alt Hacker News> For example to make sure that a company can be held responsible when it breaks the law.
This is the reason Germany hates small companies. Germany wants you to be a sole trader with no liability shield.
Some people hack the system by registering a company in another EU state such as Lithuania.
That's not a hack, if you operate the entity from Germany, it must be registered in Germany. It's often touted as a tax loophole, but it's not. Tax authorities do not care about you unless you actually make money, then they will come after you.