Advantages of registering a company in Austria

The Austrian Republic is a developed country that is located almost in the very center of Europe. This means that many transport routes intersect on the territory of the state, which connects important economic parts of the European Union. This is one of the reasons why many foreign businessmen are interested in registering a company in Austria. You can learn more about the conditions for doing business in Austria by reading this material.

Austria shares borders with countries such as Switzerland, Liechtenstein, Italy, Slovenia, Slovakia, Hungary, the Czech Republic, and Germany. The country is known for its loyal taxation policy and certain benefits for foreign businessmen, but it is not officially considered an offshore zone.

Company registration benefits in Austria

1. Residents and non-residents can open bank accounts in any currency in Austria.
2. The main income tax is 25 percent.
3. It is obligatory to hold meetings once a year.
4. No restrictions on the place of meeting – can be held exclusively by telephone.
5. It is obligatory to submit reports annually.
6. Information about the company is available and the register of shareholders is open.
7. In the presence of a nominee service, identification of the true owner is difficult.
8. The name of the company must end in the form of an enterprise (AG, GmbH, etc.)

Why is it worth buying a ready-made business in Austria?

• there is no need to allocate time to collect the documents necessary for the establishment;
• there is no need to wait for the approval of the regulatory body;
• the date of incorporation of an Austrian shelf company can be used as the date of commencement of operations;
• you have a ready open corporate bank account;
• much less paperwork;
• you can immediately start a business in Austria
• the ability to conduct legal business immediately after the company is re-registered with a new owner;
• to complete the transaction, the buyer is required to have a minimum package of documents: a copy of the passport and a receipt for payment of utilities.

Company opening in Austria

The registration of an Austrian company begins with the choice of the form of the enterprise. There are five basic shapes to choose from:

• General Partnership – OG;
• Limited Partnership – KG;
• JSC – AG;
• LLC – GmbH; and
• Einzelunternehmer.

AG (JSC) registration requirements in Austria

For those who plan to register an open joint-stock company in Austria, the following conditions apply:

• the minimum capital must be at least 70,000 €;
• the issue of both ordinary and preferred shares is allowed;
• the board of directors must have 1 or more directors (individuals);
• shareholders – at least 2, the maximum number is not limited;
• any person can be a shareholder (both legal and physical);
• the presence of a secretary is also optional;
• there are no requirements for the residency of directors, shareholders, and even a secretary;
• information about the beneficiaries is not disclosed.
• The law does not require companies to have a local registered office.

Requirements for registration of LLC in Austria

If you decide to establish an LLC in Austria, please note that in this case, all activities will be available to you, except for politics, banking, and insurance.

According to Austrian law, the following requirements are imposed on the GmbH:

• minimum capital of 10,000 €;
• the Board of Directors must include at least 1 individual;
• it is required to have 1 shareholder (and more);
• legal entities can be shareholders.

It is also worth noting that there are no requirements for the residency of directors and secretaries in the country.

After opening a company in Austria, it is possible to conduct activities within the framework of legal activities both in the territory of the jurisdiction and outside.

Taxation

• The income of a resident company is subject to a tax rate of 25%.
• Income taxes of registered joint-stock companies in Austria vary from 1092 € in the first year of operation of the company, and an increase in the rate to 3500 € from the second year.
• VAT – 20%.

If you are interested in registering a company in Austria, our specialists are ready to provide the necessary support. You can use any form of communication with us and order legal advice on registering a business in Austria.

A royalty tax of 20% applies when the license fee is paid to a non-resident (excluding residents of the EU and Switzerland).

Company registration in Austria: documents

• copies of passports of all founders certified by a notary;
• document to confirm the place of residence of the founders;
• a list of prospective company names;
• list of planned areas of activity;
• sources of funds.