Is it really that expensive to set up a company in Germany ?
It depends. Incorporating is comparatively expensive and time-consuming. Running as a sole proprietor is simple and cheap on the other hand.
Ask HN: Germans, how to work legally remote?
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Re: Ask HN: Germans, how to work legally remote?
#12Is it really that expensive to set up a company in Germany ?
Bulgaria if you want Eurozone incorporation. The benefits are too huge to ignore. (more a comment for anyone browsing and thinking about it)
Re: Ask HN: Germans, how to work legally remote?
#13Just use a Gewerbe and make sure you issue a few invoices to other clients. I have done that for years and never had any problems.
Re: Ask HN: Germans, how to work legally remote?
#14Either make your own UG or use individual W8 form for US company (reverse charge in DE, no VAT). Still, you need to have at last 20% of your income from another source if you stay a freelancer. Ideally if the US company had two legal entities and you could issue invoices to both. Most people start their own GmbH with all the increased taxes it brings.
Re: Ask HN: Germans, how to work legally remote?
#15Is it really that expensive to set up a company in Germany ?
The problem is that if you have a single client, the government may claim that you are trying to avoid tax and other obligations --- that you have a fake company.
Re: Ask HN: Germans, how to work legally remote?
#16Be aware that if you incorporate, you still will have problems with Scheinselbständigkeit - being a small UG/GmbH does not prevent you from that!
Reg. your tax consultancy; we also do international business with freelancers and other contractors. Write me a mail, we might be able to sort that out.
Re: Ask HN: Germans, how to work legally remote?
#17Is it really that expensive to set up a company in Germany ?
Bulgaria if you want Eurozone incorporation. The benefits are too huge to ignore. (more a comment for anyone browsing and thinking about it)
Yes, corporate tax rate in Bulgaria is attractive. However, how does this help if op wants to stay in Germany. Immediately cross-border tax issues are introduced you have to deal with. Only the tax accountants and lawyer are winning in this case with their billable hour. Also do not discount the language barrier too much.
Re: Ask HN: Germans, how to work legally remote?
#18Off topic, but why are Ask HN posts displayed in gray like a negatively voted comment? This entry has 35 positive points currently so shouldn't be made so low contrast...
Re: Ask HN: Germans, how to work legally remote?
#19Feel free to reach out to me. We have seen this case couple of hundred times already and I’m sure I can provide some direction. Certainly a Trade Office registration or own limited company is the way to go. Can talk you through the costs as well. My email is ck at firma dot de.