Company Formation in Austria

With its central location in Europe, political stability, and tax advantages, Austria offers ideal conditions for successful business operations.

Why establish a company in Austria?

With its central location in Europe, political stability, highly qualified workforce, and tax advantages, Austria offers ideal conditions for successful business management. Below we explain the key reasons for establishing a company in Austria and the benefits this country offers to entrepreneurs.

Stable

Economy

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

Access to

EU Market

One of the biggest advantages of establishing a company in Austria is its strategic location. As a member of the European Union, Austria enables entrepreneurs unhindered access to one of the world's largest and most developed markets. Thanks to modern infrastructure and developed logistics networks, Austria is an ideal hub for business with Western, Central, and Southeastern Europe.

Favorable

Taxes

Austria offers numerous tax benefits for entrepreneurs and investors, which means you can optimize operating costs and increase profitability. The key advantages include:

Reduced corporate tax – The current corporate tax rate is 24%, with a planned further reduction to 23% in 2025.
Research and development incentives – The state subsidizes innovative projects and technological development through grants and tax credits.
VAT exemption for small businesses – Entrepreneurs with annual turnover under €35,000 can be exempt from VAT.
Startup support – Austria offers various financing and mentoring programs for new companies, including grants and favorable loans.

Simple and fast company formation process

One of the main advantages of doing business in Austria is the quick and efficient company formation. The process of company registration in Austria can take just a few days, and for a GmbH (limited liability company), the procedure typically takes between 5 and 15 business days. The key steps include:

Choice of legal form – Entrepreneurs can choose between various legal forms, including GmbH, sole proprietorship, and AG.
Opening a bank account – Founders must deposit the minimum founding capital (for GmbH it is €35,000, but only half must be paid upon registration).
Commercial register entry – Official registration of the company with the commercial court.
Tax office registration – Obtaining a tax number and possibly a UID number.
Chamber of Commerce registration – Mandatory for most activities.

With appropriate legal and administrative support, company formation in Austria is a simple process that can significantly enhance your business success.

Successfully Establish in Austria

Business Activity Advantages

Austria is known for its stable business environment, offering 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 establishing and developing a business. Operating in Austria means benefiting from a high standard of living, political stability, and a strong economy that promotes innovation and growth.

Legal Security

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

Qualified Workforce

Austria has a highly educated and skilled workforce that supports business development and innovation.

Favorable Tax System

Competitive tax rates and various incentives make Austria an attractive location for business operations.

Incentives and Subsidies

Government support programs and subsidies help businesses grow and expand in the Austrian market.

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 brings many advantages – from a stable legal system and highly qualified workforce to favorable tax conditions and access to the European market. With government funding and startup support, Austria ranks among the best locations in Europe for establishing and developing a business.

Which legal form can you choose in Austria?

Choosing the legal form is one of the most important steps when establishing a company in Austria. Each form has its own characteristics regarding liability, required capital, and tax obligations that can significantly impact your business and future development.

With the right choice of legal structure, you can optimize tax obligations, protect personal assets, and facilitate business operations within Austrian legal frameworks. Some forms are better suited for small businesses and freelancers, while others are adapted for larger companies and investors.

Our experts help you choose the most suitable legal form for your company, considering your specific needs, long-term goals, and the industry in which you operate.

GmbH (Limited Liability Company)

The most popular legal form in Austria, suitable for medium and large companies. The share capital is €35,000, half of which must be paid in at formation.

Sole Proprietorship

The simplest and most commonly used legal form for small entrepreneurs and freelancers. Registration is quick and simple, but the owner bears unlimited personal liability.

Branch Office

Foreign companies can open a branch in Austria without needing to establish a separate legal structure. Ideal for companies wanting to operate in Austria.

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

Successfully Establish in Austria

Step-by-Step Guide to Company Formation in Austria

Establishing a company in Austria can be a straightforward process when you follow all legal and administrative procedures. This guide helps you understand the key steps required for legally establishing a company in Austria.

Legal/Financial Consultation

Professional advice on legal and financial aspects of company formation in Austria. Our experts help you select the optimal structure for your business.

Choice of Legal Form

Document Preparation

Commercial Register Entry

Business License Registration

Tax Registration

Social Insurance

Common Mistakes in Company Formation in Austria

During the process of company formation in Austria, many entrepreneurs face challenges that can slow down or complicate the process. Knowing common mistakes can help you avoid them and ensure a successful business start.

Wrong Choice of

Legal Form

Each legal form has its advantages and disadvantages regarding liability, capital, and tax obligations. Choosing an inappropriate form can lead to unnecessary costs and complications.

