Residency through company Austria is possible, but it follows a specific legal path that many founders misunderstand. Incorporating an Austrian company does not, by itself, give you the right to reside in Austria. Instead, the company serves as the economic foundation for a separate immigration application - most commonly a Red-White-Red Card or an EU Blue Card - which the immigration authority then evaluates on its own criteria. This guide explains how the two processes connect, what conditions you must meet, which permits apply to founders versus employees, and what the realistic timeline and costs look like.
Austria operates a points-based immigration system for non-EU nationals under the Settlement and Residence Act (Niederlassungs- und Aufenthaltsgesetz, NAG). The Act does not create a dedicated "investor visa" or "entrepreneur visa" in the classic sense. Instead, it provides several permit categories that a company founder or key employee can use, provided the underlying business activity meets defined thresholds.
The critical distinction is this: the company and the residence permit are two separate legal acts processed by two separate authorities. The Commercial Court (Handelsgericht Wien or the relevant regional court) registers your company. The immigration authority (Magistrat or Bezirkshauptmannschaft, depending on your location) decides whether you may live in Austria. Neither authority automatically informs or binds the other.
In practice, founders should consider the company as the economic argument for the immigration file, not as the immigration file itself. A properly structured GmbH (Gesellschaft mit beschränkter Haftung) with a credible business plan, adequate capitalisation and a realistic revenue forecast will strengthen your application considerably. A shell company with no activity will not.
The most relevant permit category for non-EU founders is the Red-White-Red Card for self-employed key workers (Schlüsselkraft - selbständig). This permit is issued under the NAG and the Aliens'; Employment Act (Ausländerbeschäftigungsgesetz, AuslBG) and targets founders who will actively manage and work in their Austrian company.
To qualify, you must demonstrate:
The points-based scoring system awards points for qualifications, language skills, age and the economic relevance of the business. The minimum threshold changes periodically, so applicants should verify the current score requirement with the immigration authority or a qualified adviser before filing.
A second route is the Red-White-Red Card for founders of innovative start-ups. This sub-category, introduced under recent amendments to the NAG, targets entrepreneurs whose business has been assessed by a recognised start-up body (such as the Austrian Research Promotion Agency, FFG, or a certified incubator). The bar for this category is high, but the processing can be faster when the assessment is positive.
EU/EEA nationals do not need any of these permits. They may reside and operate a business in Austria under the right of free movement, subject only to registration with the local authority (Meldeamt) within a few days of arrival.
The GmbH is Austria';s most common vehicle for foreign founders seeking residency through company Austria. Its minimum share capital is EUR 35,000, of which at least half must be paid in at incorporation. The company is registered with the Commercial Register (Firmenbuch) and requires a notarised articles of association.
From an immigration perspective, the GmbH matters because it creates a formal legal entity that can employ you as a managing director (Geschäftsführer). This employment relationship is what the immigration authority evaluates. You are not simply an investor; you are a working manager whose salary and social insurance contributions can be verified.
A common mistake is to incorporate the GmbH and then apply for a permit as if the company';s existence alone satisfies the economic requirement. The immigration authority will look at the substance: Is the business plan credible? Are there signed contracts or letters of intent with clients? Is the projected revenue realistic for the sector? Is the share capital sufficient for the planned activity?
Many underestimate the importance of the business plan document. Austrian immigration authorities expect a structured plan covering market analysis, financial projections for at least three years, a description of the management team and a clear explanation of why the business must be based in Austria rather than elsewhere.
If you need help structuring your company and immigration file as a coherent package, contact info@vlolawfirm.com. We can help structure the setup correctly the first time.
The process has two parallel tracks that must be sequenced carefully.
Track one - company formation:
Track two - residence permit:
The Red-White-Red Card is initially valid for two years. After that, you can apply for a Red-White-Red Card Plus, which allows unrestricted access to the labour market. After five years of continuous legal residence, you may apply for a settlement permit (Daueraufenthalt-EU).
The cost picture for residency through company Austria has several layers.
Company formation costs include notarial fees for the articles of association, court registration fees and the minimum paid-in capital. Professional fees for a lawyer or notary to handle the formation typically start from the low thousands of EUR. The capital deposit itself is not a cost - it belongs to the company - but it must be available and verifiable.
