You do, you don't need a local legal entity but having one makes a lot of things easier. E.g. employment and profit allocation. The latter has serious tax implications.
Sure, but now you spend a nontrivial amount of time and attention on logistics. Costs can be a couple k Euro per branch per year, depending on what deals you can strike with accountants. You also need to make sure you always respond to mail from authorities in both countries, in time.
And if you don't you face an investigation by authorities. And they will reclaim due social security and taxes. And you face a potential court case. All of which is a lot more expensive. Not to mention that managers and directors already went to jail for stuff like that.
And all that to safe a couple of bucks because smart start-up founders can't wrap their head around the simplest legal principles and requirements.
You do, you don't need a local legal entity but having one makes a lot of things easier. E.g. employment and profit allocation. The latter has serious tax implications.
Sure, but now you spend a nontrivial amount of time and attention on logistics. Costs can be a couple k Euro per branch per year, depending on what deals you can strike with accountants. You also need to make sure you always respond to mail from authorities in both countries, in time.
And if you don't you face an investigation by authorities. And they will reclaim due social security and taxes. And you face a potential court case. All of which is a lot more expensive. Not to mention that managers and directors already went to jail for stuff like that.
And all that to safe a couple of bucks because smart start-up founders can't wrap their head around the simplest legal principles and requirements.