GUIDE FOR

BUSINESS START-UPS
5 th Edition

March 2006

Masthead:
This text was prepared in co-operation with the Business Start-Up Service of the Chambers of Commerce in Carinthia
(Mag. Herwig Draxler), Lower Austria (Mag. Gernot Schdl, Mag. Dieter Bader), Upper Austria (Mag. Maria Klimitsch,
Mag. Karl Schnbichler), Styria (Michaela Steinwidder), Salzburg (Mag. Peter Kober, Mag. Dr. Hans-Joachim Pichler),
Tyrol (Mag. Wolfgang Teuchner, Mag. Ines Htter) and Vorarlberg (Mag. Christoph Mathis).
Project Manager:
Gerlinde Seidler, Business Start-Up Service of the Austrian Chambers of Commerce
Copyright Owner:
Business Start-Up Service of the Austrian Chambers of Commerce, Wiedner Hauptstrasse 63, 1045 Vienna
This booklet is available on the Internet at http://www.gruenderservice.net and at http://wko.at.
In the interest of easier readability, we have dispensed with the feminine forms (e.g. she, her). However, we do feel it
important to emphasise that this brochure is intended for use by both male and female persons.
All rights reserved. Reproduction in whole or in part is permitted only if the source is indicated and if two proof copies
are provided to the Chambers of Commerce. Despite careful proofreading of all contributions in this booklet, errors
cannot be entirely precluded; therefore, no guarantee is given for the correctness of the content. All liability on the
part of the authors and the copyright owner is precluded.
5th revised edition, Vienna, 2006
This 5th English edition corresponds to the 11th German edition of January 2006.

Table of Contents

1. In the beginning was the idea . . .

2. Personal and material prerequisites

2.1
2.2
2.3
2.4

Personal qualities
Marketing
Financing and subsidy
Trade law

7
8
12
20

3. Legal prerequisites and additional information

25

3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13

26
28
36
37
39
40
44
47
51
53
57
59
60

Location and business-premises law

Legal forms
Company designation
Overview of legal forms
Transfer of business-franchising
Social insurance and business
Entrepreneur as a part-time job
Taxes
Business accounting
Employees
Warranty, guarantee, product liability
Foreign trade
Business insurance

4. The business concept

62

5. Appendix

65

5.1
5.2
5.3
5.4
5.5

66
69
74
78
80

Useful contacts
Steps toward founding a business
New Companies Promotion Act (NEUFG)
Index of key terms
Your business start-up service offices throughout Austria

In the beginning
was the idea . . .

Most people starting up a business know that good preparation is a major key to complete success. THE
GUIDE FOR COMPANY FOUNDERS, now in its 11th revised edition, is a compilation of tips and advice from
the Business Start-Up Service, Austrian Chambers of Commerce to support you in your preparation. It will
guide you through the world of self-employment, highlighting and emphasising recurring problems and
providing useful hints and step-by-step instructions.
Becoming an entrepreneur is an excellent way for people who are eager to create and who are prepared to
do exceptional work to meet exciting new challenges and to take control of their own livelihood.
And yet the path to self-employment is not a leisurely walk. There will be many problems along the way
which you must face and solve; there is no guarantee that a business will succeed, and so you should be
aware of the chances and the risks involved in starting up a business.
Therefore, you should consider the following points before deciding to start up a business:
- what are the requirements for practising a trade?
- are you clear about your business concept?
- is the market for your concept large enough?
- what distinguishes you from your competitors?
- what financial funding do you need to establish your business?
- how is your business to be financed?
- what supporting funds are available?
- what are the costs you must reckon with?
- what about your social security?
- how will you organise your business affairs, the accounting, etc.?

These points are examples of many other questions this guide will answer for you.

If you require further information or if you simply wish to talk over your concept and strategy with an
impartial expert, contact the Start-Up Service at the Chamber of Commerce in your region (cf. p. 80).
We will devote our time and energy to your project. Our job is to provide you with effective assistance
without red tape and to help you take your first entrepreneurial steps without mishap.

We have also arranged a virtual business start-up service for you on the Internet at
http://www.gruenderservice.net containing a vast information database for new
entrepreneurs.

Personal
and material
prerequisites

2.1

Personal qualities

Becoming self-employed often means giving up the

security of a well-paid job. For a while, you will
have to face the fact that your business development will be unpredictable, and you will be continuously confronted with new tasks and problems to
master and overcome.
And yet these factors can form the very appeal of
being self-employed. Overcoming such tasks and
problems is a great boost to self-confidence; the
rewards of self-employment include the satisfaction of doing good work, putting your own ideas
into action, the freedom to resolve and act on your
own, and building up something independently and
autonomously.

Do you have the potential

to be an entrepreneur?

Professional
qualifications

Personal qualities
No fear of pressure or stress
No anxiousness about crises
and conflicts
A desire for independence

Before rushing into establishing your own business,

you should have a clear idea of your personal objectives. Do you really want to become an entrepreneur? if so, do you have the essential personal
capabilities?
As the saying goes, confidence in your own abilities
can move mountains. However, a healthy portion of
self-criticism is also required when setting up a
company. Successful entrepreneurs have specific
basic qualities or personal capabilities. The prime
keys to success include believing in your concept,
having confidence in your own strengths, being
willing to take risks, wishing to be independent,
having good contact skills and unshakeable motivation, the ability to think and organise, a fertile
imagination and persevering dedication.
Nor should professional qualifications be neglected
when founding your company; basic commercial
knowledge and experience in your line of business
are also central factors.
It is also important that your partner and your family agree to your start-up and support you in realising your project.

experience in your
line of business
Basic commercial
skills

A dislike of mediocrity

Do you have the potential to be an

entrepreneur?

Professional
knowledge

Enjoyment of flexibility
Pleasure in organising
Thirst for success
No anxiousness about risk
and danger

Family

Keen on change

agreement

Willingness to take
responsibility

support

Enjoyment of co-operation
Desire to stand out among others
Dislike of standstills and
regression
Vgl. auch Magyar K.,
Pioniermanagement, Verlag
E. Lpfe-Benz AG, CH-9400 Rorschach

Of course, it is not necessary that you have all of

these entrepreneurial qualities and qualifications
from the very outset; you will also learn much
through experience and you can outsource many
tasks to experts (tax accountants, etc.). Nevertheless, you should honestly ask yourself if you truly
desire to become independent, whether you have
the capabilities and qualities to do so and what
your strong and weak points are.

TIP
Check your entrepreneurial qualities by taking the entrepreneur test on the
Internet at www.gruenderservice.net.

2.2

Marketing

Market

customers
competition
surroundings

Company (define
strengths and weaknesses,
highlight possibilities)

Situation analysis

Define targets and strategies

In other words, you should be concentrating your

thoughts on your current and potential customers
problems, wishes and requirements not just on
your product itself. Then you need to work out your
strategy, bearing in mind that each marketing decision fundamentally depends on your own situation,
sizing up the competition and the means you have
at your disposal.

Your company on
the market

Actually, the topic is already well outlined in the

questionnaire above; to put it in a nutshell,
Marketing is knowing the customers and focusing
your companys work on their sectors of the
market.

This is how the procedure should look:

Have you ever asked yourself why a customer should

buy your product and not someone elses? If you can
give a good answer to this, you are already well
along on the right path and you can skip this chapter
with a clear conscience. If your answer is not definite, you should examine the marketing aspect in
more depth. What does it mean?

By establishing, we mean putting your strategy

down in writing and not just thinking about it. Putting it on paper obliges you to formulate your ideas,
giving you the opportunity to reconsider your strategy and perhaps improve it at a later stage.

who is going to profit from your product?

where will you find these people? in which geographical region or on what social level?
how much are your potential customers willing to
pay for your product?
how will you approach your customers?
how will your sales develop over the years to
come?
what additional offer or service could improve
your chances?
who are your competitors? and where do their
strengths and weaknesses lie?

These are indubitably important prerequisites for

your business to be successful; but have you also
considered

Bearing this in mind, you can now carefully work

out your marketing strategy, establishing the components which will form your marketing decisions
and considering the results, with special emphasis
on the word establishing.

Plan and carry out resolutions

You have a business concept, you are excited

about it and you are confident you can carry it
through? Your product is a technical masterwork,
your assortment is simply so extraordinary or your
service is so ingenious that you are sure you have a
strong advantage over potential competitors?

There is nothing really new about this wisdom; long

ago, Tun Tse, a Chinese commander-in-chief, said,
If you know your enemy and you know yourself,
you will be able to fight hundreds of battles without any danger: if you know yourself but not your
enemy, then your chances of winning or losing are
equal: but if you know neither yourself nor your
enemy, you will lose every battle.

2.2.1. From the concept to the

strategy

Control
(how it is vs. how it should be)

This circular method demonstrates clearly that the

strategy process is a never-ending one; it must constantly be adapted to both the circumstances of the
economic situation and to personal circumstances alike.
When you begin to implement your strategy you will naturally commence by analysing the current economic
situation and then trying to estimate how it will evolve
in future unless you develop specific marketing tactics.

2.2.2. Which points need imperative

analysis and consideration
regarding the near future?
Market situation
How is your market developing geographically
(district, province, Austria, Europe)?
What is the general situation of economic development and the specific one in your line of business?
How will economic fluctuations likely affect your
future company?
What amendments to the law or standards are to be
reckoned with in the near future (e.g. environmental conservation, taxes, the EU, general
development, ...)?
How great is the purchasing power of the target
group you are considering?
What changes in consumer trends must you reckon
with (e.g. from synthetics to natural products,
mechanics to electronics)?
Are there any market loopholes (i.e. requirements
not being satisfied)?
Customers
Have you looked into your customers purchasing
habits, motives and requirements, and have you
considered changes in their behaviour (e.g. heightened environmental consciousness, increased
demand for quality, health, wellness)?
What about consultation and service requirements?
Are there current, popular trends?
Competitors
Who are your main competitors (how many, how
large, their market share)?
On which price and quality levels are the competitors working?
What is the situation regarding technical standards
and financial power?
Must you consider the possibility of new competitors appearing on the scene?
Do you anticipate serious product innovations
amongst existing competitors or from new ones?
You can obtain a checklist on analysing competition on the Internet at www.gruenderservice.net
(MarktMarketing)

Market research
Procuring all this information is called doing market
research.
Where to obtain this information? - from
the department competent for your line of business
- (The Board), Chamber of Commerce
- specialised magazines
- customer surveys
- observing the goings-on at trade fairs, etc.
- the Internet
- the Austrian Bureau of Statistics (www.statistik.at)
Of course, you could also commission a marketresearch institute to provide you with the data you
are interested in but you would also have to
reckon with the relatively high cost of such a service.

2.2.3. Marketing objectives

The information you gain from analysing your initial
position and forecast will provide you with the basis
for deriving your marketing image (basic business
design) and objectives in Phase Two.
What are the possible objectives?
sales, revenue, profitability, etc.
market share (e.g. In five years time I want to
be the largest manufacturer of wooden staircases in Western Austria)
employee satisfaction
security
The list of objectives could go on as long as you wish.
Generally speaking, though, you will want to aim at a
combination of several objectives, not just one. The
most important thing is not to lose sight of your fundamental objectives.
It is just as important that you define your aims
precisely, since this is the only way to discover
whether you have met your objectives (e.g. annual
sales growth of 12% at an increase in revenue of 9%).
Once you have planned your marketing objectives,
the next step is to find the ways and means to
achieve them.
Marketing-policy tools, as they are called, are available to help you. The idea is to gather these tools
together within a marketing mix which is as seamless
and harmonious in substance as possible so you will
stand out advantageously from your competitors.

2.2.4. Marketing tools

Even though it is beyond the scope of this booklet
to list all the details of a marketing mix, we have

sketched out the most important aspects below.

You can obtain a checklist on marketing mix on the
Internet at www.gruenderservice.at
(MarktMarketing)

You can obtain a checklist on pricing policy on the

Internet at www.gruenderservice.at
(Markt Marketing)
Distributing merchandise (distribution policy)

Organising offers
(product and assortment policy)
This is the very essence of marketing. Product
policy concerns everything which has to do with the
products and services on offer. It comes into play
especially as regards
putting together an assortment which corresponds to customers expectations
introducing new products or groups of products
onto the market (product innovation)
modifying products or groups of products already
on the market (product variation)
withdrawing existing products or groups of products from the assortment, if necessary (product
elimination)
giving a product additional value (e.g. customer
service, after-sale service)
developing packaging which is both sales-effective and appropriate
developing a brand to stand out against other
products
The potential for success of a Unique Selling Proposition (USP) essentially depends on the uniqueness
of your product/service/image
being recognised by the customer
having special significance for the customer and
being difficult for the competition to catch up
with.
The USP is an essential component for the success
of your business.
Pricing (pricing policy)
Pricing policy covers all decisions on finding the
right price and ultimately establishing it on the
market.
The realistic price is influenced by such factors as
discounts
supply conditions
payment conditions
loans
i.e. you must take these elements into account
when calculating your prices.
How to price your product? base it on
your own calculation (cost-plus-profit margin)
competitors products
your customers value expectation (e.g. customers often find luxury articles less attractive if
they are under-priced).

10

Distribution policy involves making the product

available
in good condition
at the right time
at the right place
in the quantity requested,
whereby it is up to you to decide how you want to
distribute your product or service using your own
sales personnel or via retail or wholesale outlets.
You will also need to look into the aspects of storage and transportation.
Franchising could also be an option. You can find
more detailed information on this topic by going
to the Guide to Franchising as a download at
www.gruenderservice.at
under the item Publications.
Working the market (communication policy)
Are you among those who confuse marketing with
advertising? By the time you have read this far, you
will have become aware that advertising is only one
component in the marketing mix. Before you start to
plan an advertising campaign or contact an advertising agency, do think about
what you want the advertising to achieve (e.g.
attaining a certain level of renown, increasing
sales by 10%, etc.)
whom you want it to reach (define the target
group precisely)
the funds you have available for the advertising
You can obtain a checklist on advertising budgets on
the Internet at www.gruenderservice.at
(Markt Marketing))
Which advertising media to use?
newspaper advertising
flyers
posters
mailings
telephone marketing
television, radio
Internet (newsletters), CD ROMs
personal sales
In general, local newspapers, flyers and broadsheets inserted in newspapers are the most suitable
media for small and mid-sized companies. Apart
from these media, another form of advertising,
direct marketing, has proved to be very successful.
It basically involves preparing advertising letters

Product
Public
Relations

Assortment

Trademark

Quality

Customer
Service
Price

Personal
Sales
Sales
Promotions

Loan

Market
Discount

Advertising

Deduction
Sales channels

Logistics
(Storage, transport, delivery times)

Price Planning (Pricing policy)

Market Processing (Communication Policy)

P l a n n i n g Yo u r O f f e r ( P r o d u c t a n d A s s o r t m e n t P o l i c y )

P r o d u c t D i s t r i b u t i o n Po l i c y

bearing a personal salutation and sending them to

people within a precisely defined target group.
Then these people are contacted by telephone.
This focused manner of addressing people reaches
the target group without losing effectiveness (as
non-selective advertising does, for example). Now
that more and more people have Internet access,
targeted communication via e-mail newsletters
has become a very attractive option, whereby you
can achieve the same results as with the aforementioned advertising letters but at considerably less
expense. The idea is to begin collecting e-mail
accounts in your customer file from the very outset
without, of course, neglecting the current legal
situation in this regard.
Due to the developments in information technology,
it is now of special importance for a company to
have a professional website. Think very carefully
about getting your advertising message across to
potential customers quickly and easily (using search
engines, banner advertising, etc.). With the Internet, there are no more frontiers you are present all
over the world, regardless of your companys size
and the cost is very affordable. But here again, you
will need the help of specialists the Internet has its
own rules.
Apart from advertising, direct sales promotion is
extremely important. It extends from an attractively styled place of business all the way to personal sales discussions. Lay great store by your sales
staffs qualifications; they should not only be knowledgeable of their jobs and the products but also be
skilled in dealing with customers individual requirements.

