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When COREDO advises international companies on the registration of legal entities and financial licensing, one of the first priorities is building an effective compliance system. By compliance I mean not only formal adherence to the law, but also a set of internal procedures that ensure a business’s transparency, ethical conduct, and sustainability. A compliance audit is a structured review of a company’s internal activities to ensure they comply with external regulatory requirements and internal regulations.

Such an audit helps identify weaknesses in the control system, minimize the risk of legal violations, and increase trust from partners, investors, and regulators.

Mandatory compliance audit for businesses

According to recent research by the European Commission, up to 68% of large companies have faced sanctions due to non-compliance with compliance requirements, and the average fine in the EU financial sector in 2024 exceeded €1.2 million.

The COREDO team has executed projects where a competent compliance audit helped prevent litigation and avoid account freezes when working with foreign banks. Compliance violations can lead to fines, criminal liability for management, loss of licenses, and the inability to enter new markets. That is why regular compliance audits become a strategically important element of managing corporate risks and ensuring financial transparency and reporting.

When is a compliance audit mandatory?

A compliance audit is not just a recommendation but a mandatory requirement for organizations operating in strictly regulated sectors and subject to various regulatory grounds. Understanding exactly when a company must carry out such an inspection depends not only on the type of activity but also on geographic location and the applicable legislation. Let’s examine which practical grounds and standards in different regions require a mandatory compliance audit.

Legislative requirements in Europe, Asia and the CIS

In different jurisdictions the concept of a mandatory compliance audit is enshrined at the legislative level. In the EU the key standards are ISO 27001 (information security), GDPR (personal data), AML (Anti-Money Laundering) directives, as well as national laws and GOST standards. In the Czech Republic, Slovakia and Estonia special attention is paid to data protection and financial monitoring, while the United Kingdom has its own sanctions and AML control system.

In Asia, for example, when registering a company in Singapore, the obligation to maintain a register of controllers and to file annual reporting is established at the level of ACRA (Accounting and Corporate Regulatory Authority). In 2025 new requirements for corporate service providers were introduced, and violations of compliance obligations are subject to fines of up to 50 000 SGD and criminal liability. For companies providing financial services or working with government contracts, AML audit is mandatory, and sanctions compliance becomes critically important amid tightening international restrictions.

Mandatory compliance audit: situations and industries

From COREDO’s experience, a mandatory compliance audit is required in the following cases:

• international companies, operating in multiple jurisdictions, especially when registering legal entities in the EU, Singapore or Dubai.
• Organizations working with government contracts or financial institutions, where oversight of regulatory compliance is mandatory.
• Sectors with increased compliance risks: finance, the crypto industry, IT, platform economy, export-import operations.
• Companies obtaining licenses for banking, forex, payment or crypto services, where AML services and sanctions-list audits become mandatory components.

Stages of a compliance audit: from preparation to remediation

The stages of conducting a compliance audit — from preparation to remediation — structure the process of ensuring the company’s adherence to key requirements and standards. At each stage, from the preparatory phase to remediation, conditions for an effective review are created, risk areas are identified, and solutions are developed to ensure the resilience of business processes and the transparency of internal control.

Preparatory stage

An effective compliance audit begins with a clear definition of objectives, scope and resources for the review. The solution developed at COREDO includes a preliminary risk analysis, the collection of the regulatory framework (international standards, local laws, internal regulations and company policies), as well as forming a working group involving the compliance manager, lawyers and IT specialists.

It is important to systematize internal documentation: AML and KYC policies, anti-corruption procedures, data protection instructions, internal acts and procedures for monitoring compliance with regulatory requirements.

Review and analysis

At this stage compliance control and checks are carried out: documents are analyzed, employees are interviewed, technical diagnostics of IT systems are conducted, monitoring procedures are tested and objects of information security control are categorized.

