Company Formation in Austria

Step-by-step guide to starting a business in Austria: Process, costs, legal structures (GmbH, AG, OG), business registration, and entry in the commercial register. Professional consulting in Vienna.

Why Start a Business in Austria?

With its central location in Europe, political stability, highly skilled workforce, and tax incentives, Austria offers ideal conditions for successful business management. Below, we explain the most important reasons for starting a business in Austria and the advantages this country offers entrepreneurs.

A Stable Economy

Austria ranks among the leading European countries in terms of economic indicators, with a low unemployment rate and a high standard of living. Economic growth is steady, while inflation is under control, contributing to market stability. In addition, Austria has a transparent legal system and regulations that promote entrepreneurship and protect the rights of entrepreneurs.

Access to the EU Market

One of the greatest advantages of starting a business in Austria is its strategic location. As a member of the European Union, Austria provides entrepreneurs with unhindered access to one of the largest and most developed markets in the world. Thanks to its modern infrastructure and well-developed logistics networks, Austria is an ideal hub for doing business with Western, Central, and Southeastern Europe.

Favorable Taxes

Austria offers numerous tax incentives for entrepreneurs and investors, which means you can optimize operating costs and increase profitability.

The most important benefits include:

Reduced Corporate Income Tax – The current corporate income tax rate is 24%, with a planned further reduction to 23% in 2025.
Incentives for Research and Development – The government subsidizes innovative projects and technological development through grants and tax credits.
VAT Exemption for Small Businesses – Business owners with annual revenue of less than €35,000 may be exempt from VAT.
Support for Startups – Austria offers various financing and mentoring programs for new companies, including grants and low-interest loans.

A simpler and faster process for starting a business

One of the main advantages of doing business in Austria is the quick and efficient company formation process. The process of registering a company in Austria can take as little as a few days, and for a GmbH (limited liability company), the process typically takes between 5 and 15 business days.

The most important steps include:

Choosing a Legal Structure – Entrepreneurs can choose from various legal structures, including a GmbH, a sole proprietorship, and an AG.
Opening a Bank Account – Founders must deposit the minimum initial capital (for a GmbH, this is €35,000, but only half of that amount must be paid in at the time of registration).
Entry in the Commercial Register – Official registration of the company with the Commercial Court.
Registration with the tax office – obtaining a tax ID number and, if applicable, a VAT number.
Registration with the Chamber of Commerce – Required for most types of business.

Benefits of Doing Business

Austria is known for its stable business environment, which offers entrepreneurs and investors numerous opportunities. With its strategic location in the heart of Europe, excellent infrastructure, and access to the EU market, Austria is an ideal location for starting and growing a business. Doing business in Austria means benefiting from a high standard of living, political stability, and a strong economy that fosters innovation and growth.

Starting a Successful Business in Austria

Legal Certainty

Stable legal frameworks and a transparent business environment provide security for investors and entrepreneurs.

Skilled Workers

Highly qualified and multilingual professionals help ensure your company's success.

Favorable Tax System

Competitive tax rates and numerous incentives make Austria an attractive location for businesses.

Incentives and Subsidies

Various funding programs and financial support for startups and established companies.

In addition to financial support, Austria also offers mentoring programs, accelerators, and networking events that help entrepreneurs develop and scale their businesses.

Doing business in Austria offers many advantages—from a stable legal system and a highly skilled workforce to favorable tax conditions and access to the European market. With government grants and support for startups, Austria ranks among the best locations in Europe for starting and growing a business.

Start Your Business in Austria

We'll guide you every step of the way, from the initial idea to successful registration.

What legal structure can you choose in Austria?

Choosing a legal structure is one of the most important steps in starting a business in Austria. Each structure has its own specific characteristics regarding liability, required capital, and tax obligations, which can significantly impact your business and its future development.

By choosing the right legal structure, you can optimize your tax obligations, protect your personal assets, and facilitate business operations in accordance with Austrian law. Some structures are better suited for small businesses and freelancers, while others are tailored to larger companies and investors.

