 7 years through at least three years of professional experience in a profession belonging to occupational groups 133 or 25.

• The level of skills, knowledge and abilities acquired must be comparable to a university degree or equivalent tertiary education programme.

• The skills, knowledge and abilities acquired must be necessary for the performance of the employment.

• The Federal Employment Agency will check whether the requirements have been met and issue the EU Blue Card for IT specialists.

Validity of the EU Blue Card

The EU Blue Card is issued for the duration of the employment contract plus three additional months, but only for a maximum period of four years. An extension is possible if the requirements are met. A change of job within the first year of employment must be reported to the relevant immigration authority, which in turn gives its written consent.

Advantages of the EU Blue Card

• Fast track to a permanent residence permit: As an EU Blue Card holder, you can apply for a permanent national residence permit in Germany. The requirement is to have been in highly qualified employment for 33 months and to have paid into a pension scheme at the same time. People who can prove that they have sufficient knowledge of German (level B1) can apply for a settlement permit after just 21 months.

• Mobility within and outside the EU: If you hold an EU Blue Card for at least 12 months, you can move to another EU member state without a visa to take up highly qualified employment there and apply for a new EU Blue Card within one month. After 12 months, there is no need for authorisation from the relevant immigration authority.  This also applies to family members. In addition, EU Blue Card holders can stay in a non-EU country for up to 12 months without losing their residence permit, which also applies to family members.

• Family reunification: Spouses can obtain a residence permit even if they have no knowledge of German before entering the country. In addition, spouses have the right to take up gainful employment without restrictions.

Procedure

• If you are already living in Germany under another residence title: Contact the foreigners authority responsible for your place of residence.

• If you live in a third country: First apply for a visa for the purpose of employment in Germany at the relevant German embassy in your home country. After arriving in Germany, apply for the EU Blue Card before your visa expires (the embassy will issue you with a short-term visa to enter Germany and apply for the Blue Card).

•  Third-country nationals with an EU Blue Card from another EU member state: Working in Germany is possible after 12 months. The application must be submitted to the local immigration authority within one month.

How can we help you?

O. Law advises its clients on applying for the EU Blue Card and provides them with the documents they need. By nature, there are many questions before applying for such a visa. The German offices are known for their bureaucratic and sometimes not easy procedures. Please do not hesitate to contact us if you need help.

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Düsseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law – International Law Firm

Attorney at Law Hülya Oruç, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is a law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

We speak your language

Criteria for acquiring a residence permit according to § 21 paragraph 1 Residence Act

The acquisition of a residence permit is therefore possible for self-employed persons under Section 21(1) of the Residence Act. As a rule, self-employed entrepreneurs are granted a residence permit if positive economic effects are to be expected from the investment project and the financing is secured. To this end, the investment project must meet the following requirements:

• there must be an economic and/or regional interest
• the investment project must be expected to have a positive impact on the economy
• financing must be secured (either by means of equity or loan commitment)

Furthermore, section 21(3) of the Residence Act requires additional proof of the existence of sufficient old-age provision if the applicant is older than 45. This means that the applicant must be able to dispose of either a monthly pension amounting to 1,340.47 euros or assets amounting to 195,104.00 euros in perspective upon reaching the age of 67. The following nationalities are exempt from the proof: Turkey, Dominican Republic, Indonesia, Japan, Philippines, the United States of America and Sri Lanka. However, it should be noted that the documents should still be available, because the authorities usually insist on them anyway.

The local foreigners authority assesses the individual case with the help of the chambers of industry and commerce and the business development agency. The authority decides whether the above characteristics are fulfilled on the basis of the following criteria:

• the viability of the business idea
• the curriculum vitae and entrepreneurial experience of the self-employed person
• the amount of capital invested
• the impact of the project on the regional and national employment and training situation
• the expected contribution to innovation, research and development in Germany.

Who is „self-employed“ according to § 21 paragraph 1 of the Residence Act?

Foreign entrepreneurs are considered self-employed if they carry out one of the following activities:

• Sole proprietors (incl. freelancers)
• Partners of a partnership
• Managing partners of a limited liability company who are not employees
• Managing directors or executives with procuration or general power of attorney who bear an entrepreneurial risk themselves.

