I disagree. 25k euro is simultaneously a large and not a large amount of money. It's big enough to lock out many potential small business founders. But also many ordinary inexperienced people can have that amount of money up front, yet still be deterred by the complexity of a 6 week long incorporation process as described in this article. Especially in the early days of a company when your stress level is already through the roof dealing with the actual problems of your new business.
I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".
> It's big enough to lock out many potential small business founders.
They can open an Einzelunternehmen (sole proprietorship) instead. You shouldn't (and cannot) go all the way to the complexities of a GmbH (LLC) if your company is that tiny.
> But also many ordinary inexperienced people can have that amount of money up front, yet still be deterred by the complexity of a 6 week long incorporation process as described in this article.
Back to my point then. If they're not ready to put up with okay-ish bureaucratic friction in the founding phase, they're not ready to open a company. Because if you think opening the company is hard, wait until payroll or tax season is upon you.
> I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".
You're completely mischaracterizing what I said. Don't do that.
>They can open an Einzelunternehmen (sole proprietorship) instead.
Sole proprietorship doesn't have liability protection. That's not a small thing.
>You shouldn't (and cannot) go all the way to the complexities of a GmbH (LLC) if your company is that tiny.
"[Thing] is too complex, don't bother with it" is not an argument against making [thing] less complex. It's actually just a restatement of the problem!
Other countries make it easy to set up a limited company. UK, US, Singapore, they're all just a token fee and a handful of forms. I see no reason for Germany to make it so difficult as described in the article.
A lot of successful companies were started by broke college grads out of their dorms; they would never have gotten off the ground if they had to scrounge together the equivalent 25k euros before even getting started. Hell, I don't have a spare 25k lying around and I've been working full time for 4 years.
> If they're not ready to put up with okay-ish bureaucratic friction in the founding phase, they're not ready to open a company.
With this mentality, it's actually a miracle a German startup scene exists at all.
The _last thing_ a founder wants is to wade through useless bureaucracy when there's a product to push and Vacs to talk to.
But Germany never really was a founder's country, and much more ruled by big conglomerates it seems or small family business who did non-innovative things (the bakery at the corner - necessary&nice, but not innovative), than startup culture.
I am generally suspicious of rhetoric like "you're a little well off, so we can heap arbitrary amounts of bullshit on you and you shouldn't complain".