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Company registration in Austria
CompyCo has experience and necessary skills in coordinating businesses establish operations in Austria. Due to our wide network of licensed professionals, we have all solutions in one place for company registration, banking resolutions, and tax registration tailored to your requirements. With our talented direction, you can effortlessly guide the intricacies of starting a company in Austria. Whether you require a registered office address or virtual office keys, we are here to assist you every step of the way. Start your journey towards successful business expansion in Austria with CompyCo today!
Forms Of Companies In Austria
- GmbH – “Gesellschaft mit beschränkter Haftung” – Private Limited Liability Company
- Ag – “Aktiengesellschaft” – Public Limited Company
- KG – “Kommanditgesellschaft” – Limited Partnership
- OG – “offene Gesellschaft” – General Partnership
- Gen – “Genossenschaft” – Cooperative
- “eingetragenes Einzelunternehmen” – Sole Proprietorship
What is the difference between GmbH and Ag companies in Austria?
In Austria, the most common types of companies started by foreign investors are GmbH and Ag.
In the Austrian GmbH, the amount of subscribed shares is the limit of each member’s liability. The minimum share investment is 35000 EUR, and at least €17,500 of the share capital must be paid in cash or assets at the time of registration with the Austrian commercial register.
However, there is an option to register a privileged GmbH (UG) at a foundation. When choosing that option for company registration in Austria, the share capital can be only 1 EUR under condition:
- Each year, the company must set aside 5% of its profit until the share capital reaches €10,000.
- Once the capital reaches €10,000, the company can convert to a regular GmbH if desired.
The Austrian Ag must also have at least 1 shareholder, and the minimum share deposit is 70000 EUR. Management and supervisory boards are mandatory.
Fundamentals Of A Limited Liability Company
Corporate Tax in Austria | VAT in Austria |
|---|---|
25% or 0% | 20% |
Fundamentals of limited liability companies in Austria
Limited liability | GmbH |
| Minimum Share capital | 35000 EUR, min to pay 17500 EUR |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
Local Director required | No |
Other requirements | No |
| Bank signatory must travel | Yes |
Timescale for company formation in Austria | 30 days |
Timescale for bank account opening for | 7 day |
| Timescale for obtaining VAT number | 7 days |
Statutory audit requirements | Yes |
Shelf companies available | Yes |
How can I set up my company in Austria?
Setting up a new firm outside of your area of comfort can seem difficult, but that’s why CompyCo is with you every step of the way.
Here’s how setting up a company in Austria works:
If you plan to start the company as a private person, we will need your Passport, a proof of your home address, a proof of your social security number and a proof of your tax number for the company registration.
The first step is to request activity approval from the Commercial Registry in Austria as well as to come up with a company name. This name must be unique.
Second, you need to create a corporate bank account for company registration in Austria in order to pay the share capital. The corporate bank account requires you to visit Austria in person.
The bank will issue the share capital certificate.
Third, the share capital certificate and a Memorandum of Association (MOA) along with other incorporation documents, need to be submitted to the Register.
Although, a physical visit is needed for the bank account opening, the process can be speed up by purchasing the shelf company. CompyCo’s team can assist you with the procedures for this option as well!
More about Company registration in Austria
After setting up a company in Austria, Tax office registration is done by filing several forms that must be printed, filled out and sent to the tax office along with the articles of association, the opening balance sheet an excerpt of company register and identification card of a managing director. Also specimen signature sheet of the representatives must be submitted. The commercial register is automatically notifying tax office about registration of new company. Then the tax office is requesting from new company to register. This is there for mandatory step which needs to be done within 1 month.
After the company has been registered with the tax office, The VAT number is provided with the identification number.
Foreign investors that are looking to enter European markets within reputable jurisdiction should head straight for Austria. Not only are the industries with the most growth also the ones that are essentials in the area, but the established infrastructure gives new companies a great foundation to build off of.
CompyCo assists international clients in setting up and running their businesses in Austria by creating tailored solutions that reflect both your company’s needs and the local business culture. With years of experience in Austrian company setup, CompyCo works through a strong network of licensed experts who ensure a smooth and compliant process.
Through our trusted partners in HR, incorporation, banking, and taxation, we coordinate every step of the process — giving you access to reliable local expertise without the stress of navigating it alone.
Doing business in Austria offers a stable and competitive environment, with a highly skilled workforce and a strategic location at the heart of Europe. Investing in Austria provides access to industries such as manufacturing, tourism, and technology, with opportunities for research and development and access to a highly educated workforce.
By combining a case-by-case approach with an in-depth knowledge of Austrian business sectors, CompyCo stays committed to coordinating premium business solutions at minimal costs.
Bank Account Opening
Austrian banks are some of the most secure ones out there. While Austrian banks take documentation and due process very seriously, you can rest assured that all the transactions you make will be completely safeguarded. It’s essential that you open up a corporate bank account in a physical branch in Austria, so that you can make the payment for the share capital.
You should know that it is mandatory for the company registration in Austria to have local bank account, but it’s not just about the requirements you need to meet though. Maintaining a bank account in a country where your business is set up leads to ease of monetary logistics and efficiency.
Every bank has its own set of requirements, which may range from the type of business activity you’ll engage in, to your country of residence. However, there are certain requirements that are usually common among all financial institutions in Austria; these are:
- The Commercial Register approval for your business
- Unlimited by time power of attorney
- Your Proof of Appointment of Directors
In some circumstances, the requirements and process for setting up a company in Austria may be different, but you’ll have to consult our experts for Austria to find out more about that before you go ahead.
Need more information about opening a bank account? Head over here.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration during company registration in Austria:
- In Austria, the tax year corresponds to the calendar year.
- Financial statements including a profit and loss account, an annex and a balance sheet must be submitted to the company register every year.
- There’s a flat corporate income tax rate of 25% on all net income in Austria, but there is a reduced rate of 0% for companies with profits of up to €1 million in a year.
- Dividends distributed to shareholders are typically subject to 27.5% withholding tax.
- The standard VAT rate in Austria is 20%. Certain types of goods are exempt from VAT.
- Companies are issued a unique 9-digit VAT number beginning with the country code AT and ending with a letter.
How can you employ staff in Austria?
In case you are employing, after setting up a company in Austria with the commercial register, your next step is to apply for employer’s account number (Dienstgeberkontonummer), what can be done electronically by using the data transmission interface of the statutory health insurance office (ELDA). The employer shall apply for this number before new employee is registered with the health insurance office. Every new employee must be registered with the health insurance. This way, the employee is automatically registered for accident insurance and retirement insurance as regulated by the law. No other registration is needed.
Starting a new business outside of your comfort zone isn’t always an easy process. It’s even tougher when you don’t speak the language because recruitment and hiring becomes a huge hurdle. Employment legislation and workplace cultures also vary from country to country. Working with an experienced professional in the field of global HR is your best bet!
Compyco assists you will all of your hiring and HR needs. Our HR executives are well-versed in the employment regulations and company registration in Austria as well as the labor market. This knowledge helps them find you competitive workers that are offered suitable salaries by local standards.
We can arrange all employee contracts, screening processes, payroll and induction work for you!
We can also avoid local company registration if you only need to employ an Austrian citizen to work from home. It’s in our best interest to save your costs if that is possible.
Have any questions? Take a look at our HR services page for more information about our International HR services!
Next: Find out how can CompyCo help you set up a company in Slovenia.