Our experts will help you choose the legal structure that best suits your business, taking into account your specific needs, long-term goals, and the industry in which you operate.

Most commonly used

GmbH

The most popular legal form in Austria, suitable for medium-sized and large companies. The minimum share capital is €10,000 for new companies (or €35,000 under normal circumstances). The GmbH provides limited liability for its owners, thereby protecting their personal assets.

Minimum Capital

€10,000 for new businesses (at least €5,000 in cash); €35,000 for existing businesses (at least €17,500 in cash)

Liability

Limited to the company's assets

Advantages

Limited liability protects personal assets
Excellent reputation and trustworthiness
Flexible Design Options
Suitable for growth and investors
Shares are transferable

Disadvantages

Required share capital (at least €10,000 for new companies)
More complex business formation requiring notarization
Increased administrative burden
Minimum tax: €1,750 per year
Requirement to Use Double-Entry Bookkeeping

Sole Proprietorship

The simplest and most commonly used legal structure for small business owners and freelancers. Registration is quick and easy, but the owner bears unlimited personal liability for the business's debts.

Minimum Capital

No minimum capital required

Liability

Unrestricted with total private assets

Advantages

Quick and Easy Company Formation
No minimum capital required
Minimal administrative burden
Complete freedom to make decisions
All profits belong to the owner

Disadvantages

Unlimited personal liability
Difficult Access to Capital
One person bears all the risks
A less professional image
Business Closes Following the Owner's Death

Branch Office

Foreign companies can open a branch in Austria without having to establish a separate legal entity. This is ideal for companies that want to operate in Austria but do not wish to establish a completely new company.

Minimum Capital

Depending on the parent company

Liability

The parent company is fully liable

Advantages

No separate capital contribution is required
Easier Expansion into Foreign Markets
Leverages the parent company's reputation
No separate tax liability
Simplified Administration

Disadvantages

The parent company has unlimited liability
Registration in the commercial register is required
Dependent on the parent company
Complex Cross-Border Administration
Limited Autonomy

Other Forms

OG

A partnership consisting of two or more partners with unlimited and joint and several liability.

Minimum Capital

No minimum capital required

Liability

Unlimited and in solidarity with all shareholders

Advantages

Simple Company Formation Without a Notary
No minimum capital required
Shared Responsibility and Workload
Flexible Design Options
No minimum tax

Disadvantages

Unlimited personal liability of all shareholders
All shareholders are jointly and severally liable
Conflicts between shareholders are possible
Difficulty in Transferring Shares
Dissolution Upon the Withdrawal of a Partner

KG

A partnership with general partners (unlimited liability) and limited partners (limited liability).

Minimum Capital

No minimum capital (limited partner contributions required)

Liability

General partner: unlimited liability; limited partner: limited to the amount of the investment

Advantages

Flexibility Regarding Liability
Limited partners have limited liability
Easier Access to Capital Through Limited Partners
Tax Benefits May Be Available
Limited partners can invest passively

Disadvantages

The general partner has unlimited liability
A more complex structure than OG
Less decision-making freedom for limited partners
Increased administrative burden
Registration in the commercial register is required

AG

A stock corporation for large companies with the potential to go public. Minimum capital: €70,000.

Minimum Capital

€70,000 in share capital

Liability

Limited to the company's assets

Advantages

Easy Access to Capital Through the Stock Market
Initial Public Offering (IPO) Possible
High standing and trust
Shareholder anonymity is possible
Flexibly Transferable Shares

Disadvantages

Very high minimum capital requirement (€70,000)
Complex and Expensive Foundation Work
Very high administrative burden
Strict legal regulations
A supervisory board is required if the company has more than 300 employees

GmbH & Co. KG

A hybrid legal structure that combines the advantages of a limited partnership (KG) with the limited liability of a limited liability company (GmbH). Ideal for family-owned businesses.

