DOING BUSINESS IN AUSTRIA

Doing business in many countries of the European Union differs, in particular, Austria sets its own peculiarities. So, many people associate this country with a leading tourist center of a ski resort, at the same time, people from the business sector associate this country with the opportunity to open and develop their own business from a commercial point of view in the field of service provision.

But it should be noted that registering your own business in Austria is not easy enough. In particular, it depends on the specifics of local legislation, which puts forward a number of requirements for opening one's own business.

Basic requirements

• Achievement of a person who wants to create a business 18 years old.
• Availability of authorized capital, which is necessary for conducting this or that business. The amount of capital depends on the organizational and legal form of business.
• Qualification. Not every country has requirements for existing qualifications when opening a business. In Austria, it is generally necessary to have a diploma in the relevant field of activity, which the person wants to engage in.
• Permanent place of residence.
• Absence of dangerous diseases. This is also a specific requirement that you will not meet in every country in Europe and the world as a whole.
• Absence of problems with the law.

Organizational and legal forms of doing business

The most common forms of doing business in Austria are the Limited Liability Company (similar) and the Joint Stock Company. The difference in these two types of organizational legal forms, except for corporate aspects between participants (shareholders), is the size of the authorized capital and the number of persons who can be founders. It is also possible to register as a Partnership with limited or unlimited restrictions.

Regardless of the chosen form of management, the founder must have founding documents that are signed and notarized. Later, these documents are entered in the Commercial Register of Austria.

Both residents and non-residents can use the specified forms of management. A form of individual entrepreneurship is available for Austrian citizens. This is something like our status as an individual entrepreneur. But foreigners cannot use this form, it is intended exclusively for Austrian citizens.

After choosing the form of management, you should choose the form of activity. Forms of activity in Austria are quite an interesting aspect, because there are only four of them:

1. Craft.
2. Destinations that do not require permission.
3. Destinations requiring permission.
4. Free activities. The list of such types can be found on the website of the Ministry of Labor. If a person wants to engage in one of these types of activities, without having a diploma in the relevant profession, such a person can count on obtaining a license and carry out his activities on the basis of such a license.

Taxes in Austria

The tax system for doing business is also not easy from the point of view of burden. Depending on the income received, it is necessary to pay from 30 to 55%. That is, the system of taxation is progressive - the higher the income, the more taxes will have to be paid.

What types of activities are prohibited in Austria for foreigners?

A foreigner in Austria cannot open a business in the field of lotteries, energy, provision of postal and transport services, in the field of insurance and provision of banking services.

In conclusion, if you are considering the possibility of doing business in Austria, it is necessary to carry out appropriate legal preparation for the correct launch of your business to prevent adverse consequences or complications in the future.