Austria Company Formation

Opening a company in Austria

Why open a company in Austria? What are the advantages in Austria?
Austria, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the euro (EUR), but living in the country is not very cheap.

Austria is a great place for business, with a strong local market that understands the English language very well.

The process of opening a company in Austria
Opening a company in Austria begins with the signing of a notarial power of attorney to open a company by a local agent. The document is then sent with a courier urgently and the company is established.

In Austria there is no need for a local director or a local shareholder. In Austria you also do not need any European citizenship to open a company. You can open an Austrian company even if you are a foreign citizen.

This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

Equity requirement in Austria
In Austria, an equity capital of 17,000 euros was once required, but as part of the state's efforts to encourage economic growth in the country, the equity capital requirement was reduced to only 10,000 euros, with 50% of the amount required to be deposited in the new company's bank account.

Equity is not a payment or expense, but an investment by the founding owner in his own company. After opening the company, the money can be used for current expenses.

Therefore, as part of the process of opening the company in Austria, a bank account was opened for the purpose of depositing the equity capital. In principle, opening a bank account requires a physical flight to Austria, but we know how to do the necessary operation remotely to deposit the equity, without requiring the customer to set foot even once on Austrian soil to open the company.

After opening the bank account and depositing the equity capital, the company is opened and a company charter is issued.

Opening a bank account in Austria - current account for the company
After opening the company, it is time to open a current bank account in Austria for the company.

Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country. However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are internet banks in Europe that would be happy to accept your company in Austria as a customer.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company with VAT will also be carried out. The company will receive a VAT number and can start trading.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.

EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

Tax in Austria
The corporate tax in Austria stands at a rate of only 23%.

For sales to the domestic Austrian market, the VAT is 20%, but it is differential, meaning that certain products have a reduced VAT of only 13%.

Questions and answers
Question: Is it necessary to physically fly to Austria to open a company in Austria?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Austria. There is no need to fly to Austria to open the company, not even to deposit the equity. After opening the company, it is necessary to fly to open a bank account for the company, or you can open an account in an internet bank.

Question: Who provides the local address for the company in New Austria?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of the company in our new Austria?
Answer: We will connect you with a local accountant.

Question: If I want to come to Austria to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for a company in your new Austria.

Question: What type of company in Austria should I open?
Answer: In Austria, the type of limited liability company is GmbH, similar to companies in Germany.

Question: Do you need a European passport to open a company in Austria?
Answer: There is no need for a European passport. We can open a company in Austria for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Austria?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 2-3 months, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Austria for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Austria for a person with American citizenship or a person living in the USA.

Question: How much does it cost to open a company in Austria?
Answer: Click here to contact us and get an up-to-date quote for free!