Bakery or café in Germany

Germany’s café and bakery culture is thriving, also offers lucrative business opportunities for international investors. As a non-European entrepreneur looking to start a bakery or café business in Germany, you may also qualify for a residence permit under §21 (1) of the German Residence Act (Aufenthaltsgesetz). The target of this special visa category is self-employed individuals whose business contributes to the German economy. In this article from Wise Business Group, we will address the requirements for investing in a bakery or café in Germany to obtain residency.

Obtaining residency through investment in a bakery or café in Germany

How to Invest in a Bakery & Café Business and Obtain a German Residence Permit under §21 (1) of the German Immigration Law? Next, we will guide you through both the business feasibility requirements and legal conditions to establish your business and obtain residency in Germany.

Investing in a bakery or café in Germany

1. Business Requirements: Feasibility & Market Viability

Germany has a high demand for quality bakeries and cafés, but competition is also a significant factor. To ensure your business is viable, you must do the following:

Develop a strong business plan: This should include a detailed market analysis, financial projections, and a strategy for attracting customer

Select the proper location: Cities like Berlin, Munich, Hamburg, and Düsseldorf have a thriving café culture, but suburban areas might offer lower operational costs.

Demonstrate financial feasibility: Your bakery or café business in Germany should have a clear strategy for profitability within the first few years.

Secure initial investment: Generally, we recommend an investment of €100,000 to €250,000 to cover setup costs, licensing, and operational expenses.

Employment creation: While not mandatory, hiring local employees strengthens your application.

2. Immigration Requirements Under §21 (1) of the German Residence Act

To qualify for a residence permit as an entrepreneur in Germany, you must meet specific legal conditions:

Economic Interest & Regional Demand – The business must contribute positively to the German economy and fulfill a regional demand. A well-structured bakery/café business plan should highlight its uniqueness and local benefits in Germany.

Sufficient Investment & Financial Stability – You must prove you have enough capital to sustain the business in Germany. Around €100,000 – €250,000 in available funds significantly strengthens your case.

Professional Experience – Relevant experience in the bakery/café sector can be an advantage, though it is not always mandatory. You can also partner with experienced German professionals.

Comprehensive Business Plan – Immigration authorities and the local IHK (Chamber of Industry and Commerce) will assess the feasibility of your business before approving it. The plan must include:

• Market analysis
• Revenue and expense forecasts
• Employment plans
• Proof of funding

Health Insurance & Pension – As a self-employed person, you must arrange private health insurance and also may need to contribute to pension schemes.

Legal Structure (GmbH or Einzelunternehmen) – Setting up a GmbH (limited liability company) is often preferred for business stability and credibility in Germany.

3. Step-by-Step Process to Set Up Your Bakery & Obtain Residency in Germany

1. Consult with a Business & Immigration Expert – A professional advisor can assist with market research, financial planning, and legal setup.

2. Prepare a Comprehensive Business Plan – Ensuring it meets German economic and immigration requirements.

3. Secure Initial Funding – Demonstrate financial stability through personal funds, business loans, or investors.

4. Company Registration & Licensing – Choose a legal structure (GmbH or Einzelunternehmen) and register with the local authorities in Germany.

5. Apply for a Residence Permit – Submit the business plan and supporting documents to the German consulate or immigration office.

6. Move to Germany & Launch Your Business – Once your residence permit is approved, you can start operating and expanding your bakery or café business.

7. Pathway to Permanent Residency – After 3 years of running a successful business, you may also apply for permanent residency in Germany.

Why Invest in Germany’s Bakery & Café Industry?

• Germany has one of the largest bakery markets in Europe, with high consumer demand for traditional and specialty baked goods.
• Café culture in Germany is booming, offering lucrative opportunities for investors.
• Entrepreneurs can qualify for permanent residency after a few years under §21 (1).
• A well-established business can expand into franchises or multiple locations, increasing profitability.

Contact us for more information about obtaining a German residence permit by starting a bakery or café. Our consultants will answer your questions as soon as possible. We can also provide the information necessary to prepare a business plan and assess the feasibility of starting a business in Germany.

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An overview of the requirements for investing in a bakery or café in Germany

The bakery and café market has boomed in recent years, providing lucrative business opportunities, especially for non-European entrepreneurs. To sum up, For successfully obtaining German residency by starting a bakery or café, you must:

1. Take steps such as preparing a strong business plan, choosing a suitable location, proving financial feasibility, and securing initial capital. Creating local employment opportunities can be a specific advantage for obtaining German residency.

2. Show that your business has a positive impact on the economy of the target region and that you have the financial stability and sufficient capital to launch it. Moreover, taking health and pension insurance is mandatory. After all, for greater credibility, it is better to choose the GmbH legal form for your company in Germany.

3. After consulting with experts, you can register your company in Germany and obtain the necessary licenses. Then, submit your application for German residency to the relevant authorities.

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We look forward to assisting you in turning your bakery & café business dream into a reality in Germany!

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