Austria

Starting a Business in

Austria

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Gesellschaft mit beschränkter Haftung (GmbH)
  • City: Vienna

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No. Procedure Time to Complete Associated Costs
1 Obtain the confirmation from the Economic Chamber that the start-up company is really a new enterprise

A form (Neufö 1 or NeuFö 3), which is available electronically on the homepage of the Austrian Ministry of Finance) must be filled in and be confirmed by the Economic Chamber. The Neufö applies to the company formation (since May 1, 1999) and to the transfer of businesses (since December 31, 2001).

Procedure 1 is optional, but it can lead to exemption from paying certain publicly levied fees and taxes. If certain requirements are met, the following fees and taxes will be waived:
- Stamp duties and certain administrative fees.
- Real estate transfer tax.
- Charges for registration in the commercial register and the cadastral register.
- Capital transaction tax (1% of nominal capital).
- For 1 year, certain ancillary wage costs borne by the employer in addition to social security contributions.

Depending on the requested exemptions, companies must obtain confirmation by certain public bodies (Chamber of Commerce or Social Security Organization) that the application form has been completed, after receiving counseling by that body concerning the scope and applicability of the law.
1 day no charge
2 Notarize the statutes/articles of association or the declaration of establishment

The articles of association (Gesellschaftsvertrag), which must be executed before a notary by notary deed (Notariatsakt), must include the following: name, seat, scope of activities, capital and initial contribution by each shareholder. Notarisation time ranges from 2 to 5 days.


 4 days EUR 1,500
3 Deposit the minimum requirement of cash capital in the bank

The confirmation fee depends on the bank, ranging from EUR 0 to about EUR 30.
1 day no charge
4 Registration at the local court (Handelsgericht) and publish an announcement of formation in the Wiener Zeitung

The application for registering an Austrian limited liability company (Gesellschaft mit beschränkter Haftung, GmbH) must be accompanied by the following documents: notarized declaration of establishment; articles of association; a declaration (accompanied by a banker's confirmation) that the demanded amount of primary deposit, to be paid in cash, has been paid; evidence that the free disposability of the paid primary deposit by managing directors is not restricted by counterclaims; specimen signatures of the managing directors; and confirmation by the tax authorities that the capital transaction tax on the formation has been paid or is guaranteed. If the court has doubts about the company name, it may request an opinion from the Chamber of Commerce. A GmbH comes into legal existence upon registration in the commercial registry.

The following company information is inter alia listed and published in the commercial registry: corporate name, registered office and adress, name and the date of birth of the company´s representatives and shareholders, nominal capital.

The fixed application fee (court fee) amounts to EUR 36; individual service fees - depending on the information to be registered - apply, e.g. registration of a managing director amounts to EUR 25. Public notaries and lawyers are obliged to file any petitions as well as related documents, deeds etc in electronic form; thus the application fee will be reduced to EUR 29. Please note that the court fees do not apply if the requirements for the start up governmental aid (see Procedure 1) are met.
7 days for entry into register, 1-2 weeks for announcement EUR 29 registration fee for private limited companies + publication fee of EUR 40 for first 5 lines and EUR 6 for each additional line (assuming 35 total lines)
5 Register trade (Gewerbeanmeldung) with the trade authority (Bezirksverwaltungsbehörde)

If permission is mandatory, completion of procedures takes longer, depending on the requirements and authorities involved (e. g., the production of hazardous goods requires proof of special qualifications of management and approval and control of the production site). Companies can register in person, by postal mail, or over the Internet.
1 day no charge if exemption is granted under Procedure 1; otherwise stamp duties vary depending on the type of trade intended and whether the trade and/or profession only requires registration or it requires permission by authorities (i.e. particular professional qualification must be proven).
6 Tax Office registration (obtain a VAT number)

The commercial register automatically informs tax authorities of the registration of new companies. In turn, tax authorities usually respond by requesting that the company file for tax registration. One of the following forms must be filed with the tax authority: Form 15, or 24 (available at www.bmf.gv.at/), and the articles of association, the opening balance sheet, an excerpt of the company register, an identification card of a managing director, a specimen signature sheet of the representatives must be filed as attachments. The authority issues the tax number within 10 to 14 days. The VAT number is usually issued simultaneously with the tax identification number. The statutory deadline to obtain a tax number is 1 month. Frequently tax authorities extend a “welcome visit” to those companies intending to engage in business activities that are eligible for the filing of VAT returns.
12 days no charge
7 Register employees for social security

Upon registering in the commercial register, companies with employees must apply for an employer's account number (Dienstgeberkontonummer) electronically via ELDA, the data transmission interface of the statutory health insurance office (Gebietskrankenkasse). In practice, the employer applies for a new account number via ELDA (under the menu item, Online-Services [Kontonummeranforderung]) before a new employee is registered with the statutory health insurance office.

Health insurance is obligatory: every new employee must be electronically registered with the statutory health insurance office prior to and no later than the day of employment. Unless the company does not own a computer, the employee must be registered via ELDA. Otherwise, this may be done by mail or by fax. Moreover, the employer must automatically extend obligatory health insurance upon entry. On being registered with the statutory health insurance office, the employee is automatically registered for accident insurance and retirement insurance as provided by law. No further registration is needed. By data transmission, the employee is immediately registered with the competent statutory health insurance office (social insurance office). The employer instantly receives a “sent” report and a confirmation of registration.
1 day no charge
8 Register with the municipality

Municipalities levy community taxes on all businesses. In addition, particular activities (e.g., organizing a public event) may trigger municipal stamp duties or other minor duties and taxes (e.g., advertising fees [Werbeabgaben]).
1 day no charge
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