SETTING UP A COMPANY IN AUSTRIA - REGISTER A COMPANY IN AUSTRIA WITH MUMTAZ ASSOCIATES!

Introduction

Austria is generally regarded as a prosperous and sophisticated business centre, and a traditional trading bridge to Eastern Europe and the Balkans. Austria actively welcomes foreign investors, and is at the heart of the Eurozone and European Union. Setting up a company here is relatively straightforward. There is plenty of office and industrial space available, both for short and long term let and we can provide serviced office facilities. However there are important procedural issues to contend with. The company, which may be a partnership or corporation, has to be registered. For corporations (company with limited liability [GmbH] or a stock corporation [AG]) this involves paying a nominal share capital of €35,000. There is also the need to satisfy Austria's "Gewerberecht", or professional requirements for businesses. For more information, - please contact us.

What is the most common type of company in Austria?

A company with limited liability (GmbH) is by far the most usual form of company. A GmbH is a legal entity. Shareholders are not personally responsible for the liabilities of the company, except for the obligation to pay up their capital contributions.

How much share capital is required to establish a GmbH?

Minimum share capital is €35,000, of which at least half, €17,500, has to be paid up in cash.

What other requirements are there for a GmbH?

• at least one shareholder.
• at least one managing director, who does not have to be an Austrian citizen or resident in Austria.
• audit and disclosure requirements may be necessary.
• a local serviced office is advisable, but not a legal necessity, click here for details.

What other types of company are there?

• stock corporation (AG), minimum share capital €70,000, at least two shareholders required.
• general partnership (OHG), unlimited liability for all partners.
• limited partnership (KG), unlimited liability for at least one partner.
• registered civil law partnership (EEG), similar to OHG or KG but suitable for small companies and partnerships.
• cooperative (Genossenschaft), legal entity with flexible membership, no fixed capital, not primarily for profit.
• foreign branch, GmbH and AG companies based abroad may establish a branch in Austria.

What are the formalities regarding incorporation?

The main formalities include:

• drafting of articles of association.
• legalisation of articles of association by notary.
• entry in the commercial register.

What is the regulatory environment like?

Austria is a participant in the Euro and there is free movement of both capital and earnings. It has dual taxation agreements with a number of other countries, in particular all members of the European Union, the USA, Canada and Russia. No industries are closed to foreign investment, although in strategic areas an Austrian solution is sometimes preferred. Corporate taxation is relatively low at 25%. if you would like to contact one of our Austrian corporate tax specialists, and discuss your company formation in Austria in more detail.

Are there financial incentives available-and what about banking facilities?

Full banking services are available which offer a complete range of commercial banking facilities, including those related to acquisitions and the raising of capital. We can help you open a bank account in Austria.

Government incentives include the following:

• investment allowance - 9% of all purchases for depreciable business properties are tax deductible, as are 6% of all software purchases.
• investment incentive- project costs ranging from 15% to 70% are covered.
• pre-market development - incentive of 25% to 50%.
• research allowance – from 12% to 18% of research budgets are deductible where this research will lead to an increase in export revenues.
• industrial research – incentives range from 50% to 60% of incentive-eligible costs dependent on area and.
• size of business.

Mumtaz & Associates can assist you with the following services:

• Incorporation of a GmbH or AG and arrange Notary and Bank Appointments on your behalf.
• VAT Registration.
• Provision of Company Bank Accounts.
• Accounting/Bookkeeping Services.
• Registered Office / Virtual Office Services.

  How can I get more information?

  Please contact us and we will be pleased to discuss matters in greater detail, and register a company in Austria for you in the quickest possible timeframe.