Incomplete or Incorrect Documentation

Austrian authorities require precise and complete documentation. Errors or omissions can significantly delay the registration process and lead to additional costs.

Lack of Knowledge of Tax and Legal Obligations

Insufficient understanding of local regulations can lead to non-compliance, penalties, and legal problems. Particularly important is knowledge of the specifics of the Austrian tax system.

Lack of Capital for

Business Start

Underestimating the required start-up capital is a common mistake. Besides the legal minimum for establishment, it's necessary to plan funds for operating costs in the first months of business operation.

Improper Bookkeeping

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

Obligations After Company Registration

Company formation is just the first step. After successful registration, the company has a series of regular obligations that must be fulfilled according to Austrian regulations. Timely and accurate fulfillment of these obligations is crucial for successful business operations.

Bookkeeping and Tax Reporting

Austrian law requires precise bookkeeping and regular submission of financial reports. Different accounting standards and reporting deadlines apply depending on legal form and company size.

Employee Registration and Social Insurance

Before starting work, all employees must be registered with the competent social insurance carriers. The employer is obligated to calculate and remit contributions to health, pension, and unemployment insurance.

Payment of VAT and Other Taxes

VAT-liable companies must regularly (monthly or quarterly) submit VAT advance returns and pay VAT. Additionally, there are other tax obligations such as corporate tax, payroll tax, and local levies.

Reporting to Government Institutions

Companies are obligated to report regularly to various government institutions, including the Chamber of Commerce (WKO), Statistical Office, tax administration, and other regulatory authorities, depending on the field of activity.

How can ambicon help with company formation in Austria?

ambicon provides comprehensive support for entrepreneurs and companies looking to establish a business in Austria. Our expert team will guide you through the entire process, from initial consultation to successful launch of your company.

With our experience and knowledge of the local market, we ensure that your entry into the Austrian market is as simple and efficient as possible, with minimal risks and maximum support.

Expert consultation and tailored solutions

Complete document preparation

Account opening and finance

Required Documentation

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

Personal Documents

Passport or identity card

Birth certificate

Residence permit (for non-EU citizens)

Company Documents

Certificate of incorporation

Articles of association

Meeting protocols

Kosten für die Unternehmensgründung in Österreich

Die Kosten für die Unternehmensgründung in Österreich variieren je nach Rechtsform, Größe und Art der Tätigkeit des Unternehmens. Es ist wichtig, diese Kosten im Voraus zu planen, um finanzielle Überraschungen zu vermeiden. Hier sind die wichtigsten Kosten, die bei der Gründung eines Unternehmens in Österreich berücksichtigt werden sollten:

Kostenart

Betrag (€)

Share Capital (for GmbH)

Legally required minimum capital, of which at least half must be paid in before registration

35,000 EUR

Notary Fees

Costs for notarial certification of incorporation documents

1,500 - 2,500 EUR

Business License Registration

Costs for registering a regulated trade

60 - 400 EUR

Commercial Register Entry

Fees for entry in the commercial register

300 - 500 EUR

Professional Consulting Costs

Fees for legal and tax advice during the formation process

1,000 - 3,000 EUR

Bank Account Fees

Costs for opening and maintaining a business account

0 - 200 annually

Chamber of Commerce Membership Fees

Mandatory contributions for members of the Austrian Chamber of Commerce

100 - 500 annually

Accounting Software and Services

Necessary software and services for financial management

500 - 2,000 annually

Trademark Registration (optional)

Fees for protecting the brand name and logo

350 - 700 EUR

Website Creation and Hosting

Costs for developing and hosting the company website

500 - 5,000 EUR

* Die angegebenen Beträge sind Richtwerte und können je nach spezifischen Umständen variieren

Formation FAQ

Frequently Asked Questions About Company Formation in Austria

Answers to the most common questions about company formation in Austria

Is personal presence required for company registration?

What conditions apply to establishing a GmbH if I am not an Austrian citizen?

Can I establish a company in Austria while working in another country?

Can I use my private bank account for business purposes?

Do I need a business plan for company registration?

What are the most common reasons for rejection of company registration?

Can I transfer an existing company from another country to Austria?

Do I need special permits for certain industries?

How many employees can I have when establishing the company?

How can I employ workers from abroad?

How can I check if the company name is available?

How often must a company file tax returns?

How is corporate tax calculated?

How can I reduce my company's tax base?

Must a company have an accountant?

Contact Us

Our expert team is available for all questions about company formation and business activities in Austria

Contact Information

Address:

ambicon GmbH
Dresdner Strasse 47/3rd Floor
A-1200 Vienna
Austria

Phone:

+43 1 908 19 99

Email:

office@ambicon.at