Immigration application costs include consular fees, translation and apostille costs for personal documents, and the WKO business plan assessment fee. The assessment fee varies by chamber and complexity but is generally in the low hundreds of EUR. Translation costs depend on the number and length of documents.
Ongoing costs once you are resident include SVS social insurance contributions (calculated as a percentage of your income, with a minimum base), corporate income tax on company profits, and annual accounting and audit fees if your company exceeds certain thresholds under the Austrian Commercial Code (Unternehmensgesetzbuch, UGB).
Professional advisory fees for a combined company formation and immigration mandate typically start from several thousand EUR, depending on complexity. Engaging a lawyer who understands both the corporate and immigration dimensions is advisable, as errors in either track can delay the entire process by months.
A non-obvious requirement is that you must demonstrate ongoing financial self-sufficiency throughout your residence. If the company does not generate sufficient income in the first year, the immigration authority may scrutinise your renewal application. Founders should plan for a personal income buffer covering at least twelve months of living expenses.
Scenario one - tech founder from outside the EU:
A software entrepreneur from a non-EU country wants to relocate to Vienna and build a B2B SaaS company. She incorporates a GmbH, deposits the minimum capital and obtains a positive start-up assessment from a certified incubator. She applies at the Austrian embassy with a detailed business plan showing three signed letters of intent from potential clients. The immigration authority issues a Red-White-Red Card within three months. She arrives, registers her address and begins operations. After two years she applies for the Red-White-Red Card Plus.
Scenario two - consulting firm owner from a non-EU country:
A management consultant from a non-EU country wants to serve European clients from Vienna. He incorporates a GmbH and applies for the self-employed key worker category. The WKO assessment is positive, noting that the business will generate export revenue. However, his initial application is delayed because his criminal record certificate was not apostilled correctly. After resubmission with the corrected document, the permit is issued. The total timeline from company formation to permit issuance is approximately seven months.
Both scenarios illustrate that the quality of preparation - not the act of incorporation itself - determines the outcome.
Is there a minimum investment amount required to qualify for Austrian residency through a company?
Austria does not set a single statutory minimum investment figure for residency through company applications. The immigration authority evaluates the economic substance of the business rather than a fixed capital threshold. In practice, the GmbH minimum paid-in capital of EUR 17,500 (half of the EUR 35,000 minimum share capital) is the floor for company formation, but immigration officers will assess whether the total capitalisation is adequate for the planned business activity. A business requiring significant infrastructure or staff will need to demonstrate correspondingly higher resources. Founders should treat the capital question as a business credibility issue, not a box-ticking exercise.
How long does the entire process take from deciding to incorporate to receiving the residence permit?
The realistic timeline is five to nine months for a well-prepared application. Company formation itself takes two to four weeks. The WKO or body assessment of the business plan takes four to eight weeks. The immigration authority then has up to six months to decide, though straightforward files are often processed in two to four months. Delays typically arise from missing or incorrectly apostilled documents, an unconvincing business plan or incomplete financial evidence. Applicants who engage professional advisers early and prepare a complete dossier from the outset tend to fall at the shorter end of the range.
Can I use a different company structure, such as a sole trader or an AG, instead of a GmbH?
A sole trader (Einzelunternehmer) is legally possible in Austria but is generally not suitable for immigration purposes because it does not create a separate legal entity and does not produce the employment relationship that immigration authorities use to assess your economic activity. An AG (Aktiengesellschaft) is a valid corporate vehicle but requires a minimum share capital of EUR 70,000 and is more complex to administer, making it disproportionate for most start-up founders. The GmbH remains the standard choice for residency through company Austria because it balances limited liability, manageable capital requirements and a clear managing director role that maps onto the immigration criteria.
Opening a company in Austria is a meaningful step toward residency, but it is the beginning of the process, not the end. The immigration authority evaluates the economic substance of your business, your personal qualifications and your financial self-sufficiency independently of the company registration. A well-structured GmbH with a credible business plan, adequate capital and proper documentation gives you the strongest possible foundation for a successful Red-White-Red Card application.
VLO Law Firms advises international clients on residency through company matters in Austria. We can assist with company formation, business plan structuring, immigration dossier preparation and liaison with the relevant Austrian authorities. To request a consultation, contact: info@vlolawfirm.com