Expand in Austria—where business meets stability in the heart of Europe.
Austria is more than just a strategic location; it’s among the top 30 economies globally, with a strategic location and business-friendly environment that make it a prime destination for companies planning expansion into Europe.
Importantly, registering your company here is not complicated. Austria ranks high for administrative efficiency, with a streamlined process for GmbH registration that can take as little as 3–4 weeks.
But establishing a business in Austria is just the beginning. Keeping up with regulations and ongoing compliance can cost your business time and money. This article delves into the company registration process and explores how an Employer of Record (EOR) can simplify your market entry and operations.
But first, let’s quickly explore the advantages of growing your business here.
The business benefits of registering your company in Austria
Registering a company in Austria offers unique advantages not commonly found in other markets, making it a strategic choice for ambitious businesses.
Here’s why:
- Austria offers easy access to over 450 million consumers in the EU.
- Competitive corporate tax rates and double taxation treaties
- Highly educated and multilingual talent pool
- Simplified processes and low bureaucracy make it easier to set up and run a business.
- Operating in Austria enhances your company’s credibility in Europe.
- Businesses in Austria can apply for R&D tax incentives, digitalization grants, and startup subsidies through programs by AWS (Austria Wirtschaftsservice).
Being clear on your expansion options is crucial when entering the Austrian market. Businesses can either establish a legal entity through standard company registration or opt for a more flexible solution—an Employer of Record (EOR).
What is the difference between standard company registration and expanding through an EOR?
Standard registration involves setting up a legal entity, which requires time, resources, and compliance with local laws. An EOR, on the other hand, allows businesses to hire employees and operate in Austria without establishing a local entity, handling payroll, taxes, and compliance on your behalf.
Aspect | Standard registration | EOR |
Purpose | Establish a legal entity for full operations. | Hire employees and operate without an entity. |
Control | Full control over business operations. | EOR manages business operations end-to-end |
Cost | High upfront and ongoing costs. | Single, predictable fee. |
Compliance | Full responsibility for local laws. | EOR ensures compliance. |
Setup time | Several weeks to months. | A few days to weeks. |
Scalability | Scalable but requires significant investment. | Highly scalable for hiring and operations. |
By partnering with an EOR like Multiplier, businesses can focus on growth while leaving the complexities of compliance, payroll, and hiring to the experts.
How EOR simplifies Austria company registration
Using an EOR simplifies market entry into Austria by entirely removing the need to form a local entity.
Some benefits of using an EOR include:
- No need to register a legal entity or navigate complex processes.
- Accurate, transparent, and compliant payroll processing.
- Familiarity and expertise in Austrian labor laws and tax regulations.
- Avoid upfront costs like registration fees and office space.
- Easily hire and manage employees as your business grows.
- Access Austria’s skilled workforce without administrative hassles like intense hiring processes.
- EORs handle legal and financial risks and streamline payroll, onboarding, and offboarding.
EORs offer a practical and hassle-free solution for companies that want to quickly enter new markets without establishing a legal entity. It accelerates market entry, reduces compliance risks, and lowers administrative burdens.
A step-by-step guide to registering a company in Austria
Establishing a business in Austria involves navigating crucial legal and administrative steps, but the process is straightforward.
Here is the roadmap to getting your company registered:
Step 1: Choose a business structure
The first step is to decide on the legal structure of your company.
The standard options in Austria are:
- GmbH (Gesellschaft mit beschränkter Haftung): A limited liability company, ideal for small to medium-sized businesses. It requires a minimum share capital of €35,000.
- AG (Aktiengesellschaft): A joint-stock company, suitable for larger businesses. It requires a minimum share capital of €70,000.
- Einzelunternehmen (sole proprietorship): A simple structure for individual entrepreneurs, with no minimum capital requirement.
Step 2: Reserve a company name
Your company name must be unique and reflect your business activities.
To reserve a company name, you must:
- Check the name availability in the Austrian Commercial Register (Firmenbuch).
- Ensure the name complies with Austrian naming conventions and does not infringe existing trademarks.
- Submit the name reservation request to the Commercial Register.
