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by Major_Grooves 1310 days ago
maybe to expand - this isn't really about me. I managed successfully and now have my company.

but there is a reason that a significant proportion of the startups in Germany were UK Ltds until Brexit cooled that down. I don't take it as a positive sign for the process that people will literally use another country's registration process because the home one is so bad.

1 comments

> there is a reason that a significant proportion of the startups in Germany were UK Ltd

The reason was that the GmbH required depositing 25k. But the UG already solved that problem and afterwards the UK Ldt didn't really make sense anymore.

It is not just that, it is how difficult it is to invest into a German company afterwards, requiring each individual investor to visit a notary.

We had some investors refuse to invest in us as a German company because it was just too much hassle, and not worth the cost if they made a relatively small 10k€ investment.

UK Ltd much easier to invest into.

You seem to have serious lack in understanding when it cmes to legal entities. If you have a small number of large outside investors, a GmbH isn't adding much hassle. If you have multiple small investors, choose a different legal entity form. Those do come with different sets of requirements. Legal consultation helps, I would even say is necessary, regardless of country.

In the end it comes down to cost of business. If the German market is interessting enough, a GmbH is just one thing to do. If it is not, pick another EU country.