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Posted by earcar 17 hours ago

Founding a company in Germany: €9600, 152 days and I still can't send an invoice(paolino.me)
562 points | 687 commentspage 7
semessier 16 hours ago|
the real problems with administration dome starts after founding in many but not all European countries.

There is light at the end of the tunnel as an EU Inc. is proposed.

However the bureaucrats in probable but all countries will try to water it down to pointless to keep or extend their responsibility territory and duties.

bartman 16 hours ago||
Wait until you want to convert the UG to a GmbH and realize that it's not simple or cheap at all.

It's not enough to have had properly filed tax returns every year, have a large enough profit-collection-line item in your books (25k EUR+) and then fill out a form.

No, if you want to use the profit your UG was required to accrue to raise your capital stock to 25k and rename it to a GmbH you need to get your annual accounts audited.

Or alternatively, you can pay in the difference between your current capital stock (e.g. 2k) and the 25k minimum for the UG and then rename the company and "just" have to pay for the notary, publishing to public records, court, ...

earcar 16 hours ago|
Yes indeed.

We converted Freshflow into a GmbH and needless to say it was expensive.

piterrro 16 hours ago||
I've setup my own company in Poland in 2015, by submitting a web form, 30 minutes later I could issue a fully VAT compliant invoice. This was not an incorporation however - that was a sole proprietorship, but I could still hire people full time, issue invoices etc.
florakel 15 hours ago|
You can do the same in Germany. Costs 29 Euros with an online form. Once the sole proprietorship is setup you apply for your tax id and done. The whole process took 2 weeks in my city. Legally you can even start invoicing as soon as you registered your business.

The problem with OP is that he chose an overly complicated structure. Probably got milked by lawyers and advisors.

piterrro 15 hours ago||
thanks good to know! I felt something was off here
semessier 12 hours ago||
for all the people posting founding in Ireland or Estonia (or England!!) etc. The local bureaucracies will spend infinite resources on nailing anyone down on the place of business being != to where the registration is. That is coercing one way or another to incorporate with the full overhead locally after all and most importantly that taxes are not happening in Ireland but to feed the local administration.
whereistejas 15 hours ago||
it seems absurd that they would reject a plain and simple name? i imagined company names would be available on first come, first serve basis. why is that not the case?
Bluebirt 14 hours ago||
This guy gets it completely wrong. You are allowed to use the 25k, but only for business expense. Not as salary to yourself.
dcrazy 11 hours ago|
This rule seems to assume all business ventures are capital intensive.
robert_foss 15 hours ago||
Can confirm, starting and running a business in Germany is miserable.

The processes are all non-digital, and have many steps like Notaries for example.

KingOfCoders 16 hours ago||
(2026)

1.) Yes, it took 3 months to switch the company hq + IRS + Notar etc.

2.) But it really does depend a lot on the city, state etc.

3.) UG is 500 EUR - changing to GmbH is then also quite cheap

jayess 11 hours ago|
I love these stories. The timeline is precious. And the comments from folks saying "gee, you picked the most complicated business entity, joke's on you!"

Just looking at my own state (Michigan) I can form the most "complicated" entity for $60 filing fee. Using a fill-in-the-blank form online. And have it approved the same day for an additional $50. Get an EIN online from the IRS in 10 minutes. Walk to a bank and open an account in about another hour. Annual renewal fee is $20.

In less than a day and for $110, I have a corporation, EIN (federal tax registration number), and bank account. Open for business. An LLC is the same, just a different form filed with the state.

I can then open credit card accounts online in the business name, register for sales tax online (get the license in about a week), and open a stripe account.

Oh, and a businessowners general liability insurance policy is costing me $205 per year. $1 million in liability coverage.

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