Yes, a foreigner can own a company in Austria. Austrian law does not impose a general nationality requirement on shareholders or beneficial owners of most commercial entities. Company ownership Austria is open to individuals and legal entities from any country, subject to a small number of sector-specific rules and standard compliance obligations. This guide explains which entity types are available, what the registration process involves, what restrictions do apply, and what practical steps a non-resident founder should take before and after incorporation.
Austria';s primary framework for commercial entities is the Unternehmensgesetzbuch (UGB), the Commercial Code, together with the GmbH-Gesetz (GmbHG) for limited liability companies and the Aktiengesetz (AktG) for joint-stock companies. None of these statutes restrict ownership based on the nationality or residence of a shareholder. A citizen of any country may hold shares, receive dividends, and exercise voting rights in an Austrian company on the same legal footing as an Austrian national.
The Firmenbuch, Austria';s commercial register maintained by the district courts, records the ownership structure of every registered company. Foreign shareholders are listed in the same way as domestic ones. There is no separate approval process for foreign ownership at the point of registration.
Austria is a member of the European Union, which means the principle of free movement of capital applies. This principle, enshrined in the Treaty on the Functioning of the European Union, prohibits unjustified restrictions on cross-border investment. In practice, this reinforces the already open domestic framework and provides an additional layer of legal certainty for EU and non-EU investors alike.
The two most common structures chosen by foreign founders are the Gesellschaft mit beschränkter Haftung (GmbH) and the Aktiengesellschaft (AG). A GmbH is a private limited liability company with a minimum share capital in the low tens of thousands of euros. An AG is a public joint-stock company requiring a significantly higher minimum capital and is suited to larger operations or those planning a public listing.
For smaller operations or sole traders, the Einzelunternehmen (sole proprietorship) and the Offene Gesellschaft (OG, general partnership) are also available. However, these structures do not limit personal liability, which makes them less attractive for foreign founders who want to separate business risk from personal assets.
A branch office (Zweigniederlassung) is another option for a foreign company that wants a presence in Austria without incorporating a new legal entity. The branch must be registered in the Firmenbuch and is subject to Austrian law for its local activities, but the parent company remains the legal entity. This structure suits businesses that want to test the Austrian market before committing to full incorporation.
The GmbH remains the most popular choice for foreign founders because it combines limited liability, a manageable capital requirement, and a straightforward governance structure. A single person can be the sole shareholder and sole managing director simultaneously.
While general company ownership Austria is unrestricted by nationality, certain sectors require additional licences, permits, or approvals that may involve residency or qualification requirements. These include banking and financial services, insurance, real estate brokerage, healthcare, legal services, and some areas of the media industry.
The Gewerbeordnung (GewO), Austria';s Trade Regulation Act, governs most commercial activities. Many trades require a Gewerbeschein, a trade licence, which in turn requires either the applicant or a designated responsible manager to hold relevant professional qualifications and, in some cases, to be resident in Austria or the EU. A foreign founder who does not personally meet these requirements can appoint a qualified local Gewerberechtlicher Geschäftsführer to fulfil the regulatory role.
Foreign investment in certain strategic sectors may also be subject to review under Austria';s Investitionskontrollgesetz (InvKG), the Investment Control Act. This law, introduced in line with EU-wide foreign direct investment screening frameworks, allows the Austrian authorities to review and potentially block acquisitions in sectors such as critical infrastructure, defence, and advanced technology. The review applies primarily to acquisitions of existing Austrian companies rather than to the founding of new ones, and it targets investors from non-EU countries. Most standard business incorporations by foreign founders are not affected.
A practical consideration for non-EU founders is that owning a company in Austria does not automatically confer the right to live or work there. A residence and work permit must be obtained separately if the founder intends to be physically present and active in the business.
Registering a GmbH in Austria involves several steps that apply equally to domestic and foreign founders, with a few additional practical considerations for those based outside the country.
The first step is drafting the articles of association (Gesellschaftsvertrag). For a GmbH, this document must be notarised by an Austrian notary. If the founder is abroad, the notarisation can sometimes be handled through an Austrian embassy or consulate, or via a power of attorney granted to a local representative. The notary will verify the identity of all founders and managing directors.
The second step is depositing the minimum share capital into a dedicated bank account. Austrian banks vary in their approach to non-resident customers, and some require an in-person visit or additional documentation such as proof of address, source of funds, and business plan. This step can take several weeks if the bank requires extensive due diligence.
The third step is filing the registration application with the Firmenbuch through the notary. The Firmenbuch registers the company, assigns it a registration number, and publishes the entry. Registration typically takes one to three weeks from the date of filing, assuming all documents are in order.
After registration, the company must register with the relevant tax authority (Finanzamt) to obtain a tax identification number and, if applicable, a VAT number. If the business activity requires a trade licence, the application to the Gewerbebehörde must follow. Depending on the trade, this can be straightforward or require supporting documents such as professional certificates.