Public relations (PR for short) work is another component of communication policy. Its function is to
generate trust and sympathy in the public sector
and to create a positive corporate image for your
company your advertising messages will be more
credible and your employees more motivated.
How can you give more impact to your image? Try to
stay prominent in public discussions; reports in
newspapers, open houses, tours of your business
premises and supporting cultural events all contribute to enhancing your profile.
Give your creativity free rein the skys the limit but
do be sure there is a constant thread running through
all your work when combining these marketing tools.
A uniform corporate image (not only in advertising
and communication, but throughout the entire marketing mix) is extremely important for implanting
your company in the minds of extant and potential
customers. Combine your actions within your policies
on your products, pricing, distribution and communicate optimally and you will achieve your objective.
Once you have prepared your marketing concept,
there is only one more thing: the main difficulty
will be to remain true to the principles initially laid
down (Clausewitz).
IMPORTANT NOTE! Ask yourself these marketing questions:
- product/service assortment: what customer
values can I offer and how do I design my offer?
- market analysis: who are my customers, my
competitors? What customers should I
approach? What are these customers wishes?
- advertising is expensive:how much will it cost me?
- Take action and keep your costs in mind.

11

2.3

Financing and subsidy

Adequate financing is the basis for setting up your

company successfully. However, it can be a problem, especially for new companies. You have very
little of your own capital, and you dont have commercial success or references to show yet. Potential financers can only assess your chances of success
with difficulty and thus contributing capital is a big
risk for them.
That is why it is so important that you present your
business concept, the market situation and your
financial requirements in a business plan formulated in writing; everyone whom you want to invest
in your endeavour will want to know where his
money will be going and how he is going to get it
back with appropriate interest.
(See page 62 and go to www.gruenderservice.net
for more on preparing a business plan).
So prepare your financing well as part of your
business plan and remember that potential financers will need a certain amount of time to review
your proposal.
Before you begin, though, you should be clear on
these points:
- the specific funding you require
- how you will go about getting it and what you can
contribute to it
- what subsidies are available.

2.3.1. Financial requirements

Precisely determining financial requirements is one
of the most important tasks of a company founder.
Exact planning helps to ensure liquidity and avoid
insolvency. It includes both long-term financial
forecasting for assets such as real estate property,
buildings, machinery, motor vehicles, and the like
and short-term financing for working capital.
Here, you will need to consider material stocks,
stocks in trade, stocks of finished products and payments not yet received and, last but not least, you
should take your financial obligations in the initial
phase into account.

12

Capital requirements for investments

(real-estate property, building, machinery, motor
vehicles, etc.)
Capital requirements for planned, requisite investments are relatively easy to determine if you consider offers from various sources; but do not neglect
ancillary costs such as property acquisition tax,
fees charged by notaries public and costs of acquiring capital. Try to determine your capital requirements as precisely as possible; in dubious cases, a
rough estimate is better policy than to pass over
such an item or leave it out. Do not estimate your
capital requirements too closely; you should plan in
a reserve margin of about 10% for each item.
Capital requirements for goods and material
stocks
If you are planning to set up a production company,
you will need to deduct the material to be used
from the planned annual sales. Using comparative
figures from your branch of business, you can assess
how many times the stocks will roll over. Establishing an average inventory is an important part of
planning capital requirements.
If you are planning to open a retail outlet, it is
important that you establish the scope of goods
supply. You can determine the worth of required
stock by asking suppliers for their purchase prices.
Ongoing financial requirements
Keep in mind that you need to allow for a certain
amount of time between receiving an order and
being paid for it; obviously, you will require funds
to bridge this gap. In this regard, it is highly important to determine whether deferment of payment is
common practice or necessary in your branch of
business or whether goods are paid for at once.
In any event, you will have to take a starting-up
period into account in which income will be less
than expenses. In order to keep this time of reduced circumstances as short as possible, keep the
following items in mind when calculating your working capital: liabilities, personnel costs, rent or
lease, office and administration costs, energy and
motor vehicle expenses and interest. Also include
requisite personal withdrawals (living expenses,
various insurance policies, rent and other expenses
regarding your own home) in your list of working
capital requirements.

Estimating working capital requirements is often

not at all a simple matter. Planning your finances
carefully can be a great help.
Financial planning as a helpful tool
A financial plan is a type of list showing payments
received (sales, private investments, loan commitments, etc.) opposed to expenditures (e.g. ongoing
costs, investments, personal livelihood, and the
like) for each month (cf. the table on the next
page).
At the outset, orders often do not come in to their
full scope and existing orders are frequently executed some time before they are paid for; therefore,
it is evident that in the first few months outlay will
be greater than income. Setting the planned payments and receipts in opposition in a list will show
you the monthly deficit or monthly surplus. If
several months are deficit ones at the outset (i.e.
outlay greater than income), a greater deficit sum
can accumulate which, for the most part, must be
pre-financed via a current-account loan (credit
line) until the time when the outstanding sums

come back into the firm through sales. Therefore,

applying your financial plan, you can estimate the
amount of credit line you will need to cover your
ongoing financial requirements. You should also
include a certain reserve margin, since the income
side frequently cannot be estimated so precisely.

IMPORTANT NOTE!
Plan sufficient liquidity reserves.
- Also think about possible unforeseeable occurrences.
- Reduce your working capital requirements by
invoicing immediately, rationalising inventory,
systematically monitoring payments and using
a well-organised dunning system.
- Remember that, as sales increase, working
capital requirements also become greater due
to higher costs and payables and will have to
be financed.

DETERMINING CAPITAL REQUIREMENTS

INVESTMENTS

Real-estate property:
Purchase price, ancillary broker charges, costs for the lease, taxes, acquisition, etc.
Constructional investments:
New constructions, remodelling, adapting rooms, security deposit for rented or leased premises
Furnishings:
Office equipment, machinery, implements, storage furnishings, display rooms, etc.
Vehicle fleet:
Automobiles, minivans, trucks, etc.
Other investments:

WAREHOUSE INVENTORY
Initial warehouse inventory for raw materials, ancillary agents, operating materials, trade goods

ONGOING COSTS START-UP COSTS

Incorporation costs, e.g. registration fees, company constitution (notary public, tax consultant,
attorney, Company Register) and ongoing expenses to bridge the start-up phase (until corresponding
sales are achieved), e.g. for advertising your opening, rent, telephone, personal living expenses,
wages, etc. (cf. also the data in the financial plan)

13

Financial Plan
(= a list juxtaposing payments received and outgoing payments)
Amounts in euros per month/quarter/year
Month 1

Month 2

...

Month 12

1. Initial available funding

2. Planned incoming payments
Sales (incl. VAT)
From loan commitments
Private investments
Other incoming payments (incl. VAT)
Total incoming payments (1) + (2)
3. Planned outgoing payments
Costs affecting outgoing payments
(incl. VAT)
Payments for investments
(incl. VAT))
Payments for materials
(incl. VAT)
Private withdrawals
Payments to the Revenue Office
Interest payments / bank charges
Capital repayments
Other payments (incl. VAT)
Total outgoing payments
Deficit / surplus (1) + (2) + (3)
Deficit coverages
Current-account loan
Private investments
Other
Use of surplus

2.3.2. Raising the capital

2.3.2.1 Types of capital
Own capital
How much of your own capital do you have?
The capital requirement plan you have prepared
yielded a sum that you will definitely need at the
outset when you start up your company. Now you
can see how rich you are. How much of the capital requirement can you raise alone?
Think it through, using as support a list of any cash
you might have on hand (i.e. savings), real assets
you could convert to liquid assets (bonds, securities, objects of value), as well as other possible
investments (life insurance policy, savings account,
real estate, objects of value). Also investigate

14

whether you can reduce your living expenses to

date, or whether you can contribute machinery or a
motor vehicle. You might well be able to make
some personal contributions to your company, such
as adaptation and renovation work, furnishings, and
the like. There are no generally applicable rules on
how much of your own capital you should raise.
Depending on the branch of business and financing
volume, many banks usually require an own-capital
share of between 20 and 30%.

IMPORTANT NOTE!
Equity capital is not repayable. Interest is applied
dependent on revenue. No collateral need be
offered.

Think about whether you can also increase your

own capital share
by obtaining contributions from relatives, friends
and acquaintances
- by taking on partners in the form of constituting a
business, or
- from public or private risk financers (holding and
venture-capital companies).
Incidentally, equity capital guarantees in the form
of liability in the event of default for the financers
(cf. subsidies on p. 17) are available from the
Austrian Commercial Service Co. [Austria Wirtschaftsservice GmbH]; certain prerequisites apply.
Third-party capital
Once you have amassed your own capital and whatever contributions you can make yourself, you will
likely discover that you need additional third-party
capital, i.e. loans, to finance your business-founding plans completely.

things constantly. (Perhaps talk with a financial

consultant about this option).
- Current-account loans
Current-account loans (also known as working capital loans) apply to ongoing business and payment
transactions. All ongoing transfers are made via this
account, cheques are credited and debited and
standing orders are carried out. You can dispose of
such a loan freely up to the amount arranged with
the bank (current-account credit line). It is flexible
and not bureaucratic, and interest is only calculated on the loan amount actually used. However,
current-account loans should only be used as a
means of short-term financing, viz. for ongoing
payments and not for investments. Of course, there
are additional charges and fees for such a flexible
form of loan; you can obtain clear and comprehensive information on all applicable conditions from
your bank.
Leasing

IMPORTANT NOTE!
Third-party capital equals debt. Interest is to be
paid irrespective of revenue. As a rule, third-party
capital cannot be acquired without providing
collateral and assuming personal liability.

2.3.2.2 Financing options

Bank loans
- Investment loans
Investment loans serve to finance fixed assets (real
estate property, buildings, machinery, motor
vehicles, etc.) and restructure buildings. They are
granted on a mid-term to long-term basis, i.e. they
have a term of about four to 20 years. The term of
a loan should correspond to the useful life of the
goods concerned. Apply for a loan in sufficient time
prior to investing.
Also remember in this context that large investment loans and the major share of third-party capital usually connected with it can entail a large risk
due to heavy interest encumbrance and high
redemption instalments especially in the case of
revenues which are declining or too little, since the
loan must be redeemed out of the profits. Talk it
over with experts (corporate consultants, the bank,
etc.) whether it makes sense to take out a large
investment loan. There is also the option of taking
out foreign-currency loans; but the problems here
include exchange-rate risks and interest development. Therefore, it is advisable to monitor such

Today, leasing is a frequent financing alternative

via which you rent investment goods; after a
certain time you can take on the buy-back price.
Leasing offers the advantages of easing the load on
your own capital, lessening encumbrance on collateral and often, making financing generally easier
and lowering insurance premiums when leasing a
motor vehicle. Precise cost comparison between
leasing and loans is only possible in individual
cases, so consult a leasing expert (chartered
accountant, corporate or financial consultant,
etc.).
Venture capital financing
Venture capital is a type of holding financing and
thus a form of risk capital or equity capital.
Venture capital companies maintain holdings in new
companies with the objective of profiting from the
invested capital when the holdings are further sold.
Holding companies generally focus on a limited
circle of new companies
- with innovative ideas and
- above-average chances for growth and revenue
- who submit a detailed business plan
- who are persuasive in demonstrating their entrepreneurial capabilities
- and who, in addition, require a correspondingly
large financing volume (approx. 400,000.00 and
over but this depends on individual cases and the
venture capital provider).
Therefore, venture capital is not an option for most
company founders.

15

Business angels
Business angels are wealthy persons who assist new
companies with their own capital and also with
management experience and business contacts.
They are commercially independent, most of them
have been successful entrepreneurs or managers
and are experienced in business life. Therefore,
business angels are also available for consultation.
Often, they also invest smaller sums from 20,000
euros upwards in new companies with innovative
ideas and high growth potential; thus, they can
especially provide a stopgap if a risk is too great for
a bank and if the capital requirement is too small
for a holding company. Referrals between companies and business angels is conducted in Austria via
the initiative i2 the exchange for business
angels of the Austria Wirtschaftsservice GmbH.
i2 business angels can include private persons with
capital and management know-how and institutional investors (incubator organisations, venture
capital companies, holding companies), as well as
entrepreneurial investors having holdings strategically or financially.
Go to www.awsg.at for further information.
Supplier credit
Supplier credit is the easiest but most expensive
form of loan. You do not have to apply for it and
it is granted informally. It can be offered when you
receive merchandise or a service; you do not pay
for them upon receipt, but rather at a later date.
The supplier might offer you a credit period of, say,
30 days. Whats more, at first glance it seems to be
free!
But consider the meaning of the terms and conditions carefully: payable within 10 days from the
invoice date minus a 2 % discount, and within
30 days without discount. Which annual interest
rates are you effectively accepting if you remit
after 30 days without discount? Using the formula
below, it is a simple matter to calculate the annual
interest rate:

Annual interest rates =

cash discount (%) x 360

credit period (days)

Result:
Annual interest rates =
2 (cash discount) x 360
30 (credit period) 10 (cash discount period)

16

= 36%

It is not difficult to establish whether it would be

more profitable to take advantage of the proffered
credit or to opt for the cash discount by using a current-account loan, for instance.
Customer down payments
Customer down payments are an extremely advantageous form of financing. The customer pays you
part of the bill in advance, via which you can settle
your preliminary accounts for the order, purchasing
goods, preliminary work, etc. without outside
financing. However, there is a catch; down payments are not necessarily usual in all branches of
business and you, as a newcomer on the market,
must first of all attract customers and so, down
payments are not always a workable option. Where
it is possible, though, you certainly should take
advantage of this financing option, even if the sums
are small.
2.3.2.3 Financing discussions
Prepare your documentation professionally!
Whether you wish to take out a bank loan, use holding capital or take advantage of subsidies to found
your business your potential financers will want to
know precisely what they are investing their money
in; so it is absolutely necessary that you have a
business plan ready for every financing discussion.
The more professional and persuasive your business
plan, the easier it will be for you to get the money
you need.
See page 62 for an introduction to preparing a
business plan or go to www.gruenderservice.net.
Talking with the bank
Obviously, your bank is an important partner in
third-party financing.
The following tips will help you to prepare for a
talk with the bank:
Have your documentation in good order (business
plan, concept and plan calculations)
- Resolve clearly in your mind what you actually
want from the bank an investment loan, a
current-account loan, for which investments or
working capital, how much, for what term, etc.
- Obtain offers from several banks so you can better
compare the terms and conditions
- Negotiate capitalisation for a maximum of a
calendar quarter (loan accounting on which interest is charged). Multiple capitalisation can make
your loan appreciably more expensive.

- Enquire about all the other costs, such as handling

charges, commission fees, other levies and so on,
and try to reduce them or negotiate for their elimination.
- If possible, negotiate an effective interest rate.
(It takes into account all one-time and ongoing
charges as well as an annual interest settlement).
The effective interest rate allows you to compare
costs directly among various loan offers.
- Have the loan commitment confirmed in writing.
- Negotiate to have the interest rate coupled to the
reference interest rate (e.g. secondary market
yield, EURIBOR). In this way, you will spare yourself ongoing negotiations on the interest rate with
the bank and you can assume that interest changes will correspond to the market. Find out how
long the interest rate is fixed and the amount on
which it will subsequently be dependent.
- Enquire right at the outset about possible subsidies (e.g. at your chamber of commerce).
- Seek advice if necessary from impartial experts
(corporate and/or financial consultants).
- Consider what collateral you can offer the bank
(suretyships, mortgages and the like).
- Think of the bank as your partner in monetary
matters and keep it informed of your ongoing
business progress. Should you have additional
financing requirements (e.g. a short-term overdraft on the current-account loan), talk to your
bank about it right away. Do not wait until the
bank contacts you about such an additional overdraft. Show the bank that you are a serious partner and that the bank can rely on you.
- When working out financing, take into consideration the various financing principles. Thus, for
example, the term of a loan should approximately
correspond to the usable life of the investment
goods.

Comparing two quotes, therefore, it is entirely possible that you will find that the one with the apparently lower interest rate is in fact less economical
due to other terms and conditions of the loan.
Perhaps have the loan quotes checked over by an
expert (corporate or financial consultant).

