Company formation in Austria is not as difficult as it usually is in Russia. Being a member of the EU, Austria provides many economic advantages and also loyal taxation that may be attractive for businessmen from abroad. Many Russian companies have opened their representative offices in Austria recently, thus entering the European market and considerably increasing their profits.
General provisions of company formation in Austria
Before you register a company in Austria, you are to choose the legal form of the company. Today it is possible to open businesses of several types: sole trader, foreign subsidiary, general partnership, limited partnership, joint-stock company and limited liability company. Opening a limited liability company (LLC) is the most attractive variant for foreign businessman in Austria as well as in other countries of the EU. To open an LLC you need a smaller authorized capital than for opening a joint-stock company. The LLC registration process takes less time because of the limited number of registration conditions. An additional advantage of LLC opening is reduced taxation.
In Austria audit is conducted annually for companies of any legal form. The accounting system in the country is not complicated. In general, many European countries practice simplified accounting system and its set of rules and regulations is considerably less complicated than the accounting system in Russia. The main set of rules the accounting system is based on is Austrian Enterprise Law.
There are no limitations on capital import or export in the country, which makes it possible to open accounts in any currency both for residents and non-residents.
Documents required for incorporating a company in Austria
In order to register a company in Austria it is necessary to prepare and provide the following documents:
- Notarized copies of two last pages of the company founders’ passports;
- A document confirming the founder’s place of residence;
- Notarized copies of diplomas or education certificates;
- The list of all activity categories the company is to carry out in the territory of Austria;
- A document confirming the founder’s sources of income;
- A document confirming the legal address of the company.
There are some additional requirements in case the company founder is a legal entity. In particular, the legal entity is to provide copies of all its constituent documents, and also extracts from the tax register and the state register of legal bodies. All the copies are to be provided in German.
Taxation peculiarities for Austrian companies
The main part of taxation for legal entities in Austria is formed by the income tax rating at 25%. The minimum tax sum for LLCs equals to 1750€. Taxation for Austrian resident companies is calculated from their global income, while for non-residents it only applies to the income received in the territory of Austria. Besides the income tax, legal entities pay a real estate tax which amounts to 2% of their appraised value and a tax on capital at the rate of 1%.
Company formation in Austria is a good opportunity for Russian businesses to establish relationship with Europe and present their production to its active market. If you decide to open a company in Austria, you may contact Goldblum and Partners to get competent advice and support on all the issues of company formation in Austria.