COREDO’s practice shows that special attention is paid to verifying compliance with internal regulations, conformity to corporate ethics, and analyzing the effectiveness of compliance process automation. In international companies, an audit for AML requirements and counterparty due diligence for sanctions risks become mandatory.

How to prepare a report and recommendations

A detailed report is produced describing the identified non-conformities, pointing out gaps in procedures and risks of non-compliance with standards. At COREDO, it is customary to develop specific recommendations for eliminating compliance deficiencies, as well as a roadmap of corrective measures with timelines and responsible persons.

The next step is to monitor the implementation of recommendations, organize a follow-up audit and monitor the effectiveness of changes. This approach allows not only the elimination of current violations but also increases the maturity of the compliance system.

Compliance audit for risk management and business efficiency

A compliance audit is a key tool through which a business can not only timely identify and minimize legal and financial risks, but also optimize internal processes, increasing its resilience and efficiency. In the current environment, a competent compliance check becomes an integral part of strategic management and the company’s long-term growth.

Risk management through compliance

A compliance audit is a key tool for assessing and managing compliance risks, minimizing fines and litigation. In one of COREDO’s cases for a European fintech startup, the audit revealed vulnerabilities in the KYC procedure, which prevented account freezes and ensured successful passage of the regulator’s inspection.

Metrics and KPIs for assessing the compliance system

Assessing the effectiveness of a compliance system requires the implementation of clear KPIs: number of identified non-compliances, speed of their remediation, level of process automation, ROI from compliance implementation. COREDO uses internal audit and monitoring tools that allow tracking dynamics and responding promptly to new risks.

ROI can be calculated by comparing the costs of implementing compliance with prevented losses (fines, legal expenses, missed opportunities). This approach makes it possible to justify investments in developing a compliance culture to shareholders and investors.

Integration of compliance, legal support and AML

Effective risk management is possible only with close integration of compliance with companies’ legal support and AML procedures. The compliance manager becomes the connecting link between the business, the legal department and external auditors. Automation and scaling of the compliance system make it possible to maintain compliance with requirements even during rapid business growth and expansion into new markets.

Mandatory compliance audit: international activities

Mandatory compliance audit for companies with international activities is not just a formal requirement of regulators, but a critically important risk management mechanism in the context of business globalization. Financial and legal regulators in the EU, Asia and other regions are synchronizing their approaches by implementing common standards and directives, so companies operating in multiple markets must take into account the local specifics of each jurisdiction when building a unified compliance system. Successful completion of a compliance audit affects not only the avoidance of fines, but also the stability of business processes, reputation and the ability to carry out international activities unhindered amid ever-tightening requirements for transparency and risk management.

Impact of compliance on business registration and legalization by region

Registration of legal entities in the EU, Singapore, the United Kingdom or Dubai is impossible without confirmation of compliance with local and international compliance standards. For example, in Singapore, from 2025 requirements for maintaining a register of controllers and annual reporting have been tightened. In the EU, company registration requires checks for compliance with AML directives and the GDPR.

Sanctions and AML risks in business

In 2025, sanctions risks are becoming particularly relevant for companies with international activities. A compliance audit allows timely identification and prevention of violations related to working with counterparties from high-risk jurisdictions.

AML audit and counterparty due diligence are mandatory elements for companies dealing with financial transactions, cryptocurrencies and export-import operations. At COREDO, methodologies for assessing compliance with AML and sanctions compliance requirements have been developed, which allows clients to minimize the risks of account blocking and fines.

Mandatory compliance audit: recommendations for conducting

Practical recommendations for preparing and conducting a mandatory compliance audit help companies not only meet regulatory requirements but also minimize risks associated with non-adherence to compliance principles. Proper preparation for the audit is the first step in identifying vulnerable processes and building a reliable system of internal control.

Preparing for the audit: checklist and steps

• Systematize internal documentation: AML and KYC policies, anti-corruption procedures, internal instructions.
• Appoint responsible persons: compliance manager, legal department, IT specialists.
• Conduct a preliminary self-assessment of the maturity of the compliance system and categorize control objects.
• Ensure staff training and the implementation of a compliance culture at all levels.

