Company Foundation in Austria
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How to set up a company in Austria?
The process of starting a business in Austria is very simple compared to many other countries. However, there are standards and rules that need to be followed. In order to put everything in its place when setting up a company, it is important to know what to look out for and what steps to follow. Therefore, in this article we have summarized the most important information that you should consider if you want to start a business in Austria and realize your project.
Of course, every business is unique and requires an individual approach. Do not hesitate to ask for advice on the most economical and efficient way for your new company in Austria! We, Team23, are a tax and business consulting firm in Vienna, which can help you with the establishment of a company (firm). Our team consists of experienced and highly qualified individuals, specialized in the Austrian market, who will provide you with advice and services in your native language.
For those who would like to learn more about the topic or start the process of incorporating a company themselves, we have provided basic information on legal forms and the incorporation process below.
Of course, every business is unique and requires an individual approach. Do not hesitate to ask for advice on the most economical and efficient way for your new company in Austria! We, Team23, are a tax and business consulting firm in Vienna, which can help you with the establishment of a company (firm). Our team consists of experienced and highly qualified individuals, specialized in the Austrian market, who will provide you with advice and services in your native language.
For those who would like to learn more about the topic or start the process of incorporating a company themselves, we have provided basic information on legal forms and the incorporation process below.
01
Sole proprietorship (Einzelunternehmen)
This is the simplest legal form of business in Austria. However, only Austrian citizens or persons with a residence permit in Austria are entitled to use this type of company. There are no minimum capital requirements. All you need is a permit to carry on a trade, which can be free (freies Gewerbe) or restricted to certain professions.
You can then register your business in the commercial register (Handelsregister) and enter your company name in the official register of companies (Firmenbuch).
You can then register your business in the commercial register (Handelsregister) and enter your company name in the official register of companies (Firmenbuch).
02
Public Limited Company (AG)
This is a legal form approved for entrepreneurs who intend to go public on the Vienna Stock Exchange. A minimum capital of €70,000 is required for incorporation, of which at least 25% must be paid in at the beginning of the incorporation process. One shareholder and one director must be appointed, regardless of whether they are foreigners or residents.
Similar to the Ltd (GmbH), the AG is subject to VAT on annual turnover in excess of €30,000 and is required to appoint a statutory auditor.
Similar to the Ltd (GmbH), the AG is subject to VAT on annual turnover in excess of €30,000 and is required to appoint a statutory auditor.
03
Branch of the parent company
For companies wishing to expand into the Austrian market, opening a branch in Austria is a good solution. 100% foreign ownership is also permitted for companies outside the European Economic Area (EEA), but a permanent representative in Austria is mandatory. Branches are allowed to open and operate a corporate bank account. The main operations of a branch are usually carried out by the head office in the home country.
04
Representative Office (Representanz)
It represents the parent company in Austria. Unlike branches, representative offices are independent and are usually registered as a limited liability company (GmbH). This legal form requires a permanent representative when representing a company based outside the European Union. Otherwise, representative offices enjoy most of the same rights as branches.
05
Limited Liability Company (GmbH)
This is the preferred legal form for foreign entrepreneurs who are just starting their business in Austria. For this reason, you will find instructions for setting up this legal form in the following chapter. At least one director and one shareholder must be appointed, who may be Austrian or foreign. An Austrian address is required for registration in the commercial register.
A minimum capital of €10,000 is required for initial incorporation, half of which must be paid in cash prior to the commencement of the incorporation process. Companies with an annual turnover of more than €30,000 are subject to VAT registration.
A minimum capital of €10,000 is required for initial incorporation, half of which must be paid in cash prior to the commencement of the incorporation process. Companies with an annual turnover of more than €30,000 are subject to VAT registration.
Step by step process for the formation of a limited liability company (GMBH) in Austria
07
Authorization for the performance of activities
The request for authorization to carry out activities can be made electronically or by traditional means in municipal services (in Vienna it is Magistrate 63), and the following must be attached:
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- Passports of persons holding management positions (managing directors, majority shareholders, minority shareholders with special co-determination rights or special management powers, etc.)
