Starting a Company and Obtaining a Residence Permit in Germany: A Prepared Start for 2026
Germany remains one of the most attractive countries in Europe for foreign entrepreneurs in terms of both company establishment and residence permits as of 2026.
However, the landscape has changed significantly in recent years, from the choice between UG and GmbH to visa types, increasing salary thresholds, and digital application processes.
In this guide, you will summarize the steps for establishing a company in Germany, residence permit options, costs, and strategic preferences considering the 2026 updates in a comprehensible language for Turkish entrepreneurs and investors. Keeping Corpenza’s practical experience in the background, you will see both the legal framework and the critical points in practice.
Factors Making Germany Attractive in 2026
According to the European Commission projections for 2026, Germany is expected to grow by around 1.5–2%, making it the largest economy in the EU. The highlighted advantages for entrepreneurs include:
- Direct access to the 450 million strong EU internal market
- Highly qualified workforce and strong startup ecosystems in cities like Berlin, Munich, and Hamburg
- Opportunities for residence tied to entrepreneurship and permanent residence (Niederlassungserlaubnis)
- Steps towards digitalization aiming for up to 30% reduction in bureaucracy with online notaries and digital applications
- Tax incentives and grant programs for green technology and digital business models
This scenario particularly highlights Germany as both an operational hub and a living and education base for investors coming from Turkey, the Middle East, and Asia.
Choosing the Type of Company: UG or GmbH?
The two most practical and common structures for foreign entrepreneurs in Germany are UG (haftungsbeschränkt) and GmbH.
Both provide limited liability, but the capital and prestige levels differ.
UG (haftungsbeschränkt) – Mini GmbH
- Minimum capital: 1 € (must be fully paid at establishment)
- Number of founders: At least 1 partner
- Cost: Notary + trade registry + other expenses generally ~1,000–2,000 €
- Advantage: Very low entry cost, quick and flexible establishment
- Disadvantage: May not appear as prestigious as GmbH in the eyes of banks, investors, and some corporate clients
UG is a strong option for low-budget tech startups, market entry for testing purposes, or solo entrepreneurs looking to limit risk.
In the long term, you can increase the company to GmbH level by adding some of the profits to the capital.
GmbH – Classic Limited Company
- Minimum capital: 25,000 € (at least 12,500 € must be deposited in a bank account at establishment)
- Number of founders: At least 1 partner
- Cost: Generally ~2,000–5,000 € including notary, consultancy, and registry
- Advantage: High prestige, trust with investors and banks, more scalable structure
If you have a strong growth plan, capital of 25,000 € or more, and a medium to long-term focus on Germany, GmbH is generally a more strategic choice.
When Should You Prefer Which?
- Low-budget and test-focused ventures: UG
- Projects targeting corporate clients and planning to raise investment: GmbH
- Starting with UG initially and evolving to GmbH if the business succeeds: A practical and commonly used path
Corpenza guides many clients in determining which legal form is more suitable by evaluating the trio of market testing + tax planning + residence strategy together.
Company Establishment Process in Germany (Step by Step 2026)
Establishing a company in Germany generally takes 2–8 weeks. Since 2022, in some cases, the process has accelerated thanks to the option of online notary. The steps are largely the same for UG and GmbH.
1. Determine Name and Business Activity
- Choose a unique trade name and conduct a suitability check through the local Handelsregister and IHK (Chamber of Commerce and Industry).
- The name must include “UG (haftungsbeschränkt)” or “GmbH”.
- The business activity (company purpose) should be clear and as comprehensive as possible; overly narrow definitions may incur additional costs when expanding the field later.
2. Prepare the Company Agreement (Gesellschaftsvertrag)
The company agreement includes the name, registered address, business activity, capital amount, and share distribution.
In simple structured companies, the process is accelerated with the Musterprotokoll (standard template) provided by German law:
- Up to 3 partners
- 1 manager (Geschäftsführer)
- Lower notary fees
3. Notary Approval
You will sign the establishment document at a notary in Germany. If you are abroad:
- Signature certification at the German consulate
- Or in some cases, remote establishment with an online notary
All partners must be present in person or represented by a power of attorney. At this point, professional legal translation and consultancy support are critically important due to the language barrier.
4. Open a Bank Account and Deposit Capital
- A temporary bank account is opened in the name of the company.
