Austria - Company Incorporation

The legal existence of a corporation begins with its registration in the commercial register (Firmenbuch), this is normally completed with the assistance of a notary public.

Limited company or Gesellschaft mit beschränkter Haftung (Ges.m.b.H.). A limited company must be founded by at least one partner/director. The minimum initial capital is approx €35,000, half of which must be in cash. Company liability is limited to this initial capital sum. There is no requirement for either a partner or a director to be an Austrian national. The partners/directors are entitled to give the company managers binding instructions.

Joint Stock Company or Aktiengesellschaft (AG)

Minimum nominal capital approx €70,000. In practice this sum is higher. In contrast to the limited company, the AG company shares may be transferred without a notaries deed. A joint-stock company must have a supervisory board.

Limited Partnership or Kommanditgesellschaft (KG)

This type of partnership comprises at least one partner with unlimited liability, and one or more partners with limited liability (liable to the extent of his capital contribution only). The partner who is wholly liable also acts as company manager. Foreign participation in companies is unrestricted.

The formation of a partnership or corporation is subject to a fee/tax of 1% of the capital. Real estate transactions including transfer of real estate upon formation of a company are subject to a 3.5% tax. The registration fee in the land register is 1%.

Austria has signed double taxation treaties with many countries following the OECD Model Convention.

Costs associated with the registration of a company include a corporate tax, court expenses, incorporation fees, an announcement in the official Austrian newspaper Wiener Zeitung, and the fees of an attorney or notary public.

A number of business activities in Austria are regulated and require that an application be made for a business licence (Gewerbeschein). Evidence of proficiency is required for most businesses; usually a pass certificate for an examination or evidence of prior experience in the field is sufficient. In the case of a corporation it is necessary to name a person who meets the proficiency requirements for the type of business to be carried out. This person must either be a person authorised to represent the corporation or an employee working at least half-time for the corporation (gewerberechtlicher Geschäftsführer).

For business activities which do not require proof of proficiency, the business licence is granted automatically upon registration of the business. Information about businesses which require proof of proficiency is available from the Economic Chamber of the province where the business will be located.

Obtain the confirmation from the Economic Chamber that the start-up company is really a new enterprise

Notarise the statutes/articles of association or the declaration of establishment

Deposit the minimum requirement of cash capital in a locked account in the bank

Registration at the local court (Handelsgericht) and Publish an announcement of formation in the Wiener Zeitung

Register trade (Gewerbeanmeldung) with the trade authority (Bezirksverwaltunsbehoerde)

Tax Office registration (obtain a VAT number)

Register for health insurance

Register employees for social security

Register with the municipality