Open Company Branch or Subsidiary in Austria

There are many business types that may be set up by foreign and Austrian entrepreneurs, each having advantages and disadvantages. Most of the companies are required to register with the Austrian Commercial Register. A foreign company, wishing to extend its activities may open a branch in Austria, enjoying non-discriminatory treatment. A branch has to be registered with the commercial register, as an ordinary Austrian company. Registering an Austrian branch is completed in a slightly longer period of time due to the complex documentation that needs to be provided.

Preliminary activities prior to registering company branch in Austria
Prior to registering an Austrian company branch articles of association, or foundation agreement needs to be created in order to establish the foundation of the branch. The managing board of the foreign parent company must appoint a person to represent the Austrian branch and carry out the administrative procedures. A bank account should be opened for future transactions and documentation needs to be prepared for notarization. All documents must be translated into German.

Registering a company branch in Austria with the Commercial Register
In order to function legally and to be able to engage in business activities the Austrian company branch must be registered with the Commercial Register. In order to do that the representative of the company authorized to carry out administrative procedures, must submit an application containing proof of legal existence of the foreign parent company and foundation act of the Austrian company branch, specimen signatures, address, social capital and other information. Usually the registration process is quickly completed, having as result issuance of the registration certificate, or a request for additional information.

After registration the company branch must obtain VAT registration number, However after the registration certificate is issued the Commercial Register automatically informs tax authorities of the formation of the new company. The institutions request the company to file for registration. The representative of the company must file an application containing foundation agreement, certificate of registration with the Commercial Register, parent company information etc. As a result the Austrian company branch is issued a statistical number and a VAT number simultaneously. If the Austrian branch has employees, they must be registered for social security. The process is done electronically, each employee applying for an account which contains information on the health insurance.

How long does it take to set up an Austrian company branch?
Registering an Austrian company branch is a rather long process, implying a series of procedures that take time and effort to complete. Notarizing the documentation required for registration is usually completed in 4 working days, and most of the procedures are completed in one day. However, registering with the Commercial Register of Austria is done in one week, but the request of additional information may cause delays. Obtaining a statistical number and registering for VAT may take another 12 days. The formation process of an Austrian company Branch is usually completed in maximum one month.

BridgeWest offers Company Formation in Austria