Issuing the residence permit

Self-employed entrepreneurs first receive a national visa from the German embassies, which is used to enter Germany. The residence permit is then issued in Germany after entry by the locally responsible foreigners authority. The residence permit for self-employed persons is limited in time, usually up to three years. If the investment project is successful and appears to continue to be successful and secure a livelihood, an unlimited settlement permit can be applied for after three years.

Conclusion

As a self-employed person, you benefit from the reduced bureaucratic burden that usually accompanies the application for other residence titles. Nevertheless, it is essential to carefully prepare the necessary documents (especially business plan, curriculum vitae and securing financing). If you have any questions or need help in this regard, a lawyer will be able to advise you competently.

Written by Linda Naomi Henschel

Copyright by Hülya Oruc Aslan

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Dusseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law – International Law Firm

Attorney at Law Hülya Oruç Aslan, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is a law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

We speak your language

One possibility in reaching this particular desire can be offered by arbitration courts within the framework of arbitration proceedings. These arbitration courts are non-governmental courts, where the disputing parties conclude a contract, the so-called arbitration agreement. The arbitral tribunal shall be considered only on the basis of this agreement and shall pronounce as a judgment so-called arbitral awards, which shall be legally binding on the parties to the dispute and enforceable in state courts.

Procedure of Arbitration

The conventional and common arbitration procedure is regulated in the German Code of Civil Procedure (ZPO) in §§ 1025 ZPO. Especially because the arbitration agreement is reflected as a contract, the parties can vary in their demands and adapt the procedure in many places to their current situation and circumstances, within the principle of freedom of contract.

The first step in an arbitration proceeding is the initiating letter from the claimant to the respondent stating the parties, the subject matter of the dispute and the reference to the arbitration agreement. This is followed by the appointment of the arbitrators, who are determined by the parties themselves. Speaking in general, there are three arbitrators, one for each party, who then agree on a chairman (arbitrator). Even if the judges resp. chairmen partially belong to one party, they still must be impartial and independent. Unlike state courts, an oral argument is only considered optional within the arbitration procedure. Furthermore, the arbitral tribunal has no coercive powers and cannot, for example, have witnesses compulsorily produced. In such cases, the arbitral tribunal relies on the support of the state courts. Finally, as the last step within the procedure, a written arbitration award is issued, which has the same effect on the parties as a final judgment and can also be enforced by the state courts. If the parties can arrange a settlement, they have the option of having it pronounced as an arbitration award with agreed wording.

Advantages and disadvantages of arbitration

Depending on certain cases the private arbitration route is seen as a better alternative to the state courts.

The procedure can be adapted much more flexibly from the needs of the parties to the dispute; for example, the place of the hearing can be freely chosen. In addition, the arbitrational procedure offers a much more faster conflict resolution in complex proceedings. In this regard, the arbitrational procedure can also be much more economical in disputes with a high level of dispute value. From the point of view of privacy interest, which also marks an important factor for enterprises in keeping their positive image, the arbitration procedure supports this factor, unlike court proceedings. Arbitration proceedings are often not public, which helps the parties to arrange an arbitration agreement secretly and confidential. By choosing arbitrators freely, the parties can be sure that persons with the appropriate professional knowledge will be appointed as arbitrators. To avoid any unwanted advantages from the applied law, especially in international disputes, the parties frequently use the arbitration. The application of international arbitration goes back to 1958 New York Convention, which also allows foreign arbitration awards to be enforced by state courts, often more easily than a state judgment.

However, this goal of expedited dispute resolution also brings disadvantages. First of all, the costs of arbitration are very high and are only worthwhile if the amount in dispute is very high. In addition, the regular legal process is not contested, which means that the risk of incorrect decisions that are not corrected is higher than in the case of recourse to the state courts. The arbitrators, who are selected by the parties are professional lawyers themselves, which means that independence and impartial judgment cannot always be guaranteed. Furthermore, arbitration tribunals are not completely independent of state courts, but require the assistance of a state court when ordering coercive measures.

Types of arbitration

If the parties have managed to agree that they would like to resolve their dispute with arbitration, they can choose different types of arbitration.

