Austria Company Formation
Austria Company Formation: Establish Your Business in the Heart of Europe Main Characteristics and the basic rules of a Company registration in Austria
Austria, a prosperous and strategically located EU member, offers a perfect environment for international investors seeking stability, access to the European market, and a prestigious business address. With a robust economy, transparent legislation, and strong infrastructure, Austria company formation provides an ideal gateway for businesses expanding across Europe.
Why Choose Austria for Company Formation
Austria is one of Europe’s most secure and efficient jurisdictions for business incorporation. Its political stability, investor-friendly regulations, and access to the EU market make it a preferred destination for both SMEs and multinational enterprises.
Key Advantages:
- Strategic Central European location with excellent logistics connectivity
- Access to over 450 million consumers through the EU single market
- Highly skilled multilingual workforce
- Strong legal system ensuring investor protection
- Extensive network of Double Taxation Treaties (DTTs)
- Excellent banking and financial infrastructure
- Prestigious reputation for international credibility
Types of Companies in Austria for Non-Residents
|
Entity Type |
Description |
Minimum Capital |
Ideal For |
|
GmbH (Gesellschaft mit beschränkter Haftung) |
Limited Liability Company – most common business form |
€35,000 (min. €17,500 paid up) |
SMEs, trading, consulting |
|
AG (Aktiengesellschaft) |
Joint Stock Company – allows public shareholding |
€70,000 |
Large corporations |
|
Branch Office |
Registered branch of a foreign company |
N/A |
Foreign companies expanding operations |
|
Partnership (OG/KG) |
General or limited partnership |
No minimum |
Small or family businesses |
Note: The GmbH is the most popular structure among foreign investors due to its flexible management, limited liability, and tax efficiency.
Advantages of Austria Company Formation
|
Benefit |
Explanation |
|
EU Market Access |
Full access to all EU and EEA member states |
|
Attractive Holding Regime |
Dividends and capital gains may be exempt from corporate tax |
|
Research & Development Incentives |
14% cash refund for qualifying R&D expenditures |
|
Political & Economic Stability |
One of Europe’s most stable and prosperous economies |
|
Strong Banking & Legal Systems |
Transparent and secure environment for global investors |
|
Reputation & Credibility |
Enhances international business trustworthiness |
Disadvantages and Considerations
|
Aspect |
Details |
|
Higher Setup Costs |
Incorporation and operational costs are higher than in Eastern Europe |
|
German Language |
All official documentation must be in German |
|
Resident Director Requirement |
At least one managing director must be an EU/EEA resident |
|
Regulatory Compliance |
Strict accounting and tax filing obligations apply |
Note: Although setup costs are higher, Austria’s credibility and market access offer significant long-term advantages.
Requirements for Austria Company Registration
|
Requirement |
Description |
|
Company Name |
Must be unique and approved by the Commercial Register (Firmenbuch) |
|
Registered Office |
Physical address in Austria |
|
Articles of Association |
Notarized and compliant with Austrian law |
|
Share Capital Deposit |
Paid into a local Austrian bank account |
|
Directors and Shareholders |
Identification and residence documentation required |
|
Trade License |
Required depending on business activities |
|
Tax Registration |
Corporate and VAT registration with Austrian authorities |
Step-by-Step Procedure for Austria Company Formation
- Consultation & Planning: Define your business goals and choose the right legal structure.
- Name Reservation: Verify and reserve your company name.
- Document Drafting: Prepare and notarize the Articles of Association.
- Capital Deposit: Deposit the minimum share capital in an Austrian bank.
- Commercial Register Application: Submit documents to the Firmenbuch.
- Trade License Issuance: Obtain necessary permits from the local trade authority.
- Tax & VAT Registration: Register for corporate tax and VAT.
- Social Insurance Enrollment: Register employees (if applicable).
Note: The process is highly regulated, and using a professional service ensures compliance and efficiency.
Timeframe for Austria Company Formation
|
Stage |
Estimated Duration |
|
Name Approval & Document Preparation |
3–5 business days |
|
Capital Deposit & Notarization |
5–7 business days |
|
Registration with Commercial Register |
7–14 business days |
|
Tax and VAT Registration |
5–10 business days |
|
Total Average Timeframe |
2–4 weeks |
Corporate Tax System in Austria
|
Tax Type |
Rate / Description |
|
Corporate Income Tax (CIT) |
23% flat rate (reduced from 25%) |
|
Dividend Withholding Tax |
27.5% (can be reduced via treaties or EU directives) |
|
Capital Gains Tax |
Generally taxed as ordinary income |
|
Value Added Tax (VAT) |
20% standard, reduced rates of 10% and 13% |
|
R&D Tax Credit |
14% refundable incentive for qualifying activities |
|
Double Taxation Treaties |
Over 90 agreements reducing withholding tax exposure |
Note: Austria’s holding regime makes it one of Europe’s most favorable jurisdictions for international corporate structuring.
