1. Introduction -
In principle any national citizen or foreign national is allowed to establish a business in Austria. A company is defined as a partnership of at least two persons (exceptions for limited liability companies and joint-stock companies), founded by a legal transaction, who want to achieve a certain purpose through organized cooperation. While one person is sufficient to establish a limited company (Kapitalgesellschaft), at least two persons are necessary to form a partnership entity (Personengesellschaft). A business operated by a single natural person with full personal liability (i.e. without any further partners or shareholders) is referred to as a sole proprietorship (Einzelunternehmen).
If foreign business owners choose to establish a subsidiary in form of a limited company in Austria it is important to mention that the establishment is legally independent from the parent company meaning that the foreign parent company does not bear direct and unlimited liability for the subsidiary’s obligations. The corporate forms typically chosen for such subsidiaries are the limited liability company (GmbH) and the joint-stock company (AG). Additionally, there is the European Company (SE), which is seldom used.
Please see full publication below for more information.
