Incorporating your startup the right way - India, Germany, USA | Founder Finance 101

The reason I chose to write about this topic is to help fellow founders benefit from my learnings which I picked up the hard way. Most first-time founders make mistakes and I did them too and I wish someone guided me the right way when I started. 

I had an unique(slightly painful) experience of setting up multiple entities myself across different countries and keeping them "investor ready". On paper it sounded exciting but in reality, it shaped my choices more than I expected, because as I founder I value ease and time spent on admin topics.

I would like to start from the very first step of choosing the right country to set up your entity and then elaborate about the process in each country.

Figuring out where you're really building

Before thinking about forms, lawyers, or incorporation packages, its important to figure out:
  • Where are my first customers?
  • Where do I plan to raise money?
  • Where is my team going to be based (at least in the beginning)?
In my experience, it’s almost always easier to register where your main market and investors are. That’s where you’ll need to open bank accounts, sign contracts, and build credibility. Most global VCs prefer dollar accounts, so sometimes an US entity becomes inevitable. Each country of choice comes with its pros ai nd cons, its really all about identifying what is best for you.

The assumption here is that we are building a venture which is investor-ready at every stage. That means the way you incorporate should not only work for today but also stand the test of scale, fundraising, and due diligence later.

Each country comes with its own trade-offs. Having personally incorporated in India, Germany, and the US, I can tell you that the paperwork is only the surface. The real differences show up in compliance load, costs, taxes, how investors react and even how easy it is to just open a bank account.

That’s why I’ve split this into a series. This post is the consolidation piece giving you the framework and big picture. Then, in separate deep dives, I’ll go step by step into each country’s process, costs, and lessons learned.

Here’s what’s coming:
  • India - Cheap to start, but heavy compliance and filings. I’ll explain how I registered a Private Limited, what it cost me and why I found compliance painful.
  • Germany - A UG sounds attractive on paper (€1 share capital) but the bureaucracy is brutal. Investors prefer a GmbH which has a higher share capital (€25000 share capital). I’ll share my experience running a UG/GmbH, the difference between them and what investors think of each.
  • USA (Delaware C-Corp) - The global VC default. Fast to set up, clean structure, and the easiest for fundraising. But tricky if you’re not physically in the US. I’ll break down the steps, from incorporation to 83(b) to bank accounts.

A common thread, what is true everywhere

No matter where you set up, some rules don’t change.
  • Pick one base entity - Don’t scatter companies across countries. It feels smart in the moment, but later it kills you with compliance and tax complexity.
  • Hold your shares cleanly - Either you buy founder shares directly, or (if you’re thinking long-term wealth structuring) you create a holding entity that owns your shares. Just be careful: a corporate holdco can break things like QSBS in the US. If you’re not sure, default to holding personally and file your 83(b) on time.
  • All IP lives in the company - Don’t keep your code in your personal name. Assign it properly.
  • Keep books and filings clean - Even with zero revenue, you’ll still have deadlines. Miss them and you’re bleeding cash and credibility.

If you are a first time founder. Choose the setup that works for you, focus on avoiding liability, avoid tax issues and think ahead of the current stage of your business.