Minimum Capital

€35,000 for a GmbH as a general partner

Liability

A GmbH has limited liability; limited partners are liable only to the extent of their capital contribution

Advantages

Limitation of Liability for All Shareholders
Tax Advantages Over a Standard GmbH
Flexibility in Corporate Management
No Minimum Tax on KG Interests
Ideal for succession planning

Disadvantages

Complex Structure and Foundation
Significant administrative burden
Requirement to Use Double-Entry Bookkeeping
Significant start-up capital required
Complex legal structure

Silent Partnership

A silent partner invests in another person's business by contributing assets, without appearing publicly.

Minimum Capital

By appointment

Liability

A silent partner is not liable to third parties

Advantages

Raising Capital Without Losing Control
A silent partner is not liable to third parties
No entry in the commercial register is required
Flexible Design Options
Profit-sharing is negotiable

Disadvantages

Silent partners have no right to a say
Limited monitoring capabilities
Depends on the contract; no statutory structure
Tax treatment may be complicated
The deposit may be used up in the event of loss

Cooperative

An association of individuals formed to promote shared economic, social, or cultural interests. It has a democratic structure with a general assembly of members.

Minimum Capital

No statutory minimum capital; shares required

Liability

Limited to the cooperative's assets

Advantages

Democratic decision-making structure
Promoting Shared Interests
Flexible Number of Members
Tax benefits may be available
Principle of Solidarity

Disadvantages

Mandatory Membership in the Auditing Association
Annual audit costs
Complex Incorporation (at least 2 members)
Restricted Distribution of Profits
Significant organizational effort

Club

The ideal legal structure for non-profit purposes such as sports, culture, or social activities. At least two members are required.

Minimum Capital

No minimum capital required

Liability

Limited to the association's assets

Advantages

No intent to make a profit required
Tax Benefits for Charitable Purposes
Easy Company Formation
Democratic Structure
Funding and donations are welcome

Disadvantages

No distribution of profits to members
Limited economic activity
Strict earmarking
Transparency Requirements
Limited Business Operations

Sole Proprietor (e.U.)

A business owner who operates a business alone and is registered in the commercial register. Similar to a sole proprietorship, but with registration in the commercial register.

Minimum Capital

No minimum capital required

Liability

Unrestricted with total private assets

Advantages

Quick and Easy Company Formation
No minimum capital requirement
Full control over companies
Tax Benefits for Small Profits
Company Registry Entry for Credibility

Disadvantages

Unlimited personal liability
Commercial Register Fees and Obligations
Limited Access to Capital
Business tied to an individual
No Limitation of Liability

GesbR

General Partnership—the simplest form of a partnership for joint projects that does not require registration in the commercial register.

Minimum Capital

No minimum capital required

Liability

Unlimited and in solidarity with all shareholders

Advantages

Very simple company formation with no red tape
No minimum capital requirement
No commercial registry entry required
Flexible configuration is possible
Low startup costs

Disadvantages

Unlimited joint and several liability
Unprofessional demeanor
Not suitable for larger companies
Any shareholder may enter into binding obligations on his or her own
Dissolution Upon the Withdrawal of a Partner

Freelancer

Self-employed individuals in intellectual or artistic professions who are not registered as businesses. This typically applies to doctors, lawyers, architects, and artists.

Minimum Capital

No minimum capital required

Liability

Unlimited with personal assets

Advantages

No business registration required
No business tax
No Chamber of Commerce dues
Simple income and expense tracking is possible
Complete freedom to make decisions

Disadvantages

Unlimited personal liability
Business license not available
Only certain professions qualify
Greater Difficulty in Raising Capital
Fluctuations in income

The choice of legal structure is crucial to a company’s long-term success in Austria. Before making a decision, it is advisable to consult a legal or tax advisor to select the optimal business model.

Your First Steps Toward Self-Employment

We'll help you with all the key steps involved in starting a business in Austria.

