| ▲ | jcmartinezdev 9 hours ago |
| I really looking forward to this! I love being in the EU and I really like living in Germany. But creating and operating a small company in Germany is a nightmare, I hope this can give smaller EU companies agility and frictionless setup and operation so they can focus on building products and providing services to their customers. |
|
| ▲ | embedding-shape 8 hours ago | parent | next [-] |
| Sounds like a German problem. When I last set up a company in Sweden I literally went to web UI and clicked "Create Company" basically, filled in some details and it was done. Similar experience in Spain, fill out 2-3 forms and it's done. How much more process could the German government really add here? Reviews and interviews, or what exactly is the bureaucracy you're complaining about here? |
| |
| ▲ | noosphr 8 hours ago | parent | next [-] | | It takes 8 weeks from start to finish to be able to get paid for your first sale as a German limited liability company. People outside of Germany really have no idea how sclerotic the state is. Mean while Germans suffer from the brain damage of having lived there their whole lives and don't see a problem with this. If you think brain damage is too strong a word, the last time I brought it up a bunch of Germans came out of the wood work to defend an 8 week process as completely reasonable. Then when told I could do the same thing in Australia in 15 minutes they insinuated I was probably a criminal for wanting less paper work to open a business there. | | |
| ▲ | lm28469 8 hours ago | parent | next [-] | | > It takes 8 weeks from start to finish to be able to get paid for your first sale as a German company. You can bill as soon as you started the process afaik | | |
| ▲ | defo10 7 hours ago | parent | next [-] | | You can bill, but the company owners are completely liable until the process is completed. Then the liability goes over to the company. Quite the risk if you ask me. | | |
| ▲ | LunaSea 4 hours ago | parent [-] | | Not fucking-up in the first 8 weeks does not seem too difficult to achieve | | |
| ▲ | tchalla 3 hours ago | parent | next [-] | | It’s not difficult to achieve to setup a company within 15 minutes too but here we are. | |
| ▲ | nutjob2 2 hours ago | parent | prev [-] | | If you're starting a business from scratch, that's 50% of what you do, and it lasts longer than 8 weeks. |
|
| |
| ▲ | noosphr 8 hours ago | parent | prev [-] | | As soon as you talk to a notary to prove that you're really opening a company you can get the provisional business license, or whatever they call it, to open a bank account. After you open that bank account you need to talk to the notary again to start registering the real company. Then you need to transfer the bank account from the place holder company to the real company. I may be misremembering the exact steps because I tried drilling all those memories out of my head as soon as I left Germany. |
| |
| ▲ | RandomLensman 8 hours ago | parent | prev [-] | | What type of company structure was that? | | |
| ▲ | jcmartinezdev 8 hours ago | parent [-] | | gmbh or UG, takes about that time to set up, you can start billing before, but still... this is a lot of time of manual paperwork. | | |
|
| |
| ▲ | jcmartinezdev 8 hours ago | parent | prev | next [-] | | That's great to know! In Germany it involves a lot of physical paperwork, going to a notary to certify the creation, taxes are a nightmare, every change you need to make again you need a notary. It's so frustrating! | |
| ▲ | pimterry 2 hours ago | parent | prev | next [-] | | > Similar experience in Spain, fill out 2-3 forms and it's done. This isn't true in Spain - all company creation requires a notary, among other awkward steps (although as of relatively recently in some cases you can now do this over videoconference, without physically visiting at least). It's not as bad as what I hear of in Germany, but it's non-trivial and slow, and the banking setup process is similarly annoying and slower than it should be. You can register as autonomo (an individual freelancer) easily with just a couple of forms, but that is not the same thing as creating a separate legal business entity (SL). | |
| ▲ | kleiba 8 hours ago | parent | prev | next [-] | | > How much more process could the German government really add here? Hahaha, good one, little padavan... | | | |
| ▲ | westpfelia 8 hours ago | parent | prev | next [-] | | I'm pretty sure Sweden is the most business friendly country. its why so many people move their business from Norway to Sweden. | |
