Setting up a Business in Austria

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Gesellschaft mit beschränkter Haftung (GmbH) is a Private Limited Company.
 
 
Minimum 35,000€. 50% totally subscribed and released at the creation.
Minimum 2 partners.
1 member for a sole proprietorship GmbH.
 
 
Partners' liability is limited to the amount contributed.
Certification of the declaration of establishment: EUR 1,000 - 1,500. Registration at the local Court: EUR 202. Register with trade authority - no charge if exemption is granted otherwise stamp duty varies depending on the type of trade. 
Aktiengesellschaft (AG) is a Public Limited Company.
 
 
Minimum 35,000€. 25% totally subscribed and released at the creation.
Minimum 2 shareholders
 
 
Partners' liability is limited to the amount contributed.
Certification of the declaration of establishment: EUR 1,000 - 1,500. Registration at the local Court: EUR 202. Register with trade authority - no charge if exemption is granted otherwise stamp duty varies depending on the type of trade. 
Offene Handelsgesellschaft (OHG) is a general partnership company.
 
 
No minimum capital.
Minimum 2 partners.
 
 
Partners' liability is joint and several for social debts.
Certification of the declaration of establishment: EUR 1,000 - 1,500. Registration at the local Court: EUR 202. Register with trade authority - no charge if exemption is granted otherwise stamp duty varies depending on the type of trade. 
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.
Certification of the declaration of establishment: EUR 1,000 - 1,500. Registration at the local Court: EUR 202. Register with trade authority - no charge if exemption is granted otherwise stamp duty varies depending on the type of trade. 
 
 

Business Setup Procedures

Administrative Formalities
The registration request must be made with the Trade Register of the court where the company is located. The company is set up as soon as the statuses, as a company in process of formation, are signed. However, the registration grants the legal entity.
The Competent Organization
Office of the Commercial Register
Time Necessary for Registration
10 days to 30 days depending upon the type of the company to be created.
 

Recovery Procedures

Principle
Insolvency proceedings in Austria can either be initiated by the involved company itself or a creditor. If the company is insolvent ( "Zahlungsunfähigkeit") or its liabilities exceed its assets ( "Überschuldung"), the management of a company is responsible to file a petition for insolvency proceedings without delay,
Minimum Debt-to-Capital Ratio Triggering Liquidation
In case not even 20% of the creditors' claims can be satisfied or the creditors do not agree to the composition proceeding, the company's assets will be liquidated and the proceeds will be used to satisfy the creditor's claims.
Bankruptcy Laws
Visit this link.
Reorganization and Rehabilitation Laws
Compulsive composition proceeding: (Zwangsausgleich) 20% of the claims to be settled in 2 years. Composition proceeding (Ausgleich): 40% of the claims to be settled in 2 years.

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