Austria

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Operating a Business in Austria

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

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: 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

Working conditions

Legal weekly duration: 40 hours
Retirement age: 60 for women and 65 for men.
Working contracts: The employment contracts in Austria are regulated by the Employment Contract Law. However terms & types of such contracts are governed by the collective bargaining agreements ("Kollektivvertrag"). A non-EU person needs to obtain a work-permit before entering into an employment contract.

Cost of labor

Minimum wage: No legally mandated national minimum wage
Average wage: 2,117 euros by month (ILO data)
Social contributions: Social security contributions paid by employers: Pensions (12.55%), sickness insurance (3.83%), unemployment pay (3%), housing fund (0.5%), severance fund(1.53%).
Social security contributions paid by employees: Pensions (10.25%), sickness insurance (3.82%), unemployment pay (3%), housing fund (0.5%).

Social partners

Social dialogue and involvement of social partners: The law allows the workers to form and join unions. Collective bargaining is protected in law and is freely practiced. Nearly 80% percent of the labor force worked under a collective bargaining agreement. There are nearly 9 national unions which are part of the Austrian Trade Union Federation (OGB)
Unions: Austrian Trade Union Federation (OGB)
Unionization rate: 36% in the year 2007.
Labor regulation bodies: Federal Ministry of Labour & Economic Affairs

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