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I am thinking of starting a paid online language school (to teach English and probably German) soon. Can you please tell me, if I need to get a certain type of license to start the business? N.B.: I will do this as a part-time job only, since I am already employed.

Antwort

Thank you for your inquiry and your interest in setting up a business in Germany.

“Make it in Germany” provides international professionals with information on working and living in Germany. Detailed information on setting up a business are also available on “Make it in Germany”.

Regarding your residential status, if you do not have an indefinite residence title in Germany ("settlement permit”) please note:

• If you are a citizen of the European Union, Liechtenstein, Iceland, Norway or Switzerland you are generally free to start up your own business in Germany.
• If you are a citizen of another state, in order to set up a business in Germany, you will usually need a residence permit for the purpose of self-employment (“Aufenthaltserlaubnis zur Ausübung einer selbständigen Tätigkeit”). If you do not hold such a residence permit, before starting your own business, you should clarify if your current residence status allows you to do so. Therefore, we strongly recommend you to contact your foreigners’ authority (“Ausländerbehörde”). For example, if you hold an EU-Blue Card the following will apply to you: The EU Blue Card is tied to a specific employment with a particular employer for the first two years of residence. Any highly-qualified employment can be taken up subsequently to this. Self-employment, however, is not permitted (Source: BAMF).

For personal advice regarding visa issues or residence permits, you can also contact the “Hotline Working and Living in Germany” under the telephone number +49 30 1815 – 1111.

In Germany, there are two ways of setting up a business: You are either self-employed (“Gewerbetreibender”) or you are a freelancer (“Freiberufler”). Teaching a language is generally based on a teaching activity and thus on a freelance profession. However, this is different if your activity is limited to the management for example of a language school or a teaching program and the teaching activity is carried out exclusively by employees. In this case, a commercial activity must be assumed, so that you will be working as a self-employed entrepreneur (“Gewerbe”). Being self-employed or a freelancer makes a difference with regard to certain formalities and has an impact on your company’s legal structure:

• Freelancers need to register with the tax office (“Finanzamt”).
• To register as a self-employed entrepreneur, you will need to contact your local trade office (“Gewerbeamt”).
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Even if you cannot wait to start your business activities, it is important to take your time and prepare adequately. For example, focus on drawing up a schedule. Setting up a business plan for your enterprise will help as well. Moreover, you will also need to consider personal coverage, taxes, laws and contracts that might be important for you while setting up a business.

In Germany, there are many public information centres, which will offer you advice as you set up your own business. On the Startup Portal, under “advice and information”, you will find the contact data of regional and national information centres for entrepreneurs with migrant background. A general contact list is available on the BMWi-Startup Portal. It will also tell you about your nearest information centre.

* Please note:
The information presented here is a general service offering. Only the German missions and the foreigners’ authorities are responsible for the issuance of visa resp. residence permits. For further questions, please contact directly the respective authority.

Reference: Justina Godesberg
Projekt „Make it in Germany“
Institut der deutschen Wirtschaft Köln e.V.
Mai 2020

Notice of the editor:

• BMWi-Existenzgründungsportal: English Version