Why Choose Austria for Company Formation?
Austria gives you something most low-cost EU jurisdictions cannot: weight. It is a founding member of the European Union and a long-standing member of the eurozone and the Organisation for Economic Co-operation and Development (OECD), with a German-speaking legal and financial system that counterparties, banks and regulators across central Europe take seriously. An Austrian GmbH is not a vehicle anyone mistakes for an offshore shell. It is a domestic operating company in one of the wealthiest economies in Europe, and that institutional credibility is the whole point of forming here. We form and run Austrian companies for operators who need that standing rather than the cheapest possible incorporation.
The 2024 reform cut the capital floor to EUR 10,000, but the real advantage sits elsewhere: an Austrian GmbH holds an EEA passport once licensed, whilst an offshore shell holds nothing. For operators facing banking due diligence and regulator review, that structural difference — a real EU company in a system banks and supervisors recognise — is why Austria wins over equivalent capital-cost jurisdictions without passporting rights.
A Heavyweight EU Base, Not an Offshore One
An Austrian company is an EU company in every sense that matters. Once it holds the relevant authorisation it can passport payment, e-money or crypto-asset services across all 30 European Economic Area (EEA) states, which is the structural advantage no offshore vehicle offers. Beyond the passport, Austria brings a deep professional-services base, an extensive double-tax-treaty network, and the Financial Market Authority (FMA), a regulator experienced in authorising payment institutions, e-money institutions and, now, crypto-asset service providers under the Markets in Crypto-Assets Regulation. For a business that will deal with banks, partners and regulators across the German-speaking core of Europe, an Austrian domicile opens doors that a cheaper jurisdiction simply does not.
Credible, Not Cut-Price, but No Longer Expensive
Austria has historically carried a reputation as a high-cost place to incorporate, driven by its old EUR 35,000 minimum capital and a mandatory notarial founding. The 2024 reform changed the first half of that equation: the GmbH minimum capital fell to EUR 10,000, and the new flexible company arrived alongside it. The notary remains, and Austria is still not the cheapest EU jurisdiction to set up in. What you are buying is credibility per euro: a recognised onshore domicile, a respected regulator, and a company that banks and counterparties treat as a serious operating business, not a disposable shell bought on price.
Which Business Models Suit Austria
Austria is not a one-size-fits-all jurisdiction, and part of what we do is tell you plainly when it fits and when it does not. Before we form anything, we map your business model against what Austria actually rewards. The pattern is consistent across the operators we work with.
- Payments, e-money and fintech operators. Austria is a credible home for a payment institution or electronic-money institution authorised by the FMA, with full EEA passporting and a regulator that understands the model.
- Crypto and digital-asset businesses heading for a MiCA licence. The GmbH or FlexKapG is a standard vehicle for an FMA crypto-asset service provider authorisation and an EU passport.
- Forex and trading firms wanting institutional standing. An Austrian entity carries weight with banking and counterparty relationships across the German-speaking market, useful where credibility is the gating factor.
- Holding and group structures. Austria operates a group-taxation regime and a participation exemption that can suit a genuine holding company with substance, particularly within a central-European footprint.
- Operators selling into the DACH market. If your customers and partners are in Austria, Germany and Switzerland, a German-speaking onshore company removes friction that a foreign shell creates.
- × Operators who want a one-day remote setup with no notary. Austria requires a notarial deed and a commercial-register filing; if speed and a fully remote, notary-free founding are the only priorities, Estonia or another jurisdiction may suit better, and we will say so.
- × Pure cost-shoppers and brass-plate buyers. Austria rewards substance and is not the cheapest EU base. A substance-light shell is vulnerable, and it is not what we build.
- × US persons. We do not take on US persons as clients; this page is reference only for them.
What We Do For You
We form your Austrian company and we run it. We are not a referral desk that hands you to a local firm and disappears. We coordinate the notarial founding, file with the commercial register, set up the operating layer, manage the ongoing compliance and stand behind the outcome. Where parts of the work are reserved by law to an Austrian notary, lawyer or tax adviser, we use specialists we have personally vetted and work with directly, never an unverified third party, and we stay your single point of contact throughout.