Step-by-Step Guide to Starting a Business in Austria

Starting a business in Austria can be a straightforward process if you follow all the legal and administrative procedures. This guide will help you understand the key steps required to legally start a business in Austria.

Starting a Successful Business in Austria

Legal and Financial Consulting

Professional advice on the legal and financial aspects of starting a business in Austria. Our experts will help you choose the best structure for your business.

Choice of Legal Structure

Selecting the optimal legal structure for your business (GmbH, AG, OG, etc.). We analyze your needs and recommend the best legal structure for your business goals.

Preparing the Documents

Compilation of all required documents for starting a business. We will assist you in preparing and obtaining all necessary documents.

Registration in the Commercial Register

Official registration of your company in the Austrian Commercial Register. We handle all the necessary steps to ensure your registration complies with the law.

Business Registration

Registration of your business with the appropriate authorities. We can help you properly register your business.

Tax Return

Registration with the tax authorities and obtaining a tax ID number. We’ll ensure that your business is properly registered for tax purposes.

Social Security

Social Security Registration for Business Owners and Employees. We can assist you with all matters related to social security law.

Common Mistakes When Starting a Business in Austria

During the process of starting a business in Austria, many entrepreneurs face challenges that can slow down or complicate the process. Being aware of common mistakes can help you avoid them and ensure a successful business launch.

Wrong choice of legal structure

Every legal structure has its advantages and disadvantages in terms of liability, capital, and tax obligations. Choosing an inappropriate structure can lead to unnecessary costs and complications.

When choosing a legal structure, you should consider the following factors: liability risk (personal vs. limited liability), minimum capital requirements, tax burden, flexibility in management and profit distribution, as well as the effort involved in bookkeeping and reporting. A GmbH offers liability protection but requires €10,000–35,000 in share capital (depending on the formation). An OG is easier to establish, but the partners are personally liable.

Incomplete or incorrect documentation

The Austrian authorities require accurate and complete documentation. Errors or omissions can significantly delay the registration process and result in additional costs.

Documents that are frequently missing: Certified copies of the passports of all shareholders, proof of the business address, a bank confirmation of the paid-in share capital, a correctly drafted articles of association, and a business registration with all required supporting documents. Tip: Have an expert review all documents before submission to avoid delays.

Lack of knowledge regarding tax and legal obligations

A lack of understanding of local regulations can lead to noncompliance, penalties, and legal problems. It is particularly important to be familiar with the specifics of the Austrian tax system.

Key obligations: Registration with the tax authorities within 30 days, monthly advance VAT returns, annual corporate income tax return, social security registration for all employees, compliance with labor laws, and proper bookkeeping in accordance with Austrian standards (UGB). Violations can result in heavy fines and legal consequences.

Lack of capital to start a business

Underestimating the amount of startup capital needed is a common mistake. In addition to the legal minimum required to establish the business, it is also necessary to budget for operating expenses during the first few months of business operations.

Be realistic in your calculations: Share capital (€10,000–35,000 for a GmbH), startup costs (€3,000–5,000), operating costs for 6–12 months (rent, salaries, insurance), marketing budget, inventory or equipment, and a buffer for unforeseen expenses (at least 20% of the total budget). Many entrepreneurs underestimate the time it takes to reach profitability—plan conservatively.

Improper Bookkeeping

Austrian accounting standards are strict and require precise record-keeping. Irregularities can lead to problems during tax audits.

Austrian accounting standards (UGB) require: Complete and chronological records of all business transactions, proper supporting documents for all entries, monthly financial statements including a balance sheet and income statement, a 7-year retention requirement for all documents, and a requirement to use electronic cash registers for annual sales of €15,000 or more. Recommendation: Invest in professional accounting software and a qualified tax advisor.

Obligations Following Company Registration

Starting a business is only the first step. Once the company has been successfully registered, it has a number of ongoing obligations that it must fulfill in accordance with Austrian regulations. Timely and accurate fulfillment of these obligations is crucial for successful business operations.

