Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
Business Setup and Support in Austria
Austria – the business heart of Europe with a predictable legal environment and modern infrastructure.The country, which combines the geopolitical benefits of a Central European location with clear legal regulation, continues to attract the attention of entrepreneurs and investors.
So, let’s take a detailed look at key services for companies, the updated requirements of 2025, and specific aspects of Austrian law, knowledge of which is critical for successful business.
Company registration
Main forms of business in Austria
Gesellschaft mit beschränkter Haftung (GmbH) – the most popular form for small and medium-sized enterprises (limited liability legal entity).
- Number of founders: From 1 to 50 participants.
- Authorized capital: €35,000, of which a minimum of €17,500 must be paid in cash prior to registration.
- Management: Executive body: 1+ directors (Geschäftsführer).
- Supervisory body: Supervisory board (Aufsichtsrat) – mandatory for >50 employees.
- Document flow: Memorandum of Association (GmbH-Vertrag) – notarized, Articles of Association (Satzung), registration in the Commercial Register (Handelsregister).
Stock corporation (AG) – public company, suitable for large businesses (legal entity).
- Number of founders: ≥1 (100% ownership by one person is possible).
- Authorized capital: €70,000, of which 25% (€17,500) must be paid up prior to registration.
- Management: Executive body – Board of Directors (Vorstand), Supervisory body – Supervisory Board (Aufsichtsrat) – mandatory and General Meeting of Shareholders (Hauptversammlung).
- In this case, shares can be issued both in bearer and registered form, and there is also the possibility of public placement of shares on the stock exchange.
Genossenschaft (Cooperative) – to unite the interests of members (for example, farmer cooperatives).
- Authorized capital: Not required, depends on the charter.
- Management: Cooperative members have equal rights (regardless of share) and each member has 1 vote.
- Sole proprietorship (Einzelunternehmer) – for individual entrepreneurs.
- It has a simple establishment procedure (registration in the Gewerbeordnung) and low registration costs.
- Despite unlimited liability, there are limited opportunities to attract investment.
Branch – a branch of a foreign company in Austria.
- Mandatory registration in the Handelsregister and appointment of a representative (Zweigniederlassungsleiter).
- At the same time, the branch does not create a separate legal entity. Taxes are paid in Austria, but the parent company remains non-resident.
GmbH registration procedure
Previous steps
- Choosing a name:
Check in the Handelsregister for uniqueness.
Including the form (GmbH) in the name.
Prohibition on the use of generic terms (e.g. “Bank”, “Versicherung”).
Registered office address: Must be in Austria. Alternatively, you can use a virtual office (see section 4 for more details).
- Preparation of documents
GmbH-Vertrag – signed by the founders and a notary. Includes:
- Founders’ data (name, address, passport data).
- The amount of contributions from each founder.
- Statute (Satzung).
Founders’ documents:
- Copy of passport (for EU citizens).
- Apostille passport (for non-EU residents).
- Power of attorney (if documents are submitted by a representative).
- Proof of contributions (Bank statement of the contribution of €17,500 and Contribution Agreement (Sacheinlagevertrag) – if the contribution is not in cash).
- Registration in the Handelsregister
- Submission of documents via the Handelsregisterportal or through a notary.
- Verification of documents by the registrar (after 1–4 weeks).
- Payment of duty: €400–€800 (depending on capital).
- Obtaining an extract from the Handelsregister (extract from the register).
- Additional steps
- Registration at the Finanzamt (tax office):
- Obtaining a UID (tax number).
- Filing the first declaration.
- Opening a bank account (required for confirmation of contributions).
Update 2025
Digital registration
Submission via the Unternehmensserviceportal is mandatory from 2025. This has several advantages, such as reducing the registration time from 4 weeks to 5 working days, as well as the possibility of remote signing of documents (electronic identification).
The main requirements are a qualified electronic signature (e.g. Austrian Citizen Card) and access to the Handelsregisterportal.
Simplified procedure for startups
GmbH-light:
- Authorized capital: €10,000 (instead of €35,000).
- All you need is €5,000 in cash.
- Simplified registration procedure (without a notary).
Conditions:
- The company must be innovative (e.g., IT, biotech).
- Founders are residents of Austria or the EU.
- Mandatory online registration
From 2025, all new companies must be registered via an online portal. The exception is sole proprietorships (registration in the Gewerbeordnung remains offline).
Opening a bank account
Document requirements
For residents of Austria
Documents:
- ID card or passport.
- Company registration documents (extract from the Handelsregister).
- Business Plan (for new companies).
For non-residents
Additional documents:
- Apostille passport.
- Power of attorney certified at the Austrian consulate.
- Proof of source of income (e.g. contracts, bank statements).
- Business Plan (detailed, with financial forecasts).
Banks in Austria for business
Traditional banks
Raiffeisen Bank:
- The largest branch network.
- Packages for SMEs: from €15/month.
Requirements:
- Company registration in Austria.
- €1,000 in the account to avoid fees.
Erste Bank:
- Popular among startups.
- “Erste Business” package: €10/month.
- Online banking and mobile app.
Austria Bank:
- Specializes in corporate clients.
- “Premium” package: €50/month.
Digital banks
N26 Business:
- No commissions for basic transactions.
- Opening via the app.
- Limit: maximum balance €50,000.
