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Sole trader vs. Ltd.

  Sole Trader (s.p.) PRIVATE LIMITED company (d.o.o.)
Personal responsability Yes (liable with personal assets) No (only liable with their capital contribution, or the capital of the company)
Funding capital Not needed 7.500 EUR (in cash, assets, or any combination both)
Registration costs Free of charge

Simplified procedure – free of charge.

Complex procedure – with a public notary (as per the public notary's tariff of fees)

Tax on profits A profit is taxed at 16%, 27%, 41% or 50%
(corresponding to the personal income tax rates)
Corporate income tax – a flat rate, 17% in 2014
Books of account Normalized expenses (25 %), single-entry book-keeping system, double-entry book-keeping system) Double-entry book-keeping system
Business account-cash You are relatively free to dispose with the money in the account You are relatively limited with regard to the disposal of the money in your account.
Salary For a sole trader, the profit is a   salary, whitch means a sole trader cannot claim his/her salary as a cost Salary has to be paid. It's a cost.
Loans-qualifying for grants It is hard to get a loan from a bank or apply for grants. It is easier to get a loan from a bank or apply for grants.