| ▲ | 47282847 8 hours ago | parent | prev [-] | | Company formation in Germany requires identity and statute checks by a notary. You can nowadays do that remotely via video appointment but it’s still a bit of a hassle and delay. It’s not as bad as people claim, or rather: if people already have difficulties with that step I wonder how much fun they will have with “bureaucracy” later on. Frankly, I understand how one can be annoyed at certain requirements but how do people imagine it without those? I can totally accept temporary annoyances since ultimately all of it serves to protect me from harm as a customer. I really don’t want to deal with companies whose founders already find the quite straightforward registration procedure too difficult. The claim by others in this thread that you have to wait for the registration entry is false, your company is created the moment you pass notarization. While it makes proof of existence easier to be in the database, you can act and get bank accounts etc with those documents already. And I doubt the stability of your business idea if you cannot even wait a bit. | | |
| ▲ | cm2012 4 hours ago | parent [-] | | Friction is a death by 1000 cuts. Its a week here, an in person appointment there, another 2 weeks to send in a different ID - all of that adds up to an environment where people are reluctant to do anything new. |
|
|
|
| ▲ | simon_a99 8 hours ago | parent | prev | next [-] |
| Unfortunately it's likely that Germany will reject this change. Incorporation in Germany is highly bureaucratic and it requires physical notarisation. Its not a mistake, Germany has an incredibly powerful notary lobby that has already announced its opposition to this. https://www.bnotk.de/en/tasks-and-activities/magazines/bnotk... |
| |
| ▲ | causalscience 8 hours ago | parent [-] | | Lobbies whose only purpose is to sustain themselves even at the cost of maintaining friction should be made illegal. |
|
|
| ▲ | traceroute66 8 hours ago | parent | prev | next [-] |
| > creating and operating a small company in Germany is a nightmare To be fair, I think the problem operating in Germany is its federated nature. And so you have similar issues to companies operating in other federated jurisdictions e.g. US. If you look at the UK (through pre-Brexit eyes, of course) or Ireland, establishing and operating companies is significantly easier. |
|
| ▲ | lnsru 8 hours ago | parent | prev | next [-] |
| Can you elaborate more? I am self employed electrician in Bavaria using simple Gewerbe. It is straightforward at the beginning. Literally hundreds of webpages describe the procedure. It is obvious, that growing the company into GmbH with own VAT number increases the complexity. But I haven’t seen it other way in Europe. |
| |
| ▲ | jcmartinezdev 8 hours ago | parent | next [-] | | I had my experience with bootstrapping a self founded UG (Unternehmergesellschaft), and the process was long (about 8 weeks), involving me getting support from a company (firma.de) to help me prepare all the documentation which involved a lot of physical paperwork, then there's the visit to the notary which is required. After you do that, you need to register with the Finanzamt, and then you start finding out about all this other registries you need to pay and register to, or that you're automatically registered, but you receive separate invoices. Any changes you need to make, adding more capital, change address, requires again, paperwork, tons of hours and again the notary. Taxes are also quite difficult to figure out, I'm not German born, and my German is good for conversation, but to read and understand the tax has been a problem and I had to rely on very expensive tax consultants. (I know, this is my problem, not a german problem) It's not that is hard, it's very time consuming, manual, and involves a lot of paperwork. Other countries do this much easier. Also, shutting down a company... I'm still trying to figure that out :( | | |
| ▲ | lnsru 8 hours ago | parent | next [-] | | The question is always the same: do you really need UG/GmbH at the beginning? It’s typical rookie mistake. I did it too, sold the company for 1€ to some shady people at the end. Gewerbe with 40000€ in the company’s account does not have the problems anymore. And the expensive tax consultants are just another cost of doing business in Germany. Ok, the quality of Finanzamt clerks varies heavily depending on location. Current town has nice ones. I agree, the process is not easy or nice in Germany, but it’s enough to start businesses despite all the complications and overregulation. But getting VAT number and bank account in other comments mentioned Estonia was huge pita for friends. | | |
