How to Start a Business in Austria as a Foreigner.
For foreigners, The most straightforward way to conduct business is the sole proprietorship.
Are you looking to establish an enterprise with Austria as a non-native but need help figuring out what to do? This article will help you find specific guidelines for effectively starting and managing your company in Austria, regardless of whether you are an international.
Is Austria a Good Place for Business?
Austria is an economic and business environment as an international. It has a broad economy, with manufacturing as one of the major contributors. Austria offers great business opportunities, with an estimated 25.74 million and the 30th highest GDP of any country.
Furthermore to that, Austria is a stable and stable political system and an established rule of law. Regarding commercial operations, Austria has favorable laws and regulations for business owners, including foreigners. Austria ranked it was organized by the World Bank and ranked 27th out of 190 countries surveyed in terms of ease of conducting business around the world.
With more than 300 United States companies operating subsidiaries in Austria and 300 subsidiaries in Austria, it’s clear that the market is viable for international companies. If you’re considering setting up your own business in Austria, You should be aware that the more than 12,500 foreign firms within the country will only be in Austria if they’re making profitable deals.
Who is Eligible to Start a Business in Austria?
Anyone can begin an enterprise in Austria if they meet the requirements. However, there are no prerequisites for establishing an enterprise in Austria if you’re a resident of Switzerland or any other EU country or in the European Economic Area. If you’re from somewhere other than these areas, you must have a minimum of 18 years old and possess a residence permit before operating an enterprise in Austria. In addition, you must be registered with the Austrian commercial register Austrian business register and obtain authorization to use an enterprise in Austria.
It’s not difficult to set up and operate an enterprise in Austria, but it’s not easy if you need help with how to proceed. Let’s look at the steps you must follow to begin your business in Austria.
Steps to Starting a Business in Austria as a Foreigner
Obtain a Residence Permit
A residency permit will be the first step to establishing a company in Austria. There are many methods of obtaining an Austrian resident license. However, if you’re planning to begin a business within Austria, you’ll need a permit to reside in Austria for entrepreneurs.
The procedure for obtaining the Austrian residency permit can be simple. The applicant must apply to the Austrian Embassy in your country, submit the required documents, and wait 90 days before it can be approved. If you’re from Switzerland, one of the EU or EEA countries, you are not required to have a residence permit to move to Austria and begin an enterprise.
Determine the Legal Structure of Your Business
Once you’ve received a residence permit and relocated to Austria, The next step is establishing your business’s legal framework. The common business structures in Austria are the sole proprietorship (the Einzelunternehmen), the limited liability company (Gesellschaft mit beschrankter Haftung, or GMBH), and the joint-stock company (Aktiengesellschaft). Other structures include branches and subsidiaries.
For foreigners, the sole proprietorship is the most straightforward option for you to run a business. The most popular arrangement favored by government officials of the Austrian authorities is the restricted liability corporation. If you’re searching for an investment permit for a resident in Austria, the only legal option is the GMBH and its subsidiaries.
To establish a GMBH in Austria, you must have at least an equity capitalization of $35,000, from which 17500 euros need to pay in cash.
Submit Company Name and Details for Approval
When you’ve decided on the kind of business you want to launch in Austria, The next step is to obtain approval for the name of your business and business activities. The Austrian Commercial Registry (also known as the HRA) is the official government agency responsible for corporate registration and incorporation. You’ll need to supply certain personal details, including your address, directors’ and partners’ names, and the type of company you’d like to establish in Austria.
Open an Austrian Bank Account
You can establish your Austrian company account when your company’s name and information are approved. This allows you to make the necessary payments for the share capital minimum and other charges you must pay to incorporate your business. This will also be useful when you apply for a business license.
Notarize Your Company’s Statutory Documents
The next step after creating an account and depositing the share capital minimum is to prepare your company’s legal documents and then have them notarized. The records you must submit include the memorandum of incorporation, the director’s list, and any other documents required for the company to be legally operating in Austria.
Apply for a Business License
After notarizing your company’s documents, The next step is to submit them before the Trade Register for approval. After the documents have been approved, you’ll get authorization to start trading in Austria. This is the final authorization you require to begin your company.
Register Your Company with Tax Authorities
The operation of a limited liability company in Austria does not grant you tax benefits. It is required to pay sales and corporation tax regularly. To do this, you’ll need a tax number. Thus, once your company has been registered in the company register, the next step is to sign up with the tax administration of Austria. To ensure efficiency, employ a tax advisor to assist you in this procedure.
Register Your Employees for Social Security
It is a requirement by law in Austria for businesses that employ employees; you are required to make sure they are registered for social insurance before the day they start working. Tax advisors can assist you when you file your company for sales and corporation tax.
How Long Does it Take to Register a Business in Austria?
It takes about the span of four weeks required to register your company officially and to begin activities in Austria. Registration of a business name is done online in just a few hours. Likewise, it takes about 10 days to write and notarize corporate documents and document them using the trading register. The opening of a business bank account is possible in just one day. However, what can take time is registration with tax authorities. It can take about two weeks to complete that in Austria and the registration process for Social Security tax.
With an estimated gross domestic product in the range of $390.80 billion, Austria is among the most prosperous countries in the European Union. Its wealth is evidenced by an extremely high quality of life, which allows the citizens of Austria to enjoy the luxurious lifestyle they desire. Starting an enterprise in a country with low unemployment and poverty rates will always be profitable.