I decided last summer I wanted to leave my job but it wasn’t until November that I realized I wanted to go out on my own and freelance and eventually start my own company. The World Bank 2012 “Ease of Doing Business Index” ranks Germany 98 in terms of starting a business. Germany ranks much higher at 19 when it comes to doing business, but starting one has more procedures and takes longer than many other OECD countries. So how’s it going so far? 

Check your passport!

I prepared myself for various bureaucratic hurdles. But I didn’t think that my soon to expire passport (and therefore accompanying visa) would set me back. I had arranged for a small loan from the bank and even signed papers before they realized my visa and passport expired before their minimum loan period of two years. Now it’s January and technically unemployed, I don’t qualify anymore. Doh!

Visas and tax authorities

A German visa specifies what type of employment you are allowed to take. I am currently trying to switch from the salaried foreigner visa to the freelance one, but the tax folks at Finanzamt have to approve my registration as a freelancer. Web designer is a grey area in terms of freelance professions. Should the Finanzamt deny me freelancer status, I would have to register a business in Munich, at the Chamber of Commerce (IHK), etc. and follow different tax regulations. Paying more taxes scares me less than the foreigners’ office (Ausländerbehörde) requiring more startup capital from me to even receive visa to start a business.

Hurdles and Help

Ironically the same German bureaucracy that is slowing me down also dedicates itself to helping people start businesses, myself included. I’ve been to various events and seminars given by the Chamber of Commerce on starting a business and they’ve been very helpful in terms of developing business ideas and strategies for success, applying for funds from various business agencies, etc.

Status: waiting

So right now there is not much for me to do but wait, wait and hope the Finanzamt lets me work as a freelancer. Then onto the foreigners’ office.

Fingers crossed!