What does a loan really cost?

Note that
most subsidy incentives for new entrepreneurs
apply to investment subsidies only
- subsidies are generally awarded against collateral
usual in banking practice
- there is no legal entitlement to subsidised loans

The cost of a loan is more than just the interest

rate. It also depends of the loans term, the instalment frequency (number of instalments), and the
instalments due-dates. Moreover, you should
determine any expenses and costs they generate,
the amount of loan commission fees, how interest
is calculated (the date on which the interest portion of the instalment is fixed) and the way
redemption is calculated (i.e. the time at which
redemption is deducted from the residual debt).
In other words, dont adjudge the cost of a loan
merely according to the interest rate; take into
account all the other terms and conditions involved.

IMPORTANT NOTE!
Make sure to obtain the effective interest rate.
It takes into account all one-time and ongoing
charges, fees and levies and enables you to
compare the costs directly among various loan
offers.

For more information on financing, go to

www.gruenderservice.net

2.3.3. Subsidies
There are a number of subsidy models for existing
companies and founders, available on the federal,
provincial and (to an extent) community levels.
Options and types of subsidies are dependent on
several factors (e.g. new constitution or takeover,
branch and location of business, business concept,
growth potential, etc.); thus, they can only be
determined on an individual basis.
For an initial overview of possible subsidies, check
the chamber of commerce subsidy database at
http://wko.at/foerderungen.
Then take advantage of personal consultation on
subsidy options with your chamber of commerce
and/or your bank.

Submit your subsidy applications in sufficient time

and remember that processing will take a while.
Generally, such applications are submitted to your
bank.
As a rule, they must be submitted prior to making
investments and include corresponding details of
intended use (e.g. cost estimates).

17

IMPORTANT NOTE!
- Go to http://wko.at/foerderungen for an initial
overview of possible subsidies.
- Apply for subsidies BEFORE making investments.
- Subsidies are merely a form of support for your
financing plan and are never a decisive factor in
determining whether you will realise your business concept or not.
Overview of the most important subsidies
AWS new entrepreneur promotion scheme
This AWS scheme (AWS Austria Wirtschaftsservice
GmbH) aims at helping new start-ups and takeovers of small-scale and midsized companies, with
the exception of companies in the tourism and leisure branches of business (the latter are supported
by the Austrian Hotel and Tourism Bank see below).
The support consists of allowances (currently
7% - effective November 2005) to investments
amounting to a maximum of EUR 210,000.00;
that is, allowances cannot total more than EUR
14,700.00. The loan interest is connected to the
upward development of the so-called secondary
market yields. Additionally, you can apply for the
assumption of suretyships for loans. In a case of
business takeover, distinction must be made between new investments and the costs of takeover.
The latter are only supported in the form of
suretyships, amounting to 50 to 80% of the loan
sum to a maximum of EUR 300,000.00. Support is
granted for initial independence in your main profession, which also applies if you were not in
business independently within the five years
previous to founding or taking over a business.
Applications can be submitted within two years
after founding or taking over a business, but they
must be submitted PRIOR to investment. Contact
your bank about loan financing; it will submit the
corresponding applications for you.
If you are financing using your own capital, you
may also apply directly to the AWS (go to
www.awsg.at).

costs. Allowances are granted up to a maximum of

EUR 20,000.00, planned annual sales must total at
least EUR 150,000.00 and must not exceed EUR1 M.
Applications for subsidy must be submitted to the
HT BEFORE a firm is entered in the Company Register (e.g. in the case of constituted companies).
However, investments can be subsidised via an
investment cost advance of 5% of the investment
costs or a low-interest loan (Top tourism subsidy
2001-2006, Part A). To facilitate the acquisition of
equity capital (holdings) or loans, assuming guarantees is also an option. (Guarantees for tourism
operations).
For more information, go to www.oeht.at.
Founding bonus business successor bonus
Like a building & loan savings plan, equity capital
can be saved up for founding or taking over a
business planned for a later date. When the founding or takeover is implemented, there is a founding
bonus of 14% on the saved-up capital, to a maximum of EUR 55,000.00. With the exception of
types of saving already supported (e.g. building &
loan savings plans), you are free to select the type
of saving you wish. Money must be saved up for at
least two years and for not more than six. You
enter into no obligation when registering for a
founder bonus. If you do not found a business, you
acquire the normal terms and conditions of saving,
but no subsidy. Persons are eligible for the premium who are not yet in business independently
and who have not been independent for the past
five years. You can register for the bonus directly
with the subsidy office in your province where you
live and/or where you will be founding your business, with the AWS or directly on the Internet at
www.greundungsbonus.at, giving your name,
address and date of birth. When a business is
founded or taken over, the founder bonus and/or
interest allowance is paid out at the AWS prior to
effecting operational expenditures and/or investments.
For more information or to register, go to
www.gruendungsbonus.at and/or
www.nachfolgebonus.at.

Founding new companies and taking over

businesses in the tourism industry

AWS equity capital guarantees

The Austrian Hotel and Tourism Bank (sterreichische Hotel- und Tourismusbank HT) supports
the foundation of new companies and takeover of
businesses in the tourism industry, subsidising the
costs of constitution and start-up by granting
allowances of up to 25% - however, founders must
have an equity capital base of 30% of the total

These guarantees are intended to encourage

improvement in the financing structures of smallscale and midsized companies. You can take on an
equity capital guarantee from the AWS for holdings of an equity-capital character (e.g. limitedliability company shares, partnership investments,
dormant holdings, etc.); certain preconditions

18

apply. viz. up to 100% for holdings of natural entities of up to EUR 20,000.00 and up to 50% for holdings of natural entities in excess of this scope and
other financer holdings. Equity capital guarantees
cover the holding-providers risk should the enterprise become insolvent; it is an interesting type of
financing as an alternative to usual bank financing. However, support is not offered for tourism
and leisure businesses, holdings of managing
directors, board members or close relatives.
More information is available at www.awsg.at.
- Double equity guarantee fund
The double equity guarantee fund is intended to
facilitate the financing of small-scale and midsize
companies by doubling private equity capital.
Foundation or takeover must have taken place no
later than five years previously. All branches of
business are supported with the exception of
tourism and leisure.
Support is in the form of a suretyship of up to 100%
for a loan in the same amount as the capital contributed, up to a maximum loan total of one million euros. The interest rates for the loan are coupled to the so-called secondary market revenue;
thus, the upper limit is restricted. A fee of 1% of
the loan sum is payable for the suretyship. If covered in the annual profit i.e. dependent on profit
a further 1% is payable as an additional fee for
the suretyship. Applications must be submitted to
Austria Wirtschaftsservice GmbH (AWS) PRIOR to
implementing the plan.

In general:
The more innovative your business- founding
plans, the better your chances of obtaining
subsidy. Due to the various support models and
changes in existing directives, we recommend
that you obtain information on the types of subsidies available before you make investments.

IMPORTANT NOTE!
You can obtain more information on these
subsidies from a number of sources, including
the Chamber of Commerce (business founder
and subsidy services), banks and the
Chambers of Commerce website
http://wko.at/foerderungen.

Other support
Please note that there are also many other of special subsidies available, e.g. for businesses in the
tourism, research and development, environmental protection, trade and industry, innovation
and technology and consultancy sectors. The Austria Wirtschaftsservice seed financing programme,
for instance, supports new high-tech companies in
their founding and set-up phases. Both start-up
capital and consultation-support services are available. (Internet: www.awsg.at - subsidies seed
financing).
- Regional support
Apart from the foregoing nationwide programmes,
the provinces and some of the communities support business founders with subsidies of their own.
Enquire in your province about the regional subsidies available there.

19

2.4

Trade law

Trade law can be somewhat of an obstacle when

founding a business. However, as long ago as 1992,
steps were instigated to modernise the trade ordinance and remove barriers in the way of the entrepreneurial profession. Thus, since then, for example, a new subdivision of the trades and the district
administration authorities (district administrative
office or, in cities with their own statute, the
municipal authority) was created to form a uniform
contact point. In addition, trades were subdivided
into regulated trades, affiliated trades and free
(non-licensed) trades, for which there are various
prerequisites.
The 2002 amendment to the trade ordinance (which
entered into force on August 1, 2002) introduced
further simplifications, new categorisations of trades
and a district administrative authority (district
administration and/or municipal authority in towns
with their own charters) as a uniform interface.
All trades requiring a qualification certificate were
gathered together under the heading of regulated
trades (there are 82). In a few cases, a trustworthiness test is required. Since the amendment
of 1997, there are now a number of affiliated
trades, as they are called, for which simpler qualifications are to be evinced.
There are also the free trades, i.e. ones which do
not require a qualification certificate. These trades
are ones not included within the core activity of a
regulated trade and which do not require a qualification certificate which would otherwise be necessary to practise them professionally. Thus, they can
be registered with the trade authority without submitting proof of special training.

2.4.1. When do you need a trade

licence?
You need a licence to practise every trade; they are
issued by the trade authority (Extract from the
Trade Register, formerly Trade Licence). A trade
is of a commercial nature if you wish to practise it
independently, regularly and for financial gain.
An activity is deemed to be independent if you
practise it for your own account and at your own
risk. An activity is considered regularly practised

20

if it can be assumed that the activity will be

repeated or will usually take a longer period of
time to carry out.
The type of trade entitlement you require depends
on the activity you will be performing. If it is a type
of manual work, you will need a licence in a regulated trade (manual work) (e.g. automobile repair =
motor-vehicle engineering, making furniture = carpenter). However, there are also activities which
cannot be so easily classified; in these cases, it will
be necessary to find out which trade entitlement is
required.
Only those trades are expressly precluded from the
Trade Ordinances scope of applicability which are
in any event covered under other laws (e.g. medical doctors, pharmacists, notaries public, farmers,
etc.) and/or the new independent trades (e.g.
psychotherapists, physiotherapists, lecturers, etc.).
If you believe that the occupation you wish to practise is not a trade, apply to the nearest community
office or chamber of commerce, the business
founder service at your chamber of commerce and,
if necessary, the professional group or legal-policy
department of the chamber of commerce in your
province, where you will receive comprehensive
information free of charge.

2.4.2. What types of trades are

there?
It is important when establishing your initial startup plan to know which trade category your business
falls into. Regulated trades which require a legal
permit (e.g. construction supervisor, financial consultant) are also reported to the trade authority
(district administrator, municipal authority), which
also examines the trade applicants trustworthiness
and issues rulings in such cases. Such trades may
then only be practised once these rulings have
entered into legal force.
By contrast, free trades (trades not requiring a
licence) and affiliated trades and other regulated
trades may operate in the short term; if you meet
the requirements (cf. Ch. 1.4.3), you can commence working once you have registered with the
authority, i.e. you need not wait for a ruling to be
rendered.

Type of trade

Starting the work

Free trades
Affiliated trades
Regulated trades

upon registration

Regulated trades
(trades subject to
legal ruling)

upon the issue of a

legally effective
ruling from the trade
authority

2.4.3. What do you need to submit?

You obtain a trade licence once you have demonstrated that you meet the following requirements:

met. Therefore, make sure you have the stipulated

professional and mercantile qualifications and that
you can submit corresponding proof (vocational school
certificates, master tradesman and/or qualification
certificate or other proofs set out in the Evidence of
Qualification Ordinance such as times of use, etc.).

What if you do not have proof of qualification?

Persons who do not have all the formally requisite
qualifications for the trade they wish to practise
may
- request establishment of individual authorisation
(Art. 19 of the Trade Ordinance); certain conditions apply;
- appoint a managing director under trade law.

- you are personally responsible under the law (age

18 and over)
- there is a title of residence for practising the
trade if you are not a citizen of an EU member
state or other treaty state of the EEC
- there are no grounds for disqualifying you (e.g.
financial malpractice, court verdicts, rejection of
insolvency due to insufficient assets)
These general conditions must be met in order to
practise a free trade as well.
Note: Further prerequisites apply to some trades
(e.g. insurance brokering).

Special prerequisites
Corresponding evidence of qualification must be
provided for specific types of work (viz. the
regulated trades listed in the Trade Ordinance).
Your nearest Chamber of Commerce district office,
the Business Start-Up Service at your chamber of
commerce, and the professional groups and the
legal policy department of your provinces chamber
of commerce can all provide you with details on
these prerequisites.

2.4.4. What qualifications must

you evidence?
Depending on the type of trade and apart from the
general conditions, special requirements must also be

Types of trade and evidence of

qualification
Free trades: a certificate of qualification
(examination, school, etc.) is not required.
However, you must obtain a trade licence.
Affiliated trades: evidence of qualification
which is less in comparison to regulated
trades: final apprenticeship examination, professional activity or relevant school or course
of study.
Regulated trades:
a) manual work: successfully passed master
tradesman examination or graduation from a
school related to the manual work concerned
(i.e. university, technical college, professional
academy, WMS, etc.), coupled with practicalwork periods of varying lengths.
b) Other regulated trades: evidence of qualification differs according to the trade concerned. Practical-work periods, training
courses, specific examinations or combinations thereof may be required.
c) Trades requiring a legal ruling: a legally
effective ruling on trustworthiness is required
in addition to evidence of qualification.

21

The trade authority can establish individual

qualification
if there are no reasons for disqualification from the
trade and if proof is submitted of the skills, capabilities and experience necessary to practise the trade.
Your petition should include:

your personal curriculum vitae

your schooling and professional experience
the location where you intend to work
is your business a new one or a takeover?
description of the planned activity
indications of advanced-training courses taken,
any examinations already taken other than those
accredited to the evidence of qualification.

Special requirements
The stipulated evidence of qualification must be
provided for certain types of business activity (i.e.
the regulated trades listed in the Trade Ordinance).
You can obtain detailed information on the submission requirements for the individual trades from
your nearest Chamber of Commerce district office,
the Start-Up Service at the Chamber of Commerce,
the professional groups if need be and the legal
policy department at the Chamber of Commerce in
your province.
Even if you do not meet the requirements for practising a trade because you cannot provide evidence
of qualification or prove individual capability, you
are still by no means barred from becoming an
independent. For instance, you may substitute a
managing director under trade law for lacking evidence of qualification; he must have the evidence
of qualification that you lack (cf. Ch. 2.4.6 for
further details).

merce and, if necessary, the professional group or

legal-policy department of the chamber of commerce in your province.

2.4.5. Who must meet the general

and specific requirements?
As a rule, a sole entrepreneur must personally meet
the requirements for starting up and practising a
trade. If the sole entrepreneur does not meet the
requirements under trade law, the option is available of employing a managing director under trade
law.
If the trade is to be practised by a company, compliance with requirements must be evidenced by a
managing director under trade law appointed by
the company. This can be an appropriately authorised personally liable shareholder or a person
appointed who is authorised in such a manner, fully
covered under the social insurance system and who
is employed in the company for at least one-half of
the normal weekly working time in the case of limited partnerships under trade law (public trading
companies, limited partnerships, partnership trading companies). The managing director must be
announced to the trade authorities. In the case of a
GmbH, this can also be a shareholder whom the
company has commissioned as managing director
under trade law or a person appointed who is
authorised in such a manner, fully covered under
the social insurance system and who is employed in
the company for at least one-half of the normal
weekly working time. The trade authorisation
which the company applies for after being entered
in the Company Register then goes under name of
the company as well.

Not an Austrian citizen?

