Startup Grant of the Employment Agency (Gründungszuschuss)

The start-up grant is an important financial support for individuals who start a business out of unemployment. The Munich Start-Up Office will help you find a suitable qualified organization to review your business plan. Below, you will find all the key information about the start-up grant, the eligibility requirements, the application process, and the next steps.

What is the start-up grant?

If you are receiving unemployment benefits, you can apply for the start-up grant at your local Employment Agency. This financial support makes it easier to start a business, helps ensure your livelihood, and provides social security. It is intended for unemployed people who receive unemployment benefits and are planning to establish a full-time self-employment.

The start-up grant helps you to:

• cover your living expenses and maintain social security coverage;
• make the transition to self-employment easier; and
• launch a business with demonstrably good prospects of success.

Important to know: The start-up grant is a so-called discretionary benefit. This means you have no legal entitlement to the start-up grant. The decisive factor is whether your assigned employment counselor at the Employment Agency is convinced that your self-employment has good prospects for success and that you have the necessary skills and knowledge.

Eligibility requirements for the start-up grant

To receive the start-up grant, you must meet the following criteria:

• Current receipt of benefits: You are currently receiving unemployment benefits.
• Remaining entitlement: You still have at least 150 days of unemployment benefits remaining at the start of your self-employment.
• Full-time self-employment: You plan to start your self-employment as your primary occupation and will no longer be unemployed.
• Demonstrated viability:
  • Your fully developed business plan demonstrates the economic viability of your project. Your financial plan shows that your self-employment will generate sustainable profits after the start-up phase to secure your livelihood.
  • An authorized expert body (fachkundige Stelle) reviews your business plan with regard to your personal and professional qualifications, its economic plausibility, and realistic market potential and long-term viability. It then issues the required viability certificate (Tragfähigkeitsbescheinigung).

Amount and duration of the start-up grant

Amount: The start-up grant is equal to the unemployment benefits you most recently received, plus an additional 300 euros per month. These 300 euros are intended to help cover your social security contributions, because from the first day of self-employment you are responsible for paying for your own health and long-term care insurance and for making arrangements for retirement.

Duration: You will receive the start-up grant for six months.

After the six-month period, there is theoretically the option to apply for the flat-rate grant of 300 euros per month for an additional 9 months. However, this is purely a discretionary benefit granted on a case-by-case basis, and in practice, such applications are reviewed very strictly.

The business plan and viability certificate (Tragfähigkeitsbescheinigung)

The business plan is the most important document for your application for the start-up grant. It must be reviewed for viability by an authorized expert body (fachkundige Stelle).

What does the viability check involve?

The authorized expert body acts as an evaluator for the Employment Agency. The review focuses primarily on the following key areas:

• Completeness and plausibility: Are the written sections and the financial plan logically structured and comprehensible?
• Economic forecast: Do the figures show that your business will be profitable in the long term and can sustain your livelihood permanently after the start-up phase?
• Founder: Do you have the necessary professional, industry-specific, and business qualifications for your self-employment?

What documents are required for a viability check?

• Business plan: description of the business project
• Capital requirements and financing plan
• Revenue and profitability forecast
• Résumé
• Proof of qualifications, such as diplomas and certificates

Who are authorized expert bodies?

Authorized expert bodies for the viability check in Munich

The following is a selection of authorized expert bodies that issue viability certificates for the Startup Grant (Gründungszuschuss) from the Federal Employment Agency:

