In order to open a sole proprietorship while being registered in the Jobcentre, several important aspects must be taken into account.
You can inform the berator about the opening of your own case already after the fact of registration. In this case, you will be asked to fill out the WBA form again, after which, depending on the level of income, a decision is made whether to continue or stop social assistance.
However, there is another option. Prior notification to the Jobcentre about plans to start a business may enable you to claim initial capital (Einstiegsgeld). This assistance can be provided for 24 months and has two options: a one-time payment of up to 5,000 euros or a monthly supplement of approximately 180 euros.
The experience of Ukrainians who took advantage of the Jobcenter’s support in opening their own business shows that the whole process takes from six months to one year. This is due to the need to take special courses on developing and writing a business plan.
It is worth noting that the application for receiving Einstiegsgeld should be submitted before the registration of business activity.
If a person is not registered in the Job Center and works as an employee, but plans to additionally start activities as a self-employed person, it is important to review the employment contract. If there is no direct prohibition of entrepreneurial activity in it, then there is probably permission for such activity. However, it is still worth informing the berator about the intentions to avoid further misunderstandings.
Will social assistance remain in case of opening of the FOP?
In Germany, the citizen support system is different from other countries. The Jobcentre has the right to consider each case individually and make decisions according to specific circumstances. For example, in Ireland, the situation is the opposite: when a sole proprietorship is opened, the receipt of social assistance stops immediately, even if the income from entrepreneurial activity has not yet arrived. In Germany, however, you can continue to receive social support (including housing benefits) if the income from your own business is insufficient to cover the minimum needs. But this is decided by the berator.
Anna Seminishina
