Law-Blog discusses (in German) the pros and cons of Germans resident in Germany creating a limited company.
Law-Blog bespricht die Argument für und gegen die Gründung einer Auslands-Gesellschaft.
There was a decision of the European Court of Justice in September 2003, C 167/01, (English ) finding that companies properly founded in one member state should be recognized in full in every other state.
Before that , the German courts tended to find against those who founded companies abroad, on what seemed like moral reasons. The Austrian courts were much more up to date!