Founding a company in Germany: €9600, 152 days and I still can't send an invoice
4 hours ago
- #German Bureaucracy
- #Startup Challenges
- #Entrepreneurship
- Founded a company in Germany over five months, spending over €9,600 including €2,000 locked share capital.
- Despite clients and work ready, unable to send invoices due to delays in receiving a VAT ID, which is required for billing international clients.
- Faced bureaucratic hurdles involving multiple entities: law firm, notary, courts, tax firm, and software vendors, all billing promptly.
- Company name 'Plenty' rejected for being too generic; resolved by removing a space to form 'PlentyLabs' after weeks of correspondence.
- Opted for a UG & Co. KG structure (two companies) for limited liability and tax efficiency, as a sole proprietorship posed personal risk.
- Criticized Germany's incorporation process as slow and costly compared to countries like Estonia or the UK, which offer faster online registrations.
- Highlighted that the system aims to ensure trust but failed to prevent scandals like Wirecard, while deterring new founders with friction and fees.
- Noted inability to leave Germany due to exit taxes from first company, Freshflow, trapping entrepreneurs in a high-tax environment pre-revenue.