- Extract from the register of companies (Firmenbuch)
- Certificate of no criminal record from the country of origin for the technical director and all members of the company with a relevant influence on management, if they do not reside in Austria or have resided in Austria for less than five years.
- Declaration that there are no grounds for a ban on the exercise of activities by all persons with relevant influence on management (managing directors, members of the company with a majority shareholding, members of the company with a minority shareholding but with special co-determination rights or special management powers, etc.).
In addition, the director must submit the followingIn addition, the director must submit the following
- Passport
- Social insurance certificate (GKK) of employment for at least 20 hours per week. This certificate is not required if the managing director is also the commercial director.
- Proof of qualifications (certificates, diplomas, etc.) or demonstrable individual qualifications. This is not required if the application is for registration of an activity that does not require proof of qualifications (so-called “Freies Gewerbe").
- Declaration of the managing director on his role and activities in the company. This declaration is made in accordance with the existing form.
Directors and majority owners of the company may not be exempted from the right to carry out a registered activity (§ 13 Gewerbeordnung).
With this application you become a member of the Austrian Federal Economic Chamber (WKO) and are obliged to pay membership fees. For more detailed information on the amount of membership fees, please contact the Chamber of Commerce of the federal state in which you are registering your company.
With this application you become a member of the Austrian Federal Economic Chamber (WKO) and are obliged to pay membership fees. For more detailed information on the amount of membership fees, please contact the Chamber of Commerce of the federal state in which you are registering your company.
The most common mistakes when opening a company in Austria
01
Tax and social charges in Austria.
It is very important to be informed about all taxes in a timely manner and incorporate them into the financial plan in order to protect yourself from possible surprises.
02
Acquaintance with legal regulations.
Like most other countries, Austria has a lot of legal regulations that regulate the market. The measures in case of non-compliance with the regulations are relatively strict in Austria. For this reason, advice on legal restrictions and proper bookkeeping are a prerequisite for safe and successful business in Austria.
03
License to perform activities.
Some activities require specific qualifications in order to obtain a license to carry out activities and some do not (so-called "freies Gewerbe"). Relying on a free business license that does not cover all segments of your business may result in criminal proceedings. Select the appropriate (and multiple) business licenses that cover the range of your services.
04
Concessions and conclusion of contracts for business facilities / premises.
Incomplete information regarding the prerequisites for obtaining concessions for carrying out the desired business activity as well as errors when concluding a contract for the lease or purchase of premises can cost you time, money and nerves. Get informed in a timely manner! Prevention is better than cure.
05
Choosing a company legal form.
Whether to choose a GmbH (LLC), a sole proprietorship (sole proprietorship) or a limited partnership depends primarily on your initial capital and goals. In the case of opening a company with high business goals with higher turnover, “lower-ranking” legal forms will make you less valuable in the eyes of partners and clients. On the other hand, "higher-ranking" legal forms in the case of companies with limited financial and logistical possibilities can be too much of a burden for the company, slow down its development or even lead to the early shutdown of the company.
It is clear that one article cannot summarize everything we could and would like to convey to you regarding the establishment and successful operation of a company in Austria. For this reason, we offer you the opportunity for a consultation, during which you will gain a complete insight into this topic.
We advise you and provide a complete service necessary for establishing and running a company in Austria.
We advise.
For the fastest entry into the market, we also create a professional business plan. We provide support in establishing a company (with all necessary administrative steps) and managing all financial and tax-accounting obligations.
We advise.
For the fastest entry into the market, we also create a professional business plan. We provide support in establishing a company (with all necessary administrative steps) and managing all financial and tax-accounting obligations.
We organize
office and office services in the city of Vienna and the surrounding area.
We can help you
Find the right partners or make the right business agreements with your partners.
We inform you
About all benefits and subsidies as well as favorable project financing possibilities.
Team23 covers a wide range of services - from start-up support, through the first business steps, to more complex development projects and scaling your business.
We take care of your business and provide opportunities to develop business synergies within our business network.
Arrange a consultation and convince yourself of our expertise and the added value we can bring to your business in Austria.
We guarantee you 100% discretion and support you from the first step of your company foundation and the development of your business in Austria.
