When is comes to your visa renewal, one of the important factors in your application is proving your financial stability, showing that your business has a market in Germany, and presenting your financial plans. If your documentation are unsatisfactory, your application will be rejected. Naturally, the German government is only willing to accept foreigners who can financially support themselves and add to the country’s economic growth.
We experience that one of the most common struggles of freelancers is to ensure a constant flow of work. This is especially true when first starting in a new market. Therefore, Germany wants you to prove your financial stability by showing that you can support yourself for at least three to four months. The simplest way to do this is by presenting bank statements. These statements should come from a German bank account, but supplemental international bank statements are accepted, as well.
You should have German clients to qualify for the German Freelance Visa. If you cannot prove that there is a “local economic interest” for your services by showing letters of intent from German companies that want to hire you, you will not get a Freelance Visa.
Analyzing your market in Deutschland is crucial for your visa application process, but also for getting your bearings in the country. Consider whether your qualifications are satisfactory, how much competition you are up against, and if you’ll need to speak German to adequately compete. Having the answers to these questions will help you better present yourself in the application interview.
Expats looking for work in Germany should be careful to avoid the quasi-self-employment situation known as scheinselbstständigkeit. This can occur if you are hired full-time by a German company that requests that you invoice them as a freelancer. The situations that can lead to scheinselbstständigkeit may vary, but the general rule is that if more than 83.3% of your income comes from one client, you must pay social contributions or pension in Germany.
Finally, providing a financial plan will greatly help your application. Presenting your interviewer with a professional report with operational costs, your rates, and expected profits makes your business more feasible. The more plausible you make your business seem, the higher your chances are of getting approved. In your financial plan, you can also include the cost of your health insurance and the type of bank account you have. This document should provide a comprehensive outlook on your prospective financial state in Germany.
Entrepreneurs and self-employed (residence permit in accordance with section 21 para. 1 or para. 2a AufenthG) must provider the immigration office with a Prüfungsbericht (Audit report). The outside, independent auditor is engaged to render an opinion on whether your financial statements are presented fairly, in all material respects, in accordance with financial reporting framework. The audit provides the immigration office with an enhanced degree of confidence in the financial statements. To form the opinion, the auditor gathers appropriate and sufficient evidence and observes, compares and confirms until gaining reasonable assurance. The auditor then forms an opinion of whether the financial statements are free of material misstatement, whether due to fraud or error.
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