How to remediate non-compliances and minimize risks

• Develop and implement corrective measures to address identified violations.
• Update internal regulations and procedures, taking into account changes in legislation and international standards.
• Organize regular monitoring and follow-up audits to control the effectiveness of changes.
• Implement automation of compliance processes to improve transparency and reduce operational risks.

Selecting an external auditor and follow-up reviews

• Assess the auditor’s experience and specialization in your industry and jurisdiction.
• Check for international certifications and successful case studies in conducting compliance audits.
• Set up independent monitoring of the implementation of recommendations and oversight of remediation of non-compliances.

Key takeaways and steps for entrepreneurs and executives

• Mandatory compliance audit: a strategic tool for minimizing legal, financial, and reputational risks.
• Regular review and updating of compliance procedures are necessary for the successful registration of legal entities in the EU, Asia, and the CIS, obtaining financial licenses, and entering new markets.
• Effective integration of compliance with legal support and AML procedures ensures business resilience and transparency.
• Implementation of a compliance culture, process automation and regular internal audit: the key to long-term success and trust from partners, investors, and regulators.

Comparison of regulations by region

COREDO’s experience shows: timely identification and elimination of nonconformities is the key to sustainable growth, financial transparency, and trust from all market participants.

Regulation in 2026

The direction of EU financial legislation in 2026 is defined by several strategic priorities:

• Tightening control over financial markets and digital assets. European regulators (ESMA, EBA) are strengthening oversight of all types of financial instruments, including crypto assets and digital payment platforms. At COREDO we observe how the new MiCA requirements (Markets in Crypto-Assets Regulation) have already changed approaches to licensing and monitoring operations with digital assets.
• Expansion of transparency and reporting requirements. The AMLD directives and MiFID II in 2026 introduce new standards for disclosure of information about beneficiaries, transactions, and sources of funds. In practice COREDO confirms: preparing for these changes requires a review of internal policies and the implementation of automated reporting systems.
• Focus on digitization of financial services. The European market is rapidly moving to digital service channels, which is reflected in new regulations on cybersecurity (DORA) and digital identification (eIDAS 2.0). Solutions developed at COREDO for clients in the FinTech sector enable the integration of digital KYC tools and automated AML systems into daily operational activities.
• Strengthening international cooperation on the exchange of financial information. The EU is expanding participation in global data-sharing initiatives to combat financial crime and tax evasion. This leads to the need to synchronize compliance processes across different jurisdictions, which is especially relevant for COREDO clients doing business in multiple EU countries and Asia.

Impact of the EU 2026 budget on the financial sector

The EU budget for 2026 reflects funding priorities focused on innovation, support for small and medium-sized enterprises, and accelerated digitalization of financial services. According to the analysis by the European Court of Auditors, the share of investments in FinTech and startups will increase by 22% compared to 2024.

• Funding priorities: Special attention is paid to innovation support programs, the development of digital infrastructure and ESG projects. In practice, the COREDO team has implemented a number of company registration projects in the Czech Republic and Estonia, where clients gained access to grants and tax incentives thanks to proper business structuring and timely submission of applications.
• Simplifying company registration in Europe: New EU initiatives are aimed at reducing the timeframes for company registration and introducing a single digital window for submitting documents. Our experience at COREDO has shown that for clients opening a business in Slovakia or Cyprus, the registration process in 2025-2026 became more transparent and faster, while the requirements for disclosing beneficiary information have been strengthened.
• support for startups and FinTech projects: The EU’s budgetary priorities stimulate the development of the FinTech ecosystem, opening new opportunities for companies operating in digital financial services, payment solutions and cybersecurity. COREDO’s practice confirms: startups that adapt promptly to new requirements gain access to additional funding and accelerated licensing.