- Founding, coordinated and filed by us. The articles of association, the notarial deed, the capital deposit, and the commercial-register (Firmenbuch) application, managed end-to-end so the founding moves at pace.
- The operating layer, set up. Registered office, the tax-number and value-added-tax registrations, and the beneficial-ownership filing in the WiEReG register, all handled inside the statutory windows.
- Banking, worked in parallel. We pre-qualify your profile against realistic banking and e-money appetite and run the account application alongside the founding rather than after it, since the capital must be deposited to register.
- Substance, built in from day one. Office, local managing-director arrangements and documented Austrian decision-making, structured so the company is defensible to foreign tax authorities and banks, not retrofitted under challenge.
- The licensing path, designed in. If you are heading for an FMA payments, e-money or MiCA authorisation, we structure the company for that licence from the founding so you are not rebuilding later.
- Ongoing compliance, managed. The annual financial statements, the corporate tax return and advance payments, the audit where thresholds are met, and the register filings, kept current so the company stays in good standing.
The Austrian Company: GmbH and FlexKapG
The Gesellschaft mit beschränkter Haftung (GmbH), governed by the GmbH-Gesetz, is the limited-liability company behind the overwhelming majority of Austrian operating and holding structures, and the vehicle nearly every licensed payments or crypto applicant ultimately uses. Since 2024 it sits alongside a second option, the flexible company, aimed at start-ups and companies that want lighter governance. For an operating business the choice is usually between these two; the public company (Aktiengesellschaft) below is reserved for listings and large structures.
Definition: Gesellschaft mit beschränkter Haftung (GmbH)
The Austrian GmbH is a private limited-liability company governed by the GmbH-Gesetz. Since 1 January 2024 its minimum share capital is EUR 10,000, reduced from EUR 35,000, of which at least EUR 5,000 must be paid in cash on founding. It needs at least one managing director (Geschäftsführer) with authority to represent it, permits a single shareholder and 100% foreign ownership, is founded by notarial deed and entered in the commercial register, and is the eligible vehicle for an FMA payment, e-money or crypto-asset service provider authorisation.
The 2024 Reform: Lower Capital and the Flexible Company
The company-law reform that took effect on 1 January 2024 made two changes that matter for anyone forming here. First, it cut the GmbH minimum share capital from EUR 35,000 to EUR 10,000, with at least EUR 5,000 paid in. This replaced the earlier founding-privilege arrangement, which had let founders start with a EUR 10,000 floor on a temporary basis; the lower figure is now simply the standard minimum, and the old EUR 35,000 number that still circulates online is out of date. The reform also reduced the minimum corporate tax that tracks the capital floor.
Second, it introduced the Flexible Kapitalgesellschaft (FlexKapG), a new corporate form positioned between the GmbH and the public company. The FlexKapG also uses a EUR 10,000 minimum capital but adds flexibility the classic GmbH lacks: shareholder resolutions can be passed in simpler written form, shares are easier to transfer, the company may hold its own shares, and there is a dedicated class of enterprise-value shares designed to give employees participation without full voting and governance weight. It is built for founders and growth companies that want corporate flexibility closer to common-law norms while staying inside the Austrian system.
- GmbH minimum capital EUR 10,000 since 2024, at least EUR 5,000 paid in cash; the old EUR 35,000 figure no longer applies.
- FlexKapG: same EUR 10,000 floor, with simpler resolutions, easier share transfers, own-share holding, and an enterprise-value-shares class for employees.
- At least one managing director; the founding is by notarial deed and entered in the Firmenbuch.
- One or more shareholders; 100% foreign ownership permitted with no nationality restriction.
