Residence Permit for CEOs and Other Executive Personnel in Germany
§ 19c(1) Residence Act
If you are a foreign national taking on a leadership role in a German company and would like to apply for a CEO residence permit in Germany, you may qualify for a residence permit under § 19c(1) Residence Act. This pathway is designed for executive personnel (Leitende Angestellte) who hold senior positions with significant responsibility.
Our company, Nexus-Europe GmbH, assists foreigners with starting and developing their own business in Germany and moving to Germany through business immigration or the EU Blue Card. Over 20 years of operation we have helped more than 7,000 customers.
Who Is Considered Executive Personnel?
German law defines executive personnel using guidelines from the Works Constitution Act (Betriebsverfassungsgesetz). There are two main ways to qualify:
- Authority to hire and fire. You have the power to independently recruit and dismiss employees within your area of responsibility. This includes personnel with unlimited power of attorney or statutory procuration (Prokura).
- Strategic influence. You regularly perform tasks that are essential for the company's existence and development. Your decisions are made largely free of instructions, or you significantly influence key decisions, even if certain legal or company guidelines exist.
If there is still doubt about your classification, additional factors are considered, such as your position in the company hierarchy and whether your salary reflects an executive role.
Residence for Managing Directors in Germany
For many foreign entrepreneurs and professionals, one of the most practical ways to obtain residency for executive personnel in Germany is to become a managing director (Geschäftsführer) of a German GmbH or UG. Please note: in order to apply for a CEO residence permit in Germany under § 19c(1) Residence Act, the managing director has to not be self-employed, i.e. hold less than 50% of the shares in the company while being the managing director.
If, however, you are both the sole or majority shareholder (over 50% of the shares) and managing director, you are generally considered self-employed. In that case, the residence for a managing director in Germany would be based on § 21 Residence Act (residence permit for self-employment). Learn more about the self-employment route in our separate guide on business immigration here.
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Approval of the Federal Employment Agency
One of the most important steps in the process of getting a CEO residence permit in Germany is obtaining the approval from the Federal Employment Agency (Bundesagentur für Arbeit). This approval is mandatory for residency for executive personnel in Germany under § 19c(1).
However, there is a significant advantage: the Agency is not required to conduct a priority check with regard to domestic workforce (Vorrangprüfung). This means they will not examine whether a German or EU citizen is available to fill your position. The only requirement is that your working conditions, particularly your salary, must not be less favorable than those of a comparable domestic executive.
Company Requirements & CEO Residence Permit in Germany
If you are planning to establish or lead a company in Germany and also to apply for a residence for a managing director in Germany, understanding your options and requirements upfront is crucial and can save months of delays. To be able to hire personnel, any company has to meet the following minimum requirements. It has to have:
- an Extract from the Commercial Register,
- a tax number,
- registration with the Professional Association (Berufsgenossenschaft),
- accident insurance (Unfallversicherung),
- company number (Betriebsnummer).
Our company, Nexus-Europe GmbH, provides turn-key solutions: from individual Roadmap development to establishing a fully operating business.