Eternity Law International News Company formation in Austria

Company formation in Austria

September 28, 2022

Finance, commerce, and IT are three of the most sought-after investment industries in Austria, which draws international investors from all corners of the world. The law also supports new businesses, and with the assistance of our Austrian company formation experts, international investors may take benefit from a straightforward and adaptable business enrollment process.

Typology of firms in Austria

The primary law that governs how corporations are based in Austria is the Company Act. The initial stage in forming a corporation in Austria is selecting a legal structure from the list below:

The easiest way to launch an enterprise in Austria is as a sole trader

The basic business structure in Austria is the sole trader, which may only be created by natural individuals. For individuals who want to launch this company, there are no shareholding funds requirements; nonetheless, they have to register their company’s name for trading with the national register and get specific permissions from the authorities.

The most typical kind of corporation is the limited liability company, which can be either private or public

There are two kinds of LLC in Austria:

  • the private business, which needs mandated share funds of €35,000 and at minimum one stockholder who is prohibited from trading the firm’s stock on a stock market;
  • the public business, which may trade its stocks on the stock exchange, also necessitates at least one stockholder and basic share capital of €70,000.

Subsidiaries, branches, and representative offices as legal entities.

International investors engaged in forming a firm in Austria might establish one of four forms of partnerships. Which are the civil law, general, restricted partnership and inactive partnerships.

Any kind of partnership that investors wish to form necessitates at least two founders. In addition, no share capital is necessary for this corporate model.

One strategy that global businesses might take to establish their presence in the Austrian marketplace is to open a branch office. The Austrian firm entirely depends on parental enterprise. This indicates that all decisions about the branch’s management will be made by the main office. The parent company’s actions that require licenses and permissions will be completed by branches in Austria.

Pros of the Austrian branches:

  • the main office is answerable for the activities of the local branch office;
  • necessities for setting such a formation are minimal;
  • a non-native company is allowed to create a corporate banking account in Austria;
  • branch office in Austria could be fully owned by the multinational corporation. It is possible to establish it quickly with the Austrian Trade Register.

The subsidiaries are separate legal institutions from the branches and are often registered as LLCs. As a result, it has the authority to make its own choices and will be given local treatment in the Austrian marketplace. Similar benefits are provided by the Austrian subsidiaries and the branch offices.

The paperwork needed to form a corporation in Austria

The documents that are demanded investors to create a corporation in Austria:

  • based on the national identity of the stockholders, copies of passports or identification cards that must be notarized;
  • the company’s statute documents, which is the Memorandum of Incorporation;
  • a lease agreement that attests to the Austrian address of the firm;
  • data about the firm’s managers or executives, such as copies of passports or identification cards;
  • details regarding each shareholder’s share contribution.

Additionally, the bank account where the startup funds will be placed must be opened by the firm founders.

Our experts can help you deal with enrolling your enterprise if you are drawn to trade activity in Austria.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

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