Alternatives to the GmbH
| Entity | Min. Capital | Used For |
|---|---|---|
| GmbH | EUR 10,000 (EUR 5,000 paid) | The standard vehicle for trading, holding, and licensed structures |
| FlexKapG (flexible company) | EUR 10,000 (EUR 5,000 paid) | Start-ups and growth companies wanting lighter governance and employee shares |
| Aktiengesellschaft (AG, public company) | EUR 70,000 | Listings and large structures; supervisory board required |
| Branch of a foreign company (Zweigniederlassung) | None | An EU or foreign parent operating in Austria without a separate entity |
| European Company (SE) | EUR 120,000 | Cross-border seat transfer within the EU |
| Sole proprietorship / partnership (OG, KG) | None | Taxed at owner or partner level; no limited liability for the OG |
Formation Process
We form your Austrian company through the notarial founding and the commercial-register (Firmenbuch) filing, coordinating the Austrian notary and, where needed, a tax adviser we work with directly. The deposit of the share capital into a bank account is part of the founding, which is why we run the bank application in parallel rather than after the company exists. A registered Austrian office is mandatory, but you rarely need to travel for the full process; much can be handled remotely, with the notarial step arranged for you.
Due Diligence and KYC
We collect a certified passport copy, proof of address dated within three months, and source-of-funds evidence for each shareholder, managing director and beneficial owner. Clean, well-presented documentation here is the single biggest driver of a smooth timeline downstream, both at the notary and the register and, later, at the bank, so we get it right before anything is filed.
Name Check and Articles of Association
We check the proposed company name against the commercial register and the requirements of the Austrian Commercial Code, and draft the articles of association (Gesellschaftsvertrag). We make sure the corporate purpose matches the activity you actually intend to carry on, including where a regulated activity is planned.
Notarial Founding
The articles of a GmbH or FlexKapG must be recorded in a notarial deed by an Austrian notary, who also handles the founder declarations and managing-director appointments. We coordinate the notary, and remote and electronic options are available for many cases so you do not always need to attend in person.
Capital Deposit
At least EUR 5,000 of the EUR 10,000 minimum capital must be paid into a company bank account, with the bank issuing a confirmation that the register requires. Because the account must exist to deposit the capital, we treat banking as part of the founding workstream rather than a step that begins afterwards.
Commercial-Register (Firmenbuch) Filing
We file the notarised application with the commercial register at the competent regional court. On entry the company comes into legal existence and is issued its register number. We then complete the tax-number and value-added-tax registrations and the beneficial-ownership (WiEReG) filing inside their statutory windows.
Banking and EMI Onboarding
Beyond the capital-deposit account, the operating account is the genuine bottleneck, so we begin it in parallel with the founding. A clean, substance-backed company onboards faster; a crypto-adjacent or non-resident-heavy profile takes longer and may route to an EU-regulated e-money institution rather than a traditional bank. The Banking section below sets out how we handle it.
Forming as a Non-Resident
Austria places no nationality restriction on ownership and allows founding by foreign shareholders, so as a non-resident you can own an Austrian GmbH or FlexKapG outright. We handle it from here. The two elements that need attention are the managing-director question, whether to appoint an EEA-resident director, and the notarial and apostille chain for documents executed abroad, both of which we manage for you.
| Requirement | Position |
|---|---|
| Foreign ownership | 100% permitted; no nationality restriction |
| Managing director | At least one required; an EEA-resident managing director strongly advised for banking, substance and practical administration |
| Registered office | Mandatory Austrian business address; we provide it |
| Notarial deed | Mandatory; the articles must be recorded by an Austrian notary, with remote and electronic options for many cases |
| Capital deposit | At least EUR 5,000 paid into a company account before registration; bank confirmation required |
| Apostille | Austria is party to the Hague Apostille Convention; foreign documents typically need notarisation and apostille, with certified German translation where required |
Costs
This is the section competitors avoid, so we lead with the headline-versus-reality split. The minimum capital is EUR 10,000, of which EUR 5,000 must be paid in, and that capital is your money inside your company, not a fee. On top of it sit real, one-off official and professional costs to found the company and recurring costs to run it. The figures below are stated as facts; the all-in number for what we deliver is a single quote, which we give once we understand your model so there are no surprises after founding.
