"Sole Proprietorship (Einzelunternehmen)

In Austria, the counterpart to sole proprietorship is Einzelunternehmer - a private entrepreneur.

Who can become a sole proprietor in Austria

• Austrian citizens

• Citizens of the European Union

• Immigrants with a residence permit, if they have the right to work 40 hours per week

• Students with a residence permit, if they have the approval of the magistrate

One of our clients is a yoga trainer from Ukraine with a built-up customer base and followers on social networks. She didn't want to give up her beloved work, and in a consultation, we together found the best solution in her situation - establishing a sole proprietorship in Austria.

The sole proprietor in Austria:

• must use their name and surname for business with the addition e.U.

• can hire employees - on the condition of paying insurance and health contributions

• can rent premises for business

• can participate in state and municipal programs to support business

How to register a sole proprietorship (Einzelunternehmer) in Austria

Since 2017, you can register as a sole proprietor on the State Portal for Business Services.

What documents are needed:

— passport

— long-term residence permit

— certificate of no criminal record from the Austrian police (not required if you have been living in Austria for more than 5 years)

— qualification document (diploma or another document)

Let's delve into the last point. In our article on the opening of a limited liability company (GmbH), we have already touched on the topic of licenses in Austria. Unlike the CIS countries, Austria has many business areas that require a license. Therefore, even if you work as a sole proprietor and not a legal entity, you need a license. And if you don't have one personally, you'll have to hire an employee who does.

We select such employees or managing directors for GmbH and AG when helping clients open a business here. If you do this on your own, check the validity period of the license, its proper registration, and the actual match of the employee's skills - to avoid problems with inspections and fines in the future.

After the company is established, legal entities must register their business activities in the Austrian Trade Register. For sole proprietors, this becomes mandatory only if the annual turnover of their business exceeds 1 million euros or 700,000 euros two years in a row.