Company Formation in Austria
Last updated: 2026-04
Last updated: April 2026.
Austria cut the minimum share capital for a GmbH from €35,000 to €10,000 on 1 January 2024 and introduced a new entity — the FlexKapG, or FlexCo — on the same day. The flat corporate income tax sits at 23%, down from 24% in 2023, and notarisation has been fully digital since 2022. Together, these changes moved Austria from one of the most expensive EU jurisdictions to form a company into a mid-priced, fast-turnaround option. Non-residents can own 100% of the shares and act as sole managing director, though a local tax representative is needed when no board member resides in the EU.
We form Austrian GmbH and FlexCo companies end to end: name check, digital notarisation, Firmenbuch filing, UID (VAT ID) registration, WiEReG beneficial-owner declaration, and a business bank account introduction. Fixed price, dedicated German-speaking manager, all notary and court fees included.
| Quick facts | Value |
|---|---|
| Corporate Income Tax (KöSt) | 23% flat (since 1 Jan 2024) |
| Minimum CIT (GmbH, even in loss years) | €500 per year (€125 per quarter) |
| VAT (Umsatzsteuer) | 20% standard / 13% / 10% reduced |
| VAT registration threshold | €55,000 (raised from €35,000 in 2025) |
| Minimum share capital (GmbH) | €10,000 — at least €5,000 paid up at incorporation |
| Minimum share capital (FlexCo / FlexKapG) | €10,000 — individual shareholder stake from €1 |
| Minimum share capital (AG) | €70,000 |
| Minimum directors / shareholders | 1 managing director, 1 shareholder (can be the same, can be foreign) |
| Residency requirement | None for shareholders; non-EU directors may need a local representative |
| Standard formation time | 10–15 business days with digital notarisation |
| Government fees | Included in our packages |
| Language of filings | German |
| Currency | Euro (EUR) |
Why Form a Company in Austria
Austria sits at the centre of German-speaking Europe. Three reasons put it on the shortlist.
The 2024 reform reset the cost base. Before 1 January 2024 a GmbH needed €35,000 in share capital and a full in-person notary visit. Today it needs €10,000 — of which only half is paid up at incorporation — and notarisation happens over video. For most new ventures the total cost of incorporation has halved. The flat 23% CIT is below Germany's combined ~30% and competitive with France's 25%, Italy's 24%, and the Netherlands' 25.8%.
FlexCo changed the venture-capital picture. The Flexible Capital Company — FlexKapG or FlexCo — was built for startups. It allows digital share transfers, employee stock option plans without a notary per transaction, non-cash contributions, and individual shareholder stakes as low as €1. It is the first Austrian entity designed around how venture-backed companies actually operate. In its first two years several hundred tech startups chose FlexCo over GmbH for this reason.
EU access with a stable legal system. Austria is a full EU member state, in Schengen, in the eurozone, and in the Single Market. An Austrian company invoices across the EU under the reverse-charge mechanism, accesses the Parent-Subsidiary Directive for tax-free intra-EU dividend flows, and benefits from a network of more than 90 double-tax treaties. The commercial court system — Handelsgericht Wien in particular — is fast and predictable.
The trade-off is language. All Firmenbuch filings and notarial deeds are in German. All correspondence with the tax office, the WKO, and the social-security authority runs in German by default. We handle this end to end, but clients planning operations in Austria should budget for German-language accounting support.
Company Types Available in Austria
Austrian corporate law recognises five main forms. For most cf24 clients the choice is between a classic GmbH and the newer FlexCo.
GmbH (Gesellschaft mit beschränkter Haftung)
The default limited liability company and still the most-used Austrian form by a wide margin. Limited liability up to the share capital. Minimum capital €10,000, of which at least €5,000 must be paid in before Firmenbuch registration. One shareholder and one managing director are sufficient; both can be the same person, both can be non-residents, and corporate shareholders are permitted. Annual filings go to the Firmenbuch (financial statements) and the Finanzamt (corporate tax return). Small-company audit exemption applies below two of three thresholds: turnover €10m, balance sheet €5m, 50 employees.
FlexKapG / FlexCo (Flexible Kapitalgesellschaft)
Introduced on 1 January 2024 specifically to keep Austrian startups from incorporating abroad. Minimum capital €10,000 total, but individual shareholder contributions can be as low as €1 — which makes employee share ownership workable. Share transfers can happen by private written deed rather than a full notarial transfer deed. Supports non-voting "enterprise value shares" up to 25% of capital for employee stock option plans without repeated notary costs. Currently the fastest-growing Austrian entity type among VC-backed companies. The statutory regime borrows from GmbH law, so case law and compliance infrastructure apply by default.
