In the real world nothing guarantees that a company is solvent.
> went for british Ltds despite them having a bad reputation
Cheap shot there. They don't have a bad reputation, assuming that claiming that companies from one of the main economies in the world have "bad reputation" makes any sense at all.
The reason people go for them is that most other European countries make it onerous to setup a company, while the UK does not see any reason to make it difficult.
Requiring €25k shuts the door to many people who would like to setup their own small business, for example.