Authorities slow down students / Allgemeine Zeitung

The Allgemeine Zeitung reports today about our difficulties with bureaucracy.

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In order for us to open our online store, we need a formal company formation for this. In addition, without an official company, we cannot open a company account, write invoices or get a VAT refund from the tax office for investments.

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Pascal Schmidtt, reporter from the Allgemeine Zeitung, visited us on Friday and we explained our situation to him. The authorities are holding us up, but as described in his article, a solution is now emerging.

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Yesterday we went to the notary who drew up a partnership agreement for us that meets all the legal requirements. We signed this contract yesterday at the notary and are now sending it to the family court for approval. In parallel, we are now opening our company account, which we need for the incorporation. As soon as the articles of association are approved and the account is opened, we can apply for the entry in the commercial register and are then in 3 to 4 weeks an official entrepreneur company, short UG.

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Why UG?

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Most companies are founded as a GmbH (limited liability company), but for this you first need €25,000 in share capital. The UG, on the other hand, is a kind of mini-GmbH, where you can start from 1€ share capital. The advantage is that our liability is limited to the company assets and we are not personally liable. The only disadvantage we have now as a UG is that we always have to set aside 25% of the annual surplus as a reserve, until we have thus saved up the 25,000€ together to then convert the UG into a GmbH. This means for us that we can not invest our profits immediately completely again in new machines etc.. We are happy when we are finally a Qi-Tech UG and can take off.

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