Natural foreign persons who are not members of an
EEA/EU country are allowed to practise a trade just
as Austrian citizens if this is established in international treaties.
Citizens of countries with which no such treaty has
been concluded, persons who have been granted
asylum and stateless persons may practise a trade
just as Austrian citizens if they have a residency
permit entitling them to work in Austria.
For more detailed information, contact your nearest community office or chamber of commerce, the
business founder service at your chamber of com-

22

2.4.6. The managing director

under trade law
The managing director under trade law must meet
the personal and if necessary special requirements for practising the trade concerned and be in
a position to work in the business correspondingly.
He is responsible to the trades owner for the professionally smooth operation of the trade and to
the authorities for complying with the trade-law
statutes. Therefore, he must have the self-responsible directive authority corresponding to these
duties, and he must demonstrably have consented

to the assignment of such directive authority and

his appointment. A managing director under trade
law who is to work in a regulated trade must also
provide any and all evidence of qualification necessary to practise the trade if the business (trade)
owner also has such evidence of qualification, since
every trade operator is entitled to appoint a managing director for the practice of his trade so that
he need not have to perform duties such as supervising the due and proper operation of the trade.
The trade operator must report the appointment,
resignations and dismissals and new appointment of
a managing director to the trade authorities and
must include with the report the confirmations necessary to evidence the legal prerequisites for the
activity forming the subject of the report; these
confirmations are the same ones which the trade
operator himself must attach to the trade registration (cf. Ch. 2.4.7).

Commerce in a case of new constitution and/or

takeover of a business by new founders
- evidence of qualification, if necessary
(e.g. certificates)

incorporated companies:
- extract from the Company Register for trading
companies and/or limited-liability companies
not older than three months or
- articles of association for partnerships under commercial law
- declaration for the trade applicant in the case of
appointing a managing director under trade law

If a managing director under trade law is

appointed:

You should initially contact your nearest chamber of

commerce district office and/or the businessfounding service of your provincial chamber to
obtain information.

- passport (residency permit if necessary)

- marriage and/or divorce certificates, if applicable
- confirmation from the district health insurance
commission when hiring a managing director
under trade law as a salaried employee
- evidence of qualification, if necessary
(e.g. certificates)
- managing directors declaration (declaration of
activity and that there are no grounds for disqualification)

Register your trade with the district administration

and/or municipal authority in the local area in
which you want to practise your trade.

In many cases, an authorisation for the business

premises is also required in addition to the trade
registration (cf. Ch. 3.1.2).

Your trade registration must include:

2.4.8. Where can I obtain information on trade-law matters?

2.4.7. How exactly do you acquire

a trade authorisation?

personal information (name, birth data, residence, citizenship)

- a precise description of the trade
- the location where you intend to practise the
trade.
Enclose the following documentation with the
trade registration:

sole proprietorships:
- passport (residency permit if necessary)
- marriage and/or divorce certificates, if applicable
- any documentation on an academic title
- declaration that there are no grounds for disqualification
- NEUFG confirmation from the Chamber of

You can obtain detailed information on all matters

of trade law e.g. which trade authorisation is
required for the business you are planning, and
what other stipulations apply (whether set out in
the Trade Ordinance or other laws and relevant
ordinances such as the Evidence of Qualification
Ordinance) from your nearest community office
or chamber of commerce, the business founder
service at your chamber of commerce and, if
necessary, the professional group or legal-policy
department of the chamber of commerce in your
province.
Trade authorisation awards a number of rights contained in the Trade Ordinance, viz. general rights
which apply to all holders of a trade authorisation

23

and special rights based on individual trades (e.g.

scope of qualification). However, it also links specific obligations to the right to practise a trade;
non-compliance with these obligations entails
fines, the amounts of which differ according to the
nature of an infringement.
Therefore, it is in your own interest to maintain
contact with your district office and professional
group.
Take advantage of the offers of the chambers of
commerce and their institute for professional
advancement.
Please note the items referring to the NEUFG
Act (Ch. 5.3).

2.4.9. Freedom of establishment

and freedom to provide
services
The entry into force of the EEA Treaty means that
the EU regulations on freedom of establishment and
freedom to perform services apply in Austria.
Freedom of establishment: this provision allows
trade operators to found enterprises or companies
and do business in every EEA / EU member state.
Freedom to perform services: this provision gives
trade operators the opportunity to do business
even only temporarily beyond the countrys borders in other member states.
Citizens of other EEA/EU states wishing to settle in
Austria to practise a commercial trade or perform
commercial work ordered are considered equivalent to Austrians in terms of citizenship.
However, citizens of EEA/EU states must obtain the
relevant authorisations necessary to practise their
trades in Austria.
Should a citizen of an EEA/EU member state not
meet the requirements for evidencing qualification
according to Austrian trade law, the Federal Minister of Commerce and Labour is to pronounce an
acknowledgement for him which replaces the statutory evidence of qualification, if the prerequisites
for acknowledgement obtain as set out in the ordinance Fed. Law Gaz. 775/1993, by virtue of which

24

the directives of freedom of establishment and

freedom to perform services in Austria were put
into effect. Acknowledgement is to be pronounced
if the EEA/EU citizen evidences via certificates
proof of specific professional work over a specific
period of time as an independent, a business manager, a non-independent or an executive employee.
Unless shorter periods are stipulated for certain
trades, such activities may not have been performed more than 10 years ago if they are to be
considered for acknowledgement.
The general start-up requirements for such trades
(which apply to Austrians as well) must also be met
by every EEA/EU citizen, of course.
The same requirements also apply to those EEA/EU
citizens desirous of assuming the post in a company
of managing director under trade law.
Since not all trades are subsumed in the aforementioned ordinance Fed. Law Gaz. 775/1993, the Federal Minister of Commerce and Labour must rule on
trades not included in the ordinance within a period
of four months in the course of an equivalence
evaluation, as it is called, whether and to what
extent training acquired in an EEA/EU country or a
qualification is to be considered equivalent to a
certificate stipulated for the acquisition of an Austrian certificate of qualification.
If, on the basis of the certificates submitted, such
training or qualification cannot be considered
equivalent to an Austrian certificate of qualification, the competent Federal Minister (of Commerce
and Labour) must pronounce that the applicant
must evidence the qualification lacking via supplementary professional work within the country, a
course of additional training and/or an eligibility
test.
For further information on trade law, go to
http://wko.at

IMPORTANT NOTE!
Before registering a trade, find out whether you
meet the requirements for practising it. If not,
you still have the option of appointing a
managing director under trade law.

Legal prerequisites
and additional
information

25

3.1

Location and business premises law

3.1.1. Location

3.1.2. Business premises law

Choosing and planning a location are important factors for a companys success. Various other criteria
are decisive when assessing the optimal location,
depending on the type of business.

What is the definition of commercial business

premises?

Thus, production companies must comply with specific legal statutes; zoning and development plans
stipulate the way an area can be used; building permits and business premises authorisations are often
subject to specific additional regulations.
In view of increasing environmental consciousness
throughout the populace, a companys natural surroundings are another important consideration; if a
company causes environmental problems, it must
reckon with possible sanctions in this regard.
Apart from these legal and environmental considerations, other factors enter into the choice of a business location, among them:
- the costs of the plot of land
- traffic (access roads, parking areas, shipping and
receiving)
- public energy and waste-disposal utilities (electricity, gas, water, sewers, telephone, etc.)
- availability of manpower
- proximity to raw material supply
- distance from suppliers and customers
- public subsidies
and the like.
If your business is in retail or in providing services
directly aimed at customers, it is important to keep
these factors in mind:
- customer accessibility (traffic, roadway network,
parking areas)
- customers purchasing power and buying habits
(catchment area, the labour-market situation,
average income of the populace) and
- the competition (type and number of rival
companies)
such as:
- grocery stores in residential areas
- stationery shops near schools
- large-scale supermarkets with ample parking
- snack and fast-food stands at railway stations,
sports fields, etc

26

Commercial business premises are defined as a

locally fixed establishment for carrying out commercial trade. The law makes it clear with this
definition that business premises involve commercial business activity on a regular basis, and not
merely a temporary one (such as a construction
site, for instance). Typical examples of business
premises include workshops, retail establishments,
restaurants, hotels, garages and parking lots.
When do business premises require trade authorisation?
They do not require trade authorisation if it can be
assumed that no negative consequences can ensue,
e.g. purely office businesses. However, as a rule,
business premises require authorisation. Other
authorisations may additionally be required (e.g.
under construction, labour or water laws).
When must I apply for authorisation for business
premises?
You must obtain authorisation to set up business
premises before construction work begins, i.e.
building may not commence before a ruling of
authorisation has entered into legal force.
Which authority is competent for issuing authorisations under trade law?
In general, the local municipal government (district
administration or municipal authority) is the issuing
authority competent for the area in which the business premises are located.
What are the different procedures?
a) normal procedure
The normal procedure essentially breaks down into
four steps:
- submission of application (enclose all requisite
documents, if possible)
- preliminary review by the authority
- on-site negotiations (including the neighbours)
- ruling (perhaps including constraints).

b) simplified procedure (instructional procedure):

Since the expense of an ordinary business premises
authorisation is generally rather great, the legislation also provides the option of a simplified procedure (so-called order procedure) for small-scale
premises.
Which documents are to be enclosed when applying
for business premises authorisation (in both the
normal and the simplified procedures)?
General information on the authorisation
procedure
As a rule, the more complete and informative the
documents to be submitted are, the quicker and
smoother it is to complete the procedure.
The following documents must be submitted:
- an informal application for business-premises
authorisation
- a key plan (in quadruplicate) and sets of plans
(in quadruplicate)
- security data sheet on the work materials to be
used (one copy)
- name and address of the business premises
owner, lot number and the immediately adjacent
properties
- description and company-internal designation of
the individual constructions
- description of the work procedure
- list of machinery (type, kilowatts, data on noise
emissions)
- description of other technical installations
(e.g. lacquering unit, washing area, company
filling station, hydraulic hoists, travelling
cranes)
- hours of operation, shipping and receiving times
- work materials, raw materials used (quantity,
type, properties)
- technical description of the furnace (plus presentation in the form of a plan)
- description of the outdoor premises and their
drainage
- protective measures for groundwater conservation
and water conservation (storing and handling
materials hazardous to water, dirt and roof-water
disposal, etc.)
- number of employees (male/female)
- garbage disposal
- equipment in the building (mechanical ventilation, suctioning, etc.)
- fire-prevention facilities (fire lobbies, fire alarms,
fire load, emergency extinguishing aids)
- access to work spaces
- lighting in work spaces and visual connections to

the outdoors (list and/or presentation in the form

of a plan)
- sanitary facilities (presentation in the form of a
plan)
- planned lounges for workers
- noise levels for workers (derived from the machinery specifications)
- outfitting of passages and workplaces (staircases,
doors, ceiling heights), also derived from the plan
- pollutant emissions
- space measurements (presentation in the form of
a plan)
- emergency exits (designation in the plan)
What authorisations may additionally be required?
- building permit
In the course of building-permit proceedings, the
building authority also reviews the plan from the
viewpoints of building and zoning laws.
However, the issue of a building permit does not
mean that business-premises authorisation will also
be granted!
- authorisation under water-laws
- authorisation under waste-management laws
- authorisations concerning nature conservation
- forestry authorisation
- authorisation according to the Federal Roadways
Act
- authorisation under railway laws
Valid business-premises authorisation is also important in the event of an insurance claim (e.g. work
accident, fire damage) under insurance and civil
laws.
For further information, go to http://wko.at

IMPORTANT NOTE!
The aspects of infrastructure (customer and
employee access), zoning and the competition
situation are especially important ones to
consider when choosing your business location.
Contact the competent district administration
(or municipal authority) to determine procedures
involved in business-premises authorisation as
well.

27

3.2

Legal forms

Everyone founding a business is confronted with

having to decide on the company structure which is
best for him. Should it be a sole proprietorship or
would an incorporated firm be more advantageous?
and if so, which form of incorporation? And what
should it be called?

choosing a partner, i.e. that the choice might be

made on an emotional basis rather than a purely
professional one. However, this does not mean that
you should ignore your feelings and your intuition;
the most important prerequisite for success in
business is trust in your partner.

A solo venture or with partners?

However, consider carefully all the same together

with your life-partner whether you have indeed
found the right business partner by asking yourself
these questions:

This decision is one of the most important ones you

will have to make. Generally, preference should be
given to setting up a business alone. But the decision rests with you, depending on your business
concept and the framework conditions pertaining
to the enterprise you are planning.

Do you know your future business partner? Have

you already worked with him constructively and
efficiently in a team?
Are his finances and private life in order?

The advantages of founding a partnership:

complementary experience, knowledge and skills
better distribution of work, saving time
raising capital is easier
less start-up risk
more dynamic business growth
better chances for success
However, the drawbacks lie in that individual decision-making is restricted, every partner is liable for
the others errors and it often takes longer to reach
firm decisions.
As an alternative, it is worth looking into whether,
as an individual, it is possible to agree on co-operations with others. The activities can cover all business functions, from acquiring raw and auxiliary
materials and fuel, to manufacturing, all the way to
distribution and service provision or sharing equipment. The regularity of the co-operation can be
freely organised.
Depending on the objective, both a loose co-operation with independent enterprises and founding a
joint company are conceivable.

What to take into account when founding

a partnership?
When founding a partnership, there is a risk in

28

Does he have the personal aptitude to be an

entrepreneur? Does he enjoy a good reputation in
the branch of business you are aiming at?
Is the chemistry good between your business
partner and you? And how does your life-partner
get along with him and/or his life-partner?
Could your business partner also successfully
found and run a business without you? Why does
he need you?
What would be the consequences for you if the
partnership were to fail?
Since this matter is an extremely complex one, we
recommend that you reflect upon the adage, Look
well before you leap.

What legal forms are there?

A companys legal form defines both the legal
relations within the enterprise and those with its
environs. Carefully consider the aspects of personal, tax, administrative and commercial-law
criteria when choosing a legal form for your
business.
It is as complex as it is important to consider the
optimal entrepreneurial form and thus the issue of
commercial law. Your decision must take into
account the factors of trade and tenant law, liability, social insurance and tax law, you must determine how decision-making is to be structured and
establish whether the legal form you are consider-

ing seems expedient in terms of founding costs,

ongoing expenses and business management alike.
For just these reasons, it makes sense to reach
your final decision with the help of experts who can
estimate the advantages and drawbacks involved in
individual plans and circumstances. The comparison
below is intended to give you a rough overview of
the options available when determining a legal
form, which essentially can lead to an initial broad
estimate by applying these three preliminary
questions:
1) How deeply do you want to commit with your
potential business partner(s)?
2) Do you wish to assume personal liability
perhaps for your business partners errors as well?
3) Does the legal form make sense in terms of business management as well?
There is no such thing as an ideal legal form;
everything depends on the function it is to have.
Therefore, consider the pros and cons of each legal
form sufficiently in advance, keeping in mind that
none of them will be permanently advantageous,
since no matter how many reasons there are for
making a selection at the outset, any one of them
can change with time in any number of ways.
Therefore, review the legal form you choose at regular intervals, every few years.
To make it easier for you and to provide you with a
basis for choosing your legal form, consider these
descriptions of the legal forms that business
founders most commonly choose.

3.2.1. Sole proprietorship

The holder of such a business is an individual person who runs it. Holder means that the person
can be both owner and manager. A sole proprietor
is unrestrictedly liable with all his personal assets
at risk for his businesss debts. He bears all the
risks but because he does so, he also reaps all the
benefits.
The fact that the holder runs the business by
himself does not mean that he is entirely dependent upon himself alone. He may hire employees,
viz. conclude work contracts and avail himself of
the support and cooperation of his family.

Foundation
As a rule, a sole proprietorship commences upon
registering the trade and/or receiving authorisation.
Company Register
Whether or not an enterprise can be entered in the
Company Register depends on the size and scope of
the business. To help clarify the matter, the Company Register board requests an advisory opinion
from the Chamber of Commerce. Currently, annual
sales of EUR 400,000.00 are the minimum requirement for registration.
Official company name
Your business may only have an official company
name if it is entered in the Company Register. A
sole proprietor not entered in the Company Register must use his given name and surname. He thus
has no company, but is in business as a person.
However, you may add an imaginative or explanatory designation or use a logo. In such a case, it is
worth thinking about whether to have such an addition or logo registered as a trademark.
Trade entitlement
Sole proprietors wishing to practise a trade must
have trade authorisation (a trade licence). They
must personally meet the general and specific
requirements stipulated in order to obtain one. If
they cannot evidence the requisite special (technical/commercial) prerequisites, they may appoint a
managing director under trade law. The latter must
have a job within the company, be employed for at
least one-half the normal weekly working hours and
be fully covered under the mandatory social insurance plan.
Social insurance
If a sole proprietor operates a trade business i.e.
if he is a member of the Chamber of Commerce by
virtue of trade or other professional authorisation
he must be covered under mandatory insurance
with the Social Insurance Commission for Trade and
Commerce in accordance with the Trade Social
Insurance Act (GSVG).
The option of exception from full insurance coverage exists within the framework of the smallest
scale-enterprise regulation (cf. Ch. 3.6.5) if the
sole proprietor is a part-time independent.

