How to Set Up an Entity in Austria

Establishing a legal entity in Austria offers access to EU markets, a stable regulatory environment, and strong investor protection. Austrian incorporation provides credibility among European clients and partners, and is often used by foreign companies seeking a European foothold. The process is moderately bureaucratic: it requires notarized documents, registration with courts and tax authorities, and compliance with trade licensing systems. Key challenges include understanding local trade permit rules, handling Austrian language requirements, and coordinating bank account setup and social registrations. The main benefits include limited liability, greater flexibility in managing local operations, and the ability to build a long-term presence with your own corporate and employment structure.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Austria?

In Austria, opening an entity typically means registering a company in the Firmenbuch (Commercial Register) via the competent court, granting it full legal status (legal personality) and registration with tax and social authorities. Businesses may operate via a GmbH (limited liability company), AG (public stock company), or register a branch of a foreign company.

Entity overview in Austria

Below is a snapshot of the typical features across Austrian entity options. The GmbH is the most common choice for foreign investors.

Step-by-step guide: How to open an entity in Austria

Step 1: Choose the right structure

The two most relevant structures for foreign investors are:

• GmbH (limited liability company): The default choice. Liability is limited to the company’s assets. Since 2024, the minimum capital is €10,000 (with half, i.e., €5,000, to be contributed at incorporation).
• AG (public stock corporation): Suited for larger or publicly listed operations. Requires €70,000 in capital.
• Branch / Zweigniederlassung: not a separate entity; the foreign parent is liable for obligations but must register local operations and obtain trade licenses.

For most use cases, the GmbH is preferred due to simplicity, liability protection, and relatively modest capital requirements.

Step 2: Verify business name availability

You must choose a unique company name and include the legal form (e.g., GmbH). The name must not mislead or infringe trademark. Search for available names through JustizOnline/Firmenbuch or via the court’s registry. The Commercial Register (Firmenbuch) is accessible via the European e-Justice portal.

Step 3: Prepare incorporation documents

You must assemble (and notarize) key formation documents, typically including:

• Articles of Association (Gesellschaftsvertrag) in German
• Founders’ resolutions appointing managing directors
• Statement of capital contributions (cash and/or in-kind)
• Proof of deposit of paid-in capital (bank certification)
• Copies of passports / IDs of shareholders, directors, and beneficiaries
• Declaration by managing directors confirming that contributions have been made
• Trade business registration (Gewerbeanmeldung) materials
• If any shareholder is a foreign legal entity: certified incorporation documents and translations (if not already in German)

The Austrian Ministry of Economy notes that trade registration is free and integrated into the system via GISA.

Step 4: Register with Commercial Register (Firmenbuch)

File your documents with the competent commercial court (the district court covering your registered address). The judges review the form, compliance, signatures, and documentation. Upon acceptance, your company is registered, assigned a Firmenbuchnummer (commercial register number), and gains legal personality. The registry entry includes legal name, address, share capital, and officers. After registration, the court’s extract is automatically shared with other authorities through GISA.

Step 5: Register for tax and social security

Once your company is registered, you must apply to the local Finanzamt (tax office) for a corporate tax number. At the same time, register as an employer with Austria’s social security institutions, including the Österreichische Gesundheitskasse (ÖGK) for health insurance, the Pensionsversicherungsanstalt for pension contributions, and the Allgemeine Unfallversicherungsanstalt for accident insurance coverage. Even if your company has limited profits, you are still required to pay a Mindestkörperschaftssteuer (minimum corporate income tax), which is calculated based on the statutory minimum share capital.

Step 6: Open a corporate bank account

Open a company bank account in Austria. Banks will require the company registration documents, the managing directors’ IDs, proof of address, and possibly interviews. Some banks may require in-person visits. Depositing the initial capital is usually done into this account (or into a trust/deposit account until registration). Delays can occur depending on KYC, especially for foreign shareholders.

Step 7: Set up payroll and employment compliance

To hire staff legally, you will need:

• Draft employment contracts in German that comply with Austrian labor law (e.g., working hours, termination, leave entitlements)
• Register employees with social security and remit employer and employee contributions (for health, pension, unemployment, and accident)
• Withhold income tax and remit to wage tax monthly
• Comply with Austrian collective bargaining or industry standards if applicable
• Maintain work permits or relevant visas for non-EU employees if needed

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Post-registration obligations

After incorporation, your Austrian company must maintain compliance:

• Tax and financial reporting: File annual corporate tax returns, VAT returns (monthly or quarterly depending on volume), and prepare financial statements under Austrian Generally Accepted Accounting Principles (GAAP) / Unternehmensgesetzbuch (UGB).
• Corporate registers: Update and report changes to shareholders, directors, or beneficial owners to the Firmenbuch without delay.
• Compliance tracking: Use a calendar or system to monitor filing deadlines (tax, VAT, social contributions).
• Licenses and renewals: Renew any required trade licenses, permits, or sectoral approvals via GISA and local authorities.
• Recordkeeping: Keep accounting, payroll, contracts, invoices, and HR records for at least 7 years (standard Austrian requirement).
• Labor and benefits compliance: Continue to comply with labor law, social contributions, and employee rights.

Taxes and financial considerations

Here’s a summary of core fiscal obligations:

• Corporate income tax: The rate is 23% on taxable profits.
  VAT: Standard rate is 20%; reduced rates of 13% and 10% for certain goods/services. The threshold for mandatory registration is EUR 55,000 annual turnover (2025).

• Payroll / social contributions: Employer and employee contributions combined often reach 30–35% (varies by sector and wage level)

• Accounting standards: Austrian companies must follow the local UGB / Austrian GAAP. Some larger groups can prepare IFRS consolidated statements as needed.

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into Austria—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Austria?
Generally, 2–4 weeks from start to full registration and tax numbers.

What is the minimum capital required?
For a GmbH (a limited liability company in Austria), €10,000 (EUR), with a minimum initial cash contribution of €5,000 (EUR).

Can foreign companies own 100 % of an entity in Austria?
Yes. Austrian law allows full foreign ownership. No local shareholder is required.

Do I need a local director or representative?
No. Managing directors can be non-Austrian and non-residents.

How much does it cost to register an entity?
Typical setup costs (notary, legal, registry fees) range from €1,500 (EUR) to €3,000 (EUR) (excluding capital injection). Use our Entity Setup Calculator to estimate.

Can I hire employees before the entity is fully registered?
Usually, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Austria?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant. If you're using Deel Entity Management, our team handles payroll, benefits, filings, and compliance obligations on your behalf. For DIY entities, Deel Compliance Hub provides real-time regulatory updates and reminders.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.