Step 3: Prepare the Articles of Association
The Articles of Association (Gesellschaftsvertrag) are a key document that outlines your company’s purpose, structure, and operational rules.
Here’s what is required to get these ready:
- Draft the articles with the help of a legal professional or notary.
- Include details such as the company’s name, registered office, business purpose, share capital, and management structure.
- Notarize the document to make it legally binding.
Step 4: Open a corporate bank account
You would need to deposit the required minimum share capital into a corporate bank account as part of the company registration process.
This process involves:
- Opening a corporate bank account with an Austrian bank
- Deposit the share capital mentioned for the structure you’ve chosen.
- Obtain a bank confirmation (Eingabebestätigung) to obtain proof of the deposit.
Step 5: Register with the Commercial Register
Once the above steps are completed, you can register your company with the Austrian Commercial Register (Firmenbuch).
Here’s what you’ll need:
- The notarized articles of association.
- The bank confirmation for the share capital deposit.
- A completed application form.
- Proof of identity for shareholders and directors.
Step 6: Register for taxes
After registering your company, you must register with the Austrian tax authorities.
This involves:
- Obtaining a tax identification number (Steuernummer).
- Registering for VAT (Umsatzsteuer) if your business turnover exceeds €35,000 annually.
- Submitting the necessary forms to the Tax Office (Finanzamt).
Step 7: Obtain necessary licenses
Depending on your industry, obtaining specific licenses or permits may be needed to ensure legal compliance.
For example:
- Trade licenses (Gewerbeberechtigung) are required for certain trades and professions.
- Special permits might be needed for highly regulated industries like finance, healthcare, or food services.
While these steps are fairly well-defined, setting up a legal entity is not without risks.
These rules may also change from time to time. We advise you to speak to a consultant to understand the latest regulations.
Or speak to our team. They can guide you on many of the latest regulations for setting up a company in Austria and help you understand if an EOR offers a better alternative for your business.
The real cost of registering a business in Austria
Understanding the costs of registering a business in Austria is essential for effective business planning, especially if you operate from a market where the currency isn’t as strong as the Euro.
Here’s a breakdown of the costs you’ll have to incur if you set up a local entity:
- The name check and reservation process through the Austrian Commercial Register typically costs around €100.
- €100–€500 for Commercial Register fees depending on the specifics of the registration process.
- The minimum share capital for companies founded after 30 June 2013 is EUR 10,000 for the first ten years after the foundation.
- €1,000–€3,000 for drafting and notarizing documents, though this could vary based on the document complexity and the service provider.
- Obtaining a trade license incurs fees ranging from €50 to €300, depending on the nature of the business activity.
Please note that these figures are approximate and can vary based on specific circumstances and professional fees.
An established entity like an EOR can eliminate many of these costs. You skip entity registration and pay a single, predictable fee for payroll, compliance, and HR services.
Cost comparison: Standard registration vs. EOR
Here’s a quick side-by-side comparison of costs between standard registration and using an EOR:
Cost category | Standard registration | EOR |
Setup costs | €1,250–€3,900 | Included |
Share capital | €35,000 for GmbH, €70,000 for AG | Not required |
Accounting and taxes | €1,000–€3,000 | Included |
Total estimated costs | €37,250–€76,900 | Single, predictable fee |
An EOR simplifies costs, reduces administrative burdens, and provides a faster, more cost-effective way to expand into Austria.
Take the stress out of your Austria expansion with Multiplier
Multiplier simplifies hiring, operations, and compliance—so you can enter the Austrian market with confidence.
We make your business feel welcome in Austria by:
- Onboarding and maintaining employment contracts so you can hire top talent in without a fraction of the worry that the process usually entails
- Providing a transparent view into payroll processing, while strictly complying with the regulations set by the government of Austria.
- Simplifying HR tasks including employee onboarding, expense tracking, and time-off management on our user-friendly platform.
- Removing the risk of penalties or legal disputes for your business by ensuring compliance.
We believe we are more than just an EOR—we are your partners in growth. From seamless expansion to ongoing support, we’re with you at every step.
While Austria offers a business-friendly environment, setting up a company can feel daunting. Book a demo with Multiplier today and discover how we can help you enter Austria with ease.
