Company registration in Austria

Company registration in Austria: a complete guide

Austria is a parliamentary republic with a developed economy and high living standards. The country’s central European location provides direct access to major EU markets. There are over 579,000 small and medium-sized enterprises (99.7% of all businesses) in Austria, which makes the jurisdiction highly attractive for company formation. The company registration procedure includes notarizing the founding documents and submitting them to the Commercial Register (Firmenbuch).

Available Business Forms

• Sole Proprietorship (e.U.) – the simplest form, where the owner bears unlimited personal liability.
• Partnerships (OG, KG) – associations of partners. In a general partnership (OG), all partners are fully liable; in a limited partnership (KG), at least one partner has limited liability. No minimum capital is required.
• Limited Liability Company (GmbH) – the most popular form. Minimum share capital is €10,000, with at least €5,000 paid in cash. Liability is limited to the contributed capital.
• Joint Stock Company (AG) – designed for large businesses or public trading. Minimum share capital is €70,000.
• Flexible Company (FlexCo) – a hybrid legal form introduced in 2024 for startups. Combines elements of GmbH and AG. Minimum capital – €10,000, 50% paid in cash.

Advantages of Opening a Company in Austria

• Strategic Location. Austrian companies enjoy access to the entire EU market.
• Transparent Legal Framework. The corporate tax rate is 23%, and the standard VAT rate is 20% (reduced rates of 13% and 10% apply to specific goods and services). Since 2022, notarial services and company registration can be performed online.
• Startup Support. Numerous government grants and startup programs are available, especially for innovative industries.

Tax System and Main Business Taxes

• Corporate Income Tax (KöSt): 23% of profits.
• Value-Added Tax (Umsatzsteuer): standard 20%; reduced rates 13% and 10%.
• Additional Taxes: Personal income tax up to 55%; social contributions – approx. 21% (employer) and 18% (employee); dividend tax – 27.5%.

You can learn more about the tax system, rates, benefits, reporting, and practical nuances in this article.

Registration Requirements

• Licensing and Qualifications. Regulated industries (construction, healthcare, education, hospitality, etc.) require specific licenses or certificates. Foreign founders without Austrian residence may appoint a “trade law manager” (Gewerberechtlicher Geschäftsführer) authorized to act on behalf of the business.
• Address and Capital. The company must have an Austrian registered address. Minimum share capital for GmbH/FlexCo – €10,000 (at least €5,000 paid in cash). Partnerships (OG/KG) have no capital requirement.
• Documents Required: notarized articles of association, founders’ IDs, proof of address, bank confirmation of capital deposit, and a criminal record certificate (for non-residents).

Step-by-Step Registration Procedure

1. Document Preparation. Choose the company name and structure, draft and notarize the articles (can be done online).
2. Capital Deposit. Open a temporary bank account and deposit the share capital.
3. Commercial Register Entry. Submit the documents to the commercial court. After verification, the company receives its Firmenbuchauszug (registry extract).
4. Trade Registration. Apply for a business license (Gewerbeanmeldung), register with the tax office, obtain a VAT number, and register employees with the social insurance system.

Opening a Corporate Bank Account

To open a corporate account, banks require a Firmenbuch extract, notarized company documents, and directors’ ID/passport with proof of address. Most Austrian banks (Erste, Raiffeisen, Bank Austria, etc.) offer services for non-residents, though personal identification may be required.

Why Buy a Ready-Made Company

An alternative to founding a new entity is to buy a ready-made company (shelf company).
Advantages:

• Quick launch. All registration procedures are already completed.
• Clean history. Reliable providers guarantee no debts or obligations.

The service of selling already registered companies allows you to choose a firm with the desired history. You can choose and buy a ready-made company here.

Frequently Asked Questions (FAQ)

• How long does it take to register a company?
  Typically 2–4 weeks with all documents prepared.
• Do I need an Austrian residence?
  EU citizens don’t need a residence permit—only a registered business address. Non-EU citizens may appoint an Austrian managing director or trade law manager.
• Can I buy a ready-made company?
  Yes, it’s the fastest way to start a business. The ownership transfer procedure is straightforward.