COREDO > Company Formation in Austria

Company Formation in Austria

Why Register a Company in Austria

Austria is a stable and prestigious Central European jurisdiction with a strong economy, transparent regulation, and a high level of legal protection. The country provides access to the EU and eurozone markets, a strategic location in Europe, and a well-developed banking system, making it highly attractive for international business.

Austrian law allows 100% foreign ownership of companies with no requirement for local shareholders. The COREDO team has been operating since 2016 and provides full support for company registration in Austria and other EU jurisdictions.

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Types of Companies in Austria

Austrian legislation provides several legal forms for conducting business. The choice of form depends on the scale of operations, the number of participants, and the company’s objectives.

GmbH (Gesellschaft mit beschränkter Haftung)

Limited liability company. The most common form for foreign investors. Creating a GmbH requires a minimum of one director and one shareholder. The minimum share capital is EUR 10,000, of which at least EUR 5,000 must be contributed in cash at the time of registration. This form is suitable for all types of activities except political, banking, and insurance.

AG (Aktiengesellschaft)

Joint-stock company. Designed for medium and large businesses. Creating an AG requires a minimum of one director and two investors. The minimum share capital is EUR 70,000, of which one quarter must be deposited into a bank account before submitting registration documents.

Corporate governance of a GmbH is carried out by one or more managing directors (Geschäftsführer). A supervisory board (Aufsichtsrat) is mandatory when the number of participants exceeds 50 or when the share capital exceeds EUR 70,000. AG governance is based on a two-tier system: the management board (Vorstand) handles operational management, while the supervisory board (Aufsichtsrat), consisting of at least three members, oversees the management board’s activities. Members of the AG supervisory board cannot simultaneously serve on the management board, ensuring the independence of corporate oversight.

OHG/OEG

General partnership (with unlimited liability). Requires two or more partners with equal rights. There are no minimum capital requirements.

KG/KEG

Limited partnership. Requires at least one general partner with unlimited liability and one limited partner with limited liability. There are no share capital requirements.

Branch of a foreign company

Any operating foreign company can open a branch in Austria. A branch is not a separate legal entity and acts on behalf of the parent company. The parent company bears liability for the branch’s obligations. Registering a branch requires submitting the parent company’s founding documents, legalized and translated into German.

Company Registration Procedure

Company registration in Austria is carried out by making an entry in the Commercial Register (Firmenbuch). The process can be initiated through the Austrian Business Service Portal (Unternehmensserviceportal — USP). The main steps include: preparation of the articles of association and charter by a notary, depositing the share capital into a bank account and obtaining confirmation from the bank (Einzahlungsbestätigung), submitting documents to the Firmenbuch, obtaining a tax identification number, and registering with the tax authorities.

When registering a GmbH, the articles of association (Gesellschaftsvertrag) are notarized and contain the company name, registered office address, business purpose, share capital amount, and distribution of shares among participants. All founders or their notarially authorized representatives must sign the agreement in person. After the entry is made in the Firmenbuch, the company acquires the status of an independent legal entity. Every company, regardless of its legal form, is required to apply to the tax authorities for a tax identification number (Steuernummer) and register as a taxpayer upon completion of registration.

For 82 types of activities in Austria (including banking services, insurance, construction, and financial consulting) a state licence (Gewerbeanmeldung) is required. Austria does not impose residency requirements on directors and shareholders; however, directors need a local address for receiving official correspondence.

Required Documents

To register a company in Austria, the following documents are required:

articles of association and the company charter (notarized)

identity documents of the founders and directors (passports or identity cards)

proof of a registered office address in Austria (lease agreement or property certificate)

confirmation of share capital deposit from an Austrian bank

resolution on the appointment of directors.

Foreign documents must be translated into German by a certified translator and, if necessary, apostilled in accordance with the Hague Convention of 1961.

Registration Timeline

Company registration in Austria typically takes 14 to 21 days, provided that a complete set of correctly executed documents is available. The use of electronic services through the Unternehmensserviceportal (USP) allows certain stages of the procedure to be expedited. Delays most commonly arise from incomplete document packages, errors in notarial certifications, or the need to apostille foreign documents. The COREDO team oversees every stage of the registration process and minimizes the risk of delays.

