The start-up grant from the Employment Agency (AfA) is popular. After all, around 8,000 – 10,000 ALG-1 recipients who want to become self-employed with their business idea receive this monthly. The aim of the start-up subsidy is to provide financial support for founders on their way to becoming self-employed. In order to receive funding, however, founders must submit an application and submit it together with certain documents hand over. In the following article we have compiled which documents must not be missing under any circumstances.
Duration and amount of the start-up grant
Founders who receive ALG 1 should take their chance and apply for the start-up grant. After all, they can receive a subsidy in the amount of the last unemployment benefit they received for six months, as well as a monthly flat rate of 300 euros for social security. This chance should be used. The funding can then be extended by nine months. In this case, the federal agency pays 300 euros per month for social security. (Tip: ALG-2 recipients can apply for the entry fee.)
Which documents are required for an application for a start-up grant
In order for the funding to be successful, founders should pay particular attention to the completeness of the application. The AfA only hands out the form for a start-up grant during a personal consultation on the start-up grant. This must then be filled out and sent back to the clerk. Other documents must also be submitted. These are:
Professional business plan
Since 2011, the start-up subsidy is no longer a mandatory benefit, but only a discretionary benefit of the AfA. This means that founders have no legal claim to this funding. It is therefore important to make the motivation to end unemployment by starting a full-time business clear in the business plan. In addition, a well-founded financial plan should not be missing. This is the heart of the business plan and represents the company’s development in figures. This provides information about whether founding a company is also worthwhile from an economic point of view. At the same time, a financial plan shows how much capital is required to finance the start-up. Good preparation when creating a business plan is therefore half the battle when it comes to applying for a start-up grant. Founders are best positioned with business start-up advice at their side. This helps with the creation of a business plan and knows which points must definitely be included in a business plan.
reading tip: The 5 most common mistakes when applying for start-up grants.
Don’t forget to attach your CV
Furthermore, founders should create a curriculum vitae with proof of appropriate training and further education for self-employment. The clerk wants to use the curriculum vitae and a personal interview to ensure that the founders are suitable for self-employment and have the necessary knowledge for founding a new company.
Proof of registration of self-employment
Another important document is the confirmation of the registration of the business idea. This is done at the trade office (business registration) or at the tax office. Caution: At the time you register your business start-up, you should still have at least 150 days left to claim a start-up subsidy.
Tip: Use the AVGS for the unemployed – free start-up advice & coaching!
Obtain permission or approval for the respective professional branch
For some professions, a special license or permit must be presented when the application is submitted. For example, as a lawyer you need a license from the Bar Association. Alternative practitioners, on the other hand, must have a license to practice medicine. It is important that sufficient time is planned for the procurement of such documents. As a rule, it is not possible to have such special approvals issued within one day.
Carrying capacity certificate from a competent body
In the last stages of applying for a start-up grant, founders must seek a so-called expert opinion (certificate of viability). This certificate confirms that the business model, including the marketing strategy, is consistent and can be implemented. But beware: Founders should be careful not to formulate their business plan too optimistically. Otherwise, this can lead to a rejection of the start-up subsidy, according to the motto: “You can get by without a start-up subsidy.”
Tip: Founders who need a viability certificate (issuance also possible at short notice) can contact the “Deutschland starts” start-up center. This is recognized as an expert body and issues such a document: Contact us.