Step 10: Starting your own business

Basically, yes. However, first of all, it is important to distinguish between whether you, as a student come from an EU country or a non-EU country and which type of residency status you have. Then, depending on these factors, there may be differences with regard to the required qualifications, visits to and approval of the authorities before setting up a business. Very detailed and sound information on all groups is available on the website "Wir gründen in Deutschland". I can just recommend taking a close look at the website. There, you will find all the information that an international student must regard.

For international students coming from EU countries, the following applies: every person can basically become selfemployed, also students or doctoral candidates from a country in the EU, the European Economic Area or Switzerland. Here, distinctions must be made among the three classifications of self-employment:

• You become self-employed in one of the freelance activities, then you are a freelancer
• You set up a trade or business , then you are a trader or businessman/businesswoman
• Or you start up a travel industry or itinerant trade, then you are a travel industry operator or agent – in this case, there are some particular features which differ from other tradespeople.

You should, therefore, find out which category your prospective self-employment in Germany belongs to. And you should know if you fulfill the necessary prerequisites with regard to qualifications and other prescribed formalities. Because the prerequisites and requirements are different for the three categories, first of all, you need to find the right category for your start-up idea.It is not very easy to take the correct steps, but through "Wir gründen in Deutschland" you can find many examples, videos and all the important information for taking the next steps. The platform "Anerkennung in Deutschland" also offers important tips for recognition of your degrees.

It would be useful to orientate yourself as to which institution or contact person would come into question for you. At the University of Applied Sciences Bremen (HS Bremen), there is the university initiative BRIDGE and FreiRAUM. Please feel free to make an appointment with us for your first counselling interview. It its best to send  a short sketch of your set-up concept and any questions related to this that you would like to ask and are important to you to have clarified.

Already during your studies, use the advisory services of BRIDGE and/or take part in the seminars offered by BRIDGE or FreiRAUM. Almost all of the seminars are accredited with ECTS points and may eventually count towards your degree after consulting the head of your degree program.

It can be a lot of fun to indulge in your creativity, work independently, act self-responsibly, and be flexible in creating the day-to-day work.

First of all, you should be convinced that you have a good idea and both the will and self-confidence to realize this idea in the form of self-employment. You do not need to have the necessary know-how in all areas, but you must know when and where you can acquire this, or, respectively, obtain this, e.g. tax consultancy.

No.

I believe there isn’t a perfect time. I would simply say you should start up your business when you have the feeling: “I now dare to dive into the water.”

Up to a certain point, you can learn a lot from seminars, etc. Then, I would say that there is something embedded in your individual personality that motivates you and gives you the idea to brave the step into self-employment.

Partly yes, partly no. From talks with business founders, I know that some of them have and had sleepless nights, but that is also part of being self-employed.

Surely, the same hurdles apply to international students. I would, however, say that possibly the greatest obstacle here can be the language barrier. The better you master the German language or have a German partner at you side or optimally in your start-up team, the greater chance you have to succeed in your endeavors. In brief: “Language is the key.”

This applies particularly for the necessary founding activities that especially concern the formal framework conditions of company founding and leadership, for example, the formalities with the Internal Revenue Office. In this connection, it is existential for a founder of a business to fulfill the necessary requirements and deliver in due time. This is exactly where language barriers are a great problem because you will surely not always come across English-speaking personnel at the authorities. In general, besides deficits in business management, many entrepreneurs do not spend enough time thinking about the unique selling propositions of their idea or their target groups. At the start, it is good to have a financial cushion. In the initial phase, the turnover is often much less than anticipated.

By all means. This is particularly an alternative for those who find it important to at least have some partial security through employment (or are dependent on this due to private circumstances, such as family). This also applies to international students who not only want to gain experience but make contacts and build up networks that will be of immense use to you after your studies – no matter if you are self-employed in Germany or in your native country.

Yes, but international students or doctoral candidates may only be self-employed as a sideline activity so that they do not jeopardize completing their degree or doctorate. The amount of time for pursuing self-employed activities as a sideline is not regulated in Germany. However, so that you do not lose your status as a student with the health insurance company, you may not do more than 20 hours a week of self-employed work.

Please note that international students from third countries (§16b Residence Act) are only allowed to work as fee-based workers or self-employed persons with the permission of the foreigners’ registration office. As a rule, self-employed persons are those who invoice the employer for work performed (fee-based).

From 2024, the new Skilled Immigration Act applies to self-employment:

• During the course of study, any self-employment (with the exception of student part-time jobs) must be separately approved by the immigration authority.
• After completing the studies in Germany, there is a standard entitlement to the issuance of a residence permit for the purpose of self-employment (§ 21 Abs. 2a AufenthG).
• The activity must show a connection to the knowledge acquired during the studies.
• The livelihood for oneself and family members must be secured.
• The residence permit is issued for a duration of up to three years.
• After three years, a settlement permit can be granted if there is a positive outlook for the employment.

No. In the meantime – based on the cooperation between BRIDGE and the Bremer Internal Revenue Office – I can say that much (service and support) has changed for the good. It is not desirable for the Internal Revenue offices when entrepreneurs fail and/or have tax problems. This then results in a lot of additional work for the Internal Revenue employees! Much information (in German) is also available at: https://www.finanzen.bremen.de/info/existenzgruendung

Principally, the support instruments apply equally to international and German students. There are support programs in Bremen such as Starthaus Coaching or EXISTprogram of the Federal Ministry of Econmics and Technology (BMWi). Recently you also can use crowdfunding, a method of raising capital from a large number of investors via an online platform. For example Kickstarter or Start Next. Overall it is important to have a financial cushion or a certain level of savings, particularly when you start up so that you may get through any tough times.

BRIDGE is an inter-university initiative that has existed since 2003. Besides the University of Applied Sciences Bremen, other partners are the University of Bremen, the University of Applied Sciences Bremerhaven, as well as the Bremer-Aufbau Bank. The target groups of BRIDGE are primarily students at universities of applied sciences and research associates as well as alumni.

The Campus Idea Competition is initiated annually by BRIDGE. The purpose of this competition is to motivate students as well as research associates to “try out” their business idea – even if they do not have any concrete intentions of founding a company – to receive feedback from a jury of experts and, last but not least, possibly win prizemoney. International students are also welcomed to take part in the competition, also in English.

BRIDGE gladly directs any special questions you may have to the respective institutions and network partners from Starthaus Bremen, such as Belladonna, Bremen Chamber of Commerce, etc. Starthaus is the umbrella network for start-ups in Bremen.

Starthaus Bremen Coaching program (BRUT) is a Bremer promotional program of the BremerAufbau Bank that accompanies and supports entrepreneurs from their concept up to establishing their business over a period of twelve months.

BRIDGE/ FreiRAUM - Hochschule Bremen

Starthaus Bremen c/o Bremer Aufbau-Bank GmbH Langenstraße 2-4 (Entrance Stintbrücke 1), 28195 Bremen, Tel.: 0421 – 9600-372, E-Mail: info@starthaus-bremen.de