Cost of Services

The cost of company formation services in Austria depends on the chosen legal form, the complexity of the corporate structure, and the scope of additional requirements. To receive a personalized quote, contact our specialists — we will prepare a detailed commercial proposal tailored to your specific situation and business objectives.

Tax System in Austria

Austria offers a transparent and competitive tax system. The corporate income tax rate (Körperschaftsteuer) is 23% — it was progressively reduced from 25% in 2022 to 24% in 2023 and to 23% from 2024 as part of the eco-social tax reform. This rate applies to the worldwide income of companies that are tax residents of Austria.

The standard value-added tax (VAT) rate is 20%. From 1 January 2025, the mandatory VAT registration threshold was increased to EUR 55,000 in annual turnover. The dividend tax rate is 27.5%. Austria has concluded double taxation agreements with more than 70 countries.

Austrian legislation provides for a group taxation regime (Unternehmensgruppe), which allows consolidation of the financial results of a parent company and its subsidiaries: profits of some group members can be offset against losses of others. This creates tangible advantages for holding structures with operating subsidiaries. The participation exemption regime (Schachtelprivileg) allows, under certain conditions, the exemption of dividends received from subsidiaries from corporate tax, provided that the participation share is at least 10% and has been held for a minimum of one year. Additionally, Austria provides an investment deduction, temporarily increased to 20% on qualifying investments as part of government business stimulus measures.

Opening a Bank Account in Austria

A corporate bank account is an essential requirement for fully conducting business operations. The Austrian banking system is one of the most stable in Europe and offers a wide range of financial products for corporate clients, including multi-currency accounts, trade financing, and online banking.

COREDO specialists provide full support for the process of opening a bank account for companies registered in Austria and other EU jurisdictions: preparation and review of documents, communication with the bank, and completion of KYC/AML procedures. The cost of the account opening service for an EU-registered company is from EUR 1,800 to EUR 2,300 + VAT. The service includes a client analysis stage (EUR 300) and account opening (EUR 1,500 to EUR 2,000). The average timeline for opening a corporate account in Austria is 14–21 days.

Our Experts

The COREDO team has been operating since 2016 and possesses deep expertise in company registration across various European jurisdictions.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of the business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Has been part of the COREDO team since June 2017, responsible for legal support of corporate projects and company registration.

Basang Ungunov

Lawyer. Has been part of the COREDO team since June 2022, specializing in legal support for registration and structuring of companies across various jurisdictions.

Frequently Asked Questions

What is the minimum share capital for a GmbH in Austria?

The minimum share capital for a limited liability company (GmbH) is EUR 10,000. At least EUR 5,000 must be contributed in cash at the time of company registration. This threshold was significantly reduced from EUR 35,000 effective 1 January 2024.

Does a director or shareholder need to be an Austrian resident?

No, Austrian legislation does not impose residency requirements on directors and shareholders. Foreign citizens can establish and manage companies on the same terms as residents. However, directors need a local address in Austria for receiving official correspondence.

How long does it take to register a company in Austria?

The standard registration period is 14 to 21 days, provided that a complete set of correctly executed documents is submitted. The use of electronic services through the government portal USP can expedite certain stages of the procedure.

What is the corporate tax rate in Austria?

Since 2024, the corporate income tax rate in Austria is 23%. It was progressively reduced from 25% as part of the eco-social tax reform. This rate applies to the worldwide income of companies that are tax residents of the country.

Can a foreign company open a branch in Austria?

Yes, any operating foreign company has the right to open a branch in Austria. A branch is not a separate legal entity and acts on behalf of the parent company. This requires the parent company’s founding documents, a resolution on establishing the branch, and a number of additional documents.

When is a company required to register for VAT in Austria?

From 1 January 2025, the mandatory VAT registration threshold in Austria is EUR 55,000 in annual turnover. For foreign companies without a permanent establishment in Austria that carry out taxable supplies of goods or services on its territory, the zero threshold does not apply — registration is mandatory from the first transaction without applying the threshold value.

Order a Consultation

COREDO specialists provide full support for the company registration process in Austria — from document preparation to making the entry in the Firmenbuch and tax registration. We have been operating since 2016 and help entrepreneurs from dozens of countries successfully build business structures in Europe and beyond.