Official and Statutory Costs (as of June 2026)
| Item | Amount | Notes |
|---|---|---|
| Minimum share capital (GmbH / FlexKapG) | EUR 10,000 | At least EUR 5,000 paid in cash; this is your capital, not a fee |
| Notarial deed fee | Scales with capital | A statutory tariff charged by the Austrian notary for the founding |
| Commercial-register entry fee | Statutory court fee | Charged on registration; a new-company exemption can reduce certain fees under the start-up support law |
| Minimum corporate tax (Mindestkörperschaftsteuer) | EUR 500 / year | For a GmbH in the first five years; EUR 1,000 / year thereafter, creditable against actual tax |
| VAT registration | EUR 0 | No fee; the small-business threshold is EUR 55,000 |
Taxation
Austria taxes corporate profit at 23% from 2024, reduced in steps from 25% through 24% in 2023. The rate is higher than the low-tax EU jurisdictions, but it buys institutional credibility, a participation exemption and group-taxation regime that suit genuine holding structures, and an extensive treaty network. The table below states the position as it stands. As with the rest of this page, we treat tax as a structuring input, not a marketing claim, and we will not pretend Austria is a low-tax base when it is not.
| Item | Position (as of June 2026) |
|---|---|
| Corporate income tax (Körperschaftsteuer) | 23% (from 2024; was 24% in 2023, 25% before) |
| Minimum corporate tax | EUR 500 / year for a GmbH in years 1–5; EUR 1,000 / year thereafter; creditable |
| VAT (Umsatzsteuer) | 20% standard; 10% and 13% reduced; small-business threshold EUR 55,000 |
| Dividend withholding (Kapitalertragsteuer) | 27.5% domestic default; reduced or eliminated under the EU Parent-Subsidiary Directive and tax treaties |
| Participation exemption | Dividends from qualifying domestic and EU holdings broadly exempt; international participation exemption available |
| Group taxation (Gruppenbesteuerung) | Profits and losses of group members can be pooled at the parent |
| Treaties | An extensive double-tax-treaty network across Europe and beyond |
| Tax year / filing | Calendar year by default; quarterly corporate-tax advance payments |
Withholding and Dividends
Austria levies a 27.5% capital-yields tax (Kapitalertragsteuer) on dividends as the domestic default, but in practice that rate is frequently reduced or eliminated. Distributions to a qualifying EU parent fall under the Parent-Subsidiary Directive, and distributions to treaty-resident shareholders are reduced under the relevant double-tax agreement. For a genuine holding company, the participation exemption can keep qualifying inbound dividends and many participation gains out of the corporate tax base entirely. The structuring point is that the headline withholding rate is rarely the rate that actually applies, and we set the holding chain up so the right relief is available rather than assumed.
Banking & Payments
Banking is a supporting part of what we deliver, worked in parallel with the founding, not a headline promise. In Austria it carries an extra wrinkle: the share capital must be paid into a company account before the company can be registered, so an account of some kind is needed early. Austrian banks are conservative and apply thorough know-your-customer and anti-money-laundering checks, and a non-resident-owned or high-risk profile faces enhanced due diligence and longer timelines, which we plan for rather than discover.
Where the operating business often goes is the EU-regulated electronic-money and payment-institution layer. The archetype is an EEA-licensed e-money institution offering a euro International Bank Account Number (IBAN) with Single Euro Payments Area (SEPA) access, onboarding in days to weeks with lighter but real checks. Client funds sit in segregated safeguarding accounts; a licensed EU EMI is not a deposit-guaranteed bank, and that distinction matters. The capital-deposit account for the founding is a separate question we handle alongside, so the register requirement is met without holding up the operating setup. See the banking overview for how we approach accounts.
Annual Compliance & Substance
An Austrian company carries ongoing obligations whether or not it trades, and substance is what makes the structure defensible. The core duties are double-entry accounting under the Austrian Commercial Code, annual financial statements filed with the commercial register, a corporate tax return with advance payments, and an up-to-date beneficial-ownership filing. We manage the full compliance cycle for the companies we form so nothing lapses.
