Comment by mytailorisrich
1 year ago
There are also the capital requirements. I think that for a GmbH (the standard limited liability company) the requirement is EUR25,000. Here in the UK, where you can also setup a limited company online in 30 minutes (though not the bank account), and there is no minimum capital requirement though there must obviously be capital so usually the minimum is taken as £1. Cost of incorporating and running a company as also very low, with little paperwork.
IMHO, the British approach is more pragmatic: Why would you not make it as simple as possible to incorporate and run a company?
Uhm, risk? If you dont have 25 to start a company, then don't do a GmbH and you're good.
Why does the government care? People start companies for many reasons and capital amount is a matter for them. There are many small businesses that do not require 25k to start.
Ultimately the state should make it as cheap and straightforward as possible, get out of the way basically, and let people get on with it. It's difficult to find a reason to do differently