Company in Austria, Business in Austria
The law of Austria distinguishes two types of business activity:
- With no special limitations (it refers to almost one thousand jobs and 90% types of sole trading activities),
- Regulated, which requires certificates (it refers to 82 types of activity, i.a. job broker, insurance broker, travel agent, photographer, as well as to craftsmen, like baker or carpenter). To run a regulated activity one must obtain special permit from the municipality, the craftsmen must additionally pass relevant exams.
You can register a business in Austria in two ways: as a sole trader, or by forming a trading company.
In order to start activity as a sole trader one needs a business plan. It should contain: mission, description of planned activity, market analysis, plan of products/service sales, type of management, planned employment, SWOT analysis, plans for development for next five years, sources of financing.
The regulated activity requires additional, complicated procedures connected with obtaining relevant education and work experience.
The sole trader registers in city council or in the relevant district council.
The major document is a written application.
The foreigners must attach to it: birth certificate, document which entitles him to use the professional title, copy of passport, registration certificate and certificate about unpunishability.
The application should be in German and the attachments should be translated into German.
The fee for application is 13 Euro and 3,60 for each attachment.
Additionally, in case of regulated activities, one has to attach the documents certifying the education and work experience.
The registration is done in system called “one stop shop”, i.e. all issues are taken care of by one clerk.
The registration of normal activity lasts about 30 minutes, it is also possible to register on-line.
To register a limited liability partnership one requires: notarized Articles of Association, proclamation of the Board, statement about payment of Stock capital (minimal capital is 35 000 Euro), certificate about not having any tax arrears, payment of 1% of tax from the stock capital, registration of company in the Companies’ Register and the Advertisement about the registration.
The process of registration is pretty complicated and may last even half a year, so it is advisable to hire a lawyer.
The costs of establishment and carrying out a business activity are as follows:
- tax advisor – about 1500 EURO,
- notary – about 2500 thousand Euro of registration fee and 1% tax from the stock capital (about 350 Euro),
- cost of bookkeeping and personnel/payroll services- from 250 Euro/month,
- costs of closing the books and declarations after the fiscal year- from 2 000 Euro.