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 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.

We speak your language

Unterschiedliche Faktoren können zu einer Überschuldung oder Zahlungsunfähigkeit eines Unternehmens führen.  Abhilfe kann die sog. Firmeninsolvenz, auch Regelinsolvenz genannt, schaffen, welches Einzelunternehmern, Gesellschaften und Freiberuflern die Möglichkeit bietet, das Unternehmen zu liquidieren oder zu sanieren.

In der Insolvenzordnung (InsO) ist genau definiert, unter welchen Umständen ein Unternehmen insolvent ist. Die Insolvenz tritt hiernach dann ein, wenn das betroffene Unternehmen nicht in der Lage ist, seinen fälligen Zahlungspflichten nachzukommen (Zahlungsunfähigkeit), eine solche Lage droht (drohende Zahlungsunfähigkeit) oder das Vermögen des Schuldners die bestehenden Verbindlichkeiten nicht mehr deckt, außer eine Fortführung des Unternehmens ist nach den Umständen überwiegend wahrscheinlich (Überschuldung).

Spätestens drei Wochen ab Zahlungsunfähigkeit oder Überschuldung muss von den zuständigen Personen die Firmeninsolvenz angemeldet werden. Dies gilt für die GmbH, AG, UG und eingetragene Genossenschaften. Für andere Gesellschaftsformen wie die OHG, GbR, KG, e.K. oder Freiberufler gilt diese Pflicht nicht, da die Gesellschafter bzw. Unternehmer ohnehin mit ihrem Privatvermögen haften.

Das Insolvenzverfahren

Jede Firmeninsolvenz gestaltet sich anders, entscheidende Kriterien sind die Größe und Struktur des Unternehmens sowie die Anzahl der Gläubiger.

Zunächst ist ein Insolvenzantrag beim zuständigen Amtsgericht zu stellen. Das Amtsgericht fungiert als Insolvenzgericht. Beim sogenannten vorläufigen Insolvenzverfahren wird geprüft, ob die Voraussetzungen für die Regelinsolvenz erfüllt sind. Wichtig dabei ist, dass die  Insolvenzmasse die gesamten Verfahrenskosten der Insolvenz deckt. Zu der Insolvenzmasse gehört das gesamte Vermögen, das dem Unternehmen zum Zeitpunkt der Insolvenzeröffnung zur Verfügung steht und welches es während des weiteren Verfahrens erlangt. Anschließend werden die Gläubiger des insolventen Unternehmens aufgefordert, ihre Forderungen anzumelden. Diese werden dann tabellarisch erfasst.

Wenn die Voraussetzungen erfüllt sind und das Insolvenzverfahren eröffnet wird, ist ab diesem Zeitpunkt der Insolvenzverwalter für das Unternehmen verantwortlich. Dies bedeutet, dass das pfändbare Vermögen beschlagnahmt wird und nur der Insolvenzverwalter darüber verfügen darf.  Die Insolvenzverfahrenseröffnung wird öffentlich bekanntgegeben und dem Unternehmen wird Pfändungsschutz erteilt. Von nun an sind Zwangsvollstreckungsmaßnahmen durch Gläubiger nicht mehr möglich.

Der Insolvenzverwalter analysiert die wirtschaftliche Situation des Unternehmens und erstellt einen Bericht, der den Gläubigern bei der Gläubigerversammlung präsentiert wird. Dieser Bericht dient als Grundlage für die Entscheidung, ob das Unternehmen saniert (fortgeführt) oder liquidiert (aufgelöst) wird.

Bei einer Liquidierung wird das gesamte Unternehmen verwertet, indem z.B. Maschinen, Immobilien oder Teile des Unternehmens veräußert werden. Der Erlös wird nach Abzug der Verfahrenskosten an die Gläubiger verteilt.

Bei einer Sanierung wird das Unternehmen oder Teile davon gerettet bzw. fortgeführt. Die Gläubigerversammlung muss der Sanierung zustimmen und gemeinsam wird ein Insolvenzplanverfahren entworfen, um das weitere Vorgehen zu bestimmen. Dabei können z.B. Gläubiger auf einen Teil ihrer Forderungen verzichten und damit die Liquidität des Unternehmens verbessern oder Arbeitsplätze bzw. Standorte müssen gestrichen werden, um Kosten sparen zu können.

Nachdem die Insolvenzmasse vollständig verwertet wurde und alle Forderungen entweder befriedigt oder abschließend überprüft wurden, wird ein Schlussbericht und eine Schlussrechnungslegung vom Insolvenzverwalter vorgelegt.

Nach diesem Schlusstermin bewilligt das Insolvenzgericht die Schlussverteilung nach einer gesetzlich vorgeschriebenen Reihenfolge. Dabei ist die Reihenfolge

1. Verfahrenskosten (Gerichtskosten, Insolvenzverwaltung)
2. Masseverbindlichkeit (Verbindlichkeiten, die nach Verfahrenseröffnung entstanden sind)
3. Insolvenzforderungen (Verbindlichkeiten, die bei Verfahrenseröffnung bereits vorlagen)
4. Nachrangige Insolvenzforderungen

Nach erfolgreicher Verteilung hebt das Insolvenzgericht das Insolvenzverfahren auf

Firmeninsolvenz in Eigenverwaltung

Eine Alternative zum vom Gericht bestellten Insolvenzverwalter ist die Insolvenz in Eigenverwaltung nach §§ 270 ff. InsO. Hierbei führt die Geschäftsführung das Unternehmen selbständig weiter. Jedoch ist auch hier eine Insolvenz ohne Kontrolle von außen nicht möglich, denn der Geschäftsführung wird ein Sachverwalter zur Seite gestellt, der das Einhalten der erarbeiteten Konzepte kontrolliert. Eine Firmeninsolvenz in Eigenverwaltung ist nur sinnvoll, wenn die Geschäftsführung bereits ein effektives Sanierungskonzept erarbeitet hat und die Chancen gut stehen, dass das Unternehmen gerettet wird. Die Durchführung der Firmeninsolvenz in Eigenverantwortung empfiehlt sich oftmals nicht, da die Durchführung des Insolvenzverfahrens Kenntnisse und Erfahrungen aus diesem Gebiet erfordert.

© by Hülya Oruç

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

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.