Austrian Company Formation

What is the most common type of company formation Austria?

For Austria incorporation, a business with limited liability (GmbH) is by far the most usual form of company. A GmbH is a legal entity. Shareholders are not personally responsible for the liabilities of the company, except for the obligation to pay up their capital contributions.

How much share capital is required to establish a GmbH?

Minimum share capital is €35,000, of which at least half, €17,500, has to be paid up in cash.

What other requirements are there for a GmbH?

• at least one shareholder
• at least one managing director, who does not have to be an Austrian citizen or resident in Austria
• audit and disclosure requirements may be necessary
• a local serviced office is advisable, but not a legal necessity, click here for details

What other types of Austrian company formation are there?

• stock corporation (AG), minimum share capital €70,000, at least two shareholders required
• general partnership (OHG), unlimited liability for all partners
• limited partnership (KG), unlimited liability for at least one partner
• registered civil law partnership (EEG), similar to OHG or KG but suitable for small companies and partnerships
• cooperative (Genossenschaft), legal entity with flexible membership, no fixed capital, not primarily for profit

Company Registration Austria foreign branch, GmbH and AG companies based abroad may establish a branch in Austria

What are the formalities regarding Austria incorporation?

The main formalities to open a company in Austria include:

• drafting of articles of association
• legalisation of articles of association by notary
• entry in the commercial register

How easy is it to recruit staff?

Austria has a well-developed recruitment sector both for professional and support staff but there are shortages of skilled staff in certain fields, particularly telecommunications. In some industries, such as telecommunications, engineering and building, it is preferable that the head of the company should be an Austrian national. Click here for assistance with recruitment.

What is the regulatory environment like?

Austria is a participant in the euro and there is free movement of both capital and earnings. It has dual taxation agreements with a number of other countries, in particular all members of the European Union, the USA, Canada and Russia. No industries are closed to foreign investment, although in strategic areas an Austrian solution is sometimes preferred. Corporate taxation is relatively low at 25%. Click here if you would like to contact one of our Austrian corporate tax specialists.

Are there financial incentives available for company registration Austria – and what about banking facilities?

Full banking services are available which offer a complete range of commercial banking facilities, including those related to acquisitions and the raising of capital. If you are considering company formation Austria, we can help you open a local bank account

Government incentives include the following:

• investment allowance - 9% of all purchases for depreciable business properties are tax deductible, as are 6% of all software purchases
• investment incentive- project costs ranging from 15% to 70% are covered
• pre-market development - incentive of 25% to 50%
• research allowance – from 12% to 18% of research budgets are deductible where this research will lead to an increase in export revenues
• industrial research – incentives range from 50% to 60% of incentive-eligible costs dependent on area and size of business
  

How can I get more information on company formation Austria?

Please contact us if you wish to open a company in Austria and we will be pleased to discuss your Austrian company formation matters in greater detail.

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