AG (Aktiengesellschaft — Joint-Stock Company)
For larger businesses and listed companies. Minimum share capital €70,000. Mandatory supervisory board (Aufsichtsrat), mandatory audit, more onerous disclosure. Use AG if you plan to list on the Vienna Stock Exchange or raise from a regulated public market.
OG and KG (General and Limited Partnerships)
Offene Gesellschaft (OG) is a general partnership with personal liability on all partners. Kommanditgesellschaft (KG) has a general partner with unlimited liability and limited partners with capped exposure. Both flow through to personal income tax of the partners rather than attracting corporate tax. Used for specific professional-services structures, family holdings, and GmbH & Co KG hybrids where a GmbH sits as the general partner.
Zweigniederlassung (Foreign Branch)
A foreign parent's Austrian branch. Not a separate legal entity — the parent's balance sheet and liability extend to the branch. Requires Firmenbuch registration and a Ständiger Vertreter (permanent representative) resident in Austria. Used where a foreign group needs Austrian presence without a separate sub.
| Form | Min capital | Liability | Tax treatment | Common use |
|---|---|---|---|---|
| GmbH | €10,000 (€5,000 paid) | Limited | CIT 23% flat | Default — SMEs, holdings, foreign subs |
| FlexCo / FlexKapG | €10,000 (€5,000 paid) | Limited | CIT 23% flat | Tech startups, ESOP-heavy VC deals |
| AG | €70,000 | Limited | CIT 23% flat | Listed cos, large unlisted |
| OG / KG | None | Personal / mixed | Partner PIT | Professional services, holding hybrids |
| Zweigniederlassung | n/a | Parent's | CIT on AT-source income | Foreign group presence |
Step-by-Step Formation Process
A typical GmbH formation via digital notarisation runs as follows.
- Name check. We confirm the proposed company name does not collide with an existing Firmenbuch entry or a WKO member company name. Austrian rules are stricter than German ones — the name must clearly distinguish the business, must contain the legal-form suffix ("GmbH", "FlexKapG" or "FlexCo"), and cannot suggest public-sector or regulated status (no "Bank", "Versicherung", "National" without consent).
- Gesellschaftsvertrag. We draft the articles of association (for single-shareholder companies, the Erklärung über die Errichtung der Gesellschaft). Shareholders, share split, business purpose (Unternehmensgegenstand), registered seat, and managing director appointments are all fixed at this stage. Custom provisions — tag-along, drag-along, veto rights, vesting — are added here.
- Digital notarisation. The deed is notarised by an Austrian notary via video conference. Founders sign electronically using a qualified e-signature; the notary verifies identity via passport scan and live check. The entire session takes 30 to 45 minutes. For non-residents we coordinate e-signature issuance in advance.
- Capital deposit. At least €5,000 of the €10,000 minimum share capital must be paid into a blocked account at an Austrian bank before Firmenbuch filing. The bank issues a confirmation (Bankbestätigung) that goes into the application pack.
- Firmenbuch filing. The notarised application is filed electronically with the competent Handelsgericht (Commercial Court) — in Vienna this is the Handelsgericht Wien. Court review typically takes 5 to 15 business days depending on workload. The Firmenbuch entry creates the company as a legal person and issues the FN number.
- Tax and post-incorporation registrations. UID (VAT identification number) is applied for via FinanzOnline; issuance usually takes 2 to 4 weeks. The WiEReG beneficial-owner declaration must be filed within 4 weeks of Firmenbuch registration — failure carries coercive penalties up to €200,000. WKO (chamber of commerce) membership is automatic and contribution-based. Social-security registration with ÖGK is required if the company employs staff.
Typical end-to-end timeline from KYC clearance to operating GmbH with a bank account is 10 to 15 business days. The Firmenbuch entry lands on day 5 to 10; the bank account usually takes the longest, and most Austrian banks still prefer a director to attend a branch at least once.
Required Documents
For each shareholder, director, and beneficial owner:
- Valid passport or EU national ID (scanned in colour for digital notarisation)
- Proof of residential address dated within three months (utility bill, bank statement, or registration certificate)
- Date of birth, nationality, occupation, marital status
- Signed beneficial-owner declaration for WiEReG
- For non-resident directors: tax residency certificate if a DTT benefit will be claimed
For corporate shareholders:
- Certificate of incorporation with apostille
- Register of directors and secretary (or equivalent corporate extract)
- UBO declaration identifying all natural persons holding more than 25%
- Sworn German translation of foreign-language corporate documents (we arrange via certified translator — required for Firmenbuch submission)
You also confirm the registered seat (we provide one in Vienna if you do not have your own Austrian address), the share capital allocation, and the ÖNACE code describing business activities.
