Comment by kpz
2 years ago
Is it a possible for a solo founder in Germany to register an Estonian Business? I had the impression (althought i'm not sure about it and would happily be corrected) you would need to apply for e-residency and need a local contact person for bookkeeping + banking. With the yearly costs being higher than just going for a Gewerbe / UG + local (german) tax advisor.
Would having a "foreign" company have any disadvantages comparing to a german company?
I investigated that, and if you din't live in Estonia you need to go there to finalize some paper work. You are still liable for taxes in Germany, as you are a tax resident. That alone makes you tax advisor more expensive, findibg one that knows his way aroubd German corporations is easy enough, that's bread and butter. International taxation is different, and thus nore expensive. In the end, Estonia is just not worth it IMHO.
Also, most start-ups don't need to be registered as a Gewerbe anyway. And let's be honest, if a "start-up" fails to cope with business and bureaucracy requirements your Döner shop successfully tackles daily you might reconsider running a business in the first place.
>your Döner shop successfully tackles daily
Let's be real, that's not an Apples to apples comparison. You Döner shop doesn't sell internationally to various business customers like SW companies do, plus they often involve a lot of tax fraud by not giving receipts to all paying customers and not declaring all profits.
Any Döner shop usually has constant revenue from day one, while SW startups can go a long time without any revenue.
But they registered a Gewerbe, cope with cash registers, file for VAT monthly, are maybe even properly incorporated.
International sales are easy, in most acses they are without VAT and easy enough to file. International slaes, so, have nothing to do with German incorporation but are either EU or whatever driven.
Ah yes, then i would conclude that this is not a simple solution.
Please correct me, but would a start-up don't need to be a Gewerbe / UG / Gbr / ... to have an entry in the Handelsregister? You can't just make up a "company" a filed it as "Einkommen aus Selbstständiger Arbeit" when doing your taxes, can you?
Gou need a Handelsregister entry, that's what makes it a corporation. Depending on what you do you might or might not need a Gewerbe on top. Some businesses need one, e.g. car repair shops, others don't. eCommerce doesn't, software usually neither. Best to check with your notary or tax advisor, they know that stuff. If you need one, you take an appointment at your local administration and sign a piece of paper (from what I understand, I never needed one).
Edit: Regarding your last point, yes, you can. Upside, it's simple. Downside, you are liable and carrying losses forward is tricky. Among other things.