Comment by hef19898
2 years ago
But you do see why, geneally speaking, incorporating a business is necessary and required, do you? Because otherwise this discussion is kind of pointless.
2 years ago
But you do see why, geneally speaking, incorporating a business is necessary and required, do you? Because otherwise this discussion is kind of pointless.
Of course, but not why it needs 25k in reserves/assets.
In many other countries it's very cheap and simple. In the UK where we did it, it took half an hour, we did it online in an hour and we needed about £20 all-in to get incorporated and set up a business bank account.
As it was pointed out multiple times, 25k are not needed in capital.
Or assets, or equipment or whatever. You need quite a bit of money to put into it that you won't necessarily get back if it fails.
The point is, whether it's 25k or 12.5k, and whether it's reserves or founding capital, share capital, equipments, assets, savings or whatever else, or whether it's 1 EUR as in the case of a UG but you have to save 25% of profits until you hit 25k - it's all still a significant barrier to forming an LLC that other countries have proven is unnecessary. That, along with paperwork, high costs, notary requirements, slow timescales and a time consuming dissolution process.
There are a bunch of other countries within the EU that make the process much quicker, simpler and cheaper, so it's hard to see what reason one would have to bother with the German system.
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