5 ms·
Yes, indeed there is an EU law which mandates that all other EU incorporation forms must be respected in other EU countries and may have their primary place of
by wheels 17y ago
Yes, indeed there is an EU law which mandates that all other EU incorporation forms must be respected in other EU countries and may have their primary place of business there.
The UK Ltd is the most popular of those as it's very easy to set up and the most recognized incorporation form in Europe.
It does however add a significant amount of overhead in terms of accounting, tax and payroll. Our lawyer advised against doing such saying that the new UG (mini-GmbH, or literally "entrepreneur company") is a preferable form within Germany since it's very similar to the usual GmbH's structure and the authorities, accountants, etc. are familiar with such.
That said, there have been a number of successful German startups that were founded as UK Ltds, so it's obviously something that can be made to work. What will be telling is seeing how many of those continue to emerge in the coming years now that the UG exists.
For investors, a UK Ltd is the safest bet because it's a form that virtually all investors and startup lawyers in Europe are familiar with. Regional incorporation forms tend to limit interest to investors in those regions.
- pmjordan 17y agoThanks. There was talk of introducing some kind of equivalent to the German UG in Austria a while back, but that project appears to have died for now. (The government are presumably too busy with the current round of raising taxes) There were also some kind of plans for a "mini" version of the EU-wide SE a while back, I'm not sure what happened to that.
- roel_v 17y agoThe SPE is still under consideration by the European Parliament.