[jandrewrogers]

> It's even difficult and expensive to _stop_ an LLC and dissolve it.

In my experience this is at least as important. Everyone focuses on the process of creating companies, which is now relatively streamlined in many European countries.

The real, massive difference between the US and EU is how hard it is to shutdown a company and the legal implications of that. I was shocked at how unreasonably slow and painful it can be to shutdown a company in Europe the first time I did it. Many countries effectively treat it as a criminal proceeding. Sometimes startups just fail, that is the nature of startups.

In the US shutting down a company is almost as easy as creating one.

[jan_Inkepa]

I've been told by a lawyer that a common sensible step in closing companies in Germany is to first...reseat the company in the UK ... (at least pre-brexit - not sure if things have changed). Think of how bad and expensive the process has to be for this extra step to be worthwhile.

[anonzzzies]

I have been trying to close a UK company for the past 2 years (created post brexit).

And reseat, as others say, is not as easy; the gravity of decision making has to be in the country of incorporation; if your main shareholders and directors are physically in Germany and you reseat the company to where-ever, Germany is going to see and act like this is a de-facto German company. Hence you gain nothing, you get more paper work.

[jan_Inkepa]

>Hence you gain nothing

You're saying you get nothing, but you perhaps underestimate how time-consuming and expensive even the easiest company shut down in the Germany is. (I had a very smooth process winding down my company in the UK - you have my very sincere sympathies that things are a bit rockier for you).

>if your main shareholders and directors are physically in Germany and you reseat the company to where-ever, Germany is going to see and act like this is a de-facto German company. Hence you gain nothing, you get more paper work.

Looking online, here's a german tax-advisor who talks about the strategy of liquidating your company by first merging it with a uk company, saying you can close a company in 4-6 weeks by this process (though they recommend against it after brexit for liability reasons, but mention Ireland and malta as options). In germany you have a year of waiting, and lots of additional notary/accounts work. (OTOH, I don't know how you get it down to 4-6 weeks and avoid the uk's company house gazette notification period - they must pick a different kind of company - if your fees for closing down a company in germany are going into the thousands (or tens of thousands) for notaries, liquidators fees, and the like).

https://www.stmatthew.de/brexit-gmbh-sitzverlegung

Once again, not my specialty area, I just...wanted you to know that it does happen, is a specialty area of work for some companies, and it's presumably not irrational behaviour.