How We Can Help with Austria Company Formation
Our professional team provides end-to-end support for your Austria company formation, ensuring compliance, efficiency, and peace of mind.
|
Our Services |
Description |
|
Incorporation Assistance |
Complete handling of the company registration process |
|
Legal & Tax Consulting |
Expert advice on Austrian corporate and tax laws |
|
Document Drafting & Notarization |
Preparation and notarization of all formation documents |
|
Bank Account Setup |
Assistance with opening a corporate bank account |
|
Registered Office & Virtual Office |
Provision of a local registered address |
|
Accounting & Compliance |
Ongoing bookkeeping, payroll, and annual reporting |
|
Tax Registration & Filing |
VAT, CIT, and other mandatory filings |
|
Post-Incorporation Support |
Legal maintenance, updates, and renewals |
Start Your Austria Company Formation Today
Austria company formation is an excellent choice for investors seeking stability, EU market access, and a premium business reputation. The country’s robust economy, strategic location, and tax-efficient regime make it a leading European hub for international entrepreneurs.
With our expert legal, accounting, and corporate services, you can establish your Austrian company quickly and compliantly—benefiting from Austria’s prestige and strong business environment.
📞 Contact us today to discuss your Austria company formation requirements and start building your business in the heart of Europe.
Questions & Answers
1. What is the corporate tax rate for businesses in Austria?
The corporate tax rate for a GmbH (limited liability company) in Austria is 25% on all corporate profits. This rate applies to the net income after allowable deductions.
2. How does the income tax system work in Austria?
Austria employs a progressive income tax system with four tax bands, ranging from 0% to 50%. This means that the tax rate increases with higher income levels, ensuring that individuals pay tax according to their financial capacity.
3. What is the standard VAT rate in Austria?
The standard Value Added Tax (VAT) rate in Austria is 20%. This tax is applied to most goods and services, contributing to the country’s overall tax revenue.
4. Are there any exemptions or reduced VAT rates in Austria?
Yes, Austria has reduced VAT rates for specific goods and services, such as a 10% rate for certain food items and a 13% rate for accommodations. Certain industries may also be exempt from VAT altogether.
5. How can individuals and businesses find more information on tax compliance in Austria?
Individuals and businesses can refer to the official website of the Austrian Federal Ministry of Finance for detailed guidance on tax regulations, compliance procedures, and available resources. Consulting with a tax advisor is also recommended for personalized assistance.
Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at[email protected]
1. What are the advantages of forming a company in Austria?
Forming a company in Austria offers several advantages, including a stable economy, a strategic location in Europe, and a highly skilled workforce. Austria has favorable tax rates, particularly for small businesses, and access to EU markets provides additional opportunities for growth. Additionally, the country boasts a solid legal framework that protects foreign investors.
2. What types of companies can non-residents establish in Austria?
Non-residents can establish various types of business entities in Austria, including:
- Limited Liability Company (GmbH): This is the most popular choice for small and medium-sized enterprises.
- Joint Stock Company (AG): Suitable for larger businesses that may seek to publicly trade shares.
- Sole Proprietorship: This can be established by EU residents and requires minimal formalities.
- Branch Office: Non-residents can also set up a branch of their existing foreign company.
3. What are the requirements for company formation in Austria?
To form a company in Austria, you must meet the following requirements:
- A registered office in Austria.
- A business plan detailing the activity and structure.
- At least one director, who can be a non-resident.
- For GmbH, a minimum capital of €35,000, of which €17,500 must be paid up front.
- Registration with the local Commercial Register.
4. Are there any restrictions on foreign ownership in Austria?
In general, there are no restrictions on foreign ownership of companies in Austria. Non-residents can own 100% of a company. However, certain regulated sectors, such as banking or telecommunications, may require additional licenses and compliance with specific regulations.
5. What is the process for registering a company in Austria?
The process for company registration in Austria involves:
- Choosing a company name and ensuring its availability.
- Preparing necessary documentation, including articles of association.
- Opening a bank account to deposit minimum capital.
- Submitting registration forms to the Commercial Register.
- Obtaining a tax ID and registering for VAT if applicable.
- Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at [email protected]
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Austria
Country: Austria
Capital: Viena
Continent: Europe
Language: Austrian German
Currency: Euro
Time Zones: GMT +1
Dial Code: +43
Abbreviations: AT
Helping Your Company Thrive in Austria With us, starting and running a business in Austria will be easy and efficient!
- Full support of the company’s registration in Austria: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.