[wprapido]

Yeah, you should incorporate. Not only that, keep separate accounts such as hosting, email, payment gateway, etc.

Incorporating abroad spares you of a hassle dealing with German bureaucracy as a company. Not as an individual. Same goes for tax liabilities. Whatever you draw from a company either as income or dividends gets taxed wherever you happen to be a resident.

What many of my Germany-based friends, relatives, business associates do. They incorporate abroad and pay income to their Germany registered gewerbe (for those unfamiliar with German system, it's like sole trader).

A cousin is a steuerberater in Hamburg while a close friend is a wealth manager in Berlin. If you think they could be of any help, feel free to reach out to me.

[nik736]

I don't think this is legal. If you are based in Germany and incorporate in a different country you have to tell the german authorities.

For example if you found a Limited in the UK, you have to tell the German authorities and the Limited will be seen as a German GmbH. It will be more expensive in the end because, for example, everything has to be translated and signed by a notary.

[wprapido]

You and your company are separate entities. Many Germans incorporate abroad and it seems to work.

What you have to report to the authorities is your personal income drawn from foreign companies you own or work for.

[nik736]

No, that's simply false information.

[throwawayheyhey]

No, you're the one peddling misinformation here. It's true that you have to tell German authorities about your foreign business (not just your income from that business) for tax purposes if you're actually operating your business from within Germany (i.e. you're running a "Gewerbe"). There are also some rules to follow you're merely conducting business with German customers, i.e. how to collect VAT etc.

In any case, however, you certainly don't have to "convert" your business into a GmbH.

[nik736]

I havn't said that you need to convert your business into a GmbH. What I said (or at least meant) was that if you found a Limited while living in Germany, it will be seen and handled similar to a GmbH by the authorities here in Germany.

[welder]

I've been wondering about similar things as a foreigner in Berlin. Would love an intro to your Germany-based friends to chat about what they recommend when incorporating! My email: [e-mail]