29

Taxes
Sole proprietors are assessed for income tax; they
are also required to pay VAT (cf. Ch. 3.8).
Advantages:
the enterprise is founded quickly and easily:
no contractual form regulations
income-expenses calculation until attaining
annual sales of 400,000.00.
Drawbacks:
unrestricted personal liability
hiring a managing director under trade law if you
do not personally have the qualifications under
trade law

3.2.2. The General Business Partnership [offene Erwerbsgesellschaft OEG]

Just like a General Commercial Partnership [offene
Handelsgesellschaft OHG], a general business
partnership is composed of at least two shareholders who are directly liable with their personal
assets at risk. In doubtful cases, the shareholders
must put up the same investment; however, the latter may be merely contributed in the form of services. As a rule, each shareholder is entitled to a
part of the annual profit in proportion to his share
(they can unequivocally withdraw up to 4% of their
capital shares).
The difference between an OEG and an OHG is
especially a matter of size. Whereas an OEG may
not exceed the size of a small business (or trade),
an OHG must evidence within a year that it has
grown beyond the scope of a small business. As a
rule, the annual sales of a small business are considered as not exceeding EUR 400,000.00.
This figure is derived from the balance sheet tax
limitations.
Please note that most of the following also applies
to an OHG.
Founding
A partnership agreement between at least two shareholders is a prerequisite for founding an OEG. The
agreement is not bound to any legal form; it can even

30

be concluded orally. However, we do recommend

that you make it in writing. Notaries public or attorneys need not be involved. All the partners rights
and obligations towards each other and to the company should be set out in the agreement, including
company management and representation, profit and
loss participation, voting conditions for important
decisions, provisions for death, resignations and dismissals, liquidating the business, etc.
Company Register
Once a partnership agreement is concluded, the
shareholders must notify the Company Register of
the partnership. All facts concerning the public
aspect of the business which are of importance to
anyone having commercial contacts with it (e.g.
shareholder liability, authority of representation,
official company name, etc.) must be entered in
the Company Register.
OEGs do not exist until they are entered in the Company Register.
Official company name
The name of an OEG must consist of least one of the
names of the personally liable shareholders and a
reference to the company type, e.g. OEG or general business partnership. OEGs in the trade business may only use the addition &/and partners in
connection with the addition OEG or general
business partnership. In addition, a designation of
the type of business can be used.
Representation
According to the law, every unrestrictedly liable
shareholder has the right and the obligation to represent his company. Should one or more of such
shareholders be precluded from company management, this circumstance must be set out in the
partnership agreement and entered in the Company
Register. Restriction of authority of representation
and/or company management can never effectuate
a limitation of liability towards creditors.
Trade authorisation
A company wishing to run a trade business must apply
for trade authorisation in the companys name. A
managing director under trade law must be appointed
for the purpose. He/she may either be an unrestrictedly liable shareholder or an employee fully covered
under social insurance and working for the company
for at least one-half of the normal weekly work-times.

Social insurance
All shareholders in an OEG in the trade business
must be covered under the social insurance plan for
trade and commerce.
If an OEG is not involved in the trade business, the
new independent entrepreneurs must also be
covered under this insurance if their annual income
exceeds a specified amount.
Taxes
OEGs are not liable to income taxation; however,
the shareholders must declare their share of profits. The company pays the applicable VAT. A shareholder may also have other income if he receives
certain emoluments from the company (e.g. for coop work, contribution of commercial goods). These,
too, are liable to taxation.

of size. Whereas a KEG may not exceed the size of a

small business (or trade), a KG must evidence
within a year that it has grown beyond the scope of
a small business. As a rule, the annual sales of a
small business are considered as not exceeding
EUR 400,000.00.
This figure is derived from the balance sheet tax
limitations.
Please note that most of the following applies to a
KG as well.
Founding
A partnership agreement between at least one general partner and one limited partner is a prerequisite
for founding a KEG. The agreement is not bound to
any legal form; it can even be concluded orally. However, we do recommend that you make it in writing.
Notaries public or attorneys need not be involved.

Advantages:
the enterprise is founded quickly and easily
OEG as income-expenses calculation
only one shareholder must be qualified under
trade law
Drawbacks:
personal, unrestricted liability, jointly and severally (even if authority of representation or management is restricted or in cases of co-shareholder errors)

3.2.3. Limited business partnership

[Kommandit-Erwerbsgesellschaft KEG] and limited
commercial partnership
[Kommanditgesellschaft KG]
Both KEGs and KGs must have at least one unrestrictedly liable shareholder (general partner) and
at least one restrictedly liable shareholder (limited
partner). The former is directly, personally and
unrestrictedly liable towards creditors, whereas
the latter is liable for only that sum entered as a
liability security deposit [Hafteinlage] in the Company Register. There are no regulations on this
deposit; you can determine its amount as you wish.
However, limited partners are unrestrictedly liable
for municipal taxes.
The difference between a KEG and a KG is a matter

All the partners rights and obligations towards each

other and to the company should be set out in the
agreement, including company management and representation, profit and loss participation, voting conditions for important decisions, provisions for death,
resignations and dismissals, liquidating the business,etc.
Company Register
Once a partnership agreement is concluded, the
shareholders must notify the Company Register of
the partnership. All facts concerning the public
aspect of the business which are of importance to
anyone having commercial contacts with it (e.g.
shareholder liability, authority of representation,
official company name, etc.) must be entered in
the Company Register.
KEGs do not exist until they are entered in the
Company Register.
Official company name
The name of a KEG must consist of least one of the
names of the personally liable shareholders and a
reference to the company type, e.g. KEG or limited business partnership.
KEGs in the trade business may only use the addition
&/and partners in connection with the addition
KEG or limited business partnership. The partners name may not be included in the wording. In
addition, a designation of the type of business may
be used.

31

Representation

Taxes

According to the law, every unrestrictedly liable

shareholder has the right and the obligation to
represent his company. Should one or more of such
shareholders be precluded from company management, this circumstance must be set out in the
partnership agreement and entered in the Company
Register. Restriction of authority of representation
and/or company management can never effectuate
a limitation of liability towards creditors.

KEGs are not liable to income taxation; however,

the shareholders must declare their share of profits. The company pays the applicable VAT.
A shareholder may also have other income if he
receives certain emoluments from the company
(e.g. for co-op work, contribution of commercial
goods). These, too, are liable to taxation.
Advantages:

According to the law, limited partners are not entitled to manage their companies. They merely have
certain control rights which can be amended
through the articles of association.
Trade authorisation
If a company wishes to run a trade business, it must
apply for trade authorisation in the companys
name. A managing director under trade law must
be appointed in order to obtain such authorisation.
He may be either a shareholder with unrestricted
liability or an employee fully covered under compulsory social insurance working in the company for
at least one-half of the normal weekly business
hours.

limited partners have restricted liability

the enterprise is founded quickly and easily no
formal contractual regulations
income-expenses calculation
limited partners functions can be flexibly
planned (pure capital contribution, true employment relationship or independent business
activity)
only one full partner need evidence qualification
under trade law
personal, unrestricted liability for full partners
Drawback:
unrestricted liability for full partner(s)

Social insurance
All personally liable shareholders (full partners) in a
KEG belonging to the chamber of commerce must
be covered under social insurance as set out in the
GSVG.
Shareholders having limited liability (limited partners) may also be covered under compulsory social
insurance as set out in the GSVG if they are
employed in the company. If they are not, i.e. they
merely hold capital in it (no company management
authorisation or obligation to make further contributions), limited partners are insurance-exempt if
they work non-independently for another employer.
If they are not, they must acquire their own insurance coverage as a new independent as of
6,453.36 personally earned per year. If a limited
partner works non-independently for another
employer and is additionally active in the KEG/KG,
compulsory insurance coverage applies to him as of
3,997.92 of personally earned profit per year.
This regulation applies both to companies with a
trade licence and to those without.

32

3.2.4. Limited-liability companies

[GmbH = Gesellschaft mit
beschrnkter Haftung]
After the sole proprietorship, the limited-liability
company is the most common legal entrepreneurial
form. The appeal is self-explanatory; liability is
limited to the company. Thus, it is a particularly
suitable form for associations of partners who work
in the company and yet wish to reduce capital
investment risks.
It should be noted, however, that, in practice,
shareholders disregard this restriction of liability.
Thus, as a rule, they are liable to the bank within
the framework of granting a loan. The liability of a
managing director under commercial law also covers a wide spectrum.
GmbHs may also be founded as a one-man operation; two shareholders are not compulsory.

Equity capital
The equity capital of a GmbH must amount to at
least EUR 35,000.00. Cash deposits must total
EUR 17,500.00; a bank confirmation can serve as
proof. Every individual shareholder must invest an
original capital contribution of EUR 70.00.

person must either belong to the companys authorised

representative body (a member of the board or a managing director) or be an employee in the GmbH, fully
covered by compulsory social insurance under the
Social Insurance Commission for Trade and Commerce
plan and work in the company for at least one-half of
the normal weekly business hours.

Founding

Social insurance

Articles of association are required to found a

GmbH; they must be concluded in the form of a
notarial deed.

In general, the shareholders are not subject to

compulsory insurance. However, if a shareholder in
a GmbH belonging to the chamber of commerce is
also a managing director under commercial law, he
must be covered by compulsory social insurance
under the Social Insurance Commission for Trade
and Commerce plan as set out in the GSVG. If a
managing director/shareholder in a GmbH does not
hold executive power within the company, he may
also be covered by compulsory insurance according
to the ASVG [Allgemeines Sozialversicherungsgesetz = General Social Insurance Act].

Company Register
GmbHs do not legally exist until they have been
entered in the Company Register.
Official company name
A limited-liability company can be named according
to its business (e.g. Machinery Trading Ltd.),
after the founders name (e.g. Miller Ltd.) or
both (e.g. Miller Machinery Trading Ltd.). An indication that the company is a GmbH must be added.
In addition, a designation of the type of business
can be used.

There is an exception if the managing directorshareholder cannot exercise a dominating influence

on the company, whereby a holding of less than 25%
is assumed. Another exception consists of holdings
of between 26 and 49% and dependency of instructions; in these cases, compulsory insurance coverage according to the ASVG is an option.

Representation
Taxes
Although GmbHs are legally incorporated companies, they have no capacity for acts of law, so they
are represented by one or more managing directors
under trade law who are fully liable for losses in a
case of debt.
Trade authorisation
A GmbH must have a trade licence if it wishes to run a
trade business. Trade authorisation must be issued in
the GmbHs name. Since the company does not fully
exist until it has been entered in the Company Register,
the trade registration and/or application for authorisation may only be made with the trade authority after
the firm is entered in the Company Register, so that an
extract from the Company Register can be submitted
at the same time.
A managing director under trade law must be named
for a company to acquire trade authorisation. This person must have all the personal prerequisites and have a
corresponding function in the company. In addition, if
the company is to submit evidence of qualification, the

A companys profits are subject to corporation tax

(25%). Should a company not turn a profit or if it
should show a loss for a fiscal year, annual minimum
corporation tax of 5% of the statutory equity capital, i.e. EUR 437.50 per quarter (only EUR 273.00 in
the first year) is to be paid in the form of an
advance. Profit sharing is subject to capital gains
tax (25%). Salaries the shareholders draw for their
work for the company are subject either to wage
tax (cf. Social Insurance) or to income tax. Emoluments are subject to income tax.
Advantages:
the amount of equity capital is the upper liability
limit (note: managing directors under trade law
may be liable in excess of this amount)
only one shareholder need evidence qualification
under trade law, in the companys name

33

Drawbacks:
high founding costs
accounts must be balanced even if full merchant
status [Vollkaufmannschaft] is not attained
the managing director under trade law may also
be personally liable
possible shareholder liability to institutes granting loans

that they be set down in writing. Notaries public

and attorneys need not be involved. The articles
of association should regulate all the shareholders rights and obligations among each other and
toward the company, including company management and representation, profit and loss participation, voting conditions for important decisions,
provisions for death, resignations and dismissals,
liquidating the business, etc.
Company Register

3.2.5. Companies constituted

under civil law
[Gesellschaft brgerlichen
Rechts GesbR]
A GesbR consists of at least two companies and can
be called a joint roof. The idea is to unite money
and/or monetary-value services or workers for purposes of joint benefit.
Just as an OEG and a KEG, the companys scope
may not extend beyond that of a small-scale operation (small-scale trade). Annual sales of less than
EUR 400,000.00 are considered to be the reference
value in determining a small-scale trade.

A GesbR differs from an OEG and other partnerships and corporations in that it has no legal personality. Consequentially, a GesbR:
a) has no qualification under trade law
(cf. the chapter on trade qualification)
b) has no capacity to be a party in a lawsuit
(i.e. it may not litigate or be sued as a
company)
c) has no Land Unit Register capacity
(i.e. it cannot be a landowner. The shareholders
not the company are entered in the Land
Unit, Trademarks and Patents registers)
d) has no official company name
There is, however, an exception under sales tax
law; a GesbR also has a type of legal personality
within this framework.
Founding
Articles of association concluded between at least
two shareholders are a prerequisite for founding a
GesbR. In terms of the law, such articles of association are not bound to any form; that is, they may
also be concluded orally. However, we recommend

34

GesbRs may not be entered in the Company

Register.
Official company name
Since a GesbR itself is not a corporation, it is
imperative that all the shareholders represent
the firm with their company designation
(e.g. sole proprietors using their given names and
surnames). In addition, a designation of the type
of business can be used.
Representation
As a rule, the provisions on representation may be
freely negotiated; otherwise, the capital majority
is entitled to representation, subject to the right
of representation set out in the Civil Code.
Restriction of authority of representation and/or
company management can never effectuate a
limitation of liability towards creditors.
Trade entitlement
Due to the lack of trade-law qualification, the
shareholders must register all trades.
Social insurance
Shareholders must be covered under compulsory
insurance as set out in the GSVG if they are carrying out trade activities. That is, if the shareholders are sole proprietors and if the relevant criteria
obtain, the smallest enterprise regulations may
apply, and they could be exempt from paying pension and health insurance (cf. smallest enterprise
regulation, Ch. 3.6.5).
Accident insurance contributions must be paid in
every instance.
Taxes
GesbRs are not liable to pay income tax. However,

the shareholders profit shares are taxable.

The company pays sales tax.
Advantages:
the enterprise is founded quickly and easily; no
contractual form regulations
no entry in the Company Register
simple form for work co-ops

IMPORTANT NOTE!
Keep in mind that no legal form will be permanently advantageous, since no matter how many
reasons there are for making a selection at the
outset, any one of them can change sooner or later
in any number of ways. Therefore, review the legal
form you choose at regular intervals!

Drawbacks:
no legal personality and therefore
- no qualification under trade law (each shareholder requires one or more trade licences)
- no Land Unit Register capacity
- no official company name
joint and several liability (cf. OEG)

3.2.6. What are the advantages of

founding a society?
As defined under association law, a society is a
legal entity. It has its own legal personality, its
executive body handles legal affairs and it functions according to its own philosophy and objectives. Societies may also do commercial business as
long as the revenues are put toward the societies
paramount objectives. They are independent, i.e.
they may have rights and obligations independent
of those of their members. They may acquire possessions and property, conclude contracts, order
services, act as an employer, etc. but they are
also liable to taxation and for damages. They may
become insolvent, whereby their liability is limited up to the amount of their original capital.
Just like other legal entities, societies must have
trade authorisation, and their co-active bodies
and employees must be covered under compulsory
social insurance.
This is the legal form to choose for co-op activities
whenever a large number of people join together
to work towards a common ideal over a longer
period of time. Before making the final decision to
found a society, verify that its purpose is permissible and consider whether it is the most suitable
organisational form for realising your objectives.

