10 reas­ons why less bur­eau­cracy makes found­ing a com­pany easier

Ger­many is known for its innov­at­ive strength, but also for its bur­eau­cracy. Many start-ups are con­fron­ted with a flood of forms, applic­a­tions and author­isa­tions that cost valu­able time and energy. Yet a leaner bur­eau­cracy could sig­ni­fic­antly improve the start-up cli­mate and pave the way for innov­at­ive ideas. Here are 10 reas­ons why less bur­eau­cracy makes start­ing a busi­ness easier and the bene­fits it brings.

1. Faster com­pany form­a­tion

Ger­many lags behind when it comes to the speed at which start-ups are set up. In other coun­tries, you can set up a com­pany online in just a few hours, whereas in Ger­many it often takes weeks. Less bur­eau­cracy and a more effi­cient pro­cess could speed up the pro­cess of found­ing a com­pany, which is par­tic­u­larly import­ant for young start-ups. If you have an idea, you want to real­ise it quickly and not wait for applic­a­tions to be pro­cessed.

2. More time for the actual busi­ness idea

Bur­eau­cracy takes up valu­able time. Many founders spend a large part of their work­ing time on admin­is­trat­ive tasks instead of con­cen­trat­ing on their ideas and the growth of their com­pany. Fewer bur­eau­cratic hurdles mean more free­dom to focus on the essen­tials — namely driv­ing your own busi­ness idea for­ward and mak­ing it suc­cess­ful.

3. Lower costs

In addi­tion to the time required, bur­eau­cracy also causes con­sid­er­able costs. These range from fees for author­isa­tions and regis­tra­tions to the indir­ect costs incurred through lost work­ing hours. For founders, who often work with lim­ited fin­an­cial resources, this can be a ser­i­ous obstacle. De-bur­eau­crat­isa­tion would help many start-ups to reduce these costs and work more effi­ciently right from the start.

4. Increas­ing com­pet­it­ive­ness

Reduced bur­eau­cracy would enable founders to enter the mar­ket more quickly and assert them­selves against their com­pet­it­ors. Time is a decis­ive factor in rap­idly devel­op­ing indus­tries. If com­pan­ies act faster and spend less time on admin­is­trat­ive pro­cesses, they can bet­ter util­ise their innov­at­ive strength and gain a com­pet­it­ive advant­age.

5. More incent­ives for investors

Investors appre­ci­ate com­pan­ies that are flex­ible and agile. Lengthy bur­eau­cracy deters many poten­tial investors as it makes rapid suc­cess and devel­op­ment more dif­fi­cult. Fewer bur­eau­cratic hurdles could lead to start-ups grow­ing faster and investors becom­ing more involved in Ger­many. This in turn would revital­ise the start-up scene and open up new oppor­tun­it­ies.

6. Attract­ive­ness for inter­na­tional founders

Ger­many could also become more attract­ive for inter­na­tional start-ups by redu­cing bur­eau­cracy. While com­pan­ies in other coun­tries can be foun­ded in just a few days, the Ger­man pro­cess is often daunt­ing. Sim­pli­fy­ing the pro­ced­ures would not only strengthen the domestic start-up scene, but also attract tal­en­ted people from abroad who could con­trib­ute to the Ger­man eco­nomy with their ideas and expert­ise.

7. Sim­pli­fied busi­ness pro­cesses in every­day life

It is not only the start-up pro­cesses that are hampered by bur­eau­cracy. Many entre­pren­eurs also have to deal with admin­is­trat­ive hurdles time and again dur­ing ongo­ing oper­a­tions. Whether it’s author­isa­tions, reports or tax mat­ters — sim­pli­fy­ing pro­cesses would sig­ni­fic­antly reduce the bur­den on com­pan­ies not only in the start-up phase, but also in day-to-day busi­ness.

8. Pro­mot­ing sus­tain­ab­il­ity

Innov­at­ive ideas in the area of sus­tain­ab­il­ity can be slowed down by excess­ive bur­eau­cracy. If com­pan­ies have to spend more time and resources on ful­filling bur­eau­cratic require­ments, there is less room for sus­tain­able innov­a­tion. Redu­cing the bur­den on com­pan­ies would allow them to focus more on devel­op­ing future-ori­ented, envir­on­ment­ally friendly products and busi­ness mod­els.

9. Reduc­tion of errors

As bur­eau­cracy becomes more com­plex, the like­li­hood of errors also increases. Unclear or over­com­plic­ated rules often lead to delays and unne­ces­sary cor­rec­tion loops. Sim­pli­fy­ing bur­eau­cratic require­ments would reduce the sus­cept­ib­il­ity to errors and increase effi­ciency on the part of both com­pan­ies and the admin­is­tra­tion.

10. Strength­en­ing the cor­por­ate cul­ture

Less bur­eau­cracy cre­ates space for a cor­por­ate cul­ture that favours innov­a­tion, flex­ib­il­ity and growth. Founders and entre­pren­eurs would be motiv­ated to take more risks and break new ground without being held back by excess­ive admin­is­trat­ive tasks. This would not only strengthen entre­pren­eur­ship in Ger­many, but also drive the entire eco­nomy for­ward.

Con­clu­sion: How Start­bereit solves bur­eau­cratic prob­lems for founders

Start­bereit has already recog­nised the chal­lenge of bur­eau­cracy and developed a solu­tion: Our plat­form makes the start-up pro­cess digital, fast and uncom­plic­ated. While con­ven­tional start-up pro­ced­ures are often time-con­sum­ing and com­plic­ated, we offer an effi­cient altern­at­ive that min­im­ises the bur­eau­cratic bur­den — bank account at the Ber­liner Volks­bank included. Less bur­eau­cracy, more time for your idea — that’s our prom­ise to any­one who wants to take the plunge into self-employ­ment.

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