Start-Up Grant in Munich

How High Is the Start-Up Grant in Munich?

The amount is set nationwide and does not depend on location: in phase 1 (6 months) you receive your last ALG I rate plus €300 per month, in phase 2 (up to 9 more months) only the €300. Over 15 months this adds up to around €13,500 to roughly €20,000.

Requirements for the Start-Up Grant

• Receipt of unemployment benefit I (not basic income support (Grundsicherungsgeld, formerly Bürgergeld) / ALG II)
• At least 150 days of ALG I entitlement still remaining when you start the business
• Self-employment as your main occupation (at least 15 hours/week)
• Personal and professional suitability
• Viable business plan with a reliable financial plan
• Expert opinion from a qualified body (fachkundige Stelle)

You will find all details, example calculations of the amount, and the complete process in the start-up grant guide. Do you receive basic income support instead of ALG I? Then in Munich the entry allowance (Einstiegsgeld) from the Jobcenter may be an option.

Start-Up Grant in Munich: Your Employment Agency

The Employment Agency in Munich, Kapuzinerstraße 26, 80337 München, service number 0800 4555500, is responsible. If you come by car, enter Thalkirchner Straße 92 in your navigation system; that is where the entrance to the agency’s underground garage is. Parking is free, and 240 spaces are available during the garage’s opening hours. For letters, use only the agency’s postal address, not the visitor address.

Your place of residence is what counts. If you live in the district of Munich or in neighboring districts and want to start a business in the city, contact the agency responsible for your place of residence.

Discuss your plan with the agency before you begin your self-employed activity. The start-up grant is a discretionary benefit under § 93 SGB III; there is no legal entitlement. Especially in Munich, the high cost level affects the financial plan: rent, living costs, and hourly rates have to fit together; otherwise, viability will be questioned.

When the Employment Agency and the Jobcenter can issue a voucher for start-up coaching is explained on our page AVGS coaching in Munich.

Qualified Bodies in Munich

The two chambers are located on the same street:

• Chamber of Commerce and Industry (IHK) for Munich and Upper Bavaria, Max-Joseph-Straße 2, 80333 München, phone 089 5116-0
• Chamber of Crafts (Handwerkskammer) for Munich and Upper Bavaria, Max-Joseph-Straße 4, 80333 München, phone 089 5119-0

The process: you submit the business plan, financial plan, résumé, and proof of qualifications; the body reviews viability, clarifies follow-up questions, often in a conversation, and then issues the opinion. Processing time and fees differ depending on the body and its workload.

The legal list in § 93 para. 2 SGB III is not exhaustive; professional chambers, trade associations, credit institutions, tax advisory firms, and business consulting firms also qualify. For free orientation beforehand there is also the start-up consulting of the state capital Munich in the Department of Labor and Economic Development, Herzog-Wilhelm-Straße 15, 80331 München. Clarify which body your agency accepts before you commission it.

The IHK for Munich and Upper Bavaria charges €250 including VAT for the expert opinion; the AktivSenioren Bayern (an association of retired experts) charge €130.

Regional Funding Alongside the Start-Up Grant

The state development bank is LfA Förderbank Bayern, Königinstraße 17, 80539 München. For start-ups, two programs are particularly relevant, both applied for through your house bank:

• Gründungskredit Smart: up to €150,000 per applicant, of which at most €100,000 for working capital, with a mandatory 80 percent liability exemption for the house bank. Intended for smaller start-up and consolidation projects, full-time or as a side business.
• Gründungs- und Wachstumskredit GuW: low-interest loan for start-ups, takeovers, and young companies in their first five years, terms of two to 20 years, up to three repayment-free start-up years; through the HaftungPlus program, LfA can assume 60 percent of the credit risk.

Talk to your house bank before you sign contracts or make investments. Development loans must be applied for before the project begins.

Two Examples From Munich

The following examples are typical situations from our consulting practice. They are constructed and do not reflect individual clients. The Employment Agency decides on approval in each individual case.

Technical consulting. A development engineer loses his job at a Munich-based supplier and wants to work as a self-employed consultant for testing processes and certification. He has a possible framework contract but no signature yet. The financial plan has to show how many billable days per month are realistic and how he will reduce his dependence on a single client. What counts for the opinion are references, the hourly rate, and a calculation without overly optimistic utilization.

Health care and private practice. A physiotherapist with several years of employment wants to open her own practice in a Munich district. Rent, deposit, equipment, and the accreditation with the health insurance funds determine the capital requirements, plus a ramp-up period until the appointment schedule is full. Critical points are the location, the mix of insurance-covered and self-pay services, and whether the start-up grant bridges the gap of the first months.