Establishing a Company in Austria: Company Types and the Incorporation Process

Establishing a Company in Austria

Establishing a company in Austria is a strategic step for investors seeking to operate within the European Union under a secure legal framework. The Austrian legal system provides a transparent, predictable and well-regulated environment for commercial activities.

Investors wishing to establish a company in Austria may commence business operations within a relatively short period by completing the procedures prescribed under commercial, tax and administrative law.

Advantages of Establishing a Company in Austria and Investment Opportunities

Establishing a company in Austria offers significant advantages to international investors due to the country’s strong economic infrastructure and high level of legal certainty.
• Access to the European Union internal market
• The ability to operate under the freedom of establishment and the freedom to provide services
• A highly developed financial and banking system
• Legal predictability and contractual security
• Investment incentives and tax advantages

In particular, the freedom of establishment guaranteed under EU law grants investors the right to establish companies and conduct commercial activities in Austria.

Types of Companies in Austria: Which Legal Structure Should Be Chosen?

Various legal structures are available to investors wishing to establish a company in Austria.
Limited Liability Company (GmbH)
• Minimum share capital: EUR 35,000
• Formation before a notary is generally required
• The company acquires legal personality upon registration
• A separate trade licence may be required for the intended business activity

Partnerships (OG / KG)
• At least two partners are required
• In an OG, the partners have unlimited personal liability
• In a KG, a distinction is made between general partners and limited partners
• Registration in the Commercial Register is mandatory

Sole Proprietorship (Einzelunternehmen)
• No minimum capital requirement
• The proprietor has unlimited personal liability for all business debts

The choice of legal form is decisive in terms of the investment’s risk profile and tax planning.
Public Limited Company (AG – Aktiengesellschaft)

A public limited company is suitable for large-scale investments and enterprises planning a public offering.
• Minimum share capital: EUR 70,000
• Share capital divided into shares
• Shares are generally transferable
• A management board (Vorstand) and supervisory board (Aufsichtsrat) are mandatory

The AG is one of the strongest corporate forms in terms of corporate governance and the ability to attract investors.
European Company (SE – Societas Europaea)

The European Company is a special legal form designed for companies intending to operate across the European Union.
• Ability to operate throughout the EU
• Centralised management structure
• Advantages for cross-border mergers and restructurings

The SE is particularly suitable for multinational companies.
Cooperative (Genossenschaft)

Cooperatives are established to promote and protect the common economic interests of their members.
• Based on cooperation and solidarity among members
• Profit generation is generally secondary
• Commonly used in agriculture, finance and among small businesses

Association (Verein)

Although an association is not a commercial company, it may carry out certain economic activities.
• Non-profit structure
• Social, cultural or economic objectives
• Commercial activities are permitted only within certain limits

Branch Office (Zweigniederlassung)

A branch office is commonly used where a foreign company wishes to operate directly in Austria.
• It does not have a separate legal personality
• It remains legally dependent on the parent company
• Registration in the Commercial Register is mandatory

This structure is frequently chosen by companies headquartered in Türkiye when entering the Austrian market.
Representative Office (Repräsentanz)

A representative office is suitable for companies wishing to conduct marketing and market research without engaging in direct commercial activities.
• It may not generate commercial income
• It generally has no authority to conclude contracts
• Its purpose is limited to market research, promotion and establishing business contacts

Legal Assessment

The choice of legal structure in Austria directly affects not only the incorporation process, but also:
• the applicable tax regime;
• the scope of liability;
• the management structure; and
• the company’s capacity to conduct international business.

How Does the Company Formation Process Work?

Under Austrian law, the company formation process consists of several prescribed stages:
• Obtaining legal and financial advice, including support from the Austrian Economic Chamber (WKO)
• Filing a start-up declaration and applying for available exemptions under the Austrian New Business Promotion Act

(NeuFöG)
• Preparing the articles of association
• Obtaining notarisation, particularly where required for a GmbH
• Registration in the Commercial Register (Firmenbuch)
• Registration of the trade or business activity (Gewerbeanmeldung)
• Registration with the relevant social security institutions
• Notification to the competent tax office (Finanzamt)
• Obtaining any required municipal or local authority permits

In particular, registration of the company in the Commercial Register and completion of the relevant trade registration are essential for the company to operate lawfully.

How Long Does It Take to Establish a Company in Austria?

The duration of the incorporation process depends on how quickly the required documents are prepared and whether the procedures are completed correctly.

Typical timeframes are:
• Commercial Register registration: several business days
• Full incorporation process: approximately one to three weeks
• Including banking and operational arrangements: approximately two to four weeks

Professional legal and tax assistance may significantly reduce delays in the process.

Vergi ve Muhasebe Sistemi

Companies in Austria may be subject to the following taxes:
• Corporate income tax (Körperschaftsteuer)
• Personal income tax, particularly for sole proprietors and partnerships
• Value added tax (Umsatzsteuer)

In addition:
• VAT exemptions may apply up to certain turnover thresholds, particularly for small businesses
• Businesses are subject to ongoing bookkeeping, accounting and record-keeping obligations

Since breaches of tax obligations may result in administrative penalties, professional accounting and tax support is strongly recommended.

Is It Possible to Establish a Company Without Being Present in Austria?

Under certain conditions, a company may be established remotely.
• Formation procedures may be completed on the basis of a power of attorney
• Chamber of commerce and notarial procedures may be carried out through an authorised representative
• In some cases, physical presence may still be required for opening a bank account or completing identity verification procedures

For investors from outside the European Union, residence permit and work permit requirements must also be taken into account.

Documents Required to Establish a Company in Austria

The main documents typically required include:
• Passport and identification documents
• Criminal record certificate, particularly for applicants residing abroad
• Şirket ana sözleşmesi
• Capital declaration and bank confirmation
• Information concerning directors and shareholders
• Evidence of professional qualifications, where required
• Residence and work permits for non-EU investors, where applicable

In certain regulated sectors, proof of professional competence or qualification (Befähigungsnachweis) is also mandatory.
Bilateral Agreements Between Türkiye and Austria

Several bilateral agreements between Türkiye and Austria are relevant to investors, including:
• The Double Taxation Agreement
• The Bilateral Investment Protection Agreement
• Social security agreements

These agreements may reduce the tax burden on investors and enhance legal certainty in cross-border activities.
Profesyonel Destek

The process of establishing a company in Austria requires coordinated legal, financial and administrative planning. Professional support may include:
• Company incorporation and registration
• Commercial Register and trade registration procedures
• Tax and accounting advice
• Social security and employee registration procedures
• Bank account opening and financial structuring

Access to incentives available under NeuFöG depends on the process being structured and managed correctly.
Professional advice is therefore recommended in order to determine the most suitable legal structure for your company and business model.

For further information on establishing a company in Austria, you may contact our specialist team at our Vienna office.
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