Company Registration in Austria
The conditions for registering a company in Austria are that applicants must be over eighteen years old, have sufficient financial capacity for investment or company registration, have no criminal record, and possess German language skills as well as work experience in their field of investment. Types of companies in Austria include the following:
- Limited Liability Company (GmbH)
- Individual Investing in Austria
- Opening a Subsidiary in Austria
In a public joint-stock company, the minimum capital is at least €70,000, while in a private company, it is at least €4,000. However, the general cost for Company Registration in Austria for establishment is €35,000. Applicants can initially receive temporary residency for one year by obtaining a work permit in Austria and then extend it for an additional two years.
You can contact us for more information regarding immigration to Austria and investment in Austria to benefit from a free consultation with the advisors at Malekpour Migration Institute.
Advantages of Company Registration in Austria
One of the most important points in Company Registration in Austria is the advantages that can be obtained through this method, which include the following:
| Stable economy and strong political system | Advanced and efficient government |
| Using very low-interest loans | Affordable labor costs |
| Low corporate tax rates | Cooperation between business and science |
| Using free health insurance | Having international accounts |
| Ability to bring all family members with you | International communication and presence in the Schengen and European Union |
| Reliable legal system | |
| Creating a profitable business in a very safe country for investment | Free education for the applicant and companions at university and pre-university levels |
Conditions for Registering a Company in Austria
Many individuals looking to immigrate to Austria choose the method of residency through investment due to the suitable investment market in this country.
If you possess a passport from one of the EU countries, you can start your company in this country without a permit. However, if you are outside of the EU, you must obtain a permit, and for this permit, the following conditions must be met:
- Being of appropriate age (over 18 years old)
- University degree at least a master’s degree or bachelor’s degree
- German language certificate
- Relevant work experience
- No criminal record
Characteristics of the Business Plan for Establishing a Company in Austria
One of the requirements for Company Registration in Austria is a business plan. This business plan, includes all the information about your company. This plan must be approved by the Austrian government to allow you to register a company. The plan primarily needs to be written by the applicant themselves.
However, since most applicants do not know the principles and foundations of writing this plan, they seek assistance from lawyers and business consultants. You can also purchase a prepared plan that has been written by someone else. Our business consultants at Malekpour Institute will be with you from start to finish in preparing the business plan of your choice and can take care of all the steps in preparing your business plan.
- Strong business plan, innovative and creative
- The plan must be approved by the Austrian government
- The plan must be primarily written by the applicant himself
- It must include all information about the applicant’s company
Types of Companies in Austria
For company registration in Austria, you must first decide what type of company you want to register in this country. To choose this, it is necessary to be aware of the various types of companies in Austria. These include a public limited company (AG), limited liability company (GmbH), general partnership (OG), limited partnership (KG), silent partnership (stG), registered civil partnership (EEG), European company (SE), sole proprietorship, and branch or representative office of a foreign company.
Limited Liability Company (GmbH)
The most common form of company registration in Austria is the limited liability company (GmbH). A GmbH, or limited liability company, is a legal entity and thus has its own legal identity. This type of company in Austria can have specific rights and obligations, and can sue or be sued as a legal person.
It can be registered by a single person or by multiple people, in which case a partnership agreement is required to establish this type of company. A limited liability company can take two forms:
- The public limited company, known as an AG, also requires at least one shareholder and a minimum share capital of €70,000. In contrast to the GmbH, the AG can trade its shares on the stock exchange.
- The private company, known as the GmbH, must be formed by at least one shareholder and cannot trade its shares on the stock exchange. The minimum share capital is €4,000.
| Type of Company | Capital | Requirements | Stock Market Status |
|---|---|---|---|
| Public Limited Company | Minimum €70,000 | One shareholder | Can trade its shares on the stock exchange |
| Private Limited Company | Minimum €4,000 | One shareholder | Cannot trade company shares on the stock exchange |
Sole Proprietorship in Austria
Sole trading is the simplest form of conducting business in Austria. For those who want to set up this form of business, there is no requirement for shared capital; however, the person must register their trade name with the company registry in Austria and obtain specific permits.
Establishing a Subsidiary in Austria
Foreign companies can establish a subsidiary in Austria, an independent entity—usually a limited liability company—that operates like a local business.
Foreign investors can also form partnerships. There are four types: general, limited, dormant, and civil law partnerships. All require at least two founding members, and there is no minimum capital requirement for these partnerships.
Open Partnership Company (General Partnership) or OG
Another form of business available for foreign companies is the general partnership. In this type of company, all partners have specific responsibilities. One of the partners must prove their competence to bear the responsibility for registering the company. This company will be a legal entity.