Costs and Timeline
Austrian formation costs split into three parts: notary fees, court filing, and our service fee. The 2024 capital reduction cut entry costs substantially; notary tariffs scale with capital, so a €10,000 GmbH is materially cheaper to notarise than the old €35,000 version.
Our packages cover the full incorporation: name clearance, articles drafting, digital notarisation, Firmenbuch filing, all court and notary fees, WiEReG declaration, UID application, a registered seat in Vienna for year one, and a business bank account introduction. Contact us for a fixed-price quote — there are no hourly bills and no extras invoiced after the fact.
Typical timeline from KYC clearance:
| Day | Milestone |
|---|---|
| 0 | Engagement, KYC submitted |
| 1–2 | KYC cleared, Gesellschaftsvertrag drafted, e-signatures issued, translations commissioned |
| 3 | Digital notarisation by video conference |
| 3–4 | Share capital deposited into blocked account; bank confirmation issued |
| 5 | Firmenbuch application filed |
| 8–15 | Firmenbuch entry granted, FN number issued |
| 10–20 | UID issued by FinanzOnline; WiEReG filing completed |
| 10–20 | Operating bank account live |
If your timeline is urgent and a pre-incorporated company is the better fit, our sister brand offers ready-made Austrian GmbHs — incorporated, dormant, and transferable inside a week.
Tax Overview for Austrian Companies
Austrian corporate taxation is simple at the top line: a flat rate applies whether you retain profits or distribute them.
Corporate Income Tax (Körperschaftsteuer, KöSt): 23% flat. The rate dropped from 24% to 23% on 1 January 2024 and has not changed since. There is no progressive schedule and no small-profits rate. Losses carry forward indefinitely, subject to the 75% rule — in any year, only 75% of profits can be offset against carry-forward losses.
Minimum corporate tax. A GmbH pays a minimum KöSt even in loss-making years: €125 per quarter, €500 per year. An AG pays €875 per quarter, €3,500 per year. Amounts paid as minimum tax can be credited against future profits.
VAT (Umsatzsteuer): 20% standard rate. Reduced rates of 13% (domestic flights, hotels, cultural events, cut flowers, firewood) and 10% (food, books, newspapers, pharmaceuticals, residential rent, public transport). From 1 July 2026 a new 5% rate applies to selected essential foods — the first structural VAT cut in decades. The mandatory registration threshold for Austrian-established businesses is €55,000 (raised from €35,000 on 1 January 2025); non-residents making taxable Austrian supplies must register from the first euro unless reverse-charge applies.
Withholding tax. Austria levies 23% WHT on dividends paid to non-resident corporate recipients holding less than 10% in the distributing company, and 27.5% on dividends to individuals. The EU Parent-Subsidiary Directive reduces the rate to 0% for qualifying EU shareholdings of 10% or more held for at least a year. Outbound interest to non-resident corporations is generally not subject to Austrian WHT under domestic law. Royalties to non-resident companies attract 20% WHT, reduced under applicable DTTs or under the EU Interest and Royalties Directive. Austria has more than 90 double-tax treaties.
Capital gains participation exemption. Gains on the sale of qualifying international participations are tax-exempt where the Austrian company holds at least 10% for at least 12 months in a foreign corporation. For domestic participations, gains are generally taxable, though roll-over reliefs exist.
Investment allowance (Investitionsfreibetrag). Temporarily increased from 10% to 20% (and 22% for ecological investments) for qualifying investments made between November 2025 and December 2026. This is a deduction on top of depreciation — a meaningful boost for capex-heavy businesses planning an Austrian entity inside the window.
E-invoicing. B2B e-invoicing is not yet mandatory in Austria for 2026. B2G has been mandatory since April 2020 via FinanzOnline and USP. EU-wide intra-community B2B e-invoicing becomes default under ViDA from 2028; domestic B2B rules are expected to align with that timeline.
Banking for Austrian Companies
Austrian business banking is bank-heavy rather than EMI-heavy. The five large domestic groups dominate corporate accounts, and physical presence at a branch is still the norm even for digital-native businesses.
Erste Bank / Erste Group is Austria's largest retail and SME bank. Business account opening is available for non-resident-controlled GmbHs, with an English-language international desk and a strong network across CEE — useful if the Austrian company will invoice into Czech Republic, Slovakia, Hungary, Romania, or Croatia.
