Europe and tech startups (are incompatible)
e25acf8aedb707cc90cde94cea81cce23911fcb4793672aeb07167e9bf3e4cf4I 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!