Austria, a central European Country and a full member of the EU (European Union), with a population of nearly 9million people, is one of the 14 richest countries in the world in terms of GDP (Gross Domestic Product). It is host to several interesting features such as mountain villages, baroque architecture, rugged Alpine terrain, and Imperial history. It has a well-developed social market economy, a high standard of living and is a major destination for tourists all over the world. All these are without any doubt, pointers to the fact that setting up a business in this country can only be a profitable move.
Among the types of commercial companies that may be established and operated in Austria is the Limited Liability Company (LLC). The LLC is a company whose liability is limited to the contributions of its members and this is why it is designated by the abbreviation “GmbH” (Gesellschaft mit beschrankter Haftung) which is German for “company with limited liability”. It is the most widely operated legal form for companies in the country, due to the immense benefits and advantages it offers to its owners and partners.
In Austria, an LLC requires a minimum equity capital of EUR 35,000 and every shareholder must invest at least EUR 70 and need to deposit a cash amount of only EUR 17,500. This minimum equity capital is the highest in the EU – a fact that builds a high degree of trust in the company from business partners and investors throughout Europe.
The requirements for setting up an LLC in Austria or becoming a shareholder are free of restrictions. This implies that individuals, partnerships, residents, non-residents, Austrians and foreign corporations can all be founders and shareholders. Also, only one director is required to manage the company and this managing director is subject to the resolutions of shareholders, giving them the right to issue directives that obligate him/her to act accordingly.
The liability in an LLC is limited to the (fully deposited) share capital, and not the personal assets of investors. This way, no shareholder will incur more loss than the other, with respect to their level of investments in the company and this undoubtedly brings confidence and relief to any willing investor.
Incorporating an LLC in Austria may take up to two weeks, after which the company is recognized as a legal entity. This time is relatively short, thus enabling a quick start in the operation of companies.
One other important benefit of setting up a limited liability company in Austria is due to the fact that the country is a full member of the European Union (EU). This factor increases opportunities to do business with other member countries and definitely comes with many other attached benefits.
So, do you want a want a secure business venture that is flexible in structure, very profitable and open to every citizen of the world? Then making the choice to set up a limited liability company in Austria will be just the right thing to do.
