Company Types in Austria
This form of company corresponds to a Slovak limited liability company (s.r.o.) and is the most popular company type in Austria. The minimum share capital is €25,000.
This form of company corresponds to a joint-stock company. The minimum share capital is €100,000.
This form of company is comparable to a Slovak limited partnership (komanditná spoločnosť).
Taxation in Austria
Doing Business in Austria
Austria offers a stable, prosperous economy at the heart of Europe, with close links to Germany, Central and Eastern Europe and the Balkans. For businesses from Slovakia, Vienna is just a short trip from Bratislava, which makes Austria a natural next step for expansion. Austrian law and administration are thorough, however, so preparation is important.
The GmbH as the Main Vehicle
The Austrian GmbH, a limited liability company, is the most widely used corporate form for small and medium-sized businesses. It offers limited liability and a clear legal framework. Formation involves a notarial deed, payment of the required share capital and registration in the Austrian commercial register. The company also needs at least one managing director, whose role carries significant legal responsibility.
Before You Start
- Decide on the business activities and whether a trade licence is required
- Arrange a registered address in Austria
- Prepare identification and other documents for shareholders and directors
- Plan how the share capital will be paid
- Check whether membership of the Austrian Economic Chamber applies
Trade Licences
Many activities in Austria require a trade licence, and some regulated trades require proof of qualifications. In such cases, a qualified managing director or employee may need to be appointed. Checking these requirements early can prevent delays.
Tax and Compliance
Austrian companies are subject to corporate income tax, with a minimum tax payable in some cases, as well as VAT and payroll-related obligations. Accounting and filing requirements depend on the size of the company. Rates and thresholds change periodically, so the current rules should always be checked.
Cross-Border Considerations
If you live in Slovakia or another country and manage an Austrian company, consider where the company is effectively managed, as this can affect its tax residence. The double taxation treaty between the countries concerned will also be relevant.
Local Support
Communication with Austrian authorities is in German, and local expertise helps ensure filings are correct.
If you are planning to set up a company in Austria, contact eTuls. We can guide you through formation and provide ongoing accounting and tax support.
Corporate income tax is charged at 25%. For a GmbH, the minimum tax (payable as a flat-rate licence tax) is €437.50 per quarter (€1,750 a year). For a newly incorporated company, it is €125 per quarter for the first five years and €250 per quarter for the five years after that. The minimum tax for an AG is €875 per quarter (€3,500 a year). Dividends are taxed at 25% for companies and 27.5% for individuals.
The standard VAT rate is 20%.
In subsequent years, fees are payable for the registered office, the annual companies register filing and bookkeeping. Bookkeeping starts from €150 a year, depending on the number of entries and the complexity of the work.