Doing Business in Austria

This legal form is often chosen by freelancers or people who set up their own business and manage the company independently. Sole proprietors are personally liable to the full extent. The decision between the various legal forms, including the NeuFöG or the "small business regulation", is in the hands of the sole proprietor. A particularly positive aspect of this legal form is that it entails lower management and administration costs. 

These formats enable a flexible agreement between the partners without the obligation to raise a certain amount of equity. The most common forms are general partnerships (OGs) and limited partnerships (KGs). A civil law partnership (GesbR) is ideal for combining two or more companies for a limited period of time to achieve a specific goal, while a dormant partnership (stG) entitles you to a share of the profits or losses without being officially associated with the company.

A good market overview concentrates on key factors i.e., market size and potential, market trends and in particular a detailed analysis of the competition. Other important questions that should be taken into account include wage costs, real estate prices, operating expenses, industry clusters, availability of skilled workers and funding options. The experienced team at ABA - INVEST in AUSTRIA will support you on all relevant matters. 

Those venturing into Austria need more than a good product and the desire for entrepreneurial growth: A business plan is also an essential tool for a successful undertaking and offers the opportunity to convince potential investors. The basis is specifically considering which business activities are planned in the new business location and to what extent. What is done at the headquarters in the country of origin and what will be done in the new foreign subsidiary? How are sales, production, marketing as well as research and development structured? Our advice is for you to consider your expansion into Austria as a project similar to establishing a new company. 

Companies that operate in Austria are subject to a uniform corporate tax. This tax was reduced to 23% in 2024. Other tax burdens which normally exist in other countries such as trade tax, property tax or inheritance tax are not levied in Austria.   

The articles of association form the basis for companies, corporations and associations and define the framework conditions for the rights and obligations of the partners.

If this has not already been done in the articles of association, the partners appoint the managing director(s) in the shareholders' resolution.  

If the legal form you have chosen requires equity capital at the time of formation, you must submit a confirmation from your bank. 

The company register is a list of all Austrian companies and defines their legal status. Regardless of whether you are an OG, KG, GmbH, AG, cooperative or an SE: You must register immediately after establishing the company.