Guide to Company Incorporation in Austria

1. What is the minimum share capital of an Austrian GmbH (Limited Liability Company)?
Entrepreneurs who wish to establish a Limited Liability Company in Austria must provide a minimum capital of 35.000 EUR. However in order to commence the registration procedure only half of the minimum capital must be paid up. The form of the capital must be previously established and in some cases it may be indicated that the starting capital be a little higher then the minimum required sum.

2. What is the minimum share capital for an Austrian AG (Stock Corporation)?
Incorporating an Austrian Stock Corporation requires a minimum capital of 70.000 EUR. As a requirement at least one quarter of the share capital must be paid up prior to registration. The stock capital is divided into stock with a par value of minimum 1 EUR, or into stock representing a percentage of the stock capital. Founders may choose between registered stock and bearer stock.

3. Are there any special requirements for establishing a GmbH (Austrian Limited Liability Company)?
In order to establish a Limited Liability Company in Austria certain requirements have to be met. Basically an Austrian company must be registered with the Commercial Register in order to come into existence. Prior to engaging in this procedure, however, the founders must take into consideration some legal aspects. An Austrian Limited Liability Company must be set up by one or more persons, individuals or legal entities, who can also be Austrian residents or foreigners. The name of the company which will be incorporated in Austria must be written in Latin characters and contain "GmbH" to denote the limited liability characteristic. The Austrian Limited Liability company must be managed by at least one director, who does not have to be Austrian citizen or resident in Austria and whose authority is clearly established in the Articles of Association. As far as the founder's visit is concerned, the company incorporation can be set up through power of attorney, except opening a bank account which requires a face to face meeting with the bank account titular.

4. How can I register for VAT in Austria?
After the Austrian company submits the application for registration with the Commercial Register it must apply for VAT purposes. The Commercial Register automatically informs the Tax Authorities of the new companies, and in return the tax authorities request that the company file for tax registration, by submission of certain files, provided by the institution. Additionally the applicants are required to submit the articles of association, the opening balance sheet, an excerpt of the company register, an identification card of a managing director and specimen signature of the representative. Within 10 to 14 days the tax number is issued, and simultaneously the VAT number.

5. How can I open a bank account in Austria?
Prior to incorporation, the Austrian Limited Liability company must open a temporary bank account for depositing the initial capital. After obtaining the incorporation certificate the founders must proceed to setting up the permanent bank account. The certificate of formation, along with the memorandum and articles of association of the Austrian company are required for this procedure. Also at least one visit in Austria of the bank account titular is mandatory.

5. How can I recruit personnel in Austria?
A newly incorporated Austrian company that wishes to hire employees has some possibilities to consider. Austria offers a vast range of recruitment agencies, websites specialised in jobs and workforce. An Austrian company is free to create accounts, browse through the list of applicants, or set up collaboration with qualified recruitment agencies which provide best suited services. Also if the new employer desires to hire foreign workforce, there are few restrictions which need to be taken into consideration. Foreign applicants must apply for work permits. The documentation required is extensive and may take some time to complete. All the documents need to be translated into German.

6. What is the average salary in Austria?
The labour regulations of Austria are quite flexible, enhancing employment and productivity development. The benefits of employers are among EU's highest. Also the average salary is one of the highest in Europe, reaching over 2500 EUR per month.

BridgeWest offers Company Registration in Austria