Immigration is one of the primary concerns for any contractor hoping to start working in Germany. Permanent employees will find it easy to get their German work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
In Germany, there are multiple types of work permits and the relevant work permit for you will depend on the type of employment (assignment vs. local hire), your salary level, your qualifications and nationality etc. In general, EU nationals do not require a German work permit. Nationals of non-EU member states who intend to work in Germany require an electronic residence permit which is termed 'elektronischer Aufenthaltstitel' and an entry visa for working purposes (D-Visa). The EU Blue Card is another type of work permit that issued to highly qualified individuals.
The different German work permit types that may be issued are dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Germany is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
As your permanent employer, umbrella companies are able to sponsor you for your German work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Germany infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the German immigration authorities. They can even deal with the German Embassy directly.