Doing business

Austria

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Gesellschaft mit beschränkter Haftung (GmbH) is a Private Limited Company. Minimum 35,000€. 50% totally subscribed and released at the creation.	No minimum. Partners' liability is limited to the amount contributed.
Aktiengesellschaft (AG) is a Public Limited Company. Minimum 70,000€. 25% totally subscribed and released at the creation.	No minimum. Partners' liability is limited to the amount contributed.
Offene Handelsgesellschaft (OHG) is a general partnership company. No minimum capital.	Minimum 2 partners. Partners' liability is joint and several for social debts.
Kommanditgesellschaft (KG) is a limited partnership No minimum capital.	Two types of partners: active partners and sleeping partners. Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.

Business setup procedures

Setting up a company	Austria	OECD
Procedures (number)	8.0	5.6
Time (days)	28.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Austria.
Austrian Commercial Register
The competent organization: Office of the Commercial Register

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	11,272	7,011	6,613
FDI stock (millions USD)	158,653.7	158,322.0	154,999.2
Performance Index*, ranking on 141 economies	91	82	-
Potential Index**, ranking on 141 economies	26	-	-
Number of Greenfield investments***	111	73	-
FDI inwards (in % of GFCF****)	12.5	26.1	-
FDI stock (in % of GDP)	38.4	43.8	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Austria

Strong points: Well developed infrastructures, a skilled and competent work force and high productivity are the country’s strong points. Austria has the headquarters of many firms and ranks 27^th out of 181 economies with regard to ease of doing business. Austria also has a significant assemblage of pharmaceutical companies based in the country, thus developing a focus of biotechnological skills and attracting the big companies of this sector.
Weak points: Austria’s weak points:
- Rigid labor practice;
- Lack of risk capital financing;
- restrictive migration laws;
- Strong dependance to Central and Eastern Europe where numerous investments have taken place (risky in case of a crisis in one of these countries);
- the restrictions of its internal market.
Government measures to motivate or restrict FDI: Export incentives, political stability and low telecommunication costs make the Austrian business climate favorable. Another attractive factor is the fact that Austria has the most attactive taxation system in Europe and does not have a wealth tax or professional tax. Regional investment subsidies, tax exemptions on training (20%) and a training bonus for apprentices guarantees the country's appeal.
To mitigate the effects of the crisis, Austria has implemented mesures to reinforce the liquidity and the capitalization of the financial system.
Bilateral investment conventions signed by Austria: Visit the UNCTAD website.

Procedures relative to foreign investment

Freedom of establishment: Guaranteed.
Acquisition of holdings: Possible.
A majority holding interest in the capital of a local company is legal in Austria.
Obligation to declare: In order to be able to run a company in Austria, professional ability proofs are required in nearly all activities, listed in a regulatory test: Gewerbeordnung, reconducted by the law n°194 of 1994.
Competent organization for the declaration: Federal Competition Authority (FCA)
Requests for specific authorizations: Licenses are required in sectors like banking and insurance. Moreover, the federal and state governments maintain at least a 51% share in all electricity generation and supply companies.

Finding assistance for further information

Investment aid agency: Austrian Development Cooperation
Austrian Business Agency
Advantage Austria
Other useful resources: Vienna Business Agency