Probably the simplest type is the so-called ad hoc arbitration. Here, the organization of the proceedings lies entirely with the parties. They must adhere to the rules of procedure and agree on the appointment of arbitrators and the place of proceedings. The administrative effort is higher, but the parties can adapt the procedure very flexibly to their needs.

Another type is so-called institutional arbitration. Here, institutions provide their own procedural rules and support the parties in organizing the proceedings and selecting the arbitrators. The largest arbitration institution in Germany is the German Institution of Arbitration (DIS) based in Bonn. Major organizations regarding economic arbitration include: the American Arbitration Association (AAA) in New York City, the International Chamber of Commerce (ICC) in Paris, and the London Court of International Arbitration. In addition, and beside these organizations, there are also „permanent“ arbitration tribunals established by chambers of commerce and industry, bar associations, by companies or within political parties.

Disputes between states can also be settled by arbitration courts. The World Trade Organization (WTO) aims to reduce trade barriers and increase international trade. If a member country does not comply with the agreed regulations, the WTO General Council acts as a court of arbitration. In this way, the member states can be sued, so to speak, and the WTO can impose penalty taxes.

Conclusion

For disputes to be resolved, the path does not necessarily have to lead directly to the state courts. Arbitration courts offer companies in particular a flexible and uncomplicated way of resolving conflicts with other companies, and thus facilitate efficient economic action. The parties are more flexible in the process and can either organize everything themselves or be assisted by agencies created individually for this purpose. Nevertheless, there are fixed procedural rules that guarantee that the procedure is always correct and lawful.

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Dusseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law – International Law Firm

Attorney at Law Hülya Oruç, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is a law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

We speak your language

A Schengen visa is not sufficient if you plan to live and work in Germany. In many cases our clients first start a company and then apply for a national visa for the purpose of self-employment. This can be a good way if a company is to be founded with a minimum share capital. But it is possible and reasonable to apply for such a visa if a company with a high share capital is planned.

The most common company form in Germany is the Gesellschaft mit beschränkter Haftung (GmbH). With more than 1 million companies, the formerly popular partnerships are now being overtaken by this corporate form (from 2013). The GmbH in a legal entity, which has its own rights and obligations. This makes the GmbH an independent legal entity, i.e. it can sue and be sued independently of the partners. The GmbH itself can be the owner of movable property. Organs of the GmbH are the managing director, the partners and the meeting of partners. Furthermore, under certain conditions a board of directors may be appointed.

The share capital of a GmbH must be at least EUR 25,000.00. According to § 7 GmbH law, half of the share capital must be contributed when the notary public applies for registration in the commercial register. The company is obliged to hold the minimum share capital. This capital can be provided in the form of cash or non-cash contributions. When registering the company, the managing director must assure that the regular minimum share capital has been paid up. Opening a bank account can be difficult for foreigners who are not resident in Germany. Many banks have strict conditions. For example, there are banks that want to get to know their customers personally. But there are also banks that open a bank account at an official location after the legitimation of the client without fulfilling the requirement of entering Germany.

The GmbH is represented by one or more managing directors, who can be appointed by the shareholders in the articles of association at the time of foundation or thereafter for an indefinite period of time or for a specific period of time. Managing directors can only be natural persons who are absolutely sui iuris (unlimited legal capacity). Managing directors are subject to special requirements and duties of care which must be fulfilled, supplemented by the responsibilities developed by the jurisdiction.

The foundation of the association is not bound by the nationality of the partners or the managing directors. Foreigners can also form an association or be appointed as managing directors without a permit.

Entrepreneurs who come from non-EU countries and run their business in Germany as self-employed persons need a residence permit for self-employment.

This is generally issued if

• there is an economic interest or a regional need with regard to the intended business activity,
• The investment project is expected to have positive economic consequences,
• the planned investment has secured financing.

The local immigration authorities assess individually to what extent these criteria are met. It considers the following aspects:

• viability of the underlying business idea
• Entrepreneurial experience of the investor
• Level of capital investment and availability of capital
• Effects on regional employment and (employee) training levels
• contribution to innovation, research and development in Germany.

The Foreigners Authority consults the local trade office and local trade and business associations, e.g. the local Chambers of Industry and Commerce or the Chambers of Crafts.

