Austria at a glance
Austria is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Austria
- GmbH (Gesellschaft mit beschränkter Haftung) The most common private limited company. Minimum capital EUR 10,000 (at least EUR 5,000 paid in cash), formed by notarial deed and entered in the commercial register (Firmenbuch).
- FlexCo / FlexKapG (Flexible Kapitalgesellschaft) A flexible company introduced on 1 January 2024 for startups: the same EUR 10,000 capital, plus enterprise-value shares for employee equity, fractional shares from EUR 1, and easier share transfers.
| Corporate tax | Flat corporate income tax (Körperschaftsteuer) of 23% on profit, down from 24% in 2023. A minimum corporate tax of EUR 500 per year applies to a GmbH or FlexCo since 1 January 2024. |
|---|---|
| VAT rate | Standard VAT (Umsatzsteuer) is 20%, with reduced rates of 13% and 10% (for example food, books, cultural events and accommodation). |
| Dividends & payroll taxes | Dividends carry the 27.5% capital-yields tax (KESt). Personal income tax climbs to 55% at the very top, and employer contributions plus payroll levies add roughly 29% around salaries. Budget for the GmbH's EUR 500 minimum corporate tax in lean years. |
| Minimum share capital | EUR 10,000 for both the GmbH and the FlexCo (reduced from EUR 35,000 on 1 January 2024), of which at least EUR 5,000 must be paid in cash. The per-shareholder minimum is just EUR 1 for a FlexCo. An AG requires EUR 70,000. |
| Setup time | Typically about 1 to 3 weeks: a notarial deed (online or in person), depositing the cash capital and obtaining a bank confirmation, then entry in the commercial register (Firmenbuch), which the court usually completes within 1 to 10 working days. |
| Remote setup | Yes. The notarial deed can be signed fully online in a video call with a qualified electronic signature, so non-resident founders can incorporate without travelling to Austria. |
| Director / residency | At least one managing director (Geschäftsführer) is required, with no residency or nationality requirement. A local address for correspondence is useful, and certain regulated trades need an EEA-resident trade-license manager. |
| Banking options | A business account is needed to deposit the cash contribution and obtain the bank confirmation for registration. Common banks are Erste/Sparkasse, Raiffeisen, Bank Austria (UniCredit) and BAWAG; fintechs (N26, Wise, Revolut) are used for daily banking. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
On 1 January 2024 Austria cut the GmbH minimum capital from EUR 35,000 to EUR 10,000 and launched the FlexCo for startups, which allows employee enterprise-value shares with tax deferred until exit. Incorporation can now be done entirely online by video notarisation.
How to register a company in Austria
Step by step, this is how a Austria formation actually runs:
- Choose GmbH or FlexCo. The GmbH needs EUR 10,000 capital (half paid in); the FlexCo variant adds startup-friendly share classes and employee participation.
- Notarise the deed. The notarial act can be completed fully online by video with qualified e-signatures, workable for non-residents.
- Deposit the capital. Pay at least EUR 5,000 into an Austrian account and obtain the bank confirmation for the court.
- Register in the Firmenbuch. The commercial court enters the company, typically within 1 to 3 weeks in total.
- Tax and trade registrations. Register with the tax office for CIT and VAT; regulated trades also need the business licence (Gewerbeberechtigung).
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Austria costs
Notary and court costs for a standard GmbH commonly total EUR 400 to 900, and first-time founders can use NeuFöG exemptions to waive several fees. Plan for the minimum corporate tax of EUR 500 a year even in loss years. Accounting for a small GmbH typically costs EUR 150 to 300 a month.
Form your Austrian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Austria, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Austria
Founders from outside the EU can own and run an Austrian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Austria up front, so there are no surprises.
Austria fits businesses serving the DACH market that want GmbH credibility with lower capital than Germany, and startups using the FlexCo for employee equity. Running costs sit at the German level, so purely remote micro-businesses usually find lighter homes elsewhere.
After registration: what Austria expects each year
Annual financial statements are filed with the Firmenbuch within nine months of year end (small companies file abbreviated versions). Corporate tax and VAT returns are annual with periodic prepayments, and the EUR 500 minimum CIT applies regardless of profit. Payroll adds monthly municipal and social filings.
Austria and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so an Austrian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Austria against other countries, see company formation in Europe.