How to Register a Sole Proprietorship (Einzelunternehmen) in Austria

Becoming a sole proprietor in Austria, known locally as an Einzelunternehmen, is appealing for its simplicity and independence. It’s a popular choice for freelancers, consultants, and creative professionals due to its low administrative burden and flexible structure.

The process is relatively straightforward, especially with online tools like the Unternehmensserviceportal (USP). Still, navigating eligibility rules, trade regulations, and social insurance obligations can be confusing.

The main challenges include meeting trade permission (Gewerbeberechtigung) requirements and managing mandatory social insurance. However, the easy setup process, full control over business decisions, and modest costs make it an accessible path to self‑employment.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Austria?

In Austria, a sole proprietorship is officially called an Einzelunternehmen. It may also be known as sole trader, self-employed, or independent contractor. These labels all describe a single individual running a business without forming a company.

How does a sole proprietorship (Einzelunternehmen) work in Austria?

Einzelunternehmen vs. other business structures in Austria

Austria offers several business forms, each with its differences in liability, costs, and complexity.

Step-by-step guide: How to register a sole proprietorship in Austria

Step 1: Check eligibility

To be eligible to open a sole proprietorship in Austria, must be 18 or older and either an Austrian citizen, national of a state in the EEA, or national of Switzerland. For nationals of another state outside the EU/EEA, you must have a residence permit. Applicants cannot have any disqualifying criminal or financial record.

For regulated businesses, you must also present evidence of qualifications and certification.

Step 2: Choose your business name

You may use your own name. To operate under a trade name, register via the USP or through WKO’s Gründer-Service.

Step 3: Gather required documents

You’ll typically need:

• Passport (and residence permit if necessary)
• Documents about academic degrees
• Criminal record if you’ve lived in Austria for less than five years
• Declaration of the absence of grounds for exclusion from the trade
• Proof of professional qualification if required for regulated trades

Step 4: Register with authorities

Submit your Gewerbeanmeldung via USP or local authority. Once accepted, you'll be entered into GISA (Austrian Trade Information System) within about three months.

Step 5: Register with tax office and SVS

Notify the Finanzamt for your tax ID (Steuernummer), and register with SVS for social insurance. These steps are needed within a short time frame after operations begin.

Step 6: Pay fees and contributions

Gewerbeanmeldung is typically free of federal fees. Chamber membership (WKO) costs around €100/year. Social insurance starts around €551/month in the first three years.

Step 7: Post-registration obligations

Maintain records, file tax returns, VAT (if applicable), pay insurance, and renew registrations or notify changes as needed. Consider voluntary commercial register (Firmenbuch) entry if your turnover exceeds thresholds.

Financial and tax obligations for sole traders in Austria

Income tax (Einkommensteuer): You pay income tax on your business profits through your annual return. Austria applies progressive rates up to 55%, with thresholds updated each year. Prepayments (Vorauszahlungen) are required quarterly, based on your prior year’s assessment or estimated profits. Refer to the Austrian Ministry of Finance for current brackets and guidance.

Social insurance contributions (SVS): All sole proprietors must register with the Social Insurance Institution for the Self-Employed (SVS). Contributions cover health, pension, and accident insurance. In 2025 the minimum contribution is about €551/month for the first three years, after which it is recalculated based on declared income.

VAT (Umsatzsteuer): If your annual turnover exceeds €35,000, you must register for VAT. The standard rate is 20%, with reduced rates of 10% and 13% for certain goods and services. File VAT returns quarterly through FinanzOnline. Businesses below the threshold may opt into VAT registration voluntarily.

Recordkeeping: You must keep proper records of income, expenses, invoices, and VAT submissions. Books may be kept electronically but must be retained for at least seven years. The USP portal provides official guidance and digital tools for compliance.

Launch your contracting career and stay compliant with Deel

Registering as an Einzelunternehmen gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

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