What do you need to know before setting up a company in Austria?
More and more individuals who own a successful business decide to open a company in one of the neighboring countries or elsewhere abroad. This bold move is motivated by a number of factors. The majority of the time, it is because a business owner sees an excellent business opportunity in a neighboring country. Austria is by far the most popular neighboring country, where more and more Slovenians are deciding to set up their business. One can choose from the following business forms in Austria:
What are the costs of registering a company in Austria?
A minimum of € 5,000 in investment capital is required when forming a GmbH. The amount is lower than in Slovenia for the same type of business. Officially, the initial capital must amount to € 10,000. Fortunately, you will not have to pay the full amount right away. You will only have to pay the full amount if the company goes bankrupt. If your business succeeds, you will be held personally liable for this amount. .
In addition to the initial capital, you will have to pay for the company’s registration. You will have to pay for a notary and a tax advisor, both of whom will be extremely helpful in the beginning. You also have to consider the cost of renting an office space.
Reasons for setting up a business in Austria
Slovenian entrepreneurs will find Austria to be extremely welcoming. They are not met with bureaucratic obstacles at every turn. Austria has a very appealing market. Anyone looking to expand their business into the Austrian and German markets will find the idea of establishing a company there appealing. It will be much easier to do business with other Austrian companies once you establish a company in Austria.
However, you must be aware that you will be required to pay Austrian employees according to Austrian labor standards, not Slovenian ones. When paying a Slovenian employee who will be employed in a Slovenian company and sent to work in Austria on a temporary basis, you must adhere to the same standards as when paying an Austrian employee. You should be aware that the gross minimum wage in Austria is € 1,300. In 2018, the average monthly gross salary in Austria was € 3,632, while it was only € 1,654 gross and € 1,073 net in Slovenia.
When to open a company in Austria
You should set up a company in Austria if you want to move part of your business there or if you do a lot of business in the country. You must also consider whether or not to hire Austrian employees. You will surely face less bureaucracy if you hire Austrian employees, if compared to hiring Slovenian employees to work in Austria on a temporary basis. Once you have established your office in Austria, you can easily apply for a loan from an Austrian bank.
The easiest way to start a business is to seek assistance from experts who can provide you with the necessary knowledge and professional approach to help you open a business quickly. They will prepare all the necessary documentation in a short amount of time. Entrusting the formation of a business to someone who has lawyers and consultants in Austria is a good idea. They make the entire process run more smoothly, as they have all of the correct and accurate information you need to establish a business.
They will assist you in setting up a business and registering it with the court. The company must also be published in the Austrian Official Gazette.
How to set up a limited liability company (GmbH)
You must first provide a company name, which must be verified by a court. It is also required to provide the address of the company’s registered office. Your company will have to operate on a regular basis within certain office hours and in furnished business premises in order to be entered into the tax register. You will need to list one or more owners, the company’s director, and the business activity.
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