5 ms·

There is this 1 € GmBH concept, where there is almost no paper work.

rsto 7y ago
The 1€ GmBH isn't available in all (most?) European countries. I know that Germany introduced them a couple of years ago. It's great if you live in the country where you register the GmbH, but it can get lots of tax paper work quickly when your country of residence differs from the country where your company is registered.
AllegedAlec 7y ago
Which doesn't exist in the Netherlands. As a BV (the Dutch equivalent of a GmBH), you're obligated to have a CEO-equivalent person, which you're by law forced to pay a market-conform salary, or, even if you're not doing this, you are still forced to pay taxes as though you did.
- vekker 7y ago
  You have other options, like VOF or CV, if you have funding constraints. Here in Belgium there's the "starters-BVBA" which is the equivalent of the 1 euro GmbH. Yes, there's paperwork and some investment involved, but IMHO it's a myth that starting a company in Europe is a huge hassle.
  - AllegedAlec 7y ago
    > You have other options, like VOF or CV, if you have funding constraints. Which isn't a real option; VOFs and CVs do not have the financial and legal separation of you and the company that a BV has.
    - vekker 7y ago
      Do you really need that though? If revenue is not large enough to start a BV? You can still get insurance and separate bank accounts. I did it before with a Dutch partner, we just started a VOF together. Our plan was to turn it into a BV once revenue reached a certain point (it never did, so we didn't... it was a side hustle).
- himlion 7y ago
  True in general, but as long as you don't have a lot of equity in your BV yet, you don't have to do it. The tax man won't force you to go broke paying yourself a Market-rate salary.
luckylion 7y ago
The paperwork is reduced initially (though a GmbH isn't significantly more complicated - it's just a lot more expensive), but it's still treated the same with regards to taxes etc, so the same rules do apply. It's meant to lower the costs of having limited liability for simple circumstances, not so much cut the red tape.

rsto 7y ago

The 1€ GmBH isn't available in all (most?) European countries. I know that Germany introduced them a couple of years ago. It's great if you live in the country where you register the GmbH, but it can get lots of tax paper work quickly when your country of residence differs from the country where your company is registered.

AllegedAlec 7y ago

Which doesn't exist in the Netherlands. As a BV (the Dutch equivalent of a GmBH), you're obligated to have a CEO-equivalent person, which you're by law forced to pay a market-conform salary, or, even if you're not doing this, you are still forced to pay taxes as though you did.

vekker 7y ago
You have other options, like VOF or CV, if you have funding constraints. Here in Belgium there's the "starters-BVBA" which is the equivalent of the 1 euro GmbH. Yes, there's paperwork and some investment involved, but IMHO it's a myth that starting a company in Europe is a huge hassle.
- AllegedAlec 7y ago
  > You have other options, like VOF or CV, if you have funding constraints. Which isn't a real option; VOFs and CVs do not have the financial and legal separation of you and the company that a BV has.
  - vekker 7y ago
    Do you really need that though? If revenue is not large enough to start a BV? You can still get insurance and separate bank accounts. I did it before with a Dutch partner, we just started a VOF together. Our plan was to turn it into a BV once revenue reached a certain point (it never did, so we didn't... it was a side hustle).
himlion 7y ago
True in general, but as long as you don't have a lot of equity in your BV yet, you don't have to do it. The tax man won't force you to go broke paying yourself a Market-rate salary.

luckylion 7y ago

The paperwork is reduced initially (though a GmbH isn't significantly more complicated - it's just a lot more expensive), but it's still treated the same with regards to taxes etc, so the same rules do apply. It's meant to lower the costs of having limited liability for simple circumstances, not so much cut the red tape.