Company Formation in Austria

Roadmap

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

• 20-30 working days

What are the steps to register a company in Austria?

The registration process of a company in Austria is very simple. The experts of LegalBison will assist you throughout every step of it:

1. Initial consultation and agreement
2. Payment of the full invoice
3. [IF REMOTELY]: Notarization of POA by client
4. Preparation of registration documents
5. Document signed at the notary
6. Official register validity: immediately

Taxes

How high are the corporate income tax in Austria?

The corporate income tax in Austria is 25% of the profits generated

• A minimum yearly contribution of 500 EUR (for the five first years) then 1,000 EUR has to be paid in case of losses, low profits or simply a corporate tax under this amount
• The capital gains tax is 27.5%

What Double-tax treaties has Austria?

Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion Albania, Algeria, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Kazakhstan, Korea (South), Kosovo, Kuwait, Kyrgyzstan, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Nepal, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Taiwan, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam Status: End of 2020

VAT number

• A VAT identification number can be requested and assigned upon completion of 3 forms

Without VAT number

• Your company will not be eligible to receive VAT refunds, which means everything bought is 20% more expensive (important: B2B payments between two VAT exempt companies are not more expensive)
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs

With VAT number

• A VAT identification number can be requested and assigned upon completion of 3 forms
• The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism
• Monthly tax returns have to be filed, even if no transactions occur
• VAT must be declared and paid the latest on the 15th day of the following month it was applicable to
• VAT relief is also possible

Before we help you to apply for a VAT number (in Austria 20%) you should carefully think about the advantages and obligations that go along with it. To register as a VAT payer might be either voluntary or obligatory, depending on the turnover.

Decide first

1. Do you want to buy a ready-made company or start a new one?
2. What is your planned business activity?
3. Do you have 17,500 EUR available to deposit as share capital?

Speak to our consultants to get a free consultation and guidance on how to choose the best jurisdiction based on your business model.

Documents to provide for company registration in Austria

• Passport copies (a scan) of shareholder/s and director/s, also beneficiary owner if applicable
• A Power of Attorney (in case of a remote company registration)
• Certified company documents (in case at least one of the shareholders is going to be a foreign company)

Information needed to get company registration in Austria

• 3 options of your desired name for the company and a company contact email address
• Names, addresses and emails of all shareholders and board members
• Short description of your company's activity

Remote incorporation

• The whole incorporation process can be conducted remotely. No travel necessary. Notarization of documents is necessary
• A Power of Attorney (POA) from (all) partners/shareholders is needed
• The POA is sent to you by us based on the services you want
• You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization)
• Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to our address
• Austria is part of the Hague Convention of the Apostille

Accounting and auditing

• A Corporation Tax Declaration has to be filed after the end of every calendar year
• The declaration must include financial statements and existing reports (business reports, audits)

Residential requirements

What are the residential requirements in Austria?

• Companies in Austria are liable to have a registered office in Austria
• A managing director has to be appointed, that is either an Austrian citizen or the holder of a residence permit in Austria
• This managing director is a prerequisite for a business licence (or trade license), that is required for most business activities in Austria

LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.