New rules for regulating the EU financial market

AMLD update and strengthened compliance

In 2026 the anti-money laundering legislation of the EU (AMLD VI) steps up to a new level. The list of entities subject to AML is expanding, including crypto service providers, P2P lending platforms and even certain categories of advisers. The solution developed by COREDO for clients in the United Kingdom and Estonia provides for the implementation of comprehensive KYC/AML programmes based on a risk-based approach and automated transaction monitoring.

• Tightening requirements for client due diligence and reporting: Companies are now required not only to identify but also to regularly re-verify client and beneficiary data using digital tools and external databases. At COREDO we implement solutions that allow integrating automated checks of PEPs and sanctions lists, which significantly reduces operational risks.
• Adoption of new technologies for transaction monitoring: Modern AML systems use artificial intelligence to detect anomalies and suspicious transactions. Our specialists at COREDO have supported projects implementing such systems in companies operating in the EU and Asian markets, which has helped improve compliance and reduce the likelihood of fines.

Impact of inflation and key interest rates on regulation

The economic situation in the eurozone in 2026 is characterised by moderate inflation and increased volatility of the ECB’s key rate. These factors directly affect regulatory requirements for capital, liquidity and companies’ investment activities.

• Adjustment of regulatory requirements: EU regulators are adapting requirements for financial institutions taking into account inflation and changes in interest rates. For example, at COREDO we advised clients on reviewing investment strategies and managing currency risks in the context of a rise in the ECB’s key rate.
• Impact of ECB rate changes on lending and investment conditions: Rate increases lead to more expensive borrowing and higher requirements for borrowers’ creditworthiness. For our clients, this means the need to revise financial models and implement hedging instruments.

Registration of legal entities in the EU

Changes in company registration procedures

In 2026, Registration of legal entities in the EU is becoming more technological and transparent. Simplified procedures are being introduced for small and medium-sized businesses, application review times are being reduced, and some processes are being moved to digital format.

• Simplification of the registration process: In the Czech Republic, Estonia and Slovakia company registration is now possible entirely online using digital identification and electronic signatures. The COREDO team has implemented projects under which clients launched businesses in the EU within days, minimizing bureaucratic costs.
• New requirements for documentation and verification of beneficiaries: Since 2025 all legal entities are required to disclose information about ultimate beneficiaries, which is stored in closed registers and available to regulators. COREDO’s practice shows that timely preparation of documents and proper structuring of ownership allow avoiding delays and refusals during registration.

Specifics for foreign investors

For foreign entrepreneurs and investors in 2026, additional requirements regarding directors’ residency and the company’s place of effective management remain in place. At COREDO we regularly advise clients on choosing the optimal jurisdiction taking into account tax, regulatory and operational risks.

• Residency and place-of-management requirements: In some EU countries (for example, Cyprus and Estonia) the requirement to have a local director or office remains. The solution developed by COREDO provides for appointing nominee directors and setting up a virtual office to meet formal criteria.
• Risks associated with changes in legislation: Regular updates to rules require constant monitoring and adaptation of corporate structures. COREDO’s experience confirms that asset diversification and flexibility in choosing a jurisdiction help minimize regulatory risks.
• Recommendations for choosing a jurisdiction: When choosing a country for registration it is important to consider not only tax rates but also reporting requirements, availability of licensing and the level of investment protection. At COREDO we help clients assess all parameters and select the optimal solution for international business.

The impact of sanctions and geopolitics on financial regulation

Consequences of sanctions for business

In 2026 the EU’s sanctions policy continues to have a significant impact on financial flows and deal structures. Restrictions on transactions with Russian companies are tightening, and scrutiny of the origin of funds is becoming more stringent.

• Restrictions on transactions and operations: Banks and financial institutions are required to conduct enhanced due diligence on all operations involving companies from sanctioned countries. The COREDO team has handled cases where clients had to restructure supply chains and financial flows to comply with the new requirements.
• Strengthening control over the origin of funds: In 2026 the focus shifts to analyzing sources of capital and verifying the legality of investment origins. COREDO’s solutions include implementing automated monitoring systems and preparing justifications for regulators.