Accounting and Tax Reporting

Austrian law requires accurate bookkeeping and the regular filing of financial reports. Different accounting standards and reporting deadlines apply depending on the company’s legal form and size.

Accounting requirements include: Complete recording of all business transactions; monthly financial statements for larger companies; preparation of annual balance sheets, income statements, and notes to the financial statements for larger companies. Deadlines: Annual financial statements must be filed by March 31 of the following year; for companies subject to mandatory audits, the deadline is September 30. Small GmbHs may prepare simplified financial statements. Recommendation: Use professional accounting software and consult regularly with a tax advisor.

Employee Registration and Social Security

Before starting work, all employees must be registered with the appropriate social security agencies. The employer is required to calculate and remit contributions for health, pension, and unemployment insurance.

Registration Process: Register employees with Social Security no later than the start of employment; submit monthly contribution reports by the 15th of the following month; submit the annual contribution statement by March 31. Contribution rates (as of 2024): Health insurance 7.65%, pension insurance 22.8%, unemployment insurance 6%, accident insurance 1.3%. Additionally: Family Burden Equalization Fund 4.5%, Housing Subsidy 0.5%. Violations may result in back payments of contributions plus late payment interest.

Payment of Sales Tax and Other Taxes

Businesses subject to sales tax must file sales tax returns on a regular basis (monthly or quarterly) and pay sales tax. In addition, there are other tax obligations, such as corporate income tax, payroll tax, and local taxes.

Tax Obligations: Monthly advance VAT returns (turnover >€30,000) or quarterly; corporate income tax 24% on profits (minimum tax of €1,750 for GmbHs), Payroll tax for employees must be remitted monthly; municipal tax (Form 3%) is calculated based on the total payroll. Deadlines: VAT return due by the 15th of the following month; corporate income tax return due by April 30. Tip: Set aside provisions for tax payments and seek professional tax advice.

Reporting to Government Agencies

Companies are required to report regularly to various government agencies, including the Austrian Federal Economic Chamber (WKO), the Federal Statistical Office, the Federal Finance Administration, and other regulatory authorities, depending on their field of activity.

Reporting Requirements: Austrian Federal Economic Chamber (WKO) – annual membership fees and advocacy contributions; Statistics Austria – monthly, quarterly, or annual reports, depending on the industry; Commercial Register Court – submission of annual financial statements within 12 months; Data Protection Authority for the processing of personal data. Additional industry-specific requirements: Financial Market Authority (FMA), regulatory authorities for energy, telecommunications, etc. Failure to comply results in administrative fines—timely compliance is essential.

Starting a Business Safely in Austria

We'll answer your most important questions and guide you step by step through the process of starting your own business.

How can ambicon help with starting a business in Austria?

ambicon offers comprehensive support for entrepreneurs and companies looking to start a business in Austria. Our team of experts will guide you through the entire process, from the initial consultation to the successful launch of your business. With our experience and knowledge of the local market, we ensure that your entry into the Austrian market is as smooth and efficient as possible, with minimal risk and maximum support.

Expert advice and customized solutions

We offer comprehensive consulting services to help you choose the optimal legal structure, plan your costs, and develop a strategic business plan. Our team analyzes your specific needs and creates a customized plan for starting your business.

Complete document preparation

We handle the preparation and certification of all required documents, including the articles of incorporation, business registration, and entry in the commercial register. You will receive all necessary documents, professionally prepared.

Opening an Account and Finances

We'll assist you in opening a business bank account, depositing your initial capital, and setting up your accounting systems. In addition, we'll help you register with the tax office and social security.

Required Documentation

When starting a business in Austria, certain documents and pieces of information must be prepared. These documents are required for the lawful establishment of a business and ensure that all business activities comply with Austrian law.

