Europe · Company formation
Company formation in Austria
This suits founders who want a credible, fully EU-based operating or holding company with access to the single market. It means accepting a 23% tax rate, notarial formalities and a higher setup cost.
At a glance
- Entity
- Private limited company (Gesellschaft mit beschränkter Haftung, GmbH); since 2024 the lighter FlexCo/FlexKapG is also available for startups
- Corporate tax
- Flat 23% corporate income tax (Körperschaftsteuer) as of 2026, unchanged since 2024; a minimum CIT (~EUR 500/year for a GmbH) applies even in loss years. Profit distributions to individuals bear 27.5% KESt withholding on top.
- Incorporation time
- ~1-3 weeks in practice (a few business days for a simple single-shareholder case; longer once bank account opening and notary scheduling are factored in)
- Minimum capital
- EUR 10,000 minimum share capital (reduced from EUR 35,000 in 2024); at least EUR 5,000 must be paid in cash before registration
- Resident director
- At least one managing director (Geschäftsführer) is required; no Austrian residency or nationality requirement, so a non-resident foreigner can serve. Note: for the separate trade licence (Gewerbeberechtigung), a business may need an EEA-resident trade-law managing director.
- Audit
- A 'small' GmbH is exempt from statutory audit unless it has a mandatory supervisory board. Size thresholds (as adjusted from FY2024): a company is small if it does not exceed two of — balance-sheet total EUR 6.25m, revenue EUR 12.5m, 50 employees. Medium and large companies must be audited.
- Remote set-up
- Yes, largely remote. The articles of association must be a notarial deed (Notariatsakt), but since 2022 Austrian notaries can execute deeds and certify signatures by video, with electronic Firmenbuch filing. Expect notary KYC/identity verification; a simplified no-notary electronic route exists but is aimed at Austrian-resident single founders.
- Government fee
- Firmenbuch (court) registration is roughly EUR 216 for the entry plus ~EUR 34 filing fee; genuinely new businesses can have these court fees waived under the NeuFöG (Neugründungs-Förderungsgesetz). Notary and legal fees are separate and typically the larger cost.
- Best for
- This suits founders who want a credible, fully EU-based operating or holding company with access to the single market. It means accepting a 23% tax rate, notarial formalities and a higher setup cost.
The process
- Draft and notarise the articles of association as a notarial deed (Gesellschaftsvertrag/Erklärung über die Errichtung), in person or by video with an Austrian notary
- Open a corporate bank account and pay in the required capital (at least EUR 5,000 in cash), obtaining the bank confirmation (Bankbestätigung)
- File the notarised deed and application electronically with the commercial register (Firmenbuch) at the competent court; claim NeuFöG relief if eligible
- After registration, complete tax registration with the Finanzamt (obtain tax and VAT numbers) and any required trade licence (Gewerbeanmeldung)
What can go wrong
- A notarial deed is mandatory for the GmbH's articles — this adds cost and a formal step you cannot skip, unlike some other EU jurisdictions.
- Minimum corporate tax (~EUR 500/year for a GmbH) is payable even if the company makes no profit or a loss.
- Non-EEA founders often face practical friction: banks can be slow or reluctant to open accounts remotely, and the trade licence may require an EEA-resident trade-law managing director even though company law does not require a resident director.
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Form a company in Austria?
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