• Foreign entrepreneurs are considered self-employed if they are (e.g.) self-employed:
• sole proprietors (including freelancers)
• Partner in a partnership
• Managing partners who are not employees of the company
• Managing directors or executive employees with power of attorney or procuration who personally bear a business risk.

The application for such a visa must be made in the country of origin in one of the representations of the Federal Republic of Germany. In addition to the application, the consulates require a large number of documents, including a well-prepared business plan. Due to the large number of inquiries, problems may arise when making an appointment. The application is sent to the local immigration authorities, who will decide on the submitted documents. This process can take at least 8 to 10 weeks.

© by Hülya Oruç

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Dusseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law –

Attorney at Law Hülya Oruç, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is an international law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

We speak your language

Germany has the largest economy in Europe and is also one of the largest in the world. It has the largest population in the EU and is a federal republic, consisting of 16 states, called Bundesländer each of them having their own capital and own parliament.

The economy has been stable over the years, having met the global financial crisis in 2007/2008 easily. Germany has a highly skilled labour force, but still not enough to cover all needs. That is why big legal changes are being made in June 2019, as the new Fachkräfteeinwanderungsgesetz (Law on Migration of Highly Skilled People) has been adopted by the parliament. The county has a large capital stock, is known for the low level of corruption and its innovations. When thinking of Germany many think of its industry and quality behind it, why Germany is one of the biggest exporters in the world.

Another important thing to know is that Germany has not a single economic centre as one might think of the capital Berlin. German is the official language; English is spoken widely.

However, the German tax regime may be confusing to foreigners, it is easy to understand when knowing the main existing tax regimes in Germany:

• Körperschaftsteuer is the corporate income tax, being a tax charged on the income of a corporate
• Einkommensteuer is the income tax, being a tax charged on the income of individuals
• Umsatzsteuer is the value-added tax, being a tax charged on the provision of goods or services
• Gewerbesteuer is the trade tax, being a tax payable by businesses on their income, depending on the seat of the business
• Grunderwerbsteuer is the real estate transfer tax, being a tax paid when a property is transferred

Partnerships are tax-transparent what means that the shareholders are reliable for taxes, depending on their legal form. Individuals have to pay income tax, whereas corporates have to pay the corporate income tax.

In case of operating a foreign branch in Germany the profits of the foreign branch have to be taxed in Germany. The taxes depend on the legal form meaning that those taxes have to be paid which would apply for the branch if it would have a German legal form. The profits generated in Germany are then either exempted from taxation in the foreign country or they are subject to taxation there. In this case the taxes paid in Germany will be offset against the corresponding taxes in the foreign state. 

O.Law supports investors from all around the world knowing the German market with legal advice in the relevant areas as well as supporting in and representation in disputes.

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Dusseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law – International Law Firm

Attorney at Law Hülya Oruç, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

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Germany is experiencing an unprecedented shortage of skilled workers. Many positions cannot be filled. The high average age of Germans is gradually causing problems for the German economy. Old people cannot work and there is nobody to take care of them. The demographic change will aggravate this problem. Another problem is that many people living in Germany cannot and do not necessarily want to take on jobs that someone else from abroad would like to do. Germany is facing a lack of specialist especially in sectors like health, science and craftsmanship. More than 1.2 million vacancies cannot be taken.

After long discussions, the legislator has now passed the final version of the so-called “Fachkräfteeinwanderungsgesetz” (from now on AufenthG n.F.) and announced it in the Federal Law Gazette. The new law will come into force on 1 March 2020. The law is not a new special law. It merely amends and supplements the Residence Act in the necessary places.

The new legislative package is intended to open up and newly systematise the regulations for immigration from third countries and the residence of skilled workers in Germany. The aim is to create a clearer and more transparent legal structure. A more targeted immigration of skilled workers is to be achieved.

An important goal of the new specialist immigration law in Germany is to ensure the business location Germany by the recruitment of specialist from other countries outside the EU.

Not only universal degrees, furthermore vocational trainings will be recognized in Germany.

As of Germany is a very bureaucratic county it is promised that the procedure of recognition will be easier and quicker compared to today´s time. The approval of the qualifications shall not take longer than three months and the visa shall be granted within four weeks. In order to achieve this, the internal administration shall be simplified and concentrated to specialized public authorities.

