Austria is a central European country that offers an outstanding geographical location. It is a full member of the EU (European Union), and among the 14 richest countries in the world in terms of GDP (Gross Domestic Profit). The country offers political stability, has a well-developed social market economy, a skilled workforce and a high standard of living. In 2010, it ranked first in protecting personal security and private ownership, in the World Competitiveness Yearbook.
Austria is also hosting several interesting features such as, mountain villages, baroque architecture, rugged Alpine terrain and Imperial history, making it a major international tourist destination. These facts are all indicators that establishing a business in Austria can only be a profitable thing to do. Among the types of businesses that can be set up in Austria is the Joint Stock Company.
The Austrian Joint Stock Company is abbreviated as AG which is short for Aktiengesellschaft. It is the second most common type of corporation in Austria due to the relative ease with which one can be set up and the vast amount of benefits it offers to owners and shareholders.
The minimum authorized capital for an Austrian Joint Stock Company is EUR 70,000 – which can be divided up into shares that are sold to shareholders – and there is no limit to the number of shareholders who can invest in it.
One major benefit of an Austrian joint stock company is that when it comes to company’s assets, the limitation of responsibility for the shareholders makes it convenient for them. With limited responsibility, the shareholders in the company will not be held liable for any obligations other than their investment in the share capital i.e. the liabilities of shareholders are limited with the company assets/share capital.
Another advantage of establishing a Joint Stock Company in Austria is that, there are no corporate income taxes. The corporate tax rate applicable to joint stock companies in Austria is 25% while dividend payments are exempt from taxation in this country. Due to this, business owners will be able to avoid “double taxation” effects resulting from the payment of taxes both as a business entity and as an individual. This ultimately results in more returns and income for the investors and shareholders in the company.
There is much transparency in an Austrian Joint Stock Company, as it is compulsory that a Supervisory Board be formed. Also, the decisions regarding the overall management of the company are taken by the shareholders’ general assembly and day-to-day management is performed by directors appointed by the shareholders’ general assembly.
One other important benefit of setting up a joint stock company in Austria is due to the fact that the country is a full member of the European Union (EU). This factor enhances its opportunities to do business with other member countries and without any doubt, brings with it added benefits.
So, are you in need of a business venture that protects you against loss, has a very transparent structure and is located in one of the world’s richest countries? Then establishing a Joint Stock Company in Austria is the answer to your need.