Austria Company Formation |
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If properly-structured, an Austrian limited liability company (GmbH) allows international entrepreneurs to legitimately receive low-taxed dividends received from global subsidiaries. The following information will help you determine whether Austria company formation is the optimum corporate structure to fulfill your international business objectives: |
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Advantages of Austria company formation |
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1. |
An Austrian company is legally exempt from dividends tax received from a foreign subsidiary. Austria levies no withholding tax on dividends paid to the foreign parent. |
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2. |
As a member of the European Union (EU), Austria is governed by the provisions of the EU's Parent-Subsidiary directive. Thus, an Austrian holding company which holds at least 25% of the shares of an EU subsidiary can receive dividends from the subsidiary free of withholding tax. |
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3. |
An Austrian company can access a large network of double taxation treaties Austria has signed with major trading nations around the world. |
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4. |
A minimum of one shareholder and one director is required for Austria company formation. The shareholder and director can be the same person, and need not be resident in Austria. Corporate shareholders are permitted with Austria company formation. |
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5. |
Austria company formation is reputable. Austria is positively ranked as the 16th least corrupt country in the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Furthermore, Austria is positively ranked as the world's 22nd freest economy in the Heritage Organisation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. Additionally, Austria is ranked 19th in the World Economic Forum's Global Competitiveness Report 2011-2012. |
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6. |
It is easy to open global corporate bank accounts to support Austria company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services. |
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7. |
In its 2011 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks Austria as the world’s 18th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure. |
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In the 2010 Quality of Living Survey by Mercer Human Resources, Vienna is positively ranked as the world’s most livable city. |
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Vienna ranks 8th in the Monocle Quality of Life Index. The index bases its ranking on factors like quality of housing, urban scale as well as amount of crime and the quality of education and healthcare. |
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Disadvantages of Austria company formation |
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1. |
A GmbH pays corporate profits tax of 25% on all income. In addition financial statements must be submitted to the Austrian Chamber of Commerce. Healy Consultants will assist our clients efficiently and effectively to complete this annual statutory obligation. |
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2. |
Austria company formation requires a minimum share capital of €35,000 (approximately US$47,200), of which at least half, €17,500 (approximately US$23,600), must be paid up in cash. |
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3. |
A register containing shareholders and directors details is available for public viewing, following Austria company formation. |
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4. |
Austria company formation is a relatively time consuming process. According to the World Bank's Doing Business 2011 Survey, Austria is the world's 32nd easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. |
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5. |
Forbes Tax Misery Index 2009 rated Austria as having the 6th highest tax misery in the world. The index takes into account corporate income, employer social security, personal income, employee social security, wealth tax and VAT/sales. Forbes suggests the index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent. |
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| Contact Us | ||||||||||||||||||||
For additional information on Austria company formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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