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Applying for a start-up grant

If you are unemployed and want to start your own business, you are entitled to financial support.

Your responsible authority

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  • Forms

    Forms: available from the Employment Agency
    Can I do it online? No.
    Do I need to do it in writing? Yes.
    Do I need to attend in person? Yes.


  • Detailed description

    A start-up grant, or "Gründungszuschuss", is intended to help you with your living costs and guarantee social security benefits if you set up your own business. You are only entitled to a start-up grant if there are no other suitable job openings for you and if you want to be self-employed as your main occupation.

    Before applying for a start-up grant, you must be registered as unemployed. You are not eligible for the grant if you are entering self-employment straight from a job. There are two start-up grant phases:

    • Phase 1: a 6-month start-up grant equal to the last unemployment benefit received for living costs plus a monthly lump sum of EUR 300 for social security
    • Phase 2: a 9-month grant of EUR 300 a month

    After phase 1, you may be able to receive a start-up grant for a further 9 months. This will be decided on an individual basis.

    The start-up grant will not be subject to income tax however much you earn on top of it.

    You cannot apply for funding if you are eligible for a state pension.

    You can apply for the grant in addition to other funding for self-employment. There is no legal entitlement to the start-up grant.
     

  • Requirements
    • You are in receipt of unemployment benefit I.
    • You are still entitled to at least another 150 days of unemployment benefit upon becoming self-employed.
    • You are able to prove that you have the knowledge and skills to pursue the activity in a self-employed capacity.
    • You can provide a favourable opinion from a professional body on the viability of setting up as self-employed.
    • The Employment Agency (Agentur für Arbeit) was unable to find a suitable opening for you on the job market.
    • You are not eligible for a state pension.
  • Documents
    • Evidence of your knowledge and skills (e.g. qualifications, professional experience or participation in activities to help you set up as self-employed)

    If you want to work in a licensed trade, you will also need:

    • A trade permit
    • For craft or trade professions:
    • Confirmation of registration in the Register of Trades and Crafts with the Chamber of Trades and Crafts

    You must also submit an opinion from a professional body, for which you will need:

    • A business plan
    • Your CV (including evidence of qualifications)
    • A capital requirements and financing plan
    • Turnover and profitability forecasts
    • Information on what proportion of the business will be in a self-employed capacity
  • Fees

    None

  • Process

    You must apply for the start-up grant through the Employment Agency:

    • Make an appointment with the Employment Agency.
    • Your adviser will tell you what financial support is available if you are setting up as self-employed and what conditions you need to meet.
    • You will then need a professional body to issue a favourable opinion on your start-up project. You can choose which one to use. Competent professional bodies include:
      • Chambers of commerce and industry
      • Chambers of trades and crafts
      • Guilds
      • Professional chambers
      • Professional associations
      • Credit institutions
    • The Employment Agency will also check whether you meet the professional requirements to set up your own business.
    • Then submit your start-up grant application in writing to your local Employment Agency.
    • The Employment Agency awards the start-up grant for an initial period of 6 months (phase 1).
    • If you wish to continue receiving the reduced grant for a further 9 months (phase 2), you must submit a new application.
  • Duration

    The processing time will depend on the individual case.

  • Deadline

    You must apply before you set up your own business.

  • Responsible authority

    Zentrale der Bundesagentur für Arbeit
    Regensburger Straße 104
    90478 Nuremberg

    Tel.: 0911 1790
    Email: zentrale@arbeitsagentur.de

  • Point of contact

    Your local Federal Employment Agency.

  • Legal basis
  • Pointer

    Before taking the leap into self-employment, check your insurance obligations with your health insurance and pension fund, and find out whether you will still be covered.

  • More information
  • Approved

    Federal Employment Agency (Bundesagentur für Arbeit) 

  • Approved date
    17.04.2023