| Obligation | Detail |
|---|---|
| Accounting | Double-entry bookkeeping under the Austrian Commercial Code (Unternehmensgesetzbuch) |
| Annual financial statements | Prepared and filed with the commercial register; abridged disclosure for small companies |
| Audit | Required where the company exceeds the size thresholds for a medium or large company; many small GmbHs are exempt |
| Corporate tax return | Annual return; quarterly advance payments; minimum corporate tax even when loss-making |
| VAT returns | Periodic returns where registered, with an annual return |
| UBO register (WiEReG) | Mandatory beneficial-ownership filing, kept up to date |
Substance
Austria has no offshore economic-substance return of the kind found in the Cayman Islands or the British Virgin Islands; that framework does not apply here. But substance still matters intensely, through different mechanisms, and we build it in from the founding. The EU Anti-Tax Avoidance Directives are fully implemented, with controlled-foreign-company rules, interest limitation, exit taxation and a general anti-abuse rule. Effective management remains decisive for treaty tie-breakers and foreign-authority challenges, so a managing director who genuinely runs the company from Austria, a real office, and documented local decision-making are what make the structure stand up to banks and tax authorities alike. A paper company is vulnerable; paperwork alone will not rescue a substance-light arrangement.
Licensing Pathways from an Austrian Company
A plain Austrian GmbH or FlexKapG is not a licensed financial entity and gives no EEA passport on its own. Passporting comes only with the relevant authorisation from the Financial Market Authority, and we design the formation structure for the licence the company intends to hold. The path is straightforward: we form the company, build the office, governance and substance, then file for the relevant authorisation. The consolidated framework is on our licensing pages.
[Payments
Payment & E-Money Institution
A payment institution (PI) or electronic-money institution (EMI) authorised by the FMA, passporting payment and e-money services across the EEA.](/emi-licensing/) [Crypto
MiCA Crypto-Asset Service Provider
An FMA crypto-asset service provider authorisation under the Markets in Crypto-Assets Regulation (MiCA), with an EU passport for crypto-asset services.](/crypto-licensing/) [Investment
Investment Firm (MiFID II)
An investment firm authorised by the FMA under the Markets in Financial Instruments Directive (MiFID II), passporting investment services across the EEA.](/licensing/)
How Austria Compares
Austria competes with the EU bases we form companies in most often: Estonia, the digital-first Baltic option; Lithuania, the fintech-and-EMI heavyweight; Cyprus, the English-law onshore base with the IP Box; the Czech Republic, the central-European neighbour; and Malta, the established island regulator. All are EU member states, so each offers EEA passporting once a company is licensed. Austria’s edge is institutional weight and a serious regulator in the German-speaking core of Europe; its trade-offs are a notarial founding, a higher corporate rate, and a EUR 10,000 capital floor that, while far lower than before, still sits above the near-zero minimums elsewhere.
| Factor | Austria | [Estonia](/company-formation/estonia/) | [Lithuania](/company-formation/lithuania/) | [Cyprus](/company-formation/cyprus/) | [Czechia](/company-formation/czech-republic/) |
|---|---|---|---|---|---|
| Dominant entity | GmbH / FlexKapG | OÜ | UAB | Private Ltd | s.r.o. |
| Formation time | 1–3 weeks | ~1 day | 1–2 weeks | 5–10 working days | 1–2 weeks |
| Min. capital | EUR 10,000 (EUR 5,000 paid) | EUR 0.01 (since 2023) | EUR 1,000 | None (1 share) | CZK 1 (nominal) |
| Corporate tax | 23% | 22% on distrib. (0% retained) | 16% (15% small) | 15% | 21% |
| Notary required | Yes | No (electronic) | Yes | Advocate-led | Yes |
| EU passport (with licence) | Yes | Yes | Yes | Yes | Yes |
| FATF status | Clean | Clean | Clean | Clean | Clean |
| Banking (non-resident) | Conservative | Moderate to high | Moderate (EMI-led) | High difficulty | Moderate |
See every jurisdiction we form companies in →
The pattern is consistent. Estonia leads on speed, remote founding and a near-zero capital floor; Lithuania is the EMI-and-fintech route with a deep payments base; Cyprus pairs English law and the IP Box with a flat 15% rate; the Czech Republic is a low-friction central-European neighbour. Austria does not win on speed, cost or the lowest tax rate, and we will not pretend it does. It wins where institutional credibility, a respected regulator, and standing across the German-speaking market matter more than the fastest or cheapest setup, particularly for payments, e-money and serious operators selling into the DACH region. We form companies in each of these jurisdictions, so if Austria is not the right home for your business, we will tell you which is.
Frequently Asked Questions
What is the minimum capital for an Austrian GmbH after the 2024 reform?
