Austria is among the member states of the European Union and has been attracting foreign investments since the last few years due to the many benefits it holds for companies formed within its boundaries.
Benefits
Being situated in the heart of the European Union, Austria provides promising opportunities for entrepreneurs looking forward to set up companies there. Since the country serves as a trading bridge between Western and Eastern Europe and the Balkans, it opens up numerous large and different markets for the businesses to operate in, increasing their chances of profitability. Moreover, a company operating in the country can have access to all the double taxation treaties Austria has signed with major traders in the global market, as well as benefit from a legal exemption of dividend tax received from foreign subsidiaries.
In addition, companies operating in Austria need not worry about illegal practices since Austria has been declared the 25th least corrupt country in the world in 2012. Also, businesses in the country can benefit from the free labor, financial, trade, investment, and other markets, a factor which is absent in many developing and developed countries. Among the other advantages that Austria offers to its companies are economic and political stability, a high standard of living – creating a profitable target market- , as well as legal security. Companies operating in Austria can also benefit from the high demand arising from tourists who visit the country in order to see its beautiful sceneries and cultural heritage, and constitute another potential market to target.
Being situated in the heart of the European Union, Austria provides promising opportunities for entrepreneurs looking forward to set up companies there. Since the country serves as a trading bridge between Western and Eastern Europe and the Balkans, it opens up numerous large and different markets for the businesses to operate in, increasing their chances of profitability. Moreover, a company operating in the country can have access to all the double taxation treaties Austria has signed with major traders in the global market, as well as benefit from a legal exemption of dividend tax received from foreign subsidiaries.
In addition, companies operating in Austria need not worry about illegal practices since Austria has been declared the 25th least corrupt country in the world in 2012. Also, businesses in the country can benefit from the free labor, financial, trade, investment, and other markets, a factor which is absent in many developing and developed countries. Among the other advantages that Austria offers to its companies are economic and political stability, a high standard of living – creating a profitable target market- , as well as legal security. Companies operating in Austria can also benefit from the high demand arising from tourists who visit the country in order to see its beautiful sceneries and cultural heritage, and constitute another potential market to target.
Requirements
As far as the requirements for company formation in the country are concerned, all companies in Austria are required to have a legal address, which can be easily obtained from one of the many agencies aiding company formation in the country. The requirements for setting up a company in Austria are quite flexible in the sense that there are no rules for the directors or shareholders to be Austrian residents, and a minimum of only one director and shareholder is necessary; it can also be the same person.
The most common type of companies operating in Austria is the limited liability GmbH company, for which it is a requirement to end its name in ‘GmbH’ to denote that the liability of each shareholder is limited only to the amount of the share investment. The minimal share capital needed for such a company is 35,000 euros, at least half of which should be paid in, and the shares of the company cannot be traded on the stock exchange.
In case of an Austrian Stock Company, a supervisory board is compulsory, and formal shareholder meetings are required to be held regularly. Also, the financial statements of such a company have to be audited by a certified public auditor, and the minimum stock capital requirement is 70,000 euros, with 25% of the subscribed capital paid in.
As far as the requirements for company formation in the country are concerned, all companies in Austria are required to have a legal address, which can be easily obtained from one of the many agencies aiding company formation in the country. The requirements for setting up a company in Austria are quite flexible in the sense that there are no rules for the directors or shareholders to be Austrian residents, and a minimum of only one director and shareholder is necessary; it can also be the same person.
The most common type of companies operating in Austria is the limited liability GmbH company, for which it is a requirement to end its name in ‘GmbH’ to denote that the liability of each shareholder is limited only to the amount of the share investment. The minimal share capital needed for such a company is 35,000 euros, at least half of which should be paid in, and the shares of the company cannot be traded on the stock exchange.
In case of an Austrian Stock Company, a supervisory board is compulsory, and formal shareholder meetings are required to be held regularly. Also, the financial statements of such a company have to be audited by a certified public auditor, and the minimum stock capital requirement is 70,000 euros, with 25% of the subscribed capital paid in.
Growing Interest
Owing to relatively lenient formation regulations in Austria than in other countries of the world, and the freedom of its markets, many investors are now interested in setting up companies in the country. This does not only boost up the Austrian economy but will also improve trade on a global level because of Austria’s strategic location.
If you want to set company in Austria click here
Owing to relatively lenient formation regulations in Austria than in other countries of the world, and the freedom of its markets, many investors are now interested in setting up companies in the country. This does not only boost up the Austrian economy but will also improve trade on a global level because of Austria’s strategic location.
If you want to set company in Austria click here