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Austria Company Registration

Complete guide on Austria company registration with complete process, documentation, and tax details. Register your company today with our industry experts.

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Austria Company Registration in 2023-24

A central European region that is circled by various landmasses across its borders. The central European location implies that one can efficiently and successfully manage a broad range of business ventures in this country.

austria company registration

With a population of about 9 million and an area space of 90,000 sq km, this country offers a wide range of opportunities and mediums for one to establish and grow their business in that particular geographical area.

Foreign organizations and directors can set up their entities in this region with an ulterior perspective of attaining remuneration and incorporation benefits with an opportunity to migrate with their businesses as well.

Why register a company in Austria?

There are several reasons to register a company in Austria: 

  • Austria is an attractive country for foreign investors due to its stable political system and skilled workforce.
  • Investors can take advantage of a transparent, flexible process for company registration and favorable legislation for opening new businesses.
  • Austria is a member country of several international organizations, including the World Bank and the World Trade Organization.
  • Investors can benefit from the assurance of the highest international standards.
  • Austria’s standard corporate tax rate is 25%. Investors must also draw up the Articles of Association, make cash contributions to share capital, and register the company in the Company Register.

Procedure for Registering a business in Austria

procedure for registering a company in austria

The procedure to register your company in Austria is been explained in 8 steps:

1. Deciding the legal structure

The first phase of the Austria company registration is to choose the organizational structure of the firm.

2. Have your business name and activity approved

The second step involves getting the business name and operation authorized by the Austrian Commercial Registry Office, or HRA. It is the government organization responsible for regulating the formation of corporations, their registration, as well as other services related to company incorporation.
You may be required to submit particular personal credentials to receive approval.

3. Create and notarize your firm’s statutory documents

The third step is to prepare and notarize the statutory documents of your business.

4. Collect & submit the necessary documents to the Trade Register

The necessary registration paperwork should be gathered, prepared, and submitted to the Trade Register for approval.

5. Open a corporate bank account

The last step involves opening a corporate bank account to deposit the required share capital.

6. Registering for tax purposes

It is important to register for tax-related activities.

7. Signing up workers for social security

It is important to sign up workers for social security.

8. Acquiring the corporate seal

Once the corporate has been incorporated, you must acquire the corporate seal.

Eligibility Criteria for Austria Company Registration

The following eligibility criteria is to be met for company registration in Austria:

Name of the Company

Austrian company names must begin with GmbH. We can perform a company name check with registries to confirm if the name you are interested in is still available. You can reserve the name free of charge for 10 days. Some words, like “Austria”, are restricted and require permission from The Commercial Register.

Registered Office

The companies must have a registered address. This physical address must be in Austria. As part of our incorporation services, we can provide a registered office.

Directors

Austrian companies can only be formed by one director. There are no restrictions on nationality or residence.

Shareholders

Austrian company formations only require one shareholder. This can be the same person as the company director. Shareholders of corporations are permitted.

Share capital

The minimum share capital of a GmbH should be EUR 35,000. A minimum of 50% (EUR 17.500) must be paid up before incorporation. Additionally, a bank certificate verifying this status is required at incorporation.

Timescale

In Austria, it takes two weeks to form a GmbH company.

Requirements for Company Registration in Austria

All the requirements are been explained below:

  • One shareholder minimum
  • One managing director is required. (No residency conditions);
  • A shareholders’ agreement/establishment declaration (must be notarized);
  • Managing director appointment;
  • Signatures on the specimens;
  • Minimum capital requirements for shares of 35,000 euros (at least 50% must be paid on the day of company establishment);
  • Company Extract and Financial Statements;
  • The bank account of the company (capital payments contribution);
  • Capital contribution payment evidence;
  • Tax identification numbers are obtained from an authority that handles tax.

Documents Required To Register a Company in Austria

For Austria company registration, you’ll need the following documents:

  1. Notarized passports or IDs for directors and shareholders.
  2. Certificate of Incorporation
  3. Articles and Memorandum of Association
  4. Documents that the company’s statutory authorities
  5. A lease agreement that includes an address local to the location of the company in Austria.
  6. Documentation required by directors and managers e.g., copies of IDs, passports Residence permits, etc.
  7. Information on the distribution of shares between shareholders.
  8. Austrian bank account details.

NOTE: All the above documents need to have been filed in the Trade Register to obtain the Certificate of Incorporation of the Company. They should translate into German and notarized to be considered official copies.

After approval of all registrations and the payment of the fees, your business can legally be able to conduct business.

