Company in Austria

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorporation in Austria

Austria is both a thriving and sophisticated business center, and has long been a commercial gateway to Eastern Europe and the Balkans. It’s the fourth richest country in Europe. Moreover, Austria actively welcomes foreign investors by strong export growth and the ease with which one can create a company. Austria sports among the best economic indicators in the euro area and ranks fourth in the ranking of EU countries in terms of per capita income. Its industrial base, which includes an important sub-contracting sector is very diverse (metal industry, mechanical engineering, electrical and electronics industry, chemicals, food processing, high tech…). The Austrian economy depends heavily on foreign trade, which continues to rise as share of the GDP. The main partner of Austria is the European Union, which accounts for almost 2/3 of total trade flows, but the share of Central and Eastern European countries is on the rise.

Types of companies

There are several types of businesses for foreign investors:

• Limited liability company (GmbH)

• Public limited company (AG)

• Partnership

• Cooperative society

• Representative Office

• Branch

• Holding company

Limited liability companies (GmbHs) are the most common corporate status of medium and large businesses.

Tax system

Austria has become even more attractive to investors because it has one of the most interesting tax systems in Europe. The corporate tax is only 25%, tax on actual income is less than 23%, and there are no wealth or business taxes.

Under EU law, the free movement of capital is the rule.

No industry is closed to foreign investment, although in strategic areas, an Austrian solution is sometimes preferred. Foreign investors are offered a wide range of financial incentives in Austria. In particular, deductions for investment and allowances for research costs.

Accounting

Companies are required to prepare a balance sheet, an income statement, and a schedule. According to the company structure, the annual account audit and publication will be mandatory.

Tax rate

•Income tax: 25%, Minimum GmbH and AG tax of 1,092 € the first year,1,750 € for GmbHs the second year and 3,500 € for AGs. • Tax on capital gains: 25% • Tax on royalties: 20% • Income of foreign companies: 25%• Local tax (employees): 3% of gross salary • VAT : 20% •No wealth or business taxes

Minimum capital

35,000 € (50% to be released at creation). Release of 25% (with a minimum of 17,500 € ) if the capital is higher.

Shareholders

A minimum of one associate (one-man GmbH)

Foreign shareholders

Yes

Foreign holding

Yes, a foreign company can become associated with a GmbH provided that it has the legal capacity

Legal obligations

Supervisory board mandatory if the company has more than 50 partners or more than 300 employees and if the capital exceeds 70,000 € . Mandatory auditor if two of the following three criteria are met: Total assets greater than 4,840,000 €turnover exceeds 9,680,000 €, and over 50 employees in the company.

Deadline

4 weeks from the receipt of all documents

Headquarters

Business address, telephone transfer, fax, and mail. Possibility of having a physical office (prices vary depending on demand)

Accounting

Mandatory annual financial report, schedules, and management reporting, based on 5 to 10 transactions on average in the first year.

Company registration procedure

Taxes and finances

Local labor law

Other information