35

3.3

Company designation

Business founders are often confronted with the

question of what to call their company.
Company name (designation of legal form)
The law stipulates certain minimum requirements
for designating a sole proprietorship or a company,
in order to assist customers, suppliers, etc. in recognising the type of business they are dealing with.
sole proprietorship: given name and surname
(the wording of the company name if it is entered in the Company Register); indicating the type
of business is optional
company constituted under civil law (GesbR):
given names and surnames of all shareholders.
You may also add a company designation.
general business partnership (OEG): surname of
at least one of the shareholders plus the designation OEG; indicating the type of business is optional.
general commercial partnership (OHG): surname of at least one of the shareholders plus the
designation OHG or & Co or the surnames of all
shareholders without addendum
limited business partnership (KEG): surname of
at least one fully liable shareholder plus the
designation KEG; indicating the type of business
is optional.

limited commercial partnership (KG): surname

of at least one fully liable shareholder plus the
designation KG or Co.
limited-liability company (GmbH): surname of
one shareholder (partnership) or indication of
the type of business (named according to the
activity) or both (combined company name), plus
Gesellschaft mbH, GesmbH or GmbH.
The designations are to be used on business documents (e.g. letterheads, invoices, order forms,
etc.) and emplaced to identify the business premises or outlet.
There are no legal stipulations on the form, size
and placement of company identification on business documents. It is practical to position the identification legibly as a heading or footline. Corporations (GmbH, stock corporations) must additionally
show their Company Register number, court of company registration and the location of their head
offices (if it is not the same as the business
address) on their documents.
Business designation
Adding a further designation is advantageous for
better marketing; in Austria, it is called an establishment designation (business designation).
However, it must not be deceptive or confusable
with another.

Examples:
Business designation

Company name

Legal form

Suzies Wool Shop

Suzanne Mayer

sole proprietorship

PC Data Service

Miller OEG

general business partnership

The Courtyard Caf

ABC Hotel GmbH

limited-liability company

36

3.4

Overview of legal forms

Sole proprietorship

Liability

Trade law

Tax law

full liability,
up to the limit
of personal
assets as well

The entrepreneur or an
employee
working 20 hr.
per week must
have trade
authorisation

Income tax on
profit up to
max. 50%

Company
constituted
under civil law
(GesbR)

General business partnership (OEG)

General
commercial
partnership
(OHG)

Limited business partnership (KEG)

Limited
commercial
partnership
(KG)

Social
insurance
Health, accident & pension
insurance for
independents
(GSVG = Trade
Social Insurance Act)*

Every
shareholder
must have all
trade authorisations

All shareholders fully liable

up to the limit
of personal
assets as well

The company
carries trade
authorisation:
one shareholder or an
employee working 20 hr. per
week and fully
covered under
ASVG insurance
must evidence
qualification

The company
carries trade
authorisation:
at least one
Full partner
fully liable
fully liable,
shareholder or
limited partner
an employee
only liable to
working 20 hr.
the amount of
per week and
the limitedfully covered
partner investunder ASVG
ment
insurance must
(=freely deterevidence qualminable)
ification

Each individual
shareholder
liable to
income tax

Like sole proprietorship:

every shareholder is
insured with
the Social Insurance Institute
for Trade &
Commerce

Full partners:
compulsory
independents
insurance
(GSVG): limited partners:
ASVG insurance
Each individual
if working in
shareholder liathe company,
ble to income
otherwise comtax
pulsory insurance according
to the GSVG

Official company
Company/
Trade Register name/designation

Other

Entry with full

merchant
status only
(= specific size
and/or scope
of business)

Given name
and surname:
option of additional business
designation
(not deceptive): if registered, then
using the registered wording
of the name

No registration

Given name
and surname of
all shareholders: option of
additional
business designation (not
deceptive)

Registration
required company does not
fully exist until
it is registered

Surname of at
least one shareholder plus the
designation
OEG

Only possible if
the companys
scope does not
exceed that of
a small-scale
trade

Registration
required

Surname of at
least one shareholder plus the
designation
OHG or & Co
or surnames of
all shareholders without
additional
designation

Only possible if
the companys
scope exceeds
that of a smallscale trade
(= as of EUR
400,000.00 in
sales, larger
no. of employees, etc.)

Registration
required
company does
not fully exist
until it is registered

Surname of at
least one fully
liable shareholder plus
the designation KEG: indicating type of
business is
optional

as above
(OEG)

Registration
required

Surname of at
least one fully
liable shareholder plus KG
or & Co

as above
(OHG)

* application for exceptions in health and pension insurance plans is an option if income and sales are slight

37

Liability
Dormant
partnership
(1) typical

(2) atypical

No dormantpartner liability, merely

share in profit
& loss (the latter up to the
amount of the
dormant capital contribution)
Legal position
similar to a
limited partners

Trade law

Only the
businesss
owner or
employee
working 20 hr.
per week has
trade authorisation

Tax law

Social
insurance

Dormant partner liable to

income tax on
the profit share
(income from
capital invest- Independents
ments)
compulsory
insurance
applies to
those with
Dormant part- trade authorisation only
ner liable to

Company/
Official company
Trade Register name/designation

No registration

Entitlement
to repayment
of contributions upon
dissolution of
company

Entitlement to
undisclosed
reserves and
goodwill pro
rata upon dissolution of
company

income tax on
the profit share
(income from
trade operation)

Limited-liability company

Shareholders
fully liable,
restricted to
their contributions to the
equity capital
(min. equity
capital EUR
35,000.00),
possible further
liability of
managing
director under
trade law to
banks

The GmbH
bears trade entitlement;
managing director under trade
law evidencing
qualification
must also be
managing director under commercial law or
an employee
working 20 hr.
per week and
fully insured
under the ASVG

GmbH liable to
corporation
tax (25% for
retained and
distributed
profits), shareholders liable to final
taxation on
distributed
profits (max.
25%); min. corporation tax
per quarter
EUR 437.50
(EUR 273.00
per quarter in
1st year)

According to
ASVG for company-managing
shareholder
with small holdings, otherwise
compulsory
insurance
according to
GSVG

Limited-liability company
commercial
partnership

Full partner
fully liable,
limited partner
only liable to
the amount of
the limitedpartner investment

The KG bears
trade entitlement; managing director
under trade law
evidencing qualification must
also be managing director
under commercial law of the
full-partner
GmbH or an
employee working 20 hr. per
week and fully
insured under
the ASVG

Limited partners liable to

income tax;
corporation tax
on the GmbH
(for GmbH profits); final
taxation on distributed GmbH
profits for
shareholders

Independents
Registration of
compulsory inGmbH and KG
surance (GSVG) required
for the companymanaging shareholder of the fullpartner GmbH
only an option if
the GmbH has
special trade
authorisation:
limited partners
according to ASVG
if they are employees, otherwise compulsory
insurance according to GSVG

38

Dormant partnership not

publicly in
evidence

Other

GmbH only
fully exists
upon registration: articles of
association in
the form of a
notarial deed

Surname of
one shareholder (partnership) or indication of the
companys
business
(named
according to
activity) or
both (combined company
name) plus
Gesellschaft
mbH, GesmbH
or GmbH

High founding
costs often a
drawback for
small-scale
companies in
terms of taxation

Name of the
fully liable
shareholder
(= the GesmbH)
plus & CO KG
(e.g. Miller
GmbH & Co
KG)

Two companies must be

founded, also
entailing higher founding
costs and
ongoing
expenses

3.5

Transfer of business - franchising

3.5.1. Transfer of business

3.5.2. Franchising

When talking of new entrepreneurs, the notion of a

new business automatically comes to mind, and we
often overlook the fact that a considerable number
of these entrepreneurs do not found new companies but rather take over existing ones. Takeovers
are especially important not only because they
maintain extant companies with their know-how
and job positions, but also improve their positions
by introducing new concepts and ideas.

There are many ways of becoming an entrepreneur

and it is not always necessary to start from scratch
and re-invent the wheel. More and more business
founders are taking advantage of a tried-and-true
concept as a safety net when making the leap
toward independence; they become partners in a
franchise system. Interesting opportunities can be
found in almost all branches of business; go to the
Chamber of Commerce Franchise Exchange at
www.franchiseboerse.at for a comprehensive
overview.

However, you should prepare to take over a business just as intensively and carefully as if you were
founding a new enterprise. Acquire as much information on the company as possible and weigh the
pros and cons precisely when deciding which option
to choose.

Advantages

The risk in taking over a company involves not

being fully familiar with it. You can reduce this risk
to a minimum, however, by analysing the company
you are taking over as thoroughly as possible.

The advantages of a franchise system for new founders are self-evident; you profit from the drawing
power of a familiar brand or trademark on the one
hand and, on the other, the central franchise offices provide a wide range of support in founding
your enterprise, ranging from a ready-made corporate concept, assistance in finding a business location, supplying shop furnishings, trademark-usage
rights, licences, more favourable purchasing conditions, training the boss and the employees, and
much more. Ultimately, though, what counts is the
ongoing support provided during the entire franchising term (product development, marketing, EDP
and accounting systems, corporate comparisons,
financing assistance, etc.) and the partner-like
working together. Division of work and the specialisations of the individual partners keep the company
small but obtain big results.

The chambers of commerce can help

Drawbacks

Austrias chambers of commerce can provide a

great amount of information and many consultation
services regarding the takeover of a business. The
Takeover Exchange on the Internet (www.nachfolgeboerse.at) is also very popular. Anyone can post
himself on it anonymously and free of charge; the
exchange is open to everyone, whether looking for
a business to take over or offering one for takeover.
The brochure entitled Guidelines on Transfer of
Business also provides a comprehensive and easily
readable overview of all topics related to transfer
of business.

Everything has a price; there are charges for franchising which vary greatly (depending on the
systems performance package). Franchising is a
partnership model requiring that all participants
comply with contracts and play by the rules; it is
not the best choice for individualists.

Advantages
The greatest advantage lies in the fact that an existing company can go back into business for the
most part without much delay. There is almost no
set-up work to be done, sales are generated more
quickly and the key figures and data already available let you assess business development better
than if you were starting a new company.
Drawbacks

The chambers of commerce can help

There are special franchise forums at the chambers
of commerce providing comprehensive services to
all those interested in franchising. The brochure
Guidelines to Franchising and the site
www.gruenderservice.net/franchise provide a succinct overview and thought-provoking information.

39

3.6

Social insurance and business

Trade businesspeople must be covered by health,

pension and accident insurance plans. Health and
pension insurance are regulated in the GSVG,
whereas the ASVG governs accident insurance.
However, trade businesspeople are not included in
the unemployment insurance plan according to the
Unemployment Insurance Act. If they cease their
trade, their only option is to fall back on former
times when they were insured under the ASVG as
employees. In this case, they may submit an application for unemployment benefits to the labour
exchange (Arbeitsmarktservice AMS).
NOTE:
This regulation is initially time-limited to December
31, 2006, after which new conditions on unemployment insurance for independents will be introduced.

3.6.1. Insured persons

Sole proprietors, shareholders in an OHG and an
OEG, full partners in a KG and a KEG must all be
covered under compulsory insurance, as must
managing shareholders (under commercial law) in a
GmbH (unless they are covered under ASVG insurance in this capacity).
Sole proprietors are required to be covered under
trade insurance as of the time they acquire trade
authorisation. A company must have trade authorisation and be a member of the chamber of commerce for its shareholders to require compulsory
insurance coverage.

Special conditions for limited partners

Limited partners having a holding in a KG or KEG
by virtue of a limited-partner capital contribution
are not subject to any compulsory social insurance
stipulations whatever. Partners working in the
company for pay are required to be ASVG-insured
if their work is not independent; if they are
active for the company on a freelance basis,
they must be GSVG-insured as new independents.

3.6.2. At what time must I be

insured?
As a rule, you must be covered under compulsory
insurance as of the day you acquire trade authorisation or on the day you become a member of the
chamber of commerce by virtue of such trade
authorisation.
Although the trade authority notifies the social
insurance commission of a trades registration, the
trade operator is also required to make such notification and to register within one month.
Exceptional conditions on health and pension
insurance
Persons who report their trade authorisation as suspended or who assign it against payment (note: the
latter ceased to be possible on August 1, 2002) are
not subject to compulsory insurance coverage
according to the GSVG.

Special conditions for managing shareholders

3.6.3. Social insurance premiums

Irrespective of any other circumstances, managing

shareholders of a GesmbH holding up to 25% are
ASVG-insured. If they hold between 26 and 49%,
they may be subject to instruction or, by contrast,
may have other more extensive rights such as
blocking minority. ASVG insurance applies to
worker-status similarity, whereas GSVG insurance
applies to workers with a superior position. Managing shareholders are always GSVG-insured if they
hold 50% or more.

Health and pension insurance premiums

40

Two differing aspects are involved in these premiums: their percentage rate and their contribution.
9.1% and 15.25% of the basis are paid as health and
pension insurance premiums respectively.

Premium basis
The revenues from a trade business (income
minus expenses), established via the income tax
assessment notice, form the premium basis.
However, since the assessment notice relating to
a current period is often not issued until years
afterward, premiums are derived from the assessment notice for the third previous year (e.g. the
assessment notice for 2002 is used to temporarily
assess premiums for 2006). When the Revenue
Office issues the assessment notice for 2005, the
premiums are reviewed precisely (refund or additional payment).
There is an initial classification for new entrepreneurs in their first three years of business (cf. Ch.
3.6.4 New Entrepreneurs).

and supporting new business founders in starting up

their companies.
Pension insurance premiums are (temporarily)
reduced to 82.01 per month during the first three
calendar years of operation. However, the premiums are reviewed if profits in a year amounted to
more than 537.78 per month according to the
income tax assessment notice.
Health insurance premiums amount to 48.94 per
month during the first two calendar years of operation and are not subjected to a review. There is a review in the third calendar year if profits in the third
year amounted to more than 537.78 per month.
Accident insurance premiums amount to 87.60 per
year or 7.09 per month, irrespective of profits.

Minimum premium basis

Under the GSVG there is a minimum premium
basis from which the premiums are to be paid if
revenues are actually lower or if a business shows
a loss. These minimum premium bases amount to
594.18 and 1,073.08 per month for health
and pension insurance respectively. Accordingly,
at least the minimum monthly premiums of 9.1%
( 54.07) and 15.25% ( 163.64) must be paid for
health and pension insurance respectively. These
sums are temporary.
Maximum premium basis
Under the GSVG there is also a maximum premium basis, amounting to 4,375.00 monthly
( 52,500.00 annually). This means that no additional social insurance premiums need be paid
for profits beyond this limit.
Accident insurance premiums
The accident insurance premium is a monthly sum,
amounting in 2006 to 7.30 ( 87.60 per year).

3.6.4. New entrepreneurs

Particularly low premium bases apply to new entrepreneurs going independent for the first time and
not previously GSVG-insured. Valid for the initial
three years, they add up to a large saving in premium payments, thus easing the financial situation

3.6.5. Regulation for smallest-scale

entrepreneurs
Sole proprietors (but not shareholders in a partnership or a KG) may be exempted from compulsory
trade health and pension insurance; however,
specific conditions apply.
Small-scale businesspeople are defined as persons
whose annual profits and sales do not exceed
3,997.92 and 22,000.00 respectively.
Small-scale businesspeople must apply for exemption from compulsory full insurance coverage at the
Social Insurance Commission for Trade and Commerce. The profit and sales limits are subsequently
reviewed applying the income tax and sales tax
assessment notices.
Applications for exemption may only be submitted
by persons who have not been GSVG-insured for
more than 12 months during the previous 60 calendar months or who have attained specific agelimits.

NOTE:
Full compulsory insurance coverage exemption also
means that you are not covered under the health
and pension insurance plans. Accident insurance
coverage continues, however, so you must pay your
monthly accident insurance premium of 7.30
( 87.60 per year).

