Applying for benefits for the integration of the self-employed

You must apply for the subsidy before you can receive financial support for purchases or use the consulting services.

• To do this, first make an appointment with your local job centre.
• Your integration specialist will discuss with you whether self-employment can be a realistic strategy for you to integrate into the labour market and end your need for help, and what type of support is suitable for you.
• Loans and grants for the purchase of tangible goods:
  • Your integration specialist will hand you the application form or activate the online application process for you. It is important that you submit the application – online or in writing – for the funding before you purchase the material goods.
  • The Jobcenter will review your application and the attached documents.
  • The Jobcenter assesses your personal suitability for specific self-employment and the economic viability of your company. This includes the prognosis of whether you will be able to earn a living by becoming self-employed within a reasonable period of time.
  • You will receive a written or digital notification from the responsible job centre as to whether your application has been approved.
  • After positive feedback, you can make the purchases.
  • Then, you'll need to submit evidence proving what you spent the funds on
  • such as sales contracts, receipts or bank statements.
• Advice and training to impart knowledge and skills:
  • Your job centre commissions advice and training from external training providers. For more information, please contact your Jobcenter.

In order to receive the benefits, the following requirements must be met:

• They receive unemployment benefit II (Hartz IV).
• You want to become self-employed or are already self-employed, which means
  • They work in their own name and on their own account, and
  • They bear the economic risk of their activity (entrepreneurial risk).
• Self-employment must be your main job, which means
  • You work independently for at least 15 hours per week and
  • Within a reasonable period of time, you will be able to earn all or a significant part of your living from your earnings.
• You must be personally suitable to successfully pursue a self-employed activity. To do this, you must prove that you have the knowledge and skills you need to become self-employed, for example by:
  • Proof of your professional and entrepreneurial qualifications,
  • professional experience or
  • participation in measures that prepare you for starting a business.
• Your self-employment must be economically viable, i.e.
  • Your business model must be elaborated and thought out in such a way that your business start-up can be successful in the long term
  • The viability of your self-employment must be proven by an expert opinion. Expert bodies can be chambers, trade associations or start-up initiatives. Your job centre will nominate the competent authority responsible for you in your region. Usually, you will have to submit detailed documents there (see "required documents" above).
• The material goods you want to purchase must be appropriate and necessary for your work.
• Other sources of financing are ruled out, such as special federal and state programs, local economic development or microcredits
• The funding must comply with EU state aid rules (de minimis rule).

In order to receive funding, you must submit appropriate documents. Your integration specialist will inform you which of the following documents are necessary for the funding you have applied for:

• Expert opinion confirming that your self-employment is economically viable
• De minimis declaration (EU state aid rules)
• Capital Requirements/Financing Plan
• Business plan in text form
• Curriculum vitae
• Tax registration/ business registration/ registration with the Chamber of Crafts
• Certificate of participation in a start-up seminar
• Offers of operational investments
• If applicable, contractual documents such as articles of association or rental agreement
• At least 2 rejections from banks where you have made credit requests
• Other individual documents that the Jobcenter can request

There is no deadline. Prior application required / deadlines are set by the respective job centre (e.g. deadlines for submitting documents).

Forms available: Yes
Written form required: Yes
Informal application possible: Yes
Personal appearance required: Yes
Online services available: Yes

• Contradiction
• Appeal to the Social Court

Federal Ministry of Labour and Social Affairs (BMAS)

09.08.2022

The text was automatically translated based on the German content.