When you’re ready to expand to Austria, you have to set up a subsidiary to legally operate in the country. Incorporating in Austria is the first step you need to take before you can set up your payroll, hire employees, and give out compensation and benefits.
However, it can take weeks or months to incorporate fully, and the process can draw your attention away from important day-to-day business operations. G-P understands the complications of an expansion. As a global Employer of Record (EOR) and experts in Austria subsidiary laws, we can help you start working in just a few days, without setting up a new entity.
How to set up an Austria subsidiary
Learning how to set up an Austria subsidiary should start with some considerations about how and where you want to operate. Austria’s subsidiary laws can vary by city or region. If you’re not sure what area is best for you, we recommend working with a consultant or lawyer who can recommend a good physical office space.
The Austria subsidiary setup process also hinges on what type of entity you choose to incorporate as. You can incorporate as a limited liability company (LLC), public company, partnership, or international branch. The entity you choose will impact what kind of activity you can perform in Austria. Most companies incorporate as an LLC because the structure can benefit both the subsidiary and the parent company.
Setting up your Austria subsidiary as an LLC may include the following steps:
- Obtaining confirmation from the Economic Chamber that your company is a new enterprise.
- Notarizing your statutes and articles of association or the declaration of establishment.
- Depositing your minimum capital requirement at the bank.
- Registering your company at the local court.
- Obtaining a VAT number.
- Registering trade with the trade authority.
- Registering employees for social security.
- Registering with the municipality.
Austria subsidiary laws
Austria’s subsidiary laws require you to obtain a trade license, then another license to pay resident employees. You can apply for your trade license locally at the municipal court or with a district management team. LLCs also need an Austrian bank account so that they can pay employees — this step typically takes 4 weeks to complete.
Keep in mind that Austria’s subsidiary laws vary based on the entity you choose. It can take anywhere from a few weeks to a few months to register, and you’ll also need to hire people who understand human resources, taxation, employment compliance, and more.
Benefits of setting up an Austria subsidiary
Going through the Austria subsidiary setup process will help you start working in the country and get you started with hiring employees, choosing a payroll option, and giving out compensation and benefits. Choosing a limited liability structure will also protect your parent company from any costly litigation and allow your subsidiary to use a company culture that fits Austria’s culture.
However, your company can realize more benefits faster with G-P. As the Employer of Record (EOR), we can hire employees on your behalf — without the risk and stress of compliance.
Other important considerations
If you decide to set up your Austria subsidiary alone, we recommend working with an expert in the country’s subsidiary laws, such as a consultant or lawyer. If not, you should designate a current employee or company executive to learn all these laws so that you can stay compliant.
It’s also a good idea to work with your accounting department to set aside the overall costs of incorporation. Many steps in the process involve fees, and we recommend budgeting for these fees ahead of time. You can also work on clearing your schedule so that you’re available to travel to Austria if need be.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.