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Apply for a start-up grant (Gründungszuschuss)

Employment agency · From unemployment into self-employment

By postIn person

The Gründungszuschuss (start-up grant) supports people who take up self-employment out of unemployment. It runs in two phases: under § 94 SGB III you receive, for six months, the amount you last received as unemployment benefit, plus €300 a month for social security cover. After that, the grant can be continued for a further nine months at €300 a month.

The strict eligibility requirement is set out in § 93 SGB III: when you take up the self-employed activity, you must still have a remaining entitlement to unemployment benefit of at least 150 days. Anyone who waits too long loses the option – permanently.

There are two things you should know from the outset. First, the start-up grant is a discretionary benefit: there is no legal entitlement, and the employment agency decides on a case-by-case basis. Second, § 324 Abs. 1 SGB III applies – the application must be submitted before taking up the activity. Anyone who starts the business first and applies afterwards gets nothing.

Last updated27 August 2026
Legal basis§ 93 SGB III · § 94 · § 324 Abs. 1
VerificationChecked against gesetze-im-internet.de
Written and reviewed byAndrés Sánchez Botta
Independent information site: we are not the Agentur für Arbeit (employment agency), not a public authority and not a paid advice service — we do not submit applications on your behalf. All information comes from official sources and is explained simply here; the competent authority's decision is always binding. The start-up grant is a discretionary benefit – there is no legal entitlement. All information is provided without guarantee. We are neither solicitors nor tax consultants: we document administrative procedures and check the information against the official source — this is information, not legal or tax advice.
Phase 1ALG I + €300Six months
Phase 2€300A further nine months
Remaining entitlementAt least 150 daysWhen taking up the activity
Legal natureDiscretionary benefitNo legal entitlement
Required documents

What you need

Business plan

The centrepiece of the application. It must cover the business idea, market, competition, customer access, costing and a realistic revenue and profitability forecast. From this, the employment agency does not assess your enthusiasm, but the viability – in other words, whether you can make a living from it.

Viability certificate

A competent body must certify the viability of the project: the Chamber of Industry and Commerce (Industrie- und Handelskammer, IHK), the Handwerkskammer (chamber of skilled crafts, HWK), a professional association, a tax consultancy or a lending institution. Allow time for this – these bodies require a finished business plan and do not work overnight.

Capital requirement and financing plan

How will you cover investments and the first few months? The plan must show that the financing is secure. The €300 of the grant is explicitly intended for social security cover – health and pension insurance – not as working capital.

Proof of remaining entitlement

Your approval notice for unemployment benefit shows how many days are still open. When you take up the activity, there must be at least 150. Work backwards and allow for a buffer: processing the application and obtaining the viability certificate take weeks.

Proof of professional suitability

Certificates, proof of qualifications, professional experience – and, depending on the trade, proof of any special requirements, such as the Meisterbrief (master craftsman's certificate) for crafts that require a licence. The employment agency checks whether you have the professional skills to run the venture.

Trade registration or registration with the Finanzamt (tax office)

For freelancers, registration with the Finanzamt; otherwise, trade registration. Be careful about the order: the application must be submitted before taking up the activity – discuss with the employment agency which date it treats as the start.

Step by step

How to proceed

  1. 1

    Check your remaining entitlement and work backwards

    Check your ALG I notice to see how many days are still open. When taking up the self-employed activity, there must be at least 150. Because the business plan, the viability certificate and processing take several weeks, you should start considerably earlier – around 200 to 220 remaining days.

  2. 2

    Seek advice at the employment agency

    Speak to your placement officer early on. Because this is a discretionary benefit, the conversation matters more than with entitlement-based benefits: it tells you what will be given weight in your specific case and whether priority for placement into employment stands in the way.

  3. 3

    Draw up a business plan

    Detailed and realistic: business idea, target group, competition, pricing, revenue planning, capital requirement and private living costs. The plan must show that you can live from the activity – that is the standard of viability.

  4. 4

    Obtain the viability certificate

    Present the finished plan to a competent body: the IHK, the Handwerkskammer, a professional association, a tax consultancy or a bank. It certifies the viability. Expect follow-up questions and revisions – this is the most time-critical step.

  5. 5

    Submit the application before taking up the activity

    Submit the application with the business plan, viability certificate and supporting documents before you take up the activity. § 324 Abs. 1 SGB III leaves no room for manoeuvre here. Clarify with the employment agency which date counts as taking up the activity – trade registration, first order, or the actual start.

  6. 6

    Apply for Phase 2 in good time

    The second phase, with €300 for nine months, does not come automatically: you must demonstrate the business activity using suitable documents. From day one, collect invoices, order confirmations and accounting records, and submit the application before the first six months expire.

Fee information

Costs and payment

Two phases, no legal entitlementThe employment agency decides at its discretion
Phase 1 (6 months)ALG I + €300/month
Phase 2 (9 months)€300/month
Remaining entitlement when taking up the activityAt least 150 days
Application and adviceFree of charge
Viability certificateMay involve a fee, depending on the body
Legal natureDiscretionary benefit

The application and advice at the employment agency are free of charge; costs may arise for the viability certificate, depending on which competent body you choose – chambers and professional associations are often cheaper for members than tax consultancies. The grant itself consists of two parts. In the first phase you receive, for six months, the amount you last received as unemployment benefit, plus €300 a month; this €300 is explicitly intended for social security cover – that is, health, long-term care and pension insurance – not as working capital. In the second phase, a further nine months at €300 a month may follow – but only if you demonstrate the business activity using suitable documents. It is essential to know that this is a discretionary benefit. There is no legal entitlement, and the employment agency can refer to the priority for placement into employment. Never plan the start-up in a way that fails without the grant.

