A prosperous and sophisticated business centre and a traditional trading bridge to Eastern Europe and the Balkans, Austria actively welcomes foreign investors. Setting up a company here is physically very easy. There is plenty of office and industrial space available, both for short and long term let and we can provide serviced office facilities. However there are important procedural issues to contend with. The company, which may be a partnership or corporation has to be registered. For corporations (company with limited liability [GmbH] or a stock corporation [AG]) this involves paying a nominal share capital. There is also the need to satisfy Austria's "Gewerberecht", or professional requirements for businesses. For more information, - please contact us.

	at least one shareholder
	at least one managing director, who does not have to be an Austrian citizen or resident in Austria
	audit and disclosure requirements may be necessary
	a local serviced office is advisable, but not a legal necessity, click here for details

What other types of company are there?

	stock corporation (AG), minimum share capital €70,000, at least two shareholders required
	general partnership (OHG), unlimited liability for all partners
	limited partnership (KG), unlimited liability for at least one partner
	registered civil law partnership (EEG), similar to OHG or KG but suitable for small companies and partnerships
	cooperative (Genossenschaft), legal entity with flexible membership, no fixed capital, not primarily for profit
	foreign branch, GmbH and AG companies based abroad may establish a branch in Austria

What are the formalities regarding incorporation?

The main formalities include:

	drafting of articles of association
	legalisation of articles of association by notary
	entry in the commercial register

How easy is it to recruit staff?

Austria has a well-developed recruitment sector both for professional and support staff but there are shortages of skilled staff in certain fields, particularly telecommunications. In some industries, such as telecommunications, engineering and building, it is preferable that the head of the company should be an Austrian national. Click here for assistance with recruitment.

What is the regulatory environment like?

Austria is a participant in the euro and there is free movement of both capital and earnings. It has dual taxation agreements with a number of other countries, in particular all members of the European Union, the USA, Canada and Russia. No industries are closed to foreign investment, although in strategic areas an Austrian solution is sometimes preferred. Corporate taxation is relatively low at 25%. Click here if you would like to contact one of our Austrian corporate tax specialists.

Are there financial incentives available – and what about banking facilities?

Full banking services are available which offer a complete range of commercial banking facilities, including those related to acquisitions and the raising of capital. We can help you open a bank account in Austria.

Government incentives include the following:

	investment allowance - 9% of all purchases for depreciable business properties are tax deductible, as are 6% of all software purchases
	investment incentive- project costs ranging from 15% to 70% are covered
	pre-market development - incentive of 25% to 50%
	research allowance – from 12% to 18% of research budgets are deductible where this research will lead to an increase in export revenues
	industrial research – incentives range from 50% to 60% of incentive-eligible costs dependent on area and size of business