41

3.6.6. Trade social insurance

benefits
Pension insurance
The most important benefit is the old-age pension
for men (at age 65) and women (at 60) who must
have been insured for at least 180 months.
There are also premature old-age pensions regarding a longer period of insurance coverage for men
at age 61.5 and women at 56.5, but these are being
gradually phased out and will cease in 2017. Premiums must have been paid for 420 months. Based
on the pension-scheme reform in 2003, the retirement age is being increased by four months every
year as of 2004 until the general retirement age
level of 65 and 60 for men and women respectively
is reached in 2017.
In addition, there is a disability pension scheme
for traders who can no longer work independently
due to invalidity. Upon applying for this pension,
medical advisory opinions are acquired, on the
basis of which the pension can be awarded. The
labour and social court can be called upon in cases
of dispute.
In general, pensions are calculated as the product
of the number of insured years and the average
premium bases during working life. Times of nonindependent (ASVG) and independent work (GSVG)
are calculated together applying the convertible
insurance method.
Because there are so many details involved in the
pension schemes, it is extremely important that
you obtain consultation from the Social Insurance
Commission for Trade and Commerce.

in a case of hospital care in the general fees class.

This regulation also applies to new entrepreneurs.
Monetary benefits (profit over 52,500.00): persons in this category initially pay for medical treatment as private patients (i.e. no treatment voucher) and receive a refund of 80% of the doctors
tariff after submitting their bill. If they are treated
in hospital, they also receive additional monetary
benefits for the special class in addition to a refund
of the treatment fee.
Persons entitled to benefits in kind may also apply
for entitlement to the hospital special class. This
involves paying an additional premium. On the
other hand, persons entitled to monetary benefits
may also acquire the right to obtain medical aid
with a treatment voucher by paying a very small
additional premium ( 2.00 per month in 2005).
Co-insured persons
Under the health insurance plan, certain persons
are also co-insured without additional premiums
(spouses raising children and the children themselves). Children are not required to pay the 20%
medical deductible. Spouses not raising children
may also be co-insured by paying an additional
premium of 3.4% of the premium basis applicable
to the person principally covered under the plan.
Accident insurance
The most important benefits include medical treatment after a work-accident or for a professionallyrelated illness, as well an accident pension as of
20% permanent invalidity.
A monthly accident insurance premium of 7.30
( 87.60 per year) is payable, voluntary insurance
of a higher amount is an option.

Health insurance

Unemployment insurance

The most important benefits include medical assistance, dental and hospital treatment, medications, spa cures, etc. We differentiate between entitlement to benefits in kind and monetary benefits.

Persons running a trade have no independent unemployment insurance in this capacity. They can only
fall back on times of being ASVG-insured when they
were employed in an occupation which was insured.
In such a case, they receive unemployment benefits
from the AMS when they cease their independent
trade activity. This regulation initially applies until
December 31, 2006, after which new ones will
come into effect.

Benefits in kind: persons are entitled to benefits in

kind who are entrepreneurs whose income is less
than the highest-premium basis ( 52,500.00
annually in 2006). They are entitled to benefits in
kind and are given a treatment voucher for medical
attention. The treatment is initially free, but a
deductible of 20% is subsequently charged, except

42

3.6.7. End of compulsory insurance

Insured persons running a trade are no longer subject to compulsory insurance obligations per the
end of the month in which
they surrender their trade authorisation,
they report the suspension of their trade to the
professional group and/or district office of the
Chamber of Commerce,
they apply for the deletion of their position as
personally liable shareholder of a sole proprietorship, or
apply for the revocation of their appointment to
the post of managing director of a GesmbH in the
Company Register and/or withdraw as shareholders in such a GesmbH.
For further information, consult the district offices
listed below, the Business Start-Up Service, and
especially the Social-Policy Department of the
Chamber of Commerce in your province.

IMPORTANT NOTE!
After registering your trade, contact the Social
Insurance Commission for Trade and Commerce
(www.sva.or.at), where you will obtain all information on premium-payment amounts, scope of
insurance, small-scale company arrangements,
differential stipulations, etc. Be sure to include
the costs of social insurance in your calculations,
since they form a considerable portion of your
business expenses.
Go to http://wko.at/sozialversicherung for
comprehensive information on compulsory
social insurance.

43

3.7

Entrepreneur as a part-time job

You will need to consider several important factors

if you are thinking of taking up a self-employed
business activity as a second occupation:

Non-independents pay the full ASVG pension insurance premiums from ASVG income and the normal
rate of 15% GSVG pension insurance from trade
income.

3.7.1. Labour law

You must inform your employer of your intention to
take up a self-employed business activity and he
must consent to your doing so. Otherwise, initiating
such an activity without his consent can constitute
grounds for your dismissal.

3.7.2. Social insurance (multiple

insurance-plan coverage)
Employees are insured under the General Social
Insurance Act (ASVG) plan, independents are
covered under the Trade Social Insurance Act
(GSVG) and farmers compulsory insurance comes
under the Farmers Social Insurance Act (BSVG).
Persons who are at the same time non-independents and active in a trade or as farmers come
under several compulsory insurance laws. Thus,
such persons must pay multiple premiums in the
sequence ASVG, GSVG and BSVG. However,
premiums can never be higher than the highest
premium basis.
Accident insurance premiums for trade operators
must be paid in their entirety ( 87.60 per year
effective 2006).
Health insurance (multiple insurance-plan
coverage):
The full ASVG health insurance premiums must be
paid from the non-independent income.
GSVG premiums on profits from a business trade
activity are to be paid according to these premium
rates:

44

Pension insurance (multiple insurance-plan

coverage):

Year

Premium rate

Year

Premium rate

2004

4.50%

2007

7.28%

2005

5.46%

2008

8.19%

2006

6.37%

as of 2009

9.10%

Highest premium basis:

ASVG and GSVG health and pension insurance premiums need only be paid up to the one-time highest
premium basis.
The highest premium basis amounts to
- ASVG: 3,750.00 per month plus 7,500.00 in
special payments per year
- GSVG: 4,375.00 per month and/or 52,500.00
per year.
Tip:
There are three options for distributing premiums
if actual total income exceeds the highest premium
basis:
- differential assessment:
Upon application by the trade operator, the Social
Insurance Commission for Trade and Commerce
assesses the premiums only to the difference from
the highest premium basis.
- refund of premiums:
If you have not applied for differential assessment, you can apply to the Social Insurance
Commission for Trade and Commerce or the
district health insurance commission for a refund
of excess premiums paid. You must do so by no
later than the end of the third calendar year
following the one in which the premiums
concerned were paid.
- higher insurance coverage:
If you have not applied for a refund of excess premiums paid, 22.8% are accredited for higher pension insurance. Benefits from this higher coverage
are paid out upon your retirement. By contrast,
excess health insurance premiums are forfeit.

Minimum premium basis (multiple insurance-plan

coverage):

as well as child-allowance deductions must be

repaid.

The GSVG provisions on minimum premium bases do

not apply in cases of combinations of income from
non-independent work (ASVG) and independent
work (GSVG).

Students/scholarships

Therefore, as of the time when ASVG income

attains the GSVG minimum premium basis
( 1,073.08 per month), GSVG premiums are only
assessed for business profits actually attained.
Therefore, no premiums are assessed if you have
achieved a deficit.
Note: The foregoing regulations apply to
ASVG-insured persons only; differing provisions
cover other professional groups (e.g. civil servants,
farmers, etc.).

3.7.3. Income tax

All incomes are combined to assess income tax,
applying the relevant tax rate (percentage). Therefore, take into account that your income as a nonindependent worker already places you in a specific
tax bracket. Every additional euro you earn is taxed
at this rate and/or at an even higher percentage if
you should attain the tax bracket above the one
you are presently in.

3.7.4. Grants
Certain grants (e.g. the AWS grant for new entrepreneurs) are not given for part-time businesses.
Keep this in mind when planning your investments
and find out well in advance about the directives
applicable to you from the Business Start-Up Service, Chambers of Commerce, the Institute for Professional Advancement (Wirtschaftsfrderungsinstitut) and from your bank.

3.7.5. Earning limits

Student/family assistance
Additional earnings may amount to a maximum of
8,725.00 during a calendar year. The so-called
full-year accounting system is applied. Note: if
your taxable income (gross salary minus social
insurance) exceeds the additional earning limit in a
calendar year, you are not entitled to family assistance and any such assistance you have received,

Students may additionally earn up to 5,814.00

per year from independent or combined work without losing their scholarship entitlement. There is no
difference made between income earned during
school term and during vacation.
Go to www.stipendium.at for more information.
Mother/father/childcare allowance
Every parent receiving a childcare allowance may
earn additional income each year, whereby the
other parents income is not taken into account.
The additional earnings limit amounts to
14,600.00, and all such a parents income from
non-independent work, farming and forestry, independent work, trade operation, capital assets, rent
and leases, as well as other income in the sense of
the Income Tax Act are applied. Income from nonindependent work is calculated using the wage-tax
assessment basis of ongoing wages (not including
special payments) earned during the time the
parent receives childcare allowance. The wage-tax
assessment basis increases by 30% and is converted
to an annual sum. Other income constituting a basis
for legal social insurance premiums is increased by
the social insurance premiums assessed for the year
concerned. But note that you may not use net earnings from a gainful activity as a basis.
Pension
There are many arrangements involved in the
pension system; persons drawing premature old-age
pensions may not practise any gainful activity
which is subject to compulsory social insurance and
may only earn up to the so-called disregardability
limit; otherwise, they lose their entitlement to
their pension. Apart from the old-age pension,
there are unrestricted options to earn additionally.
If an old-age pensioner (age 60 for women, 65 for
men) earns a sum which is higher than the disregardability limit, he/she must pay social insurance
premiums which can entail a slight increase in pension benefits (as of January 1, 2004). Should a person receiving an invalidity or disability pension earn
a sum over the disregardability limit, their pensions may be reduced.

45

3.7.6. Founding a business while

drawing unemployment
insurance benefits
There is only one very restricted option for
earning additional money while you are drawing
unemployment benefits from the AMS:
- you must report taking up any independent gainful activity to the AMS
- your monthly income (revenue) may not exceed
333.166 (i.e. annual revenue of 3,997.72)
- your monthly sales may not exceed 3,001.44
(i.e. annual sales of 36,017.30).
Furthermore, you must be available to the AMS for
work as long as you are receiving unemployment
benefits and you must accept any work which corresponds to your qualifications, otherwise your
benefits will be stopped. (Anyone who is on his
business premises from 9 in the morning until 6 in
the evening, for instance, is de facto not available
to the AMS and therefore may not draw unemployment benefits). Once you have commenced gainful activity, you must submit monthly records of
revenues and sales; thereafter, the income and
sales tax notices are reviewed.
The AMS business-founding plan for the
unemployed
The AMS continually offers assistance programmes
to help recipients of unemployment benefits
become independent in business in an appealing
way. First of all, an unemployed person submits a
business concept which the AMS reviews for its
chances of commercial success. A business-founding consultation meeting follows. The AMS can
also provide financing for you to acquire further
qualifications. For the most part, you may continue to draw unemployment benefits for up to six
months (revenue/sales limits are not relevant).
Tip:
The AMS may operate its business-foundation
assistance programmes differently from province
to province. There is no legal entitlement to
such assistance; therefore, consult with your
AMS advisor.

46

IMPORTANT NOTE!
There are many ways to make yourself independent. Working at a part-time or independent
job means that there always income limits which
you must comply with. There are many options
available to become wholly or partially exempt
from GSVG compulsory insurance coverage.

3.8

Taxes

Whatever legal form you choose (see the table

below), whatever you have done up until now, no
matter which branch of business you work in you
will have to pay taxes.
Admittedly, this might sound rather discouraging,
especially if you are trying to fight your way
through the tax jungle. Think of your tax consultant
as a kind of machete who helps clear the way.
However, tax consultation can prove expensive;
therefore
speak with several financial advisers before
making your final choice (tax consultants are
people you can trust; they are sworn to confidentiality) and
consider which tasks you can do yourself to
reduce fixed costs (collecting receipts, summarising accounts, etc.) and which ones the tax consultant should handle.
Although you neednt be a tax expert to become an
entrepreneur, a little solid basic knowledge never
hurt anyone. Refer to your masters certificate exam
documentation if you have it; otherwise, you may
also take a course at the WIFI (Institute for Professional Advancement). The financial-policy departments
at the chambers of commerce can give you information on tax law, and the publication Tax Guidelines
for Newly-Founded Companies (published by the
Federal Ministry of Finance and available from the
business-founder service at the chamber of commerce in your province) provides a succinct overview
of related tax matters.

Your initial contact with the Revenue Office

You must report your business activity and its location
to the Revenue Office within a month after starting
it. All you need do is send a short note containing this
information and a request for a tax number to the
office. (The Revenue Office for your business location handles both income tax and sales tax matters).
The Revenue Office will then send you a questionnaire which you should fill in and return within
14 days. One of the questions concerns your probable sales and revenues for the first and second
years you are in business. Be especially careful
when estimating your revenues, since the figure
you give will form the basis for calculating your
advance income-tax payments. If the revenue
figure is too high, you will be paying too much tax;
if it is too low, you run the risk of paying back-taxes
for previous years and advance payments for the
current year, both at the same time.
Investments prior to starting up your business
Entrepreneurs who are just starting often have
expenses for their future business even before it
has commenced.
You are deemed to be an entrepreneur as soon as you
have begun preparing your business, e.g. purchasing
machinery and tools or remodelling the business premises. Such activity is beneficial in terms of both
sales tax and income tax since, on the one hand, the
invoiced sales tax is deductible as pre-tax and, on the
other, depreciation can be taken into account. (You
may need to apply for standard-rate taxation in the
latter case).
What are the most important types of taxation and
how can they be paid?

Legal form

Limit

Accounting

sole proprietorship
limited trade partnership
OEG, KEG

sales less than

EUR 220,000.00

Right of choice between lump-sum

(blanket) accounting, income-expense
accounting and double-entry bookkeeping

sales less than EUR 400,000.00

(EUR 600,000.00 for the retail
food and general goods industries)

Right of choice between incomeexpense accounting and double-entry

bookkeeping

sales exceeding these limits

double-entry bookkeeping is
compulsory

trade partnership
(e.g. GmbH, trading partnership, OHG, KG)

double-entry bookkeeping is
compulsory

47

3.8.1. Sales tax

As a rule, sales tax, also called VAT (value added
tax), must be paid for all deliveries and services
you provide. In most cases, it amounts to 20% of the
net fee, although there is a reduced rate (10%)
which applies to some commodities such as books
and foodstuffs.
In the case of some special deliveries and services
(e.g. deliveries abroad and construction services
a new regulation in force since October 2002),
sales tax is not shown, either because the commodities are exempt from sales tax or the commodities recipient is liable to pay the tax. In such
cases, special notifications must appear on the
invoices to be issued which indicate the transfer of
tax debt.
You do not have to pay sales tax if your annual sales
are below EUR 22,000.00 exclusive of VAT, i.e. net
but neither may you claim a pre-tax reduction. If
your pre-tax is higher than your sales tax, it would
be advantageous to cancel the sales-tax exemption.

To do so, you must apply for standard-rate taxation. As a rule, entrepreneurs must calculate their
sales tax on a monthly basis. They may deduct the
pre-tax that is, the sales tax they have paid to
their suppliers as well as any other purchase
invoices. The resultant difference is the net VAT
sum payable, which must be paid to the Revenue
Office by the 15th day of the second month following the current one, e.g. the sales tax for the
month of May is due on July 15th. As a rule, tax liability takes effect in the month in which deliveries
or services are provided (projected taxation) or, in
the case of taxation according to monies earned
(actual taxation), at the end of the month in which
they were earned. Actual taxation applies to entrepreneurs not obligated to keep books of account
(i.e. those with annual sales not exceeding EUR
400,000.00); however, such entrepreneurs may
apply for projected taxation.
You may also settle your taxes quarterly per the
middle of the quarter following the current one if
your annual sales total less than EUR 22,000.00.