Who is a skilled worker?

The definition of the term skilled worker is important and essentially new. With the new law, the concept of skilled worker is uniformly defined and is thus intended to avoid confusion and difficulties with regard to demarcation.

According to § 18 Par. 3 AufenthG n.F, a skilled worker is,

„[…] a foreigner who

1. has a domestic qualified vocational training or a foreign professional qualification equivalent to a domestic qualified vocational training (skilled worker with vocational training), or
2. holds a German university degree, a recognized foreign university degree or a foreign university degree comparable to a German university degree (skilled worker with academic training).”

In short, this means that skilled workers are both university graduates and employees with qualified vocational training. In the past, the law did not distinguish between people with vocational training and university graduates. Also, university graduates were particulary favoured by regulations such as the Blue Card EU. Now people with vocational training and university graduates who wish to take up a job unrelated to their degree are given the same opportunity. The construct of the Blue Card EU is still preserved (§ 18 b AufenthG n.F.).

New Procedure: Requirements

A major hurdle before the law was changed was that a so-called priority check had to be carried out before an immigrant could start a new job or even enter the country to look for a job. Under the new law, however, this so-called priority check no longer applies. It will be much easier to enter the labour market if you have an employment contract and a recognized qualification, because the present „priority review“ will be dropped. The priority review is a current procedure in which the employment agency needs to prove, if there is a possibility to fill a vacancy with a German citizen before giving the immigrant a permission to occupy the vacancy.

Prerequisite for the granting of a temporary residence title for skilled workers is according to § 18 Par. 2 AufenthG n.F.:

1. concrete job offer,
2. approval by the Federal Employment Agency (exception: intergovernmental agreements or positive list),
3. granting or undertaking to grant a license to practice a profession,
4. equivalence or recognition of the qualification; and
5. if the applicant is 45 years or older at the time of the first application, the salary must be at least 55% of the annual income threshold of the general pension scheme, unless there is an adequate pension.

This means in concrete terms:

If there is an employment contract, skilled workers can enter the country in future without a priority check.

The residence permit for skilled workers will be issued for a period of four years. When the employment contract is with a fixed term the residence permit will be issued for these dates. It is noteworthy that skilled workers must be granted a settlement permit after four years if they meet the requirements.

A skilled worker must be granted a settlement permit in accordance with § 18 c Par. 1 AufenthG n.F. if

1. it has had a residence permit for professionals for four years,
2. it has a job which it may occupy,
3. pension insurance contributions of at least 48 months have been paid in,
4. sufficient knowledge of the German language (B1) and
5. the general requirements for the issue of a settlement permit are fulfilled.

In the case of completion of domestic vocational training or study, it is even possible to obtain a settlement permit after only two years.

Criticism

There are some criticism by the opposition concerning the new law. They argue that the law is not sufficient enough to fill all vacancies. The government expects up to 25.000 new immigrants, while there will be more than a million unoccupied working places in the future. The consequences are that the new law only takes small steps although the Germans need a great leap in order to ensure the business location Germany. So many people demand a big reform of the immigration law in Germany instead of a small reformation.

According to the critics, the problem is not the lack of specialists, since there are more than three million unemployed people in Germany. The real problem are the bad working conditions and salaries in sections like health and craftsmanship. Jobs in these sectors are not as attractive as they were some time ago. The new law will not solve these problems but rather heat the competitions and dumping between German and foreign immigrants up. The government only pursues economic targets but should try to improve the places of employment to make them more attractive for everyone. If Germany would work on this problem, more vacancies could be taken by Germans and there would not be such a high need of foreign workers anymore.

Besides, it is not quite clear, how especially vocational training will be approved. The Comparison between a German and a foreign vocational Training is not always easy as there are some countries (e.g. Portugal) which do not recognize the German dual training system. In these countries the vocational training only takes place in a vocational school, while here in Germany the trainees learn the theory in school and collect important working experience in a company. The immigrant would have a lack in practical experience compared to Germans and the new law does not answer the question if the vocational trainings are still comparable or what the scale of the comparison is.

