Austria is a member state of the European Union with developed corporate legislation and a legal environment for investment activities. Foreign investors can establish companies in Austria while complying with the requirements for company registration, permits, taxes, and other applicable regulations.
One of the most common legal forms is Gesellschaft mit beschränkter Haftung (GmbH), a limited liability company.
1. Key Features of Austrian GmbH
A GmbH is a legal entity that operates separately from its participants. As a general rule, the company is liable for its obligations with its assets. In 2026, the minimum statutory capital for a GmbH is €10,000, of which at least half must be paid in cash at the time of establishment. The company can also be established by a single participant. A GmbH acquires legal entity status after being registered in the relevant commercial register, the Firmenbuch.
2. Company Registration Procedure
To establish a GmbH, it is necessary to prepare the founding documents, determine the capital, appoint a director, and carry out the necessary actions for registration. As a general rule, the founding agreement is concluded in the form of a notarized act.
At the same time, Austrian legislation provides for a simplified electronic founding procedure under certain conditions, allowing for the establishment of a single-person GmbH without the direct involvement of a notary.
After the company registration, it is necessary to assess the obligations regarding the submission of information on the relevant permits, registrations, and actual beneficiaries.
3. Corporate Taxation
In 2026, the general corporate income tax rate in Austria is 23%. Additionally, a minimum corporate tax requirement applies to certain companies. For GmbHs, the minimum corporate tax is €500 per year, considering the calculation and subsequent offsetting rules provided by law.
Therefore, even a company operating at a loss may incur a minimum tax payment obligation.
When distributing dividends from an Austrian company to an individual shareholder, as a general rule, a tax of 27.5% on capital income is applied, taking into account contractual and legislative exceptions.
4. Opportunities for Holding Companies
Austrian companies can be used in holding and investment structures. Under certain conditions, some dividends and income from participation may benefit from tax exemptions. However, the benefits depend on the nature of the participation, the shareholder relationship, the location of the relevant company, and the applicable tax regulations. In particular, for international holding structures, it is necessary to assess the requirements for anti-abuse, actual economic activity, and tax residency.
5. Permits and Management Requirements
Establishing a company in Austria and the right to engage in specific economic activities involve various legal issues.
For certain activities, a corresponding trade permit (Gewerbeberechtigung) and a responsible manager meeting the legal requirements are necessary. This requirement is particularly important for foreign founders.
6. Legal Support
When creating a company in Austria, it is essential to study not only the registration procedure but also the conditions for company management, shareholder relationships, tax obligations, and international transactions.
Ilex law firm can assist with the preliminary legal assessment of international corporate structures, drafting contracts, and organizing relevant legal work with local experts in Austria.