The number of businesspeople who want to open a Company in Austria, from Eastern Europe and the CIS is increasing every year. They are attracted by the stability of the economy, loyal business environment and low inflation.
We will talk about the two most popular forms of business activities in Austria in this article : Open Joint Stock Company (AG) and Limited Liability Company (GmbH).
The Austrian Gesellschafr mit beschränkter Haftung each member owns a share in the authorized capital, which is 35 000 euros at least half must be paid in cash. There is an opportunity to make a contribution not in cash but property for this you need to have on hand a notarized confirmation from the court that the amount of the property is at least 35,000 euros.
This form of Company does not issue shares. The Shareholder of Gesellschafr mit beschränkter Haftung can be both physical and legal entity (partnership, trust, corporation from any other country), we need only one Shareholder. If the Company established a legal entity, then it needs a representative – manager of the Company, it can only be a natural person. Managing usually has no more than 25% of the Company, in which case it is treated as an employee. If the Manager owns more than 25% of the shares, it has become an independent entrepreneur.
The Managing Director has an important responsibility, as he is responsible for all payment obligations, including debts.
Managing can be resident of any country, but the commercial director – only Austrian citizen who has the right to obtain a license to conduct business.
Austrian GmbH pays income tax, which is 25%, but should not be less than 1750 euros. This tax is payable even if the company’s annual report showed a negative balance.
The process of establishing Gesellschafr mit beschränkter Haftung
– For the opening of the Company you need a notarized Memorandum – Gesellschaftsvertrag, which clearly spelled out the following points:
- The Shareholders rigts;
type of activity;
- authorized capital;
- the amount and percentage of contributions of members of the Company;
- as the distributed dividends;
- appointment of the Directors.
If the Company is formed by one founder, you must create Erklaerung ueber die Errichtung der Gesellschaft – Memorandum on the organization of the company.
– Grundkapital – amount of the authorized capital. To GmbH 35,000 euros, 50% is paid in cash.
The Company is registered within one month of receipt of all documents.
There is a tax on the initial capital, the so-called Gesellschaftssteuer – 0,8-1% of the total capital amount.
GmbH is subject to mandatory audits, under the following conditions:
- amount of business exceeds 300 000 euros;
- the size of the company’s assets more than € 2.5 million;
- the Company employed more than 50 people.