Austria company registration


pay fee by instalmentsbusiness setup without travelGuaranteed solutions

Since 2003, Healy Consultants Group has assisted our Clients with business registration in Austria. Our services include i) company registration ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

Compare different Austria entities Tax resident LLC Fast setup solutions Holding company Private foundation Branch office
Also known as Gesellschaft mit beschränkter Haftung Gesellschaft mit beschränkter Haftung Gesellschaft mit beschränkter Haftung Stiftung Zweigniederlassung
Best use of company? All products and services Client to fast close local deal Investment Asset management Specific projects
How soon to invoice Clients? 4 weeks 3 weeks 4 weeks 4 weeks 5 weeks
How soon can you hire staff? 4 weeks 3 weeks 4 weeks 4 weeks 5 weeks
How soon can you sign a lease agreement? Immediately Immediately Immediately Immediately Immediately
How long to supply corporate bank a/c? 6 weeks 4 weeks 6 weeks 6 weeks 6 weeks
How long to supply co. reg / tax numbers? 4 weeks 3 weeks 4 weeks 4 weeks 5 weeks
Corporate tax rate on annual net profits? 24% 24% 24% 24% 24%
Limited liability entity? Yes Yes Yes No No
Government grants available? Yes Yes Yes No Yes
Govt approval required for foreign owners? No No No No No
Res. director/partner/ legal rep. required? Yes Yes Yes Yes Yes
Minimum paid up share capital? €35,000 €35,000 €1 €70,000 €1
Can bid for Government contracts? Yes Yes Yes No Yes
Corporate bank account location? Erste Group Raiffeisen Bank Bank Austria BNP Paribas Deutsche Bank
Can secure trade finance? Yes Yes Yes No Yes
VAT payable on sales to local customers? 20% 20% 20% None 20%
Average total business set up costs? €14,920 Request a proposal Request a proposal Request a proposal €16,920
Average total engagement period? 3 months 2 months 3 months 3 months 3 months

Austria business setup summary

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  • Advantages and disadvantages

    Advantages of Austria company registration

    Austria business registration advantage

    • It is considerably fast and easy to register an Austrian company because:
      • Our Client will only require one shareholder, who can be a corporate or an individual entity;
      • One director, who can be of any nationality and is not required to reside in Austria;
      • A minimum capital of €10,000, 50% of which must be paid up at incorporation, and;
      • Travel is not required to complete company incorporation or corporate bank account opening.
    • Trading companies are likely to benefit from an Austrian incorporation because:
      • Due to the country’s EU membership, a company formed in Austria enjoys advantages including:
        • Lack of trade restrictions;
        • Free movement of capital and labor;
        • Reduction or exemption from withholding taxes on foreign payments;
        • Access to an integrated European market of over 500 million people.
      • While Austria is a small market within the EU, its customers are affluent, with a GDP per capita recorded at average US$450 billions, the 7th highest within the EU according to the International Monetary Fund;
      • Austria is a good distribution hub to ship products across Central and Eastern European countries. The country’s roads are indeed ranked as the 6th best in the world, according to the World Economic Forum;
      • It is easy to open corporate bank accounts with internationally recognized banks in Austria to receive payment from EU Clients;
      • Austrian banks have high credit ratings and are fully integrated in i) the international capital markets ii) international funds transfer and iii) possess correspondent banks worldwide.
    • Establishment of a holding company in Austria can be beneficial because:
      • As the country is a member of the European Union (EU), Austrian companies benefit from the EU’s Parent-Subsidiary directive;
      • An Austrian holding company which holds at least 10% of the shares of an EU subsidiary can receive dividends from the subsidiary free of withholding tax;
      • Austrian companies can also access a large network of double taxation treaties. Austria has signed such treaties with major trading nations around the world including i) Australia ii) Brazil iii) New Zealand iv) the United States v) China vi) Singapore and vii) Hong Kong;
      • Austrian companies usually are exempted from taxation on dividends received from non EU subsidiaries, thanks to an accommodating holding company regime.
    • Clients establishing an Austrian company will enjoy government incentives including:
      • Claimable research premiums for expenditures of up to €1million per fiscal year for companies engaging in contract R&D;
      • Funding initiatives comprised of financial concessions for small and medium sized enterprises engaged in innovative and technology oriented investments;
      • Financial support for high-tech startups including non-repayable grants and low interest loans of up to 70% of the approved project costs.
    • Employers in Austria benefit from a number of advantages including:
      • Labor laws are flexible. For instance, there is no minimum national salary in the country. Costs associated to the termination of a contract are also usually very low: barely two weeks of salary on average;
      • Over 25% of the population has obtained a tertiary degree and Austria is ranked as the 13th best country in the world for the quality and extent of staff training;
      • 73% of the population can understand and speak English, which consequently eases communication between employees and foreigners starting a business in Austria. Virtually all Austrians are also perfectly fluent in German;
      • Austria has been ranked in the 27th position (out of 190 countries) for its Ease of Doing Business by the World Bank. This is mainly thanks to its i) ease of carrying out international trade across borders, ii) efficient enforcement of contracts and iii) ease of procuring electricity and construction permits.

    Disadvantages of Austria company registration

    • While there is no minimum wage in Austria, average salaries are still high compared to other European countries. They are estimated by Eurostat at €34 per hour, the 10th highest level in the EU;
    • The corporate tax rate applicable to companies established in Austria is considerably high, at 24%, compared to its regional neighbors;
    • In addition to corporate tax, employers are also subjected to a social security contribution averaging 22% of their employees’ gross remunerations;
    • Given the federal state nature of Austria, regulatory requirements when investing into some sectors of the economy including construction and healthcare may differ between all the 9 provinces;
    • With effect from 1st July 2013, in case of an insolvent company that does not have any legal representative, the majority shareholders must file for insolvency proceedings.
    • German is the preferred business language in Austria, and as a result, a foreign investor generally needs to hire a local supplier to act on their behalf. This further makes it a difficult task for the entrepreneur to adapt to the Austrian business environment.
  • Best uses for a Austria company

    1. Austria is an excellent location in Europe to either i) set up an EU trading company or ii) establish a holding company in the Central European region;
    2. Austria is also a perfect jurisdiction for R&D projects in the field of production of technology. In 2019 alone, R&D expenditures exceeded €12.8 billion representing a research intensity of 3.19% of the country’s GDP.

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For additional information on our company registration services in Austria, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Sales & Business Development Manager
  • Contact me!
austria-wko austria-amcham austria-bmf austria-bank austria-government