Limited partnership or KG
Another form of business available for foreign companies is the limited partnership. In this arrangement, the applicant must have at least one partner, and that partner takes on some of the responsibilities. If the applicant has more than one partner, those additional partners will be limited partners, meaning their responsibility is solely focused on the amount of their investment.
Passive partnership or STAGES
This is not a legal entity; partners can only invest in the company but have no responsibilities, and all things are the responsibility of the owner of the company. This type of company does not have any obligation to register commercially.
Partnership in civil law
This company is not an independent legal entity. The process of establishing this company is shorter and easier than for other companies. This type of company is suitable for those wishing to make temporary investments.
Steps for Company Registration in Austria
An important part of registering a company and obtaining residency in Austria through company registration is having a business plan. The business plan must be written by the applicant themselves. There are institutions specialized in writing business plans that can assist applicants in drafting it. This economic justification program must also be approved by the Austrian Chamber of Commerce. Registering a company in Austria has steps and regulations, which are presented below:
- In the first step of company registration in Austria, you must determine the type of company you wish to request.
- In the second step, to register a company in Austria, you need a trade name which was provided in the relevant section.
- The third step involves preparing documents, which must be prepared as follows:
– Copy of all pages of the applicant’s passport and those of his/her companions
– Translation of the applicant’s educational documents with its embassy approval, which is done at the Austrian Embassy in Tehran.
– Translation of the marriage contract for married applicants with its embassy approval
– Translation of the applicant’s clean record with its embassy approval
– Lease or document of the desired property where your company will be located
- After this step, you must specify the amount of capital for the company and how shares are divided among partners, determining the members of the company, which will be stated in the company’s articles of association.
- Preparing the official company seal
- If you are not present in Austria, you must appoint a lawyer or legal representative to carry out these matters.
When choosing your company’s name in Austria, ensure it’s unique and unused. Your lawyer will check the legal feasibility of your desired name. To register your company, you must prepare an articles of association, detailing your company’s main activities and the legal obligations of you and your partners. These activities can be updated later with approval from the labor office.
Necessary Documents for Company Registration in Austria
For Company Registration in Austria, the following important documents and evidence are required:
| Shareholders’ identity documents | Business plan and strategic plan |
| Valid passport or ID card | Financial documents showing investment ability |
| Work or residence visa for foreigners | Certificate of no criminal record |
| Residence Certificate (Meldezettel) | Certificate of company bank account |
| Official company articles of association | Initial Capital Payment Document |
| Social Security Insurance Certificates | Business Licenses |
| Educational qualifications of managers | Tax Registration Certificate |
Cost of Company Registration in Austria
Foreign investors wishing to establish a company in Austria must consider certain costs. The cost of registering a company in Austria for those outside Europe or who do not have European residency ranges from €3,000 to €4,000.
| Type of Cost | Amount |
|---|---|
| Company registration fee in Austria for non-EU individuals | €3,000 – €4,000 |
| Initial capital to start a business | €35,000 |
| Cost of renting premises, preparing a business plan, and accounting | €15,000 – €20,000 |
| Initial capital for establishing a limited liability company | €35,000 |
| Annual renewal fee | €1,650 |
| Notary registration fees | €980 |
| Austrian Chamber of Commerce registration fees | €450 |
| Capital transfer tax for €35,000 | €350 |
Corporate Tax in Austria
Regarding corporate tax in Austria, it can be said that the country is among the lowest taxed countries in Europe. The corporate tax rate in Austria depends on your annual profit. Each year, based on your accountant’s presentation and your annual financial profit, a specific percentage will be charged for tax purposes. You can see tax and related costs in the list below:
| Tax Type | Rate |
|---|---|
| Corporate Income Tax | 25% |
| Value Added Tax (VAT) | 20% |
| Dividend Tax | 25% |
There are also a series of tax laws in Austria that can help individuals registering companies in this country pay less tax. For instance, professions related to education can have a 20% tax deduction, or business plans in research fields that contribute to the country’s development may receive up to 35% of their annual expenses in that regard.
Minimum Capital Required for Company Registration in Austria
The initial capital required to establish a business is €35,000. Ancillary costs, such as renting a place to start business and personnel who will manage the costs of drafting the business plan, accounting tasks, and other related duties in the first months, amount to around €15,000 to €20,000.
These costs are mainly the general costs. Immigration lawyer fees should also be calculated in this method. Note that the minimum capital required for establishing limited liability companies is €35,000, of which half must be in your account in the home country or in your personal account in Austria, and the other half must be transferred to your company account in Austria.
