Starting a Business in Austria
5 Key Facts Every Founder Should Know
In this article, you will learn:
1. Opportunities in an attractive business location
2. Choosing the right legal structure
3. Trade registration and dealing with authorities
4. Taxes and levies: What founders need to expect
5. Social insurance for the self-employed
Conclusion: Well-informed for a successful start
1. Opportunities in an attractive business location
Austria attracts many founders with its stable economy, reliable legal framework, and a wide range of funding opportunities. Whether in services, trade, or manufacturing, those who establish themselves here often benefit from a well-developed infrastructure and strong purchasing power.
At the same time, various aspects must be considered when starting a business: from choosing the right legal structure to tax obligations and social insurance for the self-employed and their employees.
2. Choosing the right legal structure
One of the first major steps in setting up a business in Austria is choosing the appropriate legal form. Depending on your business idea and personal risk tolerance, you might consider a sole proprietorship (EPU), a limited liability company (GmbH), or even a partnership.
What to keep in mind:
- Liability issues: With a GmbH, liability is generally limited to the company’s assets. In contrast, in a sole proprietorship, the founder is personally liable with their private assets.
Our tip: If you want to minimise personal risks, consider whether a GmbH or another form with limited liability suits your needs better. - Minimum capital: A GmbH requires a minimum share capital that must be deposited at the time of incorporation.
Our tip: Find out about the required amount of share capital and the necessary legal steps.
3. Trade registration and dealing with authorities
After choosing the legal form, trade registration is usually the next step. For many industries, a so-called "free trade licence" is sufficient. However, specific sectors (such as construction, hospitality, or crafts) require a special licence or proof of professional qualification. The competent bodies are usually the district authorities or municipal offices.
What to keep in mind:
Our tip: Check whether your business falls under a regulated trade. Equivalence assessments may be required. Also, determine whether you need a permanent trade licence or if you're providing temporary cross-border services.
Our tip: Prepare a checklist early for all dealings with the authorities, including deadlines and required documents. The Austrian Federal Economic Chamber (WKO) offers support with trade registration and will check if your trade is regulated.
4. Taxes and levies: What founders need to expect
Although Austria is considered startup-friendly, new entrepreneurs should not underestimate their tax obligations. In addition to income tax or corporate tax (depending on the legal form), VAT may also apply if certain turnover thresholds are exceeded. Those employing staff must also deal with payroll taxes and social insurance contributions.
What to keep in mind:
Our tip: Careful planning and documentation of your revenue help you realistically estimate turnover and switch to VAT registration in time.
Our tip: A professional bookkeeping system (or suitable software) reduces errors and greatly simplifies your tax return.
5. Social insurance for the self-employed
When you start a business in Austria, you will often register with the Social Insurance Institution for the Self-Employed (SVS). This covers contributions to health, pension, and accident insurance. The amount is generally based on the income you earn from self-employment.
There are often special provisions or incentives for founders, such as reduced contributions in the first years. These are designed to ease the financial burden at the beginning and support business growth.
What to keep in mind:
Our tip: A phone call or online consultation with the SVS can provide clarity about which types of insurance apply to your business.
Our tip: Budget conservatively to avoid unpleasant surprises during the annual adjustment of contributions.
Conclusion: Well-informed for a successful start
Starting a business in Austria offers reliable conditions and an attractive business environment. However, thorough preparation pays off to avoid missing important deadlines or making accounting errors. Choosing the right legal structure, completing the necessary registrations, understanding tax requirements, and fulfilling social insurance obligations are just a few of the topics founders should address.
(This article does not replace legal or tax advice. For specific questions and individual support, please feel free to contact us.)
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Employee registration and the Austrian Anti-Wage and Social Dumping Act (LSD-BG): Common mistakes and how to avoid them
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