Types of Business Structures in Austria Company Registration

There are various kinds of legally-formed entities that are available for those who wish to incorporate a firm in Austria:

J-stock-company (AG)

A joint-stock corporation, also known as a company, is restricted by shares. A stock market is a place where shares can be traded. The Austrian law stipulates a single supervisory board for each joint-stock company that has a minimum of three members. Joint-stock companies are legal entities that can be created with one or two shareholders and at least EUR 70,000 in principal investment.

Private Limited Liability Company (GmbH)

Private limited liability companies are among the most sought-after kinds that legal businesses can use. Its popularity is because it has more influence over the corporate legal system, as well as an option for a smaller percentage of equity. The minimum investment required for a business structure of this type can be EUR 35,000, half of which has to be deposited at the local bank before the Austrian company registration.

General Partnership (OG)

In Austria, the term “open” or general partnership is when two legal entities (at the very least) or individuals form a partnership and function as one entity. In general partnerships, each partner is responsible for the full sum, both individually and collectively. A trade license, as well as Registration certificates issued by the Austrian Commercial Register, are the sole two formal requirements for establishing the general partnership.

Limited partnership (KG)

The formation of a company is similar to general partnerships in the form of a limited partnership. One distinct feature of KG is the requirement that at least one partner has to be a general partner and take all responsibility for the management of the company, its obligations, as well as rights. The remaining members solely have responsibility for their investments because they are limited partners. There are formal rules for limited partnerships that are similar to a general partnerships.

Silent partnership (stages)

The structure is like a limited partnership, where only one partner is responsible for the entire responsibility of business. The major distinction is that a silent partnership does not assign any management or responsibility to the silent partners.

Sole proprietorship

It is the second-most popular kind of business structure that is legal in Austria in which the entire entity is a single person. This kind of self-employment provides the owner’s independence in investing as well as simple accounting and a low tax burden (though taxation may vary based on the variation in turnover).

Advantages of Austria company registration

advantages of austria company registration

The Austria company registration has many advantages due to the great economic climate and central area of Austria:

● A small initial investment (only 5000 EUR):

The process of Austrian company registration requires a small initial investment. It is possible to register a company in Austria with just 5000 EUR share capital. However, the share capital needs to be raised to 35000 EUR within 10 years.

● Simple registration:

The company registration is a remote process which can be completed in 10 days’ time by keeping complete transparency.

● EU VAT number as of today:

Rapid EU VAT registration number for the Austrian GmbH is issued immediately upon the filing of the Austrian VAT number.

● Corporate tax and low VAT:

Austria functions at 20% of VAT and imposes Corporate Income Tax at 25%.

● Affordable economic conditions:

A central European country with a sustainable standard of living.

● A cost-effective registration processes

The government of Austria incentivizes new businesses by providing them with additional discounts and levying them from incorporation taxes.

Austria company registration fees

The cost of incorporating a business in the first year is EUR 7400. This includes fees for the following:

  • Enrollment fees
  • Registration of your business and payment of taxes
  • Austrian legal document preparation

The corporation’s annual expenses in the upcoming year could total about 3500 euros. Additionally, you must pay EUR 47.30 to obtain a trade license in Austria. The typical fee for Austrian company registration is 14,920, which covers all administrative fees, company establishment, establishing a domestic business bank account, and other costs.

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Conclusion

Company registration in Austria is easy for EU citizens who have an Austrian resident card. All you have to do is register a company in Austria and then you’re ready to start. But it is difficult to set up a venture for people living outside of the EU. 

It is simple once you are familiar with the correct laws and regulations for Austrian business ventures.
If you still have queries about Austria company registration. Consult Odint Consultancy. Our experts at Odint Consultancy are here to help you.

FAQ’s

Austria has a variety of business ventures however the most well-known one is the private limited liability corporation. This type of venture needs an initial capital investment amount of EUR 35,000 and at least one shareholder.

Establishing your own business within Austria to foreigners is simple. In the beginning, they must apply for a visa resident permit and gather the necessary documents to allow their business to be registered within the country. It usually takes between three and 4 weeks for the whole procedure.

It is necessary to have notarized IDs or passports for your shareholders as well as the company’s official documents. Apart from those two papers, you’ll require a local bank account, residence permit, and work visa, as your name, and address for your business.

The tax system in Austria, everyone who lives in Austria is taxed. Austria offers huge benefits for researchers and scientists to lure professionals from these fields outside the country to Austria to work and live there.

Austria is a nation with good legal security, great infrastructure, and highly trained personnel. It is situated in the middle of Europe which means that you can efficiently and successfully manage a broad range of business ventures. It has a developed economy, a highly skilled workforce, and high-income rates.

An entrepreneur can establish a business by filing an application to the Austrian Commercial Registry Office along with the necessary documentation. Once the Austrian Commercial Registry Office verifies and approves the documents, the firm would be registered.

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