Our experts are available in German, Bosnian/Croatian/Serbian, English and upon request also in Russian and Turkish.
Benefit from the advantages Austria has to offer. Contact Team23!
Other information and recommendations to help you do business in Austria
You also need financial resources to start a company in Austria. In case you don't have enough money yourself and need to raise the necessary funds (or part of the funds) from somewhere, it is best to inform yourself in advance about various financing options.
Equity
If you do not have any equity and banks do not approve loans, equity is an option to finance your project. There are also programs that allow start-up companies to participate in certain shareholder conferences to meet their capital needs.
Government Incentives
Austrian government institutions and some companies offer special support programs for start-up companies, with numerous benefits that allow you to start your business faster and more efficiently. In addition, there are government grants and programs that financially support companies in Austria or reduce their statutory obligations to the government for a period of time.
Here are some of the institutions and programs:
- Financing from the Austrian Chamber of Commerce (IHK), which represents the interests of Austrian business and offers a number of financing programs for newly established companies. These include financial support for start-ups, advice and training. For more information, visit the IHK website.
- Funding from the Federal Ministry of Science, Research and Economy (BMWFW), which promotes research and development in Austria and thus also supports start-ups with innovative and development-oriented business projects. More information can be found on the BMWFW website.
- Funding from the Austrian Research Promotion Agency (FFG). The FFG is the Austrian Research Promotion Agency and supports research and innovation in Austria. Funding programs include the Horizon 2020 innovation funding program and the Go International program. For more information, visit the FFG website.
- Funding from the Austrian Economic Agency (Wirtschaftsagentur), which regularly offers a range of funding opportunities for various projects with the aim of promoting the business of Austrian companies and thus strengthening the Austrian economy.
Logistical and informational support and business network
In this regard, you will benefit most from the services of the Austrian Federal Economic Chamber (WKO), which can provide you with useful information in almost all sectors of the economy. The Chamber also has offices around the world that can provide you with first-hand information about the characteristics of the foreign market you are interested in and the opportunities available to you in your industry.
Once you have made contact, the Chamber and its offices will send you regular updates on market developments and invitations to trade fairs, conferences, etc. in your industry. Special benefits and discounts are usually available for attending trade shows registered through the Chamber. In addition, much of the cost of attending trade shows and conferences is covered by agencies such as the Economic Development Administration.
For networking purposes, traditional or online events (from conferences to workshops to pitch events) are also regularly organized, which are funded by the Austrian government and offer participants the opportunity to learn more about business opportunities in Austria, network with each other, present their own ideas and projects, get in touch with mentors, etc. Many entrepreneurs use the Internet to network and learn about new technologies and business models. There are a number of platforms and communities that help founders expand their network and provide information about their business. In general, the broader your network of business contacts, the greater your chances of success.
Once you have made contact, the Chamber and its offices will send you regular updates on market developments and invitations to trade fairs, conferences, etc. in your industry. Special benefits and discounts are usually available for attending trade shows registered through the Chamber. In addition, much of the cost of attending trade shows and conferences is covered by agencies such as the Economic Development Administration.
For networking purposes, traditional or online events (from conferences to workshops to pitch events) are also regularly organized, which are funded by the Austrian government and offer participants the opportunity to learn more about business opportunities in Austria, network with each other, present their own ideas and projects, get in touch with mentors, etc. Many entrepreneurs use the Internet to network and learn about new technologies and business models. There are a number of platforms and communities that help founders expand their network and provide information about their business. In general, the broader your network of business contacts, the greater your chances of success.
We advise you and provide the complete service required for establishing and running a company in Austria.
Team23 covers a wide range of services - from support in starting a business, through the first business steps, to more complex development projects and scaling your business.In addition, we have an extensive network of business contacts both among our own clientele (experience with over 1,000 clients) and among business partners.
We take care of your business and provide opportunities to develop business synergies within our business network.
Arrange a consultation and convince yourself of our competence and the added value we can create for your business in Austria.
We take care of your business and provide opportunities to develop business synergies within our business network.
Arrange a consultation and convince yourself of our competence and the added value we can create for your business in Austria.
