Expand Business in Austria

Global Upside helps businesses expand into Austria by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with laws and regulations of Austria.

The hiring and incorporation processes in Austria are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Austria. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Vienna

Currency

Euro (€)

Language

German

Government

Federal Parliamentary Republic

Country Overview

Austria is a well-developed market economy with a skilled workforce and an excellent standard of living. Its economy includes a huge service sector, a sound manufacturing sector, and a small, yet exceptionally advanced agricultural sector.

  • Austria ranks as the 28th largest economy in the world in terms of nominal GDP.
  • Austria ranks as the 13th largest economy in Europe.
  • Austria is one of the largest packaged medicaments exporters in the world.
  • Austria ranks as the 22nd best country in the world for business.

Legal Entity Setup

Options for setting up a legal entity in Austria include:

Stock corporation (Aktiengesellschaft/ AG)

Stock Corporation (Aktiengesellschaft/ AG) is an establishment that has an unlimited number of investors and there are no personal liabilities for them. The board system is 2-tier – supervisory board that looks after the management and assigns its consent to specific business and transactions, while the management board is liable for daily administration.

Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH)

Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH) is a form of setup that allows an unlimited number of shareholders. The board system can either be a 1-tier or a 2-tier depending on the size of the company. Similar to the AG, the management board is liable for daily administration, whilst the supervisory board, if set up, looks after the management and assigns its consent to specific business and transactions

It takes approximately four to five weeks to establish a legal entity set up in Austria.

Human Resources

In Austria, the imperative legislation that regulates employment relationships are:

  • Labour Constitution Act – Arbeitsverfassungsgesetz (ArbVG)
  • Salaried Employee Act – Angestelltengesetz (AngG)
  • Working Hours Act – Arbeitszeitgesetz (AZG)

The employment contracts do not necessarily have to be in a written format; however, the terms and conditions need to be in a written format. All employment agreements must mention the:

  • Name and address of the employer and employee
  • Date of commencement of the job
  • Job title and description
  • Job location
  • Annual leaves
  • Renumeration
  • Bonuses
  • Working hours
  • Explanation of the works agreement or collective agreement applicable
  • Date and period of notice
  • Date when the contract ends

Payroll

Salaries are paid monthly usually by the end of the month.

It is standard practice to give a 13th salary divided between 2 installments (June and November).

Accounting

As a member of the European Union (EU), Austria is dependent upon the accounting, auditing, and financial reporting prerequisites that have been set up in EU Regulations and Directives as translated into public laws and guidelines. Austria has completely aligned its legal system with the EU acquis communitaire as it identifies with accounting and auditing.

Taxation

Corporate Tax

The corporate tax rate in Austria is 25%.

Value Added Tax (VAT)

While the VAT rate in Austria is 20%, a reduced rate of 10% is applicable for essential items.

Data Privacy

The right to secrecy is an exceptional right allowed by the Austrian information protection act (Datenschutzgesetz/ DSG). It can be authorized before the data protection authority against a regulator subject to the Datenschutzgesetz.

Each individual will reserve the right to secrecy of the personal information regarding that individual, particularly with regards to their private and family life, to the extent that the individual has an interest which makes him entitled to such protection.

Anti-Bribery & Anti-Corruption Law

Bribery of public officials, in Austria, is governed under Section 304 to Section 308 of the Austrian Criminal Law Code (Strafgesetzbuch or StGB).

1. Bribery of Public Officials

For Individuals: Principal sanctions
i) Imprisonment for at least 3 years.
ii) Imprisonment for at least 5 years if the benefit value exceeds EUR 3,000.
iii) Imprisonment for up to 10 years if the benefit value exceeds EUR 50,000.

2. Bribery for public officials- For legal entities

i) An everyday fine of EUR 50 to a maximum of EUR 10,000.
ii) A maximum penalty of EUR 1.3 million.

3. Bribery for private officials- For individuals

i) Imprisonment for at least 2 years.
ii) Imprisonment for at least 3 years if the benefit value exceeds EUR 3,000.
iii) Imprisonment for up to 5 years if the benefit value exceeds EUR 50,000.

4. Bribery for private officials- For legal entities

i) An everyday fine of EUR 50 to a maximum of EUR 10,000.
ii) A maximum penalty of EUR 1 million