Setting up a company in Austria can make it easier for you to explore various business-related opportunities as the country is connected to all major European markets and has a highly developed economy. The procedure for creating a legal entity is quite simple and straightforward. You can run it to obtain one of these forms in a highly reputable European jurisdiction.
Basic forms of legal entities
If you are thinking of establishing your commercial presence in this country, it is possible to achieve it in the following options:
Limited Liability Company (GmbH) - a company where the liabilities of the shareholders are usually limited exclusively to the amounts paid for their shares. The minimum threshold for the authorized capital of the company is 35,000 Euro, and 17,500 Euro must be paid in at the time of incorporation of the company. This type of legal entity is one of the most suitable for starting a commercial activity in Austria.
Public Company (AG) – the shares of this company are freely transferable – no notarial contract is required here. Shareholders' liability is also limited to the value of the shares they own. However, this company may be more preferred for large companies and if you intend to enter the stock markets. The minimum threshold for the company's authorized capital is 70,000 Euros, of which 25,000 Euros must be paid in at the time of incorporation.
General Partnership (OG) – the partners work under one name and collectively bear all responsibility for all of the partnership's enterprises.
Commercial company with limited liability (KG) – here the partners also appear in the business under one name. Some of them, however, bear only limited liability for the partnership's obligations, exclusively within the limits of the amounts of their contributions as shares. Some partners have unlimited liability for the remaining debts and obligations of the partnership.
Branches – foreign limited liability persons and public entities are allowed to register a branch in Austria. This may be a suitable option if you do not intend to establish a significant presence in this country at this time.
Registration Requirements and Steps
If you intend to set up a company in Austria, a Limited Liability Company (GmbH) for example, the procedure for establishing a legal entity may look like this in advance:
Choosing the activities you will carry out in Austria.
Confirmation of the company name of the future company.
Arranging the address of registration of your future company.
Collection of data on founders and beneficial owners.
Preparation and notarization (can be with an electronic signature) of the founding agreement and statute of the legal entity.
Depositing the authorized capital for the future company and obtaining a declaration confirming this (necessary for the further incorporation step).
Submission of a set of registration documents, including registration forms, to a local court for registration of the relevant entry in the Austrian Commercial Register.
Registration for tax and social security purposes.
Legal and Regulatory Framework
Local legislation is very flexible, especially for start-ups. The Austrian legal environment can generally be assessed as very transparent. The incorporation procedure is easy and straightforward in most cases. However, some activities may require obtaining licenses and special permits.
Advantages of Jurisdiction
If Austria seems like a suitable jurisdiction to establish your commercial presence, you may potentially appreciate these benefits:
Political and economic stability
Openness to the main European markets
Qualified employees with an extremely responsible attitude in general
Moderate costs of setting up a company
Favourable tax system
Taxation
If you are considering Austria as your target jurisdiction, here are the main highlights of the taxes you need to pay in Austria for your business:
Corporate Income Tax (CIT) rate – 25%
VAT – 20%
Withholding Tax Rates (for non-residents) – (i) Dividends – 0 or 27.5%, (ii) Interest – 0%, (iii) Royalties – 0 or 20%
Tax on capital gains – (i) corporate subject to standard CIT rate, (ii) individual – 27.5%.
CREATE A COMPANY
Check and reserve a company name
Company registration, including state fees
Legal address for 1 year
Nominal service for 1 year
Account Discovery
Set of statutory documents of the company in electronic form
Contribution to the authorized capital of the company through us
VAT registration
Obtaining a Foreign Investment Permit
Opening an account at: Erste Group Bank AG, Raiffeisen Bank International, Oberbank AG
Opening a personal bank account
Apostilled and translated corporate documents
Obtaining a residence permit
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Annual renewal (payable from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit a request for company registration using the request form.
2. We check if the registration company name is free and eligible for registration.
3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.
4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.
5. You receive all necessary company documents for verification.
6. You receive details of your newly opened bank account.
7. In the specified period (for Austria it is 35 days), you receive all the services included in the package.
8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.
All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!
