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Company formation in Austria and Austrian company benefits

Austria is a sophisticated and prosperous business centre, which serves as a trading bridge between Eastern Europe and Balkans. Austria welcomes foreign investors and rather than combating offshore countries, Austria makes tax treaties with them. In addition, tax-minimizing structures are developed for all types of companies, which allow the effective tax rate to be only 3-5%. These are only few of numerous benefits of company formation in Austria.

Business structure in Austria

Choosing the right business structure may have critical consequences therefore it is highly important to explore all the available options before making this decision. Below are four most popular types of companies available for formation in Austria:

Procedure of company formation in Austria

The number one action for all new entities is to receive a confirmation from the Economic Chamber saying that the company is indeed a new enterprise. Then a document called Articles of association is drafted by a lawyer before a notary and a starting capital is deposited in a bank account and a confirmation deed of the funds is received.

After the above things are done, the company formation process can be started at the local court. For this process shareholders need to deposit following documents:

After around seven days, when the business entity is registered at the local court and the information is published at the local newspaper, the company can be registered with the local Tax Office. There you will need to fill an application and declare the Articles of association, certificate of company registration at the local court and specimen signatures of the company representatives. In exchange, Tax Office issues a VAT number and tax identification number.

The last steps include registration in the Trade Register, registration with the municipality and finally – registration of company's employees with the social security authority.

The average time needed to set up a company in Austria is 21 days, from which the most time – 12 days – is spent waiting for a tax identification number (the official deadline to obtain the tax identification number is 1 month).