Residence requirements by registering a company in Austria
Austria is one of the strongest and most luxurious countries in Europe, with a low unemployment rate and a strong economy that can be a pretty attractive destination for investors. People looking to expand their business internationally can start their business in Europe by starting a company in Austria. Registering a company and starting a business is one of the sub-branches of the investment method, which we will discuss in detail. MIE Austria (nearly 20-year experience in immigration work) can find the most suitable immigration path according to your situation and be by your side to the end. You can get all the information you need in various fields on our websites.
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Topics reviewed in this article:
Obtaining Austrian residence by registering a company
Austria is one of the wealthiest countries in Europe and attracts international investors because of its stable political system and economy. The suitable industries for investment are banking and information technology, which play a critical role in Austria’s economic development. Austria is a member of several international organizations, including the World Bank, the World Trade Organization, and the Organization for Economic Co-operation and Development. So investors can trade here with the best international standards. The applicants cannot obtain residency with this method. They must be employed as a workforce in Austria after registering the company to obtain work residency. The applicants must have the appropriate age, at least a university degree or bachelor’s degree, a German language degree, and relevant work experience to receive the required credits for a work permit. The applicants can apply for their companions’ reunification after receiving the work residence card, including their spouse and children below 18.
Types of companies
Public Joint Stock Company (AG)
Ltd (GmbH)
Public Partnerships (OG)
Limited Partnerships (KG)
Sleep Partnership (stG)
Registered Civil Law Partnership (EEG)
European Company (SE)
Single ownership
Branch or representative of a foreign company
limited liability companies
Important note about limited liability companies in Austria, Ltd (GmbH)
A limited liability company can take two forms:
Partnerships in Austria
There are four types of partnerships for international investors in Austria:
Public participation
Limited participation
Silent participation
Participation in civil law
Regardless of the type of partnership that investors want to set up, they require at least two founding members and no stock capital requirement.
Individual investment in Austria
Individual investment is the easiest way to do business in Austria. The applicants do not need to have joint capital. However, they must register their brand in the company registration office in Austria and obtain special licenses.
Opening of a subsidiary in Austria
A subsidiary is an independent entity usually registered as a limited liability company. Likewise, it can make its own decisions and operate as a local company in the Austrian market.
Minimum initial capital to register a company in Austria
Foreign investors wishing to set up a company in Austria must consider the costs. The company registration costs in Austria for non-Europeans are between 3,000 and 4,000 euros. The initial required capital to start a business is 35,000 euros. General and primary ancillary costs such as renting a place for company activities and hire a person for accounting and other work in the first months are around 12,000 to 14,000 euros. The applicants must consider the immigration lawyer costs.
Risks, taxes, and critical points about registering an Austrian company
The applicants must consider some things like business profits, income tax, or property confiscation before registering a company to know whether or not investing in Austria is harmful. The property confiscation rate is one of the main points and is between one and seven. The closer to seven, that country is not suitable for investment. This rate is one in Austria, which indicates high security for investment. Investment risk rate is another critical issue. The applicants must evaluate points such as economic and political conditions and environmental conditions for starting a business. Therefore, one can examine a country’s general conditions to start a business. Austria has the lowest risk for international investors. You can see the taxes and tax-related fees in the following list:
Corporate tax rate – 25%
VAT rate- 20%
Dividend tax – 25%
The company registration process in Austria
The different company registration steps in Austria:
If the central applicants are not present in Austria, they must nominate a legal representative. The applicant must define an association article to explain the company’s activity plans to register a company in Austria, which can be changed. However, they must have a business plan or economic justification plan, which must be written by the applicants and be approved by the Austrian Chamber of Commerce. Some institutions specialize in writing a business plan and can help applicants.
Benefits of starting a company in Austria
Low company tax rates
Stable economy and solid political system
Reliable legal system
Advanced and efficient government
Appropriate labor costs
Cooperation between trade and science
International connection and presence in the Schengen area and Europe
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