Risks of Company Registration in Austria
The risks associated with registering a company in Austria include the following:
- Financial risks
- Exchange rate fluctuations and impact on investment
- Legal risks
- Complexities of contracts and legal issues
- High competition in the Austrian market
- High costs of starting and registering a company
- Complex tax system
- Possibility of tax audits
Conditions and Economic Stability for Company Registration in Austria
Austria has one of the most stable and strongest economies in Europe and is considered an ideal environment for company registration and investment. This country offers extensive business opportunities for entrepreneurs due to its modern infrastructure, skilled workforce, and access to the European Union market.
Conditions and economic stability in Austria for company registration include the following:
- Stable economy: Controlled inflation rate, positive economic growth and government support for businesses.
- Access to the European market: Membership in the European Union and the Schengen Agreement, allowing free trade with other European countries.
- Transparent tax system: Competitive tax rate (corporate tax 24%) and tax incentives for investors.
- Advanced infrastructure: Strong banking system, extensive transport network and high-speed internet for digital businesses.
- Skilled workforce: Access to an educated and multilingual workforce.
Government support for startups: Support programs, low-interest loans and grants for innovation and business development.
Austria, due to its economic stability, investor protection laws, and high quality of life, is one of the best options for company registration and business development in Europe.
Duration of Company Registration Steps
Given the online nature of the company’s business registration, these steps do not take much time.
| Stage | Estimated Time |
|---|---|
| Overall company registration process | Approximately 1 month |
| Business plan preparation | Depends on applicant’s pace |
| Document processing by authorities | 6 days |
| Opening a bank account | 1 day |
| Obtaining necessary permits | 1 day |
| Tax registration and related procedures | 2 weeks |
Obtaining Residency in Austria through Company Registration
After registering a company in Austria, the applicant must be employed in the company to obtain a work-based residency. Family members, including a spouse and children under 18, can apply for visas simultaneously.
The process typically takes 4–5 months. Initial temporary residency is valid for one year, extendable for two more years if the company is active or the applicant is employed. After 5 years, permanent residency can be applied for.
After receiving the 5-year residency card and five years have passed since its issuance, you can apply for an Austrian passport. Of course, sufficient knowledge of the German language, participation in the citizenship test, and a clean criminal record are required for obtaining a passport and granting Austrian citizenship.
| Residency Type | Requirements |
|---|---|
| Work-based residency | Appropriate age, at least an associate or bachelor’s degree, German language certificate, work experience, and a clean criminal record. |
| Extension conditions | Active business plan or employment by an Austrian employer. |
| Temporary residency | Initially granted for 1 year, then extendable for 2 years. |
| Permanent residency | Eligible after 5 years of holding the initial residence permit. |
Services of Malekpour Institute for Company Registration in Austria
The Malekpour Institute, with over 15 years of experience in immigration and investment matters, offers extensive services for company registration in Austria. The main office of this institute is located in Austria and works with local lawyers and legal specialists to carry out the company registration process in the simplest and fastest way possible.
The services of this institute include:
- Expert advice on choosing the best type of company (such as GmbH or OG)
- Official registration of the company in the Austrian Companies Registry
- Obtaining a tax number and carrying out tax and accounting affairs
- Preparation and preparation of a professional business plan approved by the Austrian authorities
- Opening a corporate bank account in Austria
- Obtaining residency through company registration
- Guidance on renting or purchasing an office and place of business
- Assistance in legal procedures and obtaining the necessary permits
This institute, utilizing experienced lawyers, facilitates the legal and administrative process of company registration and supports the interests of entrepreneurs and investors in Austria.
Frequently Asked Questions Regarding Company Registration in Austria
- Does registering a company in Austria lead to Austrian residency?
Yes, provided that you can prove that registering a company is beneficial to the Austrian economy, after 5 years of activity, you can apply for permanent residency.
- What are the important and influential factors for choosing Austria as an investment country?
Factors such as the rate of asset confiscation, economic growth rate, bank interest rates, and taxes are important factors for starting investments in another country.
- How much does it cost to register a company in Austria?
The initial capital for registering a company in Austria is €35,000, the company registration cost is €4,000, and ancillary costs such as renting a company location and other related expenses range from €12,000 to €14,000.
- What is the asset confiscation rate in Austria?
The asset confiscation rate is a number between 1 and 7. The closer this index number is to 7, the less suitable that country is for investment. For Austria, this rate is 1.
Conclusion:
Generally, it can be said that Company Registration in Austria is one of the best ways to obtain residency in Austria for applicants and their family members. Our consulting team at Malekpour Institute provides all services related to company registration in Austria and its subsequent services.
If you have any questions regarding obtaining residency in Austria through company registration, you can write your inquiries at the end of this article, so that our experts and consultants can respond to you as soon as possible.