Conclusion

It is to be welcomed that the Federal Government finally wants to tackle the plight that prevails on the German labour market. The innovations are positive and continue to make Germany attractive alongside other industrial nations. Canada, for example, has a much friendlier immigration policy and is therefore popular with emigrants. However, it is doubtful whether the promise of fast processing can be kept. The reality in practice is quite different at the moment: Some applicants have to wait several months until they get an appointment with a consulate because that is still the first point of contact. First an application for an appointment has to be made, at which all necessary documents have to be handed in. Only then  the documents will be sent to Germany. There are a lot of unanswered questions and the practical application of the new law will show if the democratic and economic issues in Germany can be solved or at least countered sustainabilly. It remains to be seen whether the very bureaucratic procedure actually will  be simplified and accelerated.

O.Law supports investors from all around the world knowing the German market with legal advice in the relevant areas as well as supporting in and representation in disputes.

O.Law is a modern and dynamic law firm working in cooperation with highly motivated, professionals offering legal advice in the heart of Dusseldorf. We are characterized by our cooperation with a tax advisor and a network of lawyers in Eastern Europe.

O.Law supports in all legal requests regarding commercial law, focusing on our international cooperation. In view of the intensity of German-Turkish trade relations and the importance of them, we established a Turkey Desk.

Solutions that are efficient and economically sensible, with creative approaches are defining O.Law’s hallmarks. O.Law offers legal services in German, Turkish  and English and can support double culturally. To speak a common language is important to us.

O.Law – International Law Firm

Attorney at Law Hülya Oruç, LL.M.

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is a law firm based in Düsseldorf. Working for entrepreneurs worldwide, making their dreams come true.

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While cross-border movement of goods should continue to be possible without problems, private travellers will no longer be allowed to enter or leave the country at the above-mentioned borders without an urgent reason for travelling. Travellers with symptoms of corona disease will no longer be allowed to enter the country. However, any necessary measures will be coordinated with the local health authorities.

Furthermore, crossing the above-mentioned borders is now only possible at certain border crossing points. The Federal Ministry of the Interior has published a list of possible border crossing points.

Crossing the borders is now only permitted in urgent cases, whereby crossing the border is not tied to a nationality. Urgent reasons should be, for example, medical treatment, family deaths. However, the assessment of the existence of an urgent reason will be made on a case-by-case basis. This assessment takes place on the spot, i.e. at the border crossing, and is at the discretion of each official. EU citizens and third-country nationals are still allowed to return to their home country via a transit through Germany.

Crossing borders for professional reasons is still permissible and possible. Thus, commuters can still enter the respective state without having to fear any restrictions. However, it must be possible to provide proof of the work-related crossing by means of an employment contract or similar.

Persons who are in possession of a Schengen visa, i.e. who wish to travel for tourism purposes, are in principle no longer allowed to enter the country.

German citizens are still allowed to enter Germany.

It is problematic that harvest workers and seasonal workers from abroad are no longer allowed to enter Germany. German farmers currently fear a crop failure. The industry is looking for 300,000 harvest workers. Following a call by the farmers‘ associations, helpers from Germany have already come forward, some of whom are suffering a loss of income due to short-time work or loss of orders.

The above-mentioned measures also apply to air traffic, with air travellers from Italy, Spain, France, Luxembourg, Denmark and Switzerland in particular being subject to stricter controls. Without an urgent reason for travelling, they too must not be allowed to enter the country. It is advisable not to travel abroad without an urgent reason for travel.

It is also true for entries outside the EU that entry without an urgent reason is no longer possible. German nationals are expressly excluded from this. Transit for the purpose of travelling home is still permitted for EU citizens as well as citizens of Great Britain, Iceland, Liechtenstein, Norway and Switzerland and their family members. For third-country nationals who have a long-term residence permit from an EU state, the rule is that they may return to their usual place of residence. If this condition cannot be met, third-country nationals will be turned back at the border if there is no urgent reason.

O.Law – International Law Firm

Goethestr. 30

40237 Düsseldorf

+ 49 211 976 358 -19

info@olaw.eu

www.olaw.eu

O.Law is an international law firm based in Düsseldorf.

We speak your language.