Revolut Business:
- Multicurrency accounts.
- Cost analytics.
- Packages: from €0 to €100/month.
Opening procedure
- Preparation of documents.
- Branch registration (for traditional banks).
- Interview with a manager (for new companies).
- Waiting (1–4 weeks).
Problems for non-residents
Denial of service – banks may refuse if there is a high risk of money laundering and an unknown source of income.
With this in mind, we recommend using digital banks (N26, Revolut) and providing a detailed Business Plan.
Update 2025
AML rules
Obligatory UBO Register:
- Mandatory registration of beneficial owners in the UBO-Register.
- Banks check this register before opening an account.
Transaction notifications:
- Banks are required to report transactions >€10,000 to the FMA.
- Digital KYC
Electronic identification:
From 2025, you can identify yourself via an app (for example, ID Austria) – this significantly reduces the time it takes to open an account.
Virtual office
Virtual office services
Basic services
Business address in Vienna (e.g. Flexi Offices, Servcorp) – used for registration in the Handelsregister.
Receiving correspondence: Sorting, scanning, forwarding (by mail or email).
Legislative nuances
Registration address – must be valid (not a PO Box). You can also use a virtual office if it has a physical presence.
Please note, that the registrar may require proof (e.g., lease agreement).
Tax residence
The main criteria are the center of management (where strategic decisions are made) and the place of registration. Using an Austrian address can establish residency in Austria.
In return, the company will pay taxes in Austria and will be able to access Austrian tax benefits.
Accounting and taxes
Basic requirements
Accounting standards
UGB (Unternehmensgesetzbuch) – the basic law for accounting in Austria, requirements for accounting, auditing, and reporting.
K3/K4: Simplified standards for small companies.
Taxes
Corporate tax (Körperschaftsteuer)
- 25% is the standard rate (increased from 23% in 2024).
- 23% — for profits directed towards investments in R&D (conditions: expenses >€50,000/year).
- Calculation: Tax benefits are subtracted from earnings before tax (EBT).
VAT (Value Added Tax)
2025 rates:
- 20% is the standard rate.
- 13% – reduced (for example, for repair services).
- 10% — super reduced (for example, for food products).
- 0% – for exports, certain services (e.g., education).
Filing a declaration:
Monthly/Quarterly: Depends on turnover (if >€35,000/year — monthly).
Deadlines: By the 15th of the month following the quarter/month.
Income tax (Einkommensteuer)
For sole proprietor: Rates are progressive (from 0% to 55%). The declaration is filed by April 30.
Update 2025
E-invoicing
It is mandatory that from 2025, all B2B transactions >€25,000 must be executed in digital format (to automate accounting and reduce errors).
Format: XML or PDF/A-3, compatible with FinanzOnline.
Carbon Tax
New CO₂ emission tax for industrial companies (>€50,000 emissions/year).
Rate: €45/tonne CO₂ (from 2025, increasing to €65 by 2030), submission via Emissionsregister.
Digital Reporting
It is mandatory to submit financial reports via FinanzOnline and have a qualified electronic signature.
Tax benefits
R&D discounts
130%R&D costs can be included in expenses provided that the project must be registered with the FFG.
Investment Allowance
10%from the cost of new assets (equipment, IT) can be deducted from tax.
Vienna Tax Incentives
Benefits for companies in Vienna include a reduced income tax rate (23% instead of 25%), as well as grants for hiring personnel.
Due Diligence and financial monitoring
Types of Due Diligence
Legal Due Diligence
The goal is to identify legal risks and verify the validity of documents.
Procedure:
- Analysis of the charter and agreements.
- Checking court cases (via Justizdatenbank).
- Intellectual property check (trademarks, patents).
Financial Due Diligence
The goal is to assess the financial condition and identify hidden liabilities.
Procedure:
- Balance sheet, P&L, cash flow analysis.
- Audit according to AS (Austrian standards).
- Debtors/creditors assessment.
Tax Due Diligence
The goal is to check tax history and audit risk.
Procedure:
- Analysis of tax returns (last 3–5 years).
- Verification of VAT invoices.
- Consultation with a tax consultant.
Operational Due Diligence
The goal is to evaluate business processes and analyze competitors.
Procedure:
- Interviews with managers.
- Production/office inspection.
- SWOT analysis.
Due Diligence Process
- Pre-DD – NDA (Non-Disclosure Agreement) and Request List.
- Data Room – providing access to documents (virtual or physical).
- Analysis – 2–8 weeks (depending on complexity).
- Report – a detailed report with risks and recommendations.
Financial monitoring
Task:
- Control over the company’s financial condition.
- Early detection of problems (e.g., cash pit).
Tools
Software:
SAP Business One.
DATEV (popular in Austria).
Indicators:
Cash flow, EBITDA, debt ratio.
Regulatory requirements
FMA:
For financial institutions, quarterly reporting is mandatory.
Transparency Register:
Mandatory reporting on UBOs.
Key recommendations for 2025
- Use the Unternehmensserviceportal and FinanzOnline platforms for reporting.
- Implement E-invoicing to optimize processes.
- Explore R&D grants through AWS and FFG.
If you are planning to open a business in Austria or are already operating and need legal support, contact Prikhodko & Partners.
We guarantee a professional approach, meeting deadlines, and effective solutions for your business.
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