Incorporating e.g Delaware in US is below $1k. In Germany starting a GmbH in Germany requires a $25k Euro capital
http://de.wikipedia.org/wiki/Stammkapital
There is still a lot more regulation in Europe when it comes to operating a business. It is also one of the reasons why I see so many European start-ups here in San Francisco trying to establish early on.
> In Germany starting a GmbH in Germany requires a $25k Euro capital
Since 2008 you can start a derivative called Unternehmergesellschaft which waives the minimum capital. You need to keep 25% of yearly earnings, but it can be rebranded later as GmbH if you raise 25,000 euro capital in said savings. It says right there in the article you've linked:
> Um die deutsche GmbH im internationalen Wettbewerb zu stärken und Neugründungen von Unternehmen zu erleichtern,ist seit dem 1. November 2008 die Gründung von Unternehmergesellschaften (UG) möglich, deren Mindeststammkapital nur mehr 1 € betragen muss. Die UG muss – solange das Stammkapital unter 25.000 € liegt – 25 % des Jahresüberschusses (Gewinn) in eine Rücklage einstellen.
And while it might technically cost less than a thousand dollars to incorporate in Delaware, in practice I'd need much more than that - especially if we consider costs of obtaining visa and housing, traveling and living expenses. It's difficult to get money for all of that, especially if you start from nothing. On the other hand I can travel to another country within the EU with favorable regulations (low taxes, low cost of starting a business) without the need for a visa.
