Setting up a company in Austria may facilitate you in exploring diverse business-related opportunities as the country is related to all major European markets and has a highly developed economy. The entity formation procedure is quite easy and straightforward. You can launch it to get one of these formations in the highly reputable European jurisdiction.
Major Forms of Legal Entities
If you think about establishing your commercial presence in this country, it is possible to accomplish in the next variations:
- Limited Liability Company (GmbH) – a vehicle where the shareholders’ obligations are generally restricted exclusively to the sums paid for their shares. The minimal threshold for the company’s statutory capital is EUR 35,000, EUR 17,500 from which has to be contributed in cash at the moment of its incorporation. This variation of legal entity is one the most suitable for starting commercial activities in Austria.
- Public Company (AG) – the shares of this vehicle are subject to the free transfer – any notarial deed is not required here. The shareholders’ liability is also restricted to the value of the shares they own. Still, this vehicle may be more preferable for large businesses and if you intend to enter stock markets. The minimal threshold for the company’s statutory capital is EUR 70,000, EUR 25,000 from which should be contributed at the moment of the company’s incorporation.
- General Partnership (OG) – partners operate under one name and collectively bear the entire liability for all partnership’s undertakings.
- Limited Commercial Partnership (KG) – here partners also appear in business under one name. However, some of them bear only limited responsibility for the partnership’s undertakings, exclusively within the sums of their contributions. But, certain partners bear unlimited liability for the rest debts and obligations of the partnership.
- Branches – foreign limited liability and public entities are allowed to register a branch in Austria. This may be a suitable option if you are not going to establish a substantial presence in this country at the moment.
Registration Requirements and Steps
If you intend to start a company in Austria, GmbH for instance, the entity incorporation procedure may preliminary look this way:
- Shortlisting activities you are going to conduct in Austria.
- Verification of the business name of a future company.
- Arranging the registered address for your future company.
- Collecting data about founders and beneficial owners.
- Preparation and notarization of the entity’s Memorandum and Articles of Association.
- Depositing the statutory capital for the future vehicle and getting a declaration confirming that (necessary for the further incorporation step).
- Submitting the set of registration documents, including registration forms, to a local court for entering a respective record in Austrian Commercial Register.
- Registration for tax and social insurance purposes.
Legal and Regulatory Framework
Local legislation is highly flexible, especially for start-ups. The Austrian legal environment may be generally estimated as very transparent. The incorporation procedure is easy and straightforward in the majority of cases. Still, certain activities may require obtaining licences and special permits.
Advantages of the Jurisdiction
If Austria appears to be a suitable jurisdiction for establishing your commercial presence, you may potentially value these benefits:
- Political and economical stability
- Openness to major European markets
- Skilled employees with a highly responsible attitude in general
- Moderate expenses for the company formation
- Favorable tax system
If you consider Austria as your target jurisdiction, here are major highlights of taxes you may have to pay here from your business:
- Corporate income tax (CIT) rate – 25 %
- VAT – 20 %
- Withholding tax rates (for non-residents) – (i) dividends – 0 or 27.5 %, (ii) interests – 0 %, (iii) royalties – 0 or 20 %
- Capital gains tax – (i) corporate is subject to standard CIT rate, (ii) individual – 27.5 %.
How Prifinance Specialists May Help You
If you think about the opening company in Austria or other country, Prifinance specialists may help you with determining the most suitable form for establishing your presence in Austria, calculate preliminary the amount of taxes you should pay here, open a bank account, and resolve any other matters that may potentially arise. Reach us shortly for more precise discussions on the matters.