Hacker News new | ask | show | jobs
by quonn 1309 days ago
> 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.

1 comments

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.