The minimum share capital fell from EUR 35,000 to EUR 10,000 on 1 January 2024, of which at least EUR 5,000 must be paid in cash on founding. The earlier founding-privilege route that allowed a temporary EUR 10,000 floor was folded into the new standard minimum. Any provider still quoting EUR 35,000 is using out-of-date information.
What is the FlexKapG flexible company in Austria?
The Flexible Kapitalgesellschaft (FlexKapG), introduced on 1 January 2024, is a corporate form sitting between the GmbH and the public AG. It also uses a EUR 10,000 minimum capital but allows simpler written shareholder resolutions, easier transfer of shares, the company holding its own shares, and a dedicated enterprise-value-shares class designed for employee participation. It is aimed at start-ups and growth companies wanting flexibility closer to common-law norms.
Is a notary required to form an Austrian company?
Yes. The articles of association of a GmbH or FlexKapG must be recorded in a notarial deed by an Austrian notary. A simplified electronic single-member founding route exists for the most basic cases, but most operator structures use full notarial formation. We coordinate the notary, and remote and electronic options are available for many cases.
How long does Austrian company formation take?
Legal incorporation through the commercial register typically takes 1 to 3 weeks once the notarial deed is signed and the capital is deposited. Being operational with a bank or e-money account commonly adds several weeks, and longer for high-risk or non-resident-heavy profiles. We run banking in parallel with the founding so the timeline does not stack.
Can a non-resident own 100% of an Austrian GmbH?
Yes. There is no nationality restriction on shareholders and a single shareholder is permitted. At least one managing director with authority to represent the company is required, and an EEA-resident managing director materially eases banking, registration and substance in practice. A registered Austrian office and the notarial founding are mandatory, and we arrange both.
What is the corporate tax rate in Austria?
Corporate income tax is 23% from 2024 onward, reduced from 24% in 2023 and 25% before that. A minimum corporate tax applies to a GmbH at EUR 500 per year for the first five years and EUR 1,000 per year thereafter, creditable against actual tax. The participation exemption and group-taxation regime can materially change the effective position for a genuine holding structure.
What is the VAT rate in Austria?
The standard VAT (Umsatzsteuer) rate is 20%, with reduced rates of 10% and 13% for specified categories. A domestic small-business exemption threshold of EUR 55,000 applies, though most operator companies register for VAT regardless to recover input tax and trade cleanly with business counterparties.
Can an Austrian company hold a payments or crypto licence?
Yes. The GmbH or FlexKapG is the vehicle, but the licence is a separate authorisation from the Financial Market Authority: a payment or e-money institution under the relevant payments law, or a crypto-asset service provider authorisation under MiCA. A plain company is not licensed and cannot passport across the EEA without it, which is why we structure the company for the licence from the founding.
What are the ongoing compliance obligations for an Austrian company?
Annual financial statements filed with the commercial register, double-entry accounting under the Austrian Commercial Code, a corporate tax return with quarterly advance payments, an up-to-date beneficial-ownership filing in the WiEReG register, and a statutory audit where the size thresholds are met. Many small GmbHs file in abridged form and are exempt from a full audit.
Form your Austrian company, banking-ready
Formation, banking, and your licensing path, delivered end-to-end by one accountable firm. Book a free consultation and we will tell you straight whether Austria fits, choose between the GmbH and the FlexKapG with you, map the route, and give you a single all-in quote for the work.
Banking & Payments
A company and a licence still need a bank account
Banking is one of our three core services. We help high-risk and regulated businesses open the bank and payment accounts that others refuse: we work directly with EU EMIs, payment institutions and crypto-aware banks, confirm appetite before you apply, and make the introduction. Take it with your company and licence, or on its own.
Related Services
- EMI & Payment Institution Licensing: E-money and payment authorisation with EEA passporting from an Austrian entity
- Crypto / CASP Licensing: MiCA crypto-asset service provider authorisation from an Austrian company
- Estonia Company Formation: The digital-first EU alternative, compared in this guide
- Lithuania Company Formation: The fintech-and-EMI EU route, compared in this guide
- Banking for Crypto & Fintech: Account placement for crypto, fintech, and high-risk businesses