If you are trying to set up a company in Germany, but you are struggling with the initial difficulties and costs, there is a good news.
The ALG II is a subsidize from the government that can be used in two situations:
a) when you are actively looking for a job and you are not receiving ALG I anymore.
b) when you have an idea that can help you get self-employed, or self-sustained.
The b) situation allows you to present a project that will be analyzed in the Jobcentre and if approved, you will get ALG II for a certain time.
The ALG II covers:
a) your apartment rent + hot water expenses.
b) around 400 Euros for your personal expenses.
It is not much but will help you work on your project for a while without the need to be constantly looking for a job to sustain yourself.
You will have constant meetings with Jobcentre to show the progress of your project, but it is worthwhile.
Another advantage is that you will have access to the BerlinPass. It’s a card that gives big discounts on transportation (tram, u-Bahn, etc) and also museums, theater…