Geopolitical risks and mitigation strategies

Geopolitical instability requires businesses to be flexible and ready to respond quickly to changes in the external environment.

• risk assessment for business: At COREDO we recommend conducting regular stress tests and audits of supply chains to promptly identify potential threats.
• Recommendations for diversifying assets and jurisdictions: COREDO’s experience shows that spreading assets across different countries and using multi-bank structures reduces the risk of account freezes and transaction restrictions.

How businesses can prepare for changes

Review and update internal procedures

• Audit of current compliance and AML processes: COREDO’s practice confirms that regular audits of internal procedures help identify weaknesses and correct them in a timely manner. For clients doing business in multiple jurisdictions, we develop tailored compliance programs that take into account local and European requirements.
• Updating employee training programs: Implementing new rules requires continuous professional development of staff. The COREDO team helps organize training sessions and develops interactive AML and compliance courses.

Choosing reliable partners and consultants

• selection criteria for consultants: As regulation tightens, the experience and reputation of legal and financial advisors become especially important. The solution developed by COREDO provides a comprehensive risk assessment and support at all stages: from registration to obtaining licenses and implementing AML procedures.
• The importance of international experience: For companies operating in the EU, Asia and the CIS markets, consultants’ experience in cross-border projects and knowledge of the specifics of different jurisdictions is critically important. COREDO’s experience covers project support in the Czech Republic, Estonia, Singapore, the United Kingdom and Dubai.

Using technology to meet compliance requirements

• Implementation of automated monitoring and reporting systems: Modern RegTech solutions allow automating KYC/AML processes, reducing human error and increasing the accuracy of controls. The COREDO team implements such solutions for clients handling large volumes of transactions.
• Use of digital client identification solutions: New EU rules encourage the use of digital platforms for client identification and verification. COREDO’s practice shows that integrating eIDAS and other digital identification systems speeds up onboarding processes and reduces costs.

Recommendations for entrepreneurs

Main risks and opportunities

Practical recommendations

• Regularly monitor changes in legislation. In an environment of constant regulatory change, the COREDO team recommends using specialized monitoring services and subscribing to analytical reviews from relevant EU organizations.
• Conduct internal audits and update procedures. Regular reviews and adaptation of internal policies enable timely detection and correction of non-compliance.
• Use modern technologies for compliance. Implementing automated AML systems, digital identification, and RegTech tools is becoming an integral part of effective compliance.
• Turn to experienced consultants to minimize risks. COREDO’s practice shows that professional support at all stages – from registration to obtaining licenses and implementing new procedures – significantly reduces regulatory and operational risks.

Financial regulation in the EU in 2026 will become the new standard for international business: the tightening of compliance, AML and transparency requirements is paired with the simplification of procedures for small and medium-sized businesses. Readiness for these changes, the use of modern technologies and cooperation with experienced consultants are the keys to sustainable growth and scaling the business under the new conditions.

Многие сталкиваются с бюрократическими барьерами, сложностями в коммуникации с банками и требованиями к отчетности, которые существенно отличаются от привычных стандартов СНГ и Азии. Актуальный вызов: не просто Company registration in Austria, а выстраивание долгосрочной стратегии выхода на рынок Австрии и масштабирование бизнеса в ЕС с учетом всех юридических и налоговых требований.

Если вы ищете не «универсальную инструкцию», а практическое руководство, основанное на опыте COREDO, – эта статья даст вам не только ответы, но и стратегические идеи для успешной интеграции в европейское бизнес-пространство. Рекомендую дочитать до конца: вы узнаете, как минимизировать риски, выбрать оптимальную корпоративную структуру и обеспечить прозрачность процессов.

Main forms of companies in Austria: GmbH and AG

Both forms require mandatory notarization of the founding documents and annual reporting, as well as compliance with European standards of corporate governance and transparency.