| ▲ | mfld 8 hours ago | parent | next [-] | | Agreed. In case you do not have big investors, just register as an individual entrepreneur, get a bank account and get going! It can be turned into a LLC/GmbH later if business goes well. Also taxes will be much easier. Just get one of the countless apps where you add invoices, and they generate tax reports for you. With an LLC or when employing other people, getting a tax consultant is advised. IMO, they are not expensive - how many hours of your time are you willing to spend on this topic instead of paying e.g. 200 EUR/mo? | | |
| ▲ | jcmartinezdev 7 hours ago | parent [-] | | Can you recommend a tax consultant that charges 200 EUR/month including preparing the yearly statements? I’m nearly at 3.5k/year and I have barely 10 invoices a month that I need to process between incoming and outgoing lol | | |
| ▲ | mfld 7 hours ago | parent [-] | | It's a good price because the yearly statements for an LLC/GmbH are costly. We pay about 200/mo for accounting - with some more invoices :) -, 100/mo for payrolls but also the yearly statement alone is more than 2k. You can save that by not having an LLC - I personally think the risk in many software businesses is quite low. And some risks must be accepted as an entrepreneur... |
|
| |
| ▲ | jcmartinezdev 8 hours ago | parent | prev [-] | | Maybe I should have taken another road considering the size of my operations, unfortunately I was wrongly advised when starting up, I spent 1k with a Steuerberatung for advice on what was the proper structure for me, and still… I think they just adviced me the option that was gonna cost me the most to operate. Lesson learned I guess! | | |
| ▲ | lnsru 7 hours ago | parent [-] | | I visited many lectures about business at the university, participated at Munich business plan competitions and all the time holding structure GmbH owning other GmbH was the best solution. The reality is that this is best solution for medium enterprises, for the bootstrapped start it does not matter. If I can’t take off as crappy Gewerbe the expensive holding will not help me either. Learning was not free. My feeling about tax consultants in Germany is that most of them are scammers helping lazy people to enter mandatory things in corresponding Elster fields. The ones with knowledge are super rare. Better ask AI and then verify the information, that’s cheaper and makes more sense. | | |
| ▲ | jcmartinezdev 6 hours ago | parent [-] | | Some tax consultants are very shady, and some are really arrogant. I'm currently looking for one as we had some disagreements on pricing with my previous one, and many won't even take me due to my volume, or maybe because I ask to speak English, idk... But sometimes I feel they are doing me a favor by taking my company, rather than me feeling like I'm hiring them as a service. |
|
|
| |
| ▲ | traceroute66 8 hours ago | parent | prev [-] | | > I had my experience with bootstrapping a self founded UG (Unternehmergesellschaft), and the process was long (about 8 weeks) It would have been significantly quicker if you used a well-connected law firm. I know a number of friends of friends in Germany who have all visited the lawyer, the notary and the bank all in the course of one morning. The whole experience was orchestrated by the lawyer because they knew the notary and the bank manager. In some cases the lawyer even drove them around between locations. ;) The Steuerberater then took care of the Finanzamt. Of course this entails extra professional fees. But the point is that there are many examples out there showing it can be done in less than 8 weeks. | | |
| ▲ | jcmartinezdev 8 hours ago | parent [-] | | But that’s the thing, even though it took weeks I spent a non insignificant amount of euros to set it up, I think it was nearly 2k at the end; and to make it quick would probably be another K or so? It’s crazy expensive, because of all the bureaucracy. The UG is supposed to be quick and easy to set up, requiring minimum capital… but the process proves expensive. |
|
| |
| ▲ | lbreakjai 8 hours ago | parent | prev [-] | | In the UK, it took me half an hour and 30£ to open a Ltd, which I think is the equivalent of a GmbH. It might have changed, but a few years ago you could go from 0 to a fully functional limited company, with accounting, business account, registered address with mail forwarding, etc. in a matter of days, from the comfort of your sofa. | | |
| ▲ | everfrustrated 7 hours ago | parent [-] | | I think GmbH's have a minimum capital requirement so not entirely the same as UK Ltd which can be opened with £1 of assets. Possibly closer to the US Inc? | | |
| ▲ | jcmartinezdev 5 hours ago | parent [-] | | In Germany you also have the UG which is like a small GmbH, with 1 eur minimum capital requirement, that is if you like like the 1k (and up to 2k) it cost to set up. |
|
|
|
|
| ▲ | direwolf20 8 hours ago | parent | prev [-] |
| [dead] |