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by nradov 34 days ago
You're missing the point. Strong or weak has nothing to do with it. If you want to be protected then don't do business with undercapitalized counterparties. Everyone can make their own decision on acceptable level of financial risk. It's stupid for governments to dictate this.
2 comments

How do you know if your counterpart is undercapitalized, though?
Look up the business registry, debt registry etc., it should be all there, at least it is in our country.
You're welcome to ask them for whatever evidence you like before agreeing to do business.
So the OP can create a UG with €1 capitalization.

They can be cheerfully undercapitalized and counterparties, seeing that it's an undercapitalized UG rather than a GmbH, can make their own decision on financial risk.

> And the cheap door has a price of its own: to some clients, “UG” reads as “not serious,” and they would rather deal with a GmbH.

...turns out the OP doesn't like that.