- 100% of the capital in UG, and a minimum of 12,500 € in GmbH must be deposited into this account.
- The bank issues a confirmation letter stating that the capital has been deposited.
The “limited liability” protection does not fully begin in Germany until the capital is actually deposited. Therefore, it is important not to transfer money before the name check and agreement are clarified, from a risk management perspective.
5. Register in the Trade Registry (Handelsregistereintrag)
The notary submits the signed documents and the bank capital letter to the local Amtsgericht for registration.
Once the registration is completed, the company is officially born.
Before this stage, it can operate under the name “GmbH in Gründung” (GmbH i.G.) with limited activities, and you can issue invoices;
however, full legal protection and security begin with the registry entry.
6. Tax and Other Registrations
- Finanzamt (Tax Office): You will receive a Steuernummer with the establishment form; it is required for VAT (Umsatzsteuer) and corporate tax declaration.
- Gewerbeamt: A commercial business registration is made; IHK/HWK membership is mandatory in most sectors.
- Social security and employment: If you employ personnel, registration with the Federal Employment Agency (Bundesagentur für Arbeit) and social insurance institutions is mandatory.
Total Time and Cost
- Duration: Generally 4–8 weeks (depending on decision-making, document preparation, bank and notary workload)
- Establishment cost: Approximately 1,000–5,000 € (excluding capital, notary, registry, translation, consultancy)
Especially for entrepreneurs who do not speak German or are not physically present in Germany, working with professional teams that offer establishment + banking + accounting + residence permit package services, like Corpenza, significantly accelerates the process and reduces the risk of errors.
Establishing a Company and Obtaining a Residence Permit in Germany: 2026 Game Plan
For non-EU citizens, establishing a company in Germany does not automatically mean obtaining a residence permit.
You need to combine the company with a visa and residence strategy that complies with immigration law.
In 2026, two main paths emerge:
- Self-employment (kendi işini kurma) visa – §21 AufenthG
- Employment-based visas (EU Blue Card, Skilled Worker, etc.), usually through an employment contract with your own company
1. Self-Employment Visa (§21 AufenthG)
This is the most natural route for entrepreneurs who want to live in Germany as a company owner-manager.
Basic conditions (from a 2026 perspective):
- Convincing business plan: Market analysis, financial projections, employment impact, and regional economic contribution
- Financial sufficiency: Company capital + personal funds to cover at least a few years of living expenses. In practice, an annual net income potential of ~43,000 € or more is considered reasonable.
- Health insurance and address registration (Anmeldung)
- Professional qualification: Education or significant work experience in the relevant sector
You generally apply at the German consulate in your home country; after entering Germany with the visa, you obtain the residence card through the local Ausländerbehörde.
2. Employment-Based Visas: EU Blue Card and Skilled Worker
In some cases, by establishing a company and creating a salaried manager position for yourself,
EU Blue Card or Skilled Worker Visa can provide a faster route to residence and subsequently permanent residence.
EU Blue Card – 2026 Threshold Values
- Minimum gross annual salary (standard): ~58,400 €
- Threshold for shortage occupations: ~45,934 € (IT, engineering, etc.)
- Duration: Generally up to 4 years; shorter if the employment contract is shorter
- Conditions: Higher education diploma + employment contract for a qualified position (can even be from your own GmbH/UG company)
EU Blue Card holders can apply for permanent residence in 21 months if they reach B1 German level; for those with lower language levels, this period is around 33 months.
Skilled Worker Visa – 2026 Threshold Values
- Academic qualified positions: ~48,300 € minimum gross annual salary
- Vocational training + 2 years of experience: ~43,470 €
- Attention for those over 45: In some cases, a salary of ~55,770 € and above may be required.
These visas are generally tied to the duration of the employment contract; subsequently, it is possible to transition to different types of residence.
Application Process and Timing
- Visa application: 2–8 weeks depending on the consulate
- After entering Germany: Apply for a residence permit within 90 days; processing time is generally 4–12 weeks
- Required documents: Passport, business plan or employment contract, diploma (apostilled and translated), bank statements, health insurance, criminal record
By 2026, many states have started to gradually accept applications through digital portals.
It is always critical to check the official conditions and current processes through Make it in Germany or the relevant German diplomatic missions.
