Founding a company in Germany: €9600, 152 days and I still can't send an invoice

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Founding a company in Germany cost €9,600 over 152 days, and the founder still cannot send an invoice.

Founder Paolo details the timeline and costs of setting up PlentyLabs UG & Co. KG, a two-company structure chosen for limited liability and tax efficiency. From late January to late June, fees included notary (€1,575), legal (€4,462), court (€560), tax registration (€630), accounting software (€426), and €2,000 in locked share capital. Despite paying seven other entities on time, the founder still awaits a VAT ID needed for international clients, preventing any invoicing. The post critiques Germany's bureaucratic hurdles, citing Estonia and UK as faster alternatives, and notes an absurd naming rule: 'Plenty' was rejected as too generic, but 'PlentyLabs' (without a space) was approved.

What commenters are saying

Commenters split into two camps: those criticizing the founder for choosing the unnecessarily complex UG & Co. KG structure, and those defending it for tax optimization or noting that such complexity should come with patience. Several clarified that a plain UG or GmbH offers the same limited liability more simply and quickly. One commenter pointed out that before settling on this structure, the founder could have started with a sole proprietorship (eK) or GbR to invoice immediately, switching later. Others noted that Germany's process pales compared to the Netherlands, Sweden, or the UK, where incorporation takes hours or days. Some argued the delay is partly self-inflicted through over-optimization.