Establishment of a GmbH (Limited Liability Company)

The Austrian equivalent of a Limited Liability Company (LLC) is GmbH - Gesellschaft mit beschränkter Haftung. In this article, we provide insights into what needs to be considered when opening a Limited Liability Company in Austria.

Key Features of GmbH Legal Form

More details. To establish a GmbH, a charter and a share capital of 35,000 euros are required. The advantage is that only 10,000 euros need to be paid at the time of establishment, 5,000 of which in cash, and the rest can be contributed later. However, our lawyers still advise to pay the entire amount at once to avoid unexpected bureaucratic obstacles. 

Important: The company can commence operations only after registration with the Austrian Chamber of Commerce.

The liability of GmbH participants is standard, limited to the size of their share in the statutory capital. Management is also straightforward, with the company being managed by a director, who can be hired under an employment contract or selected from the participants, or a management committee.

GmbH members can be both residents and non-residents of Austria, as well as legal entities. The company can be established individually, making you the sole member of the company. Limited Liability Companies rank second in frequency of establishment in Austria.

For certain types of activities, a permit (Gewerbeschein) is required. For example, if you plan to engage in trade, transportation services, or restaurant or hotel business, it's advisable to clarify this matter in advance.

Taxes Paid by GmbH in Austria

GmbH pays a corporate income tax of 25% (Körperschaftsteuer). If there are no profits for the tax period, a minimum tax of 5% of the minimum statutory capital, i.e., 1,750 euros, must still be paid. If you receive a share of the profit as a participant, you also need to pay tax on dividends at a rate of 27.5%.

By law, for all GmbHs established after June 30, 2013, the minimum corporate income tax will be 500 euros per year for the first 5 years and 1,000 euros per year for the following 5 years.

It's highly advisable to find a reliable accountant to handle your financial records. There are situations where business owners manage their own bookkeeping, overlook seemingly insignificant taxes, and face significant issues at the end of the reporting period.

If you plan to establish a not-so-small business or invest in a medium-sized business in Austria, hiring a financial expert is beneficial. They can help calculate your financial plan and advise on cost-saving measures.

Timeline for Opening GmbH in Austria

If you plan to open a GmbH in Austria, be sure to set approximate deadlines and budgets, ideally with some margin.

The opening of GmbH usually takes 1-2 months, but this depends on your specific situation: the chosen legal form, the founder, legal entities, the authorities to which documents must be submitted, and their working schedule. Therefore, it's prudent to keep in mind a 2-month timeframe.

Understanding the LLC registration can be done independently or delegate this task to us to save time and not worry about the outcome.

What We Do as Part of GmbH Opening:

• Submission of the application for opening, filling out all necessary forms

• Registration in the commercial register (Firmenbuch)

• Obtaining necessary licenses for the company

• Obtaining the company's tax number (Steuernummer)

• Communication with all government agencies

• Arranging insurance for entrepreneurs (SVS)

• Personalized support and advisory assistance throughout the entire collaboration

Clients often opt for a package of services, but you can also order consultations or services for specific questions - whichever is more convenient for you. Submit a request, and an Altavida Group manager will contact you to discuss the details.

Мы предоставляем услугу профессионального нотариуса, который заверит заключение договора. Договор необходим для регулирования прав и обязанностей долевых участников. После подачи заявления на регистрацию ООО, владелец или дольщики должны сделать финансовые вложения.