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TechRound
1d
15
Starting A Business In The UK vs Germany: Which Is Better?
- Entrepreneurs usually debate between starting a business in UK and Germany since places you start your business can have huge implications for its success.
- Setting up a business in Germany means jumping through many hoops which involves registering with the trade office and the tax office.
- One of the major barriers in Germany is that all documents need to be translated into German, which can add a chunk of cost to the process.
- Starting a business in the UK is easy and costs just £50 on companies house and all documents can be in English – meaning no translations needed.
- German corporation tax is set at 15%, making it lower than the UK. VAT is charged at 20% while the UK corporate taxes are 25%, making them higher than those in Germany.
- Especially in hubs like Munich and Frankfurt, locals speak a lot of English, though German is the official language, while everyone in UK operates in English, especially for business.
- Germany is a big country, so it does depend on where you decide to start your business, but in general, costs are lower than the UK. As an example, a one bedroom apartment in Munich costs €1,309 per month on average, making it more affordable than other major cities in Western Europe.
- In Germany, the minimum wage is €12.41 per hour while £11.44 per hour for those over 21 in the UK.
- Germany is well set up for international trade, and access to the EU while the UK has very strong trade agreements with many countries around the world.
- Both countries - UK and Germany - are incredible options for entrepreneurs, especially after weighing up the pros and cons.
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