Company Formation in Austria

Austria is arguably one of the most attractive destinations for Hungarian entrepreneurs looking to start a business abroad, for several reasons. Its proximity to Hungary makes any travel required between the countries for administrative matters quick and convenient, while even longer-term work or business obligations in Austria allow for easy visits home. In addition, Austria offers a highly developed economy, political stability, and a tax system that is favourable for the establishment of new businesses, making it increasingly popular among Hungarian entrepreneurs.

Forming a company in Austria can be an excellent solution both for those planning to operate a business there on a long-term basis and for those wishing to benefit from the country’s advantageous tax framework for new businesses. For this reason, Austrian company formation is particularly popular among asset management companies.

Who Can Establish a Company in Austria?

Only a few requirements must be met to establish a company in Austria, making the process generally straightforward and hassle-free for Hungarian citizens.

To establish a business, the founder must:

Be at least 18 years old;

Have full legal capacity; and

Be a citizen of an EU Member State, an EEA State, or Switzerland.

Our international law firm can provide prompt assistance with any special legal issues that may arise.

Looking for an Austrian company formation lawyer who speaks Hungarian? Contact us today.

How Does Company Formation in Austria Work?

The company formation process is relatively simple. However, beside conducting initial research online, it is important for every entrepreneur who considers forming a company in Austria to seek professional assistance. With the support of our international law firm, you can not only avoid the stress associated with administrative procedures, but also ensure that you choose the corporate structure best suited to your needs.

The steps needed for Forming a Company:

Choosing the appropriate legal form of the company;

Selecting the company name and registered office;

Opening an Austrian bank account;

Registering the company based on the prepared documentation;

Registering with the Austrian tax authorities.

Types of Companies in Austria

Depending on the number of participants, the nature of the business activity, the liabilities involved, and intended financing frameworks, several corporate structures are available to entrepreneurs wishing to do business in Austria.

1.GmbH (Gesellschaft mit beschränkter Haftung) – Limited Liability Company

As in most countries, the GmbH is the most popular form of business entity in Austria. In this structure, the owners or shareholders bear no personal liability for the company’s obligations.

1.2 Even Easier for Startups

The statutory minimum share capital required for a GmbH in Austria is EUR 35,000. However, the so-called “founding privilege” (Gründungsprivilegierung) allows a company to be established with an initialcapital contribution of only EUR 5,000.

The qualifying condition for this is that the share capital must be increased to EUR 35,000 within ten years of incorporation. This simplified start-up option has made the GmbH particularly popular among startups.

In certain circumstances, parts of the incorporation process may be completed remotely and without the founders being physically present before an Austrian notary. The process can be completed online and, oftentimes with the assistance of a Hungarian notary public.

AG (Aktiengesellschaft) – Public Limited Company

If the founders intend to raise substantial capital or eventually list the company on a stock exchange, establishing a public limited company (AG) would be advisable.

Shareholders are entitled to parts of the company’s share capital through shares, but they are generally not liable for the company’s obligations. The minimum share capital required to establish an AG is EUR 70,000, of which at least one quarter must be paid up upon incorporation.

Offene Gesellschaft (OG) – General Partnership

An OG is an unincorporated business structure consisting of two or more natural or legal persons. The partners are jointly and severally liable, without limitation, for the obligations of the partnership.

KG (Kommanditgesellschaft) – Limited Partnership

The KG is comparable to a Hungarian limited partnership. At least one general partner and one limited partner are required. The general partner bears unlimited liability for the partnership’s obligations. The limited partner’s liability is generally limited to the amount of capital contributed.

Hungarian Lawyer in Austria – Assistance with Company Formation

Would you like an experienced legal team to support you throughout the Austrian company formation process?