One-Stop-Shop for company founding in Austria

 

Austria as a business location offers many advantages. It has a highly developed infrastructure and efficient public administration. A large asset for companies in Austria is the well qualified employee pool highly trained in technical as well as in the commercial sectors. Austria is the ideal base for corporate activities in Middle and Eastern Europe due to its location in Central Europe.

From a tax point of view, the following advantages can be highlighted:

Austria is characterized by low corporate taxation (25% corporate income tax) and attractive group taxation (losses of group members can be offset against profits of other group members or of the group parent).

In Austria, there is no property, business, gift or inheritance tax.

Austria supports research and experimental developments with a research premium designed to promote in-house and contract research that currently amounts to 12%, with the increase to 14% in 2018, of the research expenditures.

The following in-house research expenditures form the basis for the calculation of the Austrian research premium:

  • wages and salaries for research and development employees
  • direct expenditures and investments (including the purchase costs of real estate that is used for research activities)
  • financial expenses and overhead costs related to research and development

The basis for the calculating of the research premium for contract research is the expense, to a maximum EUR 1Mio. per financial year.

One-stop shop for company founding

The most common legal form of a company in Austria is the Limited Liability Company (‘GmbH’). Therefore we refer only to the establishment of a GmbH in Austria:

For the establishment of a GmbH in Austria a notary and a tax consultant are mandatory. Also, an Austrian bank account is required because a certain amount of the share capital must be paid before the company can be registered in the Austrian commercial register.

We offer the following services related to the set-up of a new company:

  • Assistance during the foundation of a company registered in Austria
  • Cooperation with an Austrian notary to facilitate the legal steps of the establishment
  • Support with the necessary legal documents for the set-up of an Austrian bank account at an associated banking institution
  • Opportunity to contact lawyers to address special legal questions as they arise

We would be glad to assist you with any tax questions regarding company foundations. After the set-up of the company, we provide the obligatory notifications to the Austrian tax authorities. We also assist with international tax issues concerning future Austrian subsidiary and coordination of the tax situation of the parent company or any group companies, as well as provide a check-up of the offset price bases from the Austrian perspective.

Your advantages:

  • A contact person who coordinates all necessary steps in the company's founding
  • Competent advice in a legal environment unknown to you from a single source
  • Rapid coordination with all stakeholders (notary, bank, tax consultants) concerning all documents needed for the registration
  • Timely implementation

Key data of a GmbH in Austria:

Share Capital:         at least EUR 35,000 (in the first 10 years a share capital of EUR 10,000)

Liability:                 The Company is liable with all its corporate assets; the shareholders are
                             only liable for the Share Capital which they must pay in according to the
                             articles of incorporation

Tax rate:                 25% corporate income tax

Profit Distributions:  Profit distributions to the parent company (corporation) within the EU are
                              tax free; taxation of profit distributions outside the EU is dependent on the
                              respective double taxation agreement.

 

If you need assistance with setting up an Austrian company and if you would like to benefit from our competent consulting services that includes many years of experience in founding a company from one source, please contact us:

Asontas Wirtschaftsprüfungs- und Steuerberatungs GmbH & Co KG
Schwindgasse 4/7
1040 Wien
t (+43-1) 503 58 70

Mag. Bernhard Rothenbuchner                                                                   Mag. Martin Seidl
b.rothenbuchner(at)asontas.at                                                                        m.seidl(at)asontas.at

 

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