If you are navigating these steps from outside Austria, working with a local adviser from the outset reduces delays and avoids common document errors. Contact info@vlolawfirm.com - we can help structure the setup correctly the first time.
Scenario one: an EU-based entrepreneur expanding into Austria. A German national running a software consultancy wants to establish an Austrian GmbH to serve clients in Vienna. She is already resident in Germany and holds no Austrian qualifications. She can incorporate the GmbH as sole shareholder and sole managing director without any additional permits, because EU freedom of establishment applies. She does not need to relocate. The company will be registered in the Firmenbuch, will obtain an Austrian tax number, and can operate immediately after registration. If she later decides to work from Austria regularly, she may need to consider her tax residency position.
Scenario two: a non-EU investor setting up a trading company. A Canadian citizen wants to establish an Austrian GmbH to import and distribute goods across the EU. He can own 100% of the shares without restriction. However, if he wants to be the managing director and spend significant time in Austria managing the business, he will need a residence and work permit. Alternatively, he can appoint an EU-resident managing director and remain a non-resident shareholder. The company itself will be fully Austrian, with access to EU single market benefits and Austrian double tax treaty networks.
Owning a company in Austria creates a set of recurring compliance obligations that apply regardless of the owner';s nationality or residence.
Annual financial statements must be prepared in accordance with the Unternehmensgesetzbuch and filed with the Firmenbuch. The level of detail required depends on the size of the company. Small GmbHs have simplified reporting requirements, while larger entities must publish full audited accounts.
Corporate income tax is levied on the company';s profits at the current standard rate. Austria has an extensive network of double taxation treaties, which can reduce or eliminate withholding tax on dividends paid to foreign shareholders, depending on the treaty with the shareholder';s country of residence.
The Wirtschaftliche Eigentümer Registergesetz (WiEReG), Austria';s beneficial ownership register law, requires all Austrian companies to identify and register their ultimate beneficial owners - individuals who directly or indirectly hold more than 25% of shares or voting rights. Foreign shareholders who meet this threshold must be registered. Non-compliance carries administrative penalties.
Social insurance obligations arise if the managing director is active in the company and receives remuneration. The Sozialversicherungsanstalt der Selbständigen (SVS) administers social insurance for self-employed individuals and company directors. Foreign managing directors who are not resident in Austria may be exempt depending on applicable EU regulations or bilateral social security agreements.
A common mistake among foreign founders is assuming that once the company is registered, compliance runs automatically. In practice, annual filings, tax returns, and beneficial ownership updates require active attention and, for non-residents, usually the support of a local accountant or lawyer.
Is there a minimum ownership stake or capital requirement for foreign shareholders in Austria?
There is no minimum ownership stake imposed on foreign shareholders specifically. A foreigner can hold any percentage of shares in an Austrian company, from a single share to 100%. The minimum share capital requirements apply to the company as a whole, not to individual shareholders, and are the same regardless of the nationality of the owners. For a GmbH, the minimum capital must be paid in at the time of incorporation, with at least half deposited before registration. The remaining portion can be paid in over time according to the articles of association.
How long does it take to set up a foreign-owned company in Austria, and what does it cost?
The timeline from initial preparation to a fully operational company is typically four to eight weeks for a GmbH, assuming no complications with banking or document authentication. The notarisation and Firmenbuch registration phase alone usually takes one to three weeks. Professional fees - covering notary, legal adviser, and accountant - generally start from the low thousands of euros. State and registration charges are additional and vary by entity type and share capital. Banking setup for non-residents can extend the timeline if the bank requires extensive due diligence. Budgeting for both professional fees and a buffer for unexpected steps is advisable.
Does owning an Austrian company give a foreigner the right to live or work in Austria?
No. Company ownership and the right of residence or employment are legally separate matters in Austria. Owning shares in an Austrian company does not create any immigration entitlement. EU and EEA nationals benefit from freedom of movement and can live and work in Austria without a separate permit. Non-EU nationals who wish to reside in Austria and actively manage their company must apply for an appropriate residence and work permit, such as a Red-White-Red Card for self-employed key workers or an EU Blue Card for employed positions. The permit application is handled by the relevant Austrian immigration authority and is assessed independently of the company registration.
Foreign ownership of Austrian companies is legally straightforward and broadly unrestricted. The main variables are entity type, sector-specific licensing, and the founder';s own residency intentions. With the right preparation - correct notarisation, a compliant banking setup, and attention to ongoing obligations - a non-resident founder can establish and maintain a fully functional Austrian company.
VLO Law Firms advises international clients on company ownership in Austria. We can assist with entity selection, incorporation documents, Firmenbuch registration, trade licence applications, and beneficial ownership compliance. To request a consultation, contact: info@vlolawfirm.com