According to the judicature of the European Court of Justice deciding in favour of the freedom of establishment, entrepreneurs can chose their favourite company law and company form among the different legal systems of EU Member States. Their choice will be influenced by different criteria whereas economic and tax law aspects are dominant. An increasing number of German entrepreneurs prefer to found a U. K. Limited as a pseudo-foreign company instead of a German GmbH. Afterwards the foreign company is transferred to Germany, where it has to be acknowledged as such. In this situation, the particularity of such a 'German' Limited has to be examined and it has to be asked to what extent the application of host state law to pseudo-foreign companies make sense.