A Gesellschaft mit beschränkter Haftung (GmbH) is the best known form of corporations in Germany. With more than 1 Mio. companies, the formerly popular partnerships are overtaken now by this form of company (as of 2013). The GmbH in a legal entity that has its own rights and obligations. In consequence the GmbH is an independent legal personality, e.g. it can sue and be sued independently from the shareholders. The GmbH itself can be owner of movable properties. Bodies of the GmbH are the managing director, the shareholders and the meeting of the shareholders. Further under certain circumstances a board of directors can be appointed.

B. Basics

The GmbH is born with the registration in the commercial registry. Before the registration into the commercial registry it is a so called „Vorgründungsgesellschaft“ („Association before formation“) in the form of a BGB company (= company organised under the German civil code) which has the purpose of formation of a GmbH.

With the notarization of the AoA the so called Vor-GmbH („before GmbH“) comes into existence. It may also – like the Vorgründungsgesellschaft – be the bearer of rights and obligations, but then the suffix “i.G.” should be used to make it clear that the GmbH has not been registered yet in the commercial register.

With the registration with the commercial register the GmbH is „born“. The GmbH’s purpose can be any legally permitted purpose.

The share capital of a GmbH must amount at least EUR 25.000,00. According to § 7 GmbH-Law half of the share capital has to be contributed when the notary applies for registration at the commercial register. The company has the obligation to hold the minimum share capital. This capital can be provided in cash or kind. Upon the registration of the company the managing director must assure that the minimum regular share capital has been paid. Opening a bank account can be difficult for foreigners who are not resident in Germany. Many banks have strict conditions. So there are banks that want to get to know their customers in person. However, there are also banks that open a bank account after legitimacy of the customer at an official place without the premise of entering Germany.

The GmbH is represented by one or more managing directors who can be appointed indefinitely or for a certain time by the shareholders in the AoA with the formation or afterwards. Managing directors can only be natural persons, who are absolutely sui iuris (unlimited legal capacity). Managing directors are subject to special and due diligence requirements which have to be met, amended by responsibilities developed by case law.

The GmbH is liable only with its own assets, the shareholders are exempt from personal liability. By way of exception the shareholders can have personal liabilities.

The AoA can be customized. Since the reform of the GmbH-Law there is on the other hand the possibility to use a sample for the AoA (so called “Musterprotokoll”). Given the premise of maximum three shareholders and only one managing director this sample can be used. Also, only cash and no contributions in kind may be provided.

The shareholders make their decisions at the shareholders’ meeting by means of shareholder resolutions. Required majorities can be specified in the AoA. The AoA must indicate the number and nominal value of the shares of the shareholders. The nominal sum has to be in full Euros, therefore the minimum nominal sum is EUR 1,00.

When the nominal capital is contributed and the AoA are notarized, the notary has to apply for registration of the GmbH at the commercial register:´

C. Regarding foreigners

The formation of the association is not bound to the nationality of the shareholders or the managing directors. Even foreigners can found an association or be appointed managing director without authorization. Three constellations are possible: A foreign managing director with residence or settlement permit, meaning with domicile in Germany, can manage a GmbH without any difficulty. The same thing applies for EU-Citizens because of their EU freedoms, namely the freedom of movement. Entry and residence as well as admission to work, be it self-employed or dependent, is possible without any permission. For non-EU-Citizens, it has long been controversial in Germany whether managing directors had to have a residence permit. By now there is the consensus that these managing directors do not need any residence title. In some cases it is argued that the managing directors shall at least have the possibility to being able to enter Germany for at least three months within a calendar year. But even this point is judged differently. It is advisable to clarify with the respective commercial registry because there is nationwide inconsistency regarding this point. Non-EU citizens without a residence permit, who want to become self-employed in Germany, do not need a special work permit. Upon obtaining a residence permit, a self-employed person can be self-employed without a separate permit. For a planned stay of less than 90 days, an application for a so called Schengen visa is sufficient. For a planned stay of more than 90 days, a visa for the purpose of self-employment (so-called “national visa”) must be applied for at one of the German diplomatic missions abroad. The respective institute or consulate then forwards the request to the responsible immigration office. The foreigners authority at the planned place of residence in Germany then decides on this request. This process can take two to four months.