Personal Documents

Passport or ID card
Birth Certificate
Residence Permit (for non-EU citizens)

Corporate Documents

Certificate of Incorporation
Articles of Incorporation
Meeting Minutes

Costs of Starting a Business in Austria

The costs of starting a business in Austria vary depending on the company’s legal form, size, and type of business. It is important to plan for these costs in advance to avoid financial surprises. Here are the most important costs to consider when starting a business in Austria:

* The amounts listed are approximate and may vary depending on specific circumstances

Frequently Asked Questions

Answers to the Most Frequently Asked Questions About Starting a Business in Austria

Startup FAQ

Is in-person attendance required for business registration?

No, you can have your business registered by an authorized representative acting on your behalf. However, when opening a bank account, it is often recommended that you be present in person, as banks may conduct additional identity verification checks.

What are the requirements for forming a GmbH if I am not an Austrian citizen?

As a non-EU citizen, you can establish a GmbH in Austria, but you will often need a managing director who is a resident of Austria. In addition, a physical business address in Austria is required, and you must hold all necessary residence permits.

Can I start a business in Austria while I'm working in another country?

Yes, it is possible to start an Austrian company while working in another country. However, you will need a local managing director or must travel to Austria regularly yourself to oversee business operations and fulfill legal obligations.

Can I use my personal bank account for business purposes?

No, a separate business bank account is required by law for a GmbH. The share capital must be deposited into this business bank account before the company can be registered in the commercial register. Personal and business finances must be strictly separated.

Do I need a business plan to register a company?

The law does not require a business plan for the registration of a GmbH alone. However, a business plan is highly recommended for meetings with banks, investors, and government grant applications, as well as for internal planning. Some banks require a business plan to open an account.

What are the most common reasons for rejecting a business registration?

Common reasons for rejection include: incomplete or incorrect documents, a company name that has already been used, insufficient authorized capital, lack of proof of a business address, invalid signatures on notarized documents, or lack of official permits for certain industries.

Can I relocate an existing business from another country to Austria?

Yes, this is possible through a cross-border merger or a transfer of the registered office. However, the process is complex and requires consultation with legal and tax experts. Both the laws of the country of origin and Austrian regulations must be observed.

Do I need a special permit for certain industries?

Yes, many industries require specific business licenses or permits. These include: financial services, healthcare, the restaurant industry, real estate brokerage, insurance, and many skilled trades. Check with the Chamber of Commerce in advance to find out about industry-specific requirements.

How many employees can I have when I start a business?

There is no legal limit on the number of employees when you start a business. However, you must comply with all labor laws, register for social security, and factor in the corresponding payroll expenses. Plan realistically based on your financial resources.

How can I hire employees from abroad?

EU citizens can be employed without any additional permits. For non-EU citizens, you need a work permit from the AMS (Employment Service). The employee must also have a residence and work permit. The process can take several months.

How can I check if the company name is available?

You can check availability in the electronic commercial register at www.firmenbuch.at free of charge. In addition, you should conduct a trademark search with the Patent Office and check whether the corresponding domain names are available. It is recommended that you have a lawyer conduct a professional review of your company name.

How often does a company have to file tax returns?

GmbHs must file a corporate income tax return annually by April 30 of the following year. Advance VAT returns are due monthly (for revenue >€30,000) or quarterly. For employees, monthly payroll tax and social security filings are required.

How is corporate income tax calculated?

Corporate income tax is 24% of taxable profit (planned to be 23% starting in 2025). There is a minimum tax of €1,750 per year for GmbHs, even if they incur a loss. Certain expenses are tax-deductible, such as business expenses, depreciation, and interest on business loans.

How can I reduce my company's taxable income?

Legal options include: properly documenting and deducting all business expenses; investing in depreciable assets; taking advantage of research and development expenses; utilizing tax-optimized salary components for managing directors; and consulting with a tax advisor to ensure optimal tax planning.

Does a company have to have an accountant?

A GmbH is required to maintain proper books and prepare annual financial statements. You can do this yourself, use professional accounting software, or hire a tax advisor. Larger companies are often required to have an auditor review their annual financial statements.