Europe and tech startups (are incompatible)

Europe and tech startups (are incompatible)

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I will argue, and I really hope HN proves me wrong, that in Europe there is no easy and sane way to incorporate a company for a simple web platform, (initially that is, a guy and his/her laptop).

Keeping in mind that the average founder just got out of school and is broke: ideally, one would want the following:

* average european tax burden

 * maximum ease and speed of setup (cheaply!)

 * maximum ease of teardown in case the idea turns out to be unfruitful (cheaply!)

 * easy online banking

 * location independence (come on, it’s a web product, why shouldn’t I move around while working on it?!)


Now, how to go for obtaining this?

Option 1

For one thing, europeans should forget about living in country A and opening up business in country B: all countries have laws against this (weirdly regarded as tax evasion), see the italian “esterovestizione” for example, or BEPS(with risible costs).

This excludes very nice options like the estonian e-residency program.


Option 2

So one should settle on the idea of physically moving his/her residency to the country that best provides the abovementioned benefits… let’s see:

* I am from Italy, and that is a no-go because of impossible bureaucracy, and unpredictability of the fiscal and judicial systems

 * The UK, once the great european startup hub, is presently being fled due to brexit.

 * Germany requires 25k€ of capital to start

 * The Netherlands requires that most of the customers of your BV are Dutch

 * Switzerland is fairly expensive, at 5kCHF average for incorporation costs

 * I don’t know enough about the other countries, but the trend doesn't look very promising... where should I look next, anyway?


Option 3

The last option would be to constitute a “Societas Europeae”. Well, the minimum initial capital is 120k€ and this is really for joint ventures more than anything, see the formation means on wikipedia.


Conclusion

So, dear reader, it seems evident that we need a simple way to form a pan-european type of company for digital businesses, much on the model of what the estonian e-residency has accomplished.

However, in the meantime, what should one do? Please, advise!

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