Company registration in Austria: step by step

Preparation and selection of the company name
The company name must be unique and correspond to the area of activity. Checks are carried out through the Austrian commercial register (Firmenbuch). It is important to note that the designation GmbH or AG must be included in the company name. The solution developed by COREDO for clients includes a preliminary availability analysis and legal expertise of the name, which helps avoid rejection at the document submission stage.

Determination of founders and directors
Founders can be individuals as well as legal entities, residents and non-residents of the EU. A GmbH requires only one shareholder; an AG requires a minimum of two shareholders. company registration with foreign founders in Austria is possible without restrictions, but identity verification and proof of the source of funds of each beneficiary will be required. In the case of registering a company with multiple shareholders or legal entities, the COREDO team conducts a multi-level ownership structure check and prepares the founders’ meeting minutes in accordance with Austrian law.

Choice of legal address
The company’s legal address in Austria must be confirmed by a lease agreement or ownership. It is permissible to use a nominee service if the company does not carry out active operational activities in the country. COREDO’s experience confirms: a correctly chosen legal address speeds up the registration process and reduces the risks of subsequent tax audits.

Formation of the share capital
Minimum capital for a GmbH: 35,000 euros (17,500 euros mandatory contribution prior to registration). For an AG: 70,000 euros. Payment of the share capital is made to a dedicated bank account before submitting documents to the commercial register. When registering a company with the minimum capital, it is important to documentarily confirm the legality of the source of funds. COREDO’s practice includes client support at the capital formation stage and preparation of supporting documents for banks and regulators.

Preparation and notarial certification of founding documents
The deed of incorporation, the company’s articles, the founders’ meeting minutes and the participants’ resolution: mandatory elements of the document package. All documents must be notarized by an Austrian notary. In the case of remote registration or registration by power of attorney, COREDO organizes video verification and an electronic signature using eIDAS or BankID, and also provides an apostille for documents if the founders are located outside the EU.

Opening a bank account and payment of share capital

Registration in the commercial register
After preparing and notarizing all documents, the company submits the package to the Austrian commercial register (Firmenbuch). Registration is accompanied by the publication of company details in the Wiener Zeitung. COREDO’s experience shows: a correctly prepared document package makes it possible to obtain an extract from the register within 5–10 business days.

Registration for tax purposes
The company must obtain a tax number and, if necessary, register as a VAT payer. An application is submitted to the tax authority, and the founding documents, information about the legal address and the bank account are provided. In the case of creating a tax group or integration with European tax systems, the COREDO team develops an individual strategy for optimizing the tax burden.

Registration of foreign founders

Reporting and audit requirements
Each company must keep financial statements according to Austrian standards, and under IFRS if necessary. An audit becomes mandatory for AGs and for GmbHs exceeding certain turnover or employee thresholds. COREDO’s practice: organizing processes for preparing reports and interacting with auditors, which allows clients to timely meet all requirements and avoid fines.

Austrian tax legislation
In 2024 the corporate income tax is 24%, the VAT rate is 20%. To optimize the tax burden, it is possible to create a tax group, integrate with European tax systems and use double taxation avoidance agreements. COREDO’s solutions include strategic tax structure planning, accounting for the features of parent and subsidiary companies, and analysis of the long-term consequences of registration for the business ROI.

Documents for company registration

Key findings and recommendations

• To minimize risks when registering a company in Austria, it is important to prepare a KYC file in advance, confirm sources of funds and choose a reliable legal partner.
• Comprehensive company registration taking into account AML/CTF, GDPR, FATCA, CRS and BEPS is the standard for international business aiming for maximum transparency and long-term sustainability.
• The solution developed by COREDO includes strategic planning of the corporate structure, tax optimization and integration with European regulations.
• COREDO’s practice confirms: the success of registration and subsequent business development in Austria depends on the quality of document preparation, choice of partners and competent management of corporate risks.

Comparison table of GmbH and AG

Conclusion of the article