Yep, this is one of the very real problems with "Europe", which, by and large (and with a few exceptions like the UK and Ireland) makes it very expensive to start a company. It seems stupid to me... I mean, go ahead and slap high taxes on profits if that's what you choose as a society/country, but at least wait until there are profits to tax before you ask for a lot of money.
Sure, I know the capital can theoretically be invested in your company, but 16K is potentially a lot for a web business...
Incidentally, I'm curious about the foreign company option. Any other Europeans want to comment on how that works out in your country? I'm vaguely curious if I could link one up in Europe with DedaSys LLC without spending a fortune in bureaucracy...
I am glad you put "Europe" in quotes, because it's a diverse place etc.etc.
That said, European unification has made possible a few new options for startup companies. There is now a 'European Limited Company' form, and it is also possible to register a company in any country from another country. For that last option the UK Ltd. route is very popular. Here in Belgium there are certain restrictions to starting up a limited company (minimum starting capital, diploma or experience needed, no bankruptcy in last 10 years etc.) which don't apply to UK limited companies. Apparently it's possible to start a UK limited company and conduct business in a different country, paying taxes in that country etc., as long as you have a return filed with Companies House and pay the yearly fee.
EDIT: Just noticed the grandparent already mentioned this second option, oops.
How about an Irish Corp? They have a low tax rate. 12.5% and tax treaties with a bunch of countries. This should allow you to get dividends or capital gains at a more favorable rate. Tons of high tech companies have set up their European operations hqs there, using it as their nexus for all Euro profits.
Re:My $3.3M Mistake
by michael_dorfman on Wednesday May 27, 2009 @12:11PM
(#628651)
Yeah, but remember that the 100.000 NOK only needs to be in the bank long enough for the auditor to verify its presence for Brønnøysund. It's not uncommon to set up a chain of companies, owning each other, using the same 100.000 for all of them, just transferring it along.
The other viable option is a Norwegian foreign registered company (NUF). This means that I can create a company in a different country (e.g. England), and then register a company branch here in Norway. The problem is that these companies have gotten a bad rep in Norway, so you might find yourself in a bad position with the banks, as well as your customers.