Pathway to Permanent Residence and Citizenship
A successful company and stable income open the door to permanent statuses in Germany in the medium to long term.
- For self-employed (company owners): If your business model operates consistently and you fulfill tax and social security obligations, generally, it becomes possible to apply for permanent residence (Niederlassungserlaubnis) after 3 years.
- For EU Blue Card holders: As mentioned above, the pathway to permanent residence can open in 21–33 months.
- For other types of residence: In most cases, within the range of 3–5 years; B1 German, sufficient income, and pension contributions are expected.
After obtaining permanent residence, the general legal residence and integration criteria for citizenship become important, typically requiring 5–8 years.
Tax and Cost Perspective: What to Expect in 2026?
Establishing a company is not just about legal and immigration aspects. Planning the tax structure and total costs in Germany in advance is critical,
especially for those setting up a parallel structure to their company in Turkey.
Corporate Taxes
- Corporate tax (Körperschaftsteuer): 15%
- Solidarity surcharge (Solidaritätszuschlag): 5.5% on corporate tax
- Trade tax (Gewerbesteuer): Approximately 7–17% depending on the municipality
The total effective tax burden is around 25–30% in most cities.
Since there is a double taxation prevention agreement between Turkey and Germany, it is important to plan where the income is taxed correctly in group structures.
Operational Expenses
- Office or virtual office costs
- Accounting and payroll management (especially if there are employees)
- Social security premiums and benefits
- Legal consultancy and audit costs (mandatory after certain turnover and balance sheet levels)
Corpenza provides end-to-end support to companies in tax optimization and cost control with both international accounting and payroll (payroll/EOR) and staff leasing/posted worker model. Especially for companies with teams in both Turkey and Germany, the right structure selection creates significant savings potential.
Strategic Tips: Practical Roadmap for 2026
- Market first, then form: Clarify the target sector, potential customer profile, and average contract sizes before deciding on the type of company. GmbH is often more reasonable in B2B and investment-focused businesses.
- Plan the residence strategy simultaneously with the establishment: Just establishing a company and thinking “we’ll deal with the residence later” poses the risk of visa rejection or delays.
- Invest in language early: Although German is not initially mandatory for many visa types, reaching B1 level dramatically speeds up the process for permanent residence and long-term plans.
- Set up tax and accounting correctly from the start: Transfer pricing, intra-group service invoices, and profit distribution are topics that tax authorities closely monitor. Correcting later is often more expensive than setting it up right from the beginning.
- Take advantage of digitalization: With online notaries, digital tax portals, and remote bank account opening options, it is possible to complete a large part of the process before coming to Germany.
Design Corporate and Personal Mobility Together with Corpenza in Germany
Establishing a company in Germany, residence permits, tax, and payroll processes are closely interconnected.
Simply establishing a company or just obtaining a visa is often not sufficient; a holistic international business development and mobility strategy is required.
Corpenza works with an experienced team in Europe and globally:
- Establishment of UG and GmbH (contract, notary, bank, trade registry, tax registration)
- Structuring residence permit and golden visa applications
- International accounting, payroll (EOR), and posted worker models for tax optimization
- Investment-based citizenship and planning of group company structures
Thus, you can design your entry into the German market not only legally but also in a financially and operationally sustainable framework.
Conclusion: Is 2026 the Right Time for Company and Residence in Germany?
Rising salary thresholds, increasing immigration scrutiny, and global competition are making unplanned entries into Germany increasingly difficult.
On the other hand, digitizing processes, incentives, and advantages of the EU internal market turn 2026 into a strong opportunity window for well-structured projects.
Making a controlled entry with UG or GmbH and establishing your residence with the appropriate visa type can open the path to permanent residence and even citizenship within a few years with a successful business plan and the right financial-legal architecture.
If you are considering this process, working with a professional team that will evaluate the type of company, tax model, and residence strategy at the same table will reduce both risks and save time.
Disclaimer
This text has been prepared for general informational purposes and does not constitute legal, tax, or financial advice.
Immigration, company, and tax regulations in Germany may change by state and over time.
Before making a decision, you should always check current official sources (such as relevant ministry websites, consulates, local Ausländerbehörde, and tax authorities) and obtain subject-specific professional support.
Corpenza or the author cannot be held responsible for any consequences arising from the information provided here.
