Austria company formation in 2026: EUR 10,000 capital, a notary you cannot skip and a 23% flat rate

Austria spent years as the more expensive, more formal neighbour of Germany with none of the market size to justify it. Then in 2024 it cut the minimum capital for a GmbH from EUR 35,000 to EUR 10,000 and introduced the FlexCo for startups. The jurisdiction is now genuinely worth a look, provided you understand what is still fixed.

Here is the short version. An Austrian GmbH needs EUR 10,000 of share capital, reduced from EUR 35,000 in 2024, of which at least EUR 5,000 must be paid in cash before registration. Corporate income tax is a flat 23% as of 2026, and a minimum charge of about EUR 500 a year applies even in loss years. Formation takes roughly one to three weeks. The articles must be a notarial deed, which since 2022 Austrian notaries can execute by video with electronic filing to the Firmenbuch. Court registration is around EUR 216 plus a EUR 34 filing fee, and genuinely new businesses can have those court fees waived under the NeuFöG.

How to register a company in Austria

1. Draft and notarise the articles of association as a notarial deed — in person or by video with an Austrian notary.
2. Open a corporate bank account and pay in at least EUR 5,000 in cash, obtaining the bank confirmation, the Bankbestätigung.
3. File the notarised deed and application electronically with the commercial register, the Firmenbuch, at the competent court. Claim NeuFöG relief if eligible.
4. After registration, complete tax registration with the Finanzamt for tax and VAT numbers and obtain any required trade licence.

The FlexCo is the interesting part

Introduced in 2024, the FlexKapG — the flexible company — sits alongside the GmbH and is aimed squarely at startups. It exists because the GmbH was a poor fit for companies that need to issue employee equity and take multiple investment rounds.

If you are forming an operating business with a conventional ownership structure, the GmbH remains the default and is better understood by banks and counterparties. If you are forming a venture-backed company that will issue employee participation and go through financing rounds, the FlexCo is worth asking your adviser about specifically, because it was designed for exactly that and the GmbH was not.

The minimum tax nobody budgets for

Corporate income tax is a flat 23%, unchanged since 2024. Profit distributions to individuals bear a further 27.5% withholding, the KESt, on top — which matters a great deal when comparing Austria against jurisdictions quoted on the corporate rate alone.

The detail that catches people out is the minimum corporate income tax: roughly EUR 500 a year for a GmbH, payable even in a loss year. For a dormant or pre-revenue company that is a standing cost, and it accrues whether or not anyone is paying attention.

The notary is mandatory, the bank is the obstacle

A notarial deed is required for the articles. Unlike Estonia or the UK, there is no self-filing route. Since 2022, Austrian notaries can execute deeds and certify signatures by video with electronic Firmenbuch filing, so the requirement need not mean travel — expect notary KYC and identity verification. A simplified no-notary electronic route exists but is aimed at Austrian-resident single founders, not at foreign ones.

The recurring problem for non-EEA founders is banking. Austrian banks can be slow or reluctant to open accounts remotely, and since EUR 5,000 must be paid in and confirmed before registration, a reluctant bank stops the whole process.

Directors, trade licences and audit

At least one managing director is required, with no Austrian residency or nationality requirement, so a non-resident foreigner can serve.

The catch sits one layer down. For the separate trade licence, the Gewerbeberechtigung, a business may need an EEA-resident trade-law managing director. Company law does not require a resident director; the licensing regime may. This is the same trap Liechtenstein sets, and it should be checked against your specific activity before you assume a fully non-resident structure works.

Audit is not a concern for small companies: a small GmbH is exempt unless it has a mandatory supervisory board, with the small threshold set at not exceeding two of a EUR 6.25 million balance-sheet total, EUR 12.5 million revenue and 50 employees as adjusted from FY2024.

Who this is actually for

A founder who wants a credible, fully EU-based operating or holding company with single-market access and is content with a 23% rate, notarial formalities and a moderate setup cost. Vienna is a genuinely good base for Central and Eastern European operations, and the 2024 capital reduction removed the main reason to dismiss Austria out of hand.

For a pure low-tax play it still loses: Hungary next door charges 9%, and Estonia charges nothing until profits are distributed. For a holding structure, the Netherlands and Luxembourg have deeper participation-exemption practice. Austria wins when you actually want to be in Austria.