• Chamber of Industry and Commerce (IHK für München und Oberbayern): Official contact point for all commercial businesses (Gewerbe). Please note that the IHK is not suitable for those who are planning self-employment in the liberal professions or skilled crafts business. You can contact the startup grant team by phone at +49 89 5116 2222 or via email at gruendungszuschuss@muenchen.ihk.de
  Further details are available in their online guide. The IHK provides a free English business plan template on its platform, Unternehmerwerkstatt Deutschland. Your business plan must be created and submitted directly through this platform. A processing fee of 250 euros applies.
• Chamber of Skilled Crafts (HWK Handwerkskammer für München und Oberbayern): Official contact point for skilled craft businesses. The HWK is not suitable for for those who are planning self-employment in the liberal professions or commercial, IHK-affiliated industries. Initial information is provided by the HWK Founder’s Agency (Gründeragentur) at +49 89 5119 481 or via email at gruenderagentur@hwk-muenchen.de. For individual consulting, contact the Business Advisory Team (Betriebswirtschaftliche Beratung) at +49 89 5119 231. A downloadable business plan template is available on their website.
• Professional Chambers (Berufskammern): A comprehensive directory of individual professional chambers can be accessed via the official BayernPortal.
• Specialist and Trade Associations (Fachverbände): You can search for specific industry associations using specialized directories like www.verbaende.com.
• AktivSenioren Bayern e.V. (Non-Profit Organization): Provides general support across all industries. You can reach them by phone at +49 89 22 22 37 or via email at info@aktivsenioren.de. A processing fee of 130 euros applies.
• GründerRegio M e.V. (Non-Profit Organization): Specializes in solo entrepreneurs, women-led startups, liberal professions, and knowledge-intensive services. Contact them at +49 89 30 76 25 05 or via email at info@gr-m.de. A detailed informational flyer Gründungszuschuss (PDF, 1,9 MB) is available for download. A processing fee of 199 euros applies.
• Institute for Liberal Professions (IFB – Institut für Freie Berufe): Exclusively focuses on founders entering the liberal professions (Freie Berufe). You can contact the IFB by phone at +49 911 23 565 28 to access their startup grant resources, required document checklists, and specialized business plan templates. The current processing fee is 149 euros.
• Tax Consultants (Steuerberater): The Munich Chamber of Tax Advisors (Steuerberaterkammer München) maintains a public contact register of available tax consulting firms ready to take on new clients for business plan reviews.
• Other authorized bodies, such as, auditors (Wirtschaftsprüfer), and business consultancies (Unternehmensberater)

The next steps

To prepare your application for the start-up grant, you should clarify the following:

• Check the eligibility requirements: Discuss with the Employment Agency whether you meet the basic requirements for the start-up grant.
• Choose an authorized expert body for the viability check: Decide right from the start which qualified agency you want to commission to conduct the feasibility assessment. We’d be happy to advise you on this – send us an email with your callback number or schedule a free consultation using our appointment form.
• Coordinate the application process with the expert organization: Schedule an appointment with the choosen organization. Clarify processing times and costs. Ask for a business plan template you should use.
• Prepare your business plan: Write your business plan, including the financial plan. It is best to use the specific business plan template provided by the authorized expert body to which you’ll later submit your viability assessment.

Good to know:
Voluntary unemployment insurance is available for self-employed people

Poor order levels, changing market conditions, or illness may force you to give up your self-employment. Under certain conditions, you can protect yourself against this by taking out voluntary unemployment insurance for the self-employed.Voluntary statutory unemployment insurance currently costs around 100 euros per month. However founders pay only half the contribution rate during the first two calendar years. You must apply for voluntary unemployment insurance for full-time self-employed individuals at the Employment Agency within three months of starting your self-employment.

Advice from Munich’s Business Startup Office (Münchner Gründungsbüro)

The Munich’s Business Startup Office answers your basic questions about starting a business, informs you about the most important steps involved, and connects you with the right contacts for further questions.

Take advantage of our two-step consulting process:

• Step 1: Attend the webinar (get an overview)
  Before booking a personal consultation, please attend our compact online seminar: “How to start a business in Munich”. Here, you’ll gain a comprehensive overview on formalities, business plan, legal forms, taxes, social and business insurance, and financing options.
• Step 2: Book an individual consultation (clarify specific questions)
  Once you have acquired the necessary basic knowledge in the online seminar, we will address your individual questions in the next step. You can request a free consultation appointment online, which can take place either by phone or via video conference.

Clarify individual questions immediately