Good to know

Important notes

150 days of remaining entitlement, and that is when you take up the activity. Not when you submit the application. Because the business plan, certificate and processing take weeks, you should start at around 200 to 220 open days.

Apply first, then start the business. § 324 Abs. 1 SGB III requires the application before the event that triggers the benefit. A trade registration before the application can cost you the grant – clarify in advance which date the employment agency treats as taking up the activity.

There is no legal entitlement. The start-up grant is a discretionary benefit. The employment agency can refuse it, for example with reference to the priority for placement into employment. Plan the start-up so that it is viable even without it.

The €300 is for social security. Not for investments or operating resources. It is meant to cover health, long-term care and pension insurance, which you now bear yourself as a self-employed person.

Phase 2 does not come automatically. For the nine months at €300, you must provide evidence of the business activity. Collect invoices, order confirmations and accounting documents from the start.

The viability certificate is the bottleneck. Competent bodies require a finished business plan and ask follow-up questions. Allow for several weeks and start early.

Sort out health insurance early. As a self-employed person you move to voluntary statutory or private insurance. Clarify the contribution and your entitlement to sickness benefit (Krankengeld) before the activity starts – without the right choice, there is no sickness benefit.

The grant is tax-free, but the profit is not. The start-up grant itself is not subject to income tax and – unlike unemployment benefit – is also not subject to the progression clause (Progressionsvorbehalt). Your income from self-employment remains taxable regardless.

Avoid these mistakes

Common mistakes

Starting too late. The remaining entitlement must still be at least 150 days when you take up the activity. Anyone who starts the business plan at 160 days will not get the certificate in time.

Starting the business first, then applying. The classic total loss: § 324 Abs. 1 SGB III requires the application beforehand. A premature trade registration can cost you the entire grant.

Relying firmly on the grant. There is no legal entitlement. Anyone who plans the start-up so that it fails without the grant is relying on a discretionary decision.

Budgeting the €300 as working capital. It is intended for social security cover and, with voluntary statutory health insurance, often does not even fully cover that contribution.

Missing Phase 2. It must be applied for and the business activity evidenced. Anyone who submits nothing loses nine times €300.

Submitting a thin business plan. The competent body assesses viability, not the idea. Without a solid costing and revenue forecast there is no certificate – and without it, no grant.

Frequently asked questions

Questions and answers

How much is the start-up grant?

In the first phase you receive, for six months, the amount you last received as unemployment benefit, plus €300 a month for social security cover. After that, the grant can be continued for a further nine months at €300 a month if you demonstrate the business activity using suitable documents (§ 94 SGB III).

What remaining entitlement do I need?

When you take up the self-employed activity, there must still be at least 150 days of entitlement to unemployment benefit remaining (§ 93 SGB III). What counts is the time you take up the activity, not when you apply. Since the business plan, the viability certificate and processing take several weeks, you should start at around 200 to 220 remaining days.

Am I entitled to the start-up grant?

No. This is a discretionary benefit – the Agentur für Arbeit decides on a case-by-case basis and can also refuse it, for example with reference to the priority for placement into employment. This is the key difference from unemployment benefit itself, to which there is a legal entitlement. Plan the start-up so that it is viable even without the grant.

When do I have to submit the application?

Before taking up the self-employed activity. § 324 Abs. 1 SGB III provides that benefits under employment promotion are only granted if they were applied for before the event giving rise to the benefit occurs. Clarify with the employment agency which date it treats as the start – trade registration, first order, or the actual start of the activity. § 324 Abs. 1 Satz 2 does allow the employment agency to avoid undue hardship by permitting a late application – but this is a narrowly applied discretionary decision for genuine exceptional cases, not something you can plan around.

What is a viability certificate?

Confirmation from a competent body that your project is economically viable – that is, that you can make a living from it. It can be issued, among others, by Chambers of Industry and Commerce, Handwerkskammern (chambers of skilled crafts), professional associations, tax consultancies and lending institutions. It requires a finished, solid business plan; expect follow-up questions and several weeks of processing.

What is the €300 for?

For social security cover – that is, contributions to health, long-term care and pension insurance, which you now bear yourself as a self-employed person. It is explicitly not working capital. With voluntary statutory health insurance it often does not even fully cover the contribution; budget accordingly.

Do I get the second phase automatically?

No. The further nine months at €300 a month require an application, and you must demonstrate the business activity using suitable documents – for example invoices, order confirmations and accounting records. Collect this evidence from the start and submit the application in good time before the first six months expire.

Is the start-up grant subject to tax?

The grant itself is tax-free and – unlike unemployment benefit – is also not subject to the progression clause. Income from your self-employed activity remains subject to income tax regardless and must be declared on your tax return. Also clarify your VAT liability with the Finanzamt early on.

Related official procedures

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