Raiffeisen Bank International and its Austrian retail arm Raiffeisen Landesbanken handle a large share of CEE cross-border banking. Accepts non-resident founders readily and is a natural choice for holding structures with subsidiaries in central and eastern Europe.
Bank Austria (UniCredit Group) runs an International Clients service that coordinates account opening for hybrid resident/non-resident ownership structures. Italian-parent compliance culture, good English-language support, branch visits are typical but manageable in a single trip.
BAWAG P.S.K. is Austria's fourth-largest bank and the most digitally advanced of the traditional set. Online onboarding works for most resident-controlled GmbHs and for simple non-resident structures.
Oberbank is a regional Upper-Austria bank with disproportionate reach into CEE SME lending. Comfortable with founders from Czech Republic, Hungary, Slovakia, and Germany; useful for medium-sized operating companies rather than pure holding vehicles.
Wise Business and Revolut Business are the EMI options for GmbHs that do not need a physical Austrian IBAN for tax-office direct debits. Both onboard remotely and work well for e-commerce, SaaS, and consulting GmbHs with mostly cross-border invoicing. The Austrian tax office and ÖGK prefer a SEPA direct-debit mandate from an Austrian-IBAN account for monthly payments, so most operating businesses pair an EMI with a domestic bank rather than relying on an EMI alone.
Frequently Asked Questions
How long does it take to form an Austrian GmbH?
With digital notarisation in place since 2022 and the 2024 capital reduction, a clean GmbH formation reaches Firmenbuch entry in 5 to 15 business days from notarisation. Including KYC, drafting, translations, share-capital deposit, and bank account opening, our typical end-to-end timeline is 10 to 15 business days to an operating company.
What is the minimum share capital for an Austrian GmbH in 2026?
The statutory minimum is €10,000 since 1 January 2024, reduced from €35,000 under the Corporate Law Amendment Act 2023. At least €5,000 must be paid up in cash before Firmenbuch registration. The FlexCo (FlexKapG) uses the same €10,000 total, but individual shareholder contributions can be as low as €1.
Can a foreigner set up a company in Austria?
Yes. Austrian company law imposes no nationality or residency requirement on shareholders of a GmbH or FlexCo. A non-resident can be the sole shareholder and sole managing director. Where no board member resides in the EU, a tax representative is appointed for VAT purposes. The WiEReG beneficial-owner register applies to all companies regardless of shareholder residency.
What is the difference between a GmbH and a FlexCo?
Both have €10,000 minimum capital and limited liability. The FlexCo allows individual shareholder stakes as low as €1, permits private written share transfers (no notary per deal), supports employee stock option plans through non-voting "enterprise value shares" up to 25% of capital, and fits venture-backed cap tables. The classic GmbH requires minimum €70 per shareholder and notarised share transfers, which suits stable founder-owned businesses.
What is the corporate tax rate in Austria?
The flat corporate income tax rate (Körperschaftsteuer) is 23% for 2026, down from 24% in 2023. It applies equally to retained and distributed profits. A minimum tax of €500 per year applies to a GmbH even in loss-making years. Withholding tax on dividends paid to non-resident shareholders is 23% (corporate recipients, <10%) or 27.5% (individuals), reduced under treaties or the EU Parent-Subsidiary Directive.
Do I need an Austrian notary to set up a GmbH?
Yes — the articles of association (Gesellschaftsvertrag) must be executed as a notarial deed. Since August 2022 this can be done digitally: an Austrian notary verifies identity and takes signatures via a qualified video conference, with the founder using a qualified electronic signature. Physical attendance in Austria is no longer required for most standard formations.
What is the Firmenbuch?
The Firmenbuch is Austria's Commercial Register, maintained electronically by regional commercial courts (Handelsgericht). Every GmbH, FlexCo, AG, and registered partnership is entered there with an FN (Firmenbuchnummer) number. The register is publicly searchable and shows the company's registered seat, share capital, managing directors, and shareholders. Registration with the Firmenbuch is constitutive — the company becomes a legal person on the day of entry.
Get Started — Form Your Austrian Company
A fixed-price quote in 60 seconds. Digital notarisation handled by our partner notary in Vienna. Firmenbuch filing, WiEReG declaration, UID registration, and Austrian bank account introduction included. No travel to Austria required for standard formations.
Call +48 2222 5 2222 or email [email protected] to start. Most Austrian GmbH or FlexCo formations are complete and operating with a bank account within 15 business days from KYC clearance.
Content prepared by Piotr Walter, In-house Counsel. Approved by Tomasz Bielski, Managing Director.
Looking for a faster route? Our sister brand offers ready-made Austrian GmbH — pre-incorporated and transferable in days.