Business entities in Austria in 2023

Since 2003, Healy Consultants has successfully assisted our Clients with establishing the best Austrian corporate structure to suit our Clients’ business interest. The most common legal corporate structure preferred by many entrepreneurs is the setup of a limited liability company (LLC) in Austria. A public limited company (PLC) is also a very interesting alternative option for investors who are able to afford the €70,000 required for share capital. Foreign companies are also permitted to incorporate branches or representative offices.

The Austria limited liability company (GmbH)

1. The Austrian LLC (locally known as GmbH) is the type of business entity most commonly chosen by entrepreneurs looking to set up a business in Austria. One director and shareholder must be appointed, both allowed to be of any nationality and residency. Still, the company must have a legal registered address located in Austria for registration purposes with the Commercial Registrar of their city of incorporation;
2. The minimum share capital required to complete the incorporation process has been reduced to €10,000 in July 2014 for startups, of which half of the amount must be paid-up in cash prior to the commencement of incorporation. However, standard share capital requirements of €35,000 still apply from the 11^th year after Austria company setup;
3. Austrian companies are subject to value added tax registration if their annual turnover is expected to be above €30,000.

The Austria public limited company (AG)

1. The Austrian PLC, commonly known as corporation (AG) is a legal entity recommended when entrepreneurs intend to raise important amounts of capital and/or list the company on the Vienna Stock Exchange market. The AG requires a minimum share capital of €70,000 for incorporation and at least 25% of the capital must be paid-up before Austria business setup;
2. At least one shareholder and one director must be appointed, whom can be of any nationality and need not to be resident of Austria. The AG must also appoint a statutory auditor. Like an Austrian LLC, the Austrian Public Limited Company must submit financial statements with the Austrian Tax Administration.

The Austria branch office (Niederlassung)

Foreign companies are allowed to establish branches in Austria. The branch can be 100% foreign owned. Foreign companies established in countries outside the European Economic Area (EEA) must appoint an individual representative, who must be resident in Austria. This entity is also permitted to open and maintain a corporate bank account in Austria.

The Austria representative office (Representanz)

The Austrian representative office of a foreign entity is allowed to engage in market research and promotion of the parent company business’ products and services. Just like the branch office, this entity is required to appoint a resident representative in Austria if the parent company is located outside the EEA.