Tax schedule for the most important taxes

Type of tax

Percentage

Deadline

To be paid to:

Sales tax

0%, 10% or 20% of the net

amount

the 15th day of the second

month following the current
one

the Revenue Office

competent for your
business location

Income tax

0% - 50% of the income

the 15th of Feb., May, Aug. &

Nov.

Corporation tax

25% of the profits (as of 2005)

the 15th of Feb., May, Aug. &

Nov.

Wages tax

0% - 50% of the wage/salary, minus

social insurance and exempted
allowances

Municipal tax

3% of the gross wage total

Employer contribution
to the family allowance
fund + employer contribution surcharge

4.5% + 0.38% - 0.46% of the gross

wage total (currently dependent
upon the province concerned)

the 15th of the month following the current one

the 15th of the month following the current one
the 15th of the month following the current one

the Revenue Office

competent for your
business or residential location
the Revenue Office
competent for your
business location
the Revenue Office
competent for your
business location
the Municipality
the Revenue
Office competent
for your business
location

If a due-date falls on a Saturday, Sunday or statutory holiday, the next business day becomes the last possible
deadline for payment.

48

Pre-tax only decreases sales tax if invoices include

the following:
1. the name and address of the firm providing delivery or service
2. the recipients name and address
3. the quantity/scope of the delivery/service provided
4. the date of delivery/service
5. the charge and the indication of exemption
from taxation if applicable
6. the sales tax
7. the applicable taxation rate
8. the date of invoicing
9. the serial invoice number
10. the firms own VAT ID number (UID)
11. as of June 1, 2006: the VAT ID number of the
recipient of the service if the invoice is for more
than EUR 10,000.00 basis for valuation
Pre-tax deduction entitlement does not include
automobiles with the exception of those acceptable
by virtue of special dispensation from the Finance
Administration Office.
Invoices on a gross billing sum less than EUR 150.00
need only include :
1. the name and address of the firm providing
delivery or service
2. the quantity/scope of the delivery/service
provided
3. date of delivery/service
4. the gross sum charged
5. the sales tax expressed in per cent
Entrepreneurs may also apply for global pre-taxation
[Vorsteuerpauschalierung] at 1.8% if their previous
years sales do not exceed EUR 220,000.00. In addition, pre-tax on investments over EUR 1,100.00 (net)
in assets subject to wear and tear may be taken into
account. Such assets include goods, raw materials,
semi-finished products, auxiliary materials, accessory components and third-party wages.
Originally, the Value-Added Tax Identification Number (VAT ID for short) was to be given on the invoices
only within the EU domestic market by the entrepreneur providing a service. Since January 1, 2003, the
number must be given on EVERY one of an entrepreneurs invoices over 150.00 (i.e. not those of a
small-scale proprietor). Thus you can ship and
receive VAT-exempt within the EU.

EU country abroad. The Customs head office is

competent for issuing these numbers.

3.8.2. Income tax

Income tax is the wage tax of the self-employed.
Assessment is based on the annual revenues
earned, determined via the income-expenses calculation, the global (blanket) taxation or doubleentry bookkeeping, plus other income (e.g. from
non-independent employment). The taxation rate
ranges between 0% and 50%, although at present
income tax is only payable if (annual) income
amounts to more than EUR 10,000.00.
Income tax is paid every quarter-year in advance.
As mentioned at the outset, your estimate according to the Revenue Office questionnaire forms the
assessment basis for the initial year. However, if it
turns out that your expectations were too optimistic, you have until September 30 to request the
Revenue Office to reduce your advance payments.
You must provide a well-founded planning account
for the current fiscal year.
Since the advance payments are solely based on
estimations and expectations, the actual tax declarations for income and sales tax must be filed with
the Revenue Office by April 30 of the year following
the current fiscal year (the deadline is May 31 for
part-time or sideline work).
As of the 2003 assessment, tax declarations can be
submitted electronically if you have an Internet
connection; in this event, the deadline is extended
until June 30.
Once the tax has been established, the accounting
ensues; if your advance payment has been too high,
you will receive a credit for the balance; if it has
been too low, you must make up the difference.
The new income tariff breaks down as follows:
With an income of:

Income tax

Taxation rate

10,000.00 and lower

EUR 0.00

0%

25,000.00

EUR 5,750.00

23%

51,000.00

EUR 17,085.00

33.5%

The taxation rate is 50% for parts of income over

51,000.00.

You will need an additional ID number if you wish to

purchase alcoholic products for your company in an

49

Tax is calculated on income over EUR 10,000.00

according to the schema below:
Income
over EUR 10,000.00
to EUR 25,000.00

Income tax in euros

(Income 10,000)
*5,570.00/15,000.00

over EUR 25,000.00

to EUR 51,000.00
over EUR 51,000.00

(Income 25,000)
*11,335.00/26,000.00+5,750
(Income 51,000.00)
*0,5 + 17,085

Example: income of EUR 20,000.00

Calculation formula: (20,00010,000)
*5,750/15,000 = 3,833.33

3.8.3. Corporation tax

Corporation tax is the income tax on corporations
such as a GmbH. It amounts to 25%, irrespective of
the amount earned. The minimum tax advance payment amounts to EUR 437.50 per quarter (= 5% of
the minimum equity capital sum of EUR 35,000.00).
New companies pay EUR 273.00 per quarter in the
first year and EUR 437.50 per quarter as of the second year. Profits are liable to a further 25% capital
gains tax (and/or one-half the income-tax rate) if
they are distributed to the shareholders.

3.8.4. Other taxes

IMPORTANT NOTE!
As of October 1 of the year following the one in
which the tax debt has been incurred, the Revenue Office charges debit interest once taxes
have been owing for more than six months. The
Revenue authorities send the tax-declaration
forms. The deadline for filing your tax return can
be extended in individual cases if you submit an
application for prolongation; you must substantiate your request.
However, no taxes need be paid in the start-up
year, due to the very great initial expenses and
write-downs which cut deeply into profits or even
result in balance-sheet losses.
As of 2004, trade entrepreneurs who determine
their profits via double-entry bookkeeping are
allowed tax privileges if they build up equity capital in their firms, i.e. if their private withdrawals
(including income tax payments)are less than their
revenues. That is, the average taxation rate is 50%
lower on revenues not withdrawn.

50

There are other taxes apart from those already

discussed, for example the wage tax (which an
employer must pay for his employees), municipal
tax, employer contributions and the employercontribution surcharge for employees and shareholders-managing directors.

3.9

Business accounting
The term business accounting covers all procedures which compile and monitor a firms entire
business activity in figures.
These records are kept to protect creditors, assess
taxes and to plan and control the business.

3.9.1. Compulsory records

As an entrepreneur, it is your responsibility to
collect receipts, maintain records and to keep them
for seven years. In general, there are three ways to
determine profits and keep records of them:
Income and expense account
Income and expenses must be recorded and a
register kept of goods received, as well as a list
of capital investments for acquisitions not
immediately depreciable and a record of
employees wage accounts.

Entrepreneurs may also apply for a global/blanket

pre-tax rate of 1.8% of all (net) sales if the latter
do not exceed EUR 220,000.00. In addition,
advance tax can be taken into account on investments over EUR 1,100.00 net in assets subject to
wear and tear (goods, raw materials, semi-finished
products, auxiliary materials, add-on constructions
and third-party wages) (global/blanket accounting
according to the Sales Tax Act).
Special options for global/blanket accounting
and/or statutes apply to some branches of business
(e.g. the catering industry, retail food-stores, etc.).
Double-entry bookkeeping
This method involves preparing a balance sheet,
a profit and loss account, a cashbook and an
inventory list. These records are not merely
useful for your own purposes; they contain a
wealth of information which you can apply in a
multitude of ways in running and developing
your business.

Income
expenses
depreciation

3.9.2. Voluntary recording

= profit

Cost calculation

Global (blanket) accounting (income-expense

accounting applying average rates: global/blanket accounting according to the Income Tax Act)
As with normal income-expense accounting,
records must be kept of global/blanket accounting, purchases of goods and wages. Although a
list of invested capital is not compulsory, it is
advisable in case you decide to change your
method of determining your profit.
Income
purchased goods
personnel expenses
12% operational expenses
= profit
(but not more than EUR 26,400.00) = profit
6% operational expenses for certain activities
(but not more than EUR 13,200.00) = profit

In the long run, a privately-operated company can

only survive if market sales revenues are greater
than monies expended on developing a product/
service, i.e. the cost of making them. Every
product/service you develop entails expense.
Estimating your own costs is the first step in
establishing prices on the one hand and, on the
other, an absolute prerequisite for running a
business responsibly. The idea in calculating costs
is to determine the value of devel-oping a product/
service internally (e.g. the cost of one work-hour)
and then to bill the customer for the sum.
It goes without saying that you cant calculate costs
if you dont know they exist and if you do not
know the price-limits, then you cannot form a
viable pricing policy, either. Therefore, you must
determine the cost structure and monitor price
developments in order to calculate your costs correctly, which will then become the basis for establishing your selling prices.

51

However, since market prices are not determined

according to costs, every entrepreneur is obliged to
keep a constant watch on his firms cost developments and to do whatever he can to keep costs
down. Financial accounting figures (incomeexpense accounting or double-entry bookkeeping)
alone are not enough to determine costs; often,
they are arrived at merely in terms of taxation
aspects, and the expenses shown on the books are
very different from the actual costs involved.

Above all, calculating costs helps:

to determine cost-prices to use as a basis for
establishing sales-market prices

52

- to calculate the profitability of individual business

targets, groups of products or single products on
which to base product and sales planning
- to determine the minimum price your firm can
charge when accepting an order (company pricing
policy)
- to determine surcharge rates for balance-sheet
assessments of semi-finished and prefab products,
including self-manufactured equipment
- to decide whether to manufacture/perform a product/service yourself or to outsource it. For
example, cost calculation will show you whether
it is more economical to operate your own repair
department or to engage another firm to do this
work.

3.10

Employees
3.10.1. How to find new
employees?
There are many ways of going about this; the
important thing, though, is to prepare a profile of
the vacancy you wish to fill, specifying the jobs
requirements. Then you can seek your employees
by advertising in newspapers, via the AMS, personnel consultants, employment agencies, contacts
with educational institutes (polytechnical and vocational schools, etc.).
Job interviews are very important, since an applicants attitude and outlook are just as important as
his professional skills and qualifications. Evaluate
all these aspects carefully before proceeding to
hire a candidate.
You must not overlook the relevant legal statutes
and the provisions set out in collective bargaining
agreements when hiring employees. All together,
labour law is such a complex matter than we can
only go into the most important aspects here.

3.10.2. The work relationship

The work contract
The essential components of a work contract
include the employees personal performance of
work, binding him/her to the firms business hours,
place of operations and instructions.
It is important to establish at the outset whether
the position is one of a labourer or a salaried
employee.
- labourer:
manual work or skilled labour
- salaried employee:
commercial business work, other executive duties
or office work
According to the law, you may merely issue a work
memo which is not signed, although it is advisable
to conclude a work contract or salaried-employee
agreement in which the terms negotiated are set
down for evidentiary purposes in writing.

IMPORTANT NOTE!
There is no official fee payable for issuing work
contracts and work memos. You can obtain draft
(sample) contracts from your chamber of commerce.

Optional arrangements
Apart from a contracts standard content (name,
type and place of work, remuneration, working
hours, vacation entitlement), a number of other
arrangements may be included in a work contract,
including
- trial period:
If the collective bargaining agreement does not
stipulate one, you may arrange a trial period lasting up to one month (not corresponding to a calendar month).
- time-limitation:
After a period of time stipulated at the outset of
the work relationship has elapsed, either it ceases
or is renewed for an indefinite period of time.
Note: Sequencing a number of time-limited work
relationships effectuates an impermissible chain
work contract.
- overtime:
You may negotiate a duty to perform extra work
and/or to work overtime with both full-time and
part-time employees.
- termination options:
Provided that the collective bargaining agreement
in your business branch permits it, you may negotiate that the employer may give notice of termination per the 15th or the last day of a month.
- competition clause:
Subject to certain provisions, you may negotiate
that if an employee resigns, he may not work for a
competing company for one year thereafter.
Tip: We recommend that you consult a labour-law
expert prior to negotiating such a clause.

53

Other types of contract

There are other forms of contract apart from a work
contract which are not subject to labour law; however, they can only be applied in exceptional cases.
Under a freelance contract for services, an independent agrees to perform work but is not bound to
business hours and instructions and is therefore not
personally dependent.
A contract for work binds a freelance worker to
perform a task in the form of a finite project.
IMPORTANT NOTE!
We recommend that you consult a labour-law expert
if you wish to use one of these contractual forms,
since the borderlines between them and an actual
work contract are often difficult to distinguish.

Reports are to be sent within this time to the district health insurance commission of the province
concerned via electronic data teletransmission in
the uniform data sets. Reporting using forms
(available from the district health insurance commission) is only permissible upon special application to and authorisation from the district health
commission. Upon request, employers with fewer
than 15 employees in their business must be
charged for the health insurance commission premiums. Also, a wage account must be set up for each
employee.
Social insurance premiums are divided into
employer and employee portions, based on the
employees gross remuneration. Expense
allowances such as per diems or mileage allowances
are exempt under social insurance up to certain
limits. The maximum monthly premium basis in
2006 is 3,750.00.

3.10.3. Collective bargaining

agreement

As a rule, employees are covered under pension,

health, accident and unemployment insurance
plans.

There is a collective bargaining agreement for

every branch of business, concluded between the
agreements partners (chambers of commerce,
trade unions). Collective bargaining agreements
regulate a multitude of items in supplement to the
applicable legal statutes, among them:

In addition, an additional premium of 1.53% has

been payable for the employees pension fund (new
severance) since January 1, 2003. It is also collected by the district health insurance commission
via payroll accounting.

- minimum wages and salaries

- working hours and work-time distribution (cumulative calculating, flexible work-times)
- reasons for worker absenteeism
- periods and dates for giving notice of termination,
etc.
Collective bargaining agreements ensure that the
same working conditions apply to all employees within
a branch of business or industry. Work contracts may
not contain provisions less advantageous than those
set out in a collective bargaining agreement.
On the other hand, collective bargaining agreements also provide for the same conditions for all
competitors within a branch of business or industry.

3.10.4. Employee social insurance

Employers must report a new employee to the
social insurance commission within seven days.

54

Other incidental wage costs include 3% municipal

tax, paid to the community (or to the City Treasury
in Vienna) and the contribution to the family
allowance fund (DB and DZ), transferred to the Revenue Office competent for your business location.
IMPORTANT NOTE!
Payroll accounting is a job requiring special training. If you are not trained in it yourself, you may
either assign the task to a capable employee or
have it done by an outside accountant or tax consultant.
Example: (2005) wage-earning
business employeer
Gross remuneration
Net remuneration without AVAB*
Net remuneration with AVAB*
Employees social insurance premium
Total employers expenses**

EUR 1,550.00
EUR 1,138.11
EUR 1,168.44
EUR 279.00
EUR 2,036.08

Example: (2005) wage worker

Gross remuneration
Net remuneration without AVAB*
Net remuneration with AVAB*
Workers social insurance premium
Total employers expenses**

EUR 1,550.00
EUR 1,136.20
EUR 1,166.53
EUR 282.10
EUR 2,032.98

*AVAB= sole wage-earners deduction allowance

**Employers expenses do not include: pro rata bonuses,
vacation pay, emoluments in kind

3.10.5. Worker protection

The main types of employment for foreign nationals

include:
- employment authorisation for one year
- work permit for two years in a province
- exemption permit for five years in Austria
- residence certificate in the form of a ruling (since
January 1, 2003)
- non-independent managerial work (since January
1, 2003)
- tourist-season work as part of a tourist-season
contingent

Technical worker protection

Employers are responsible for ensuring employee
safety and health while working (technical worker
protection). The Labour Inspection Board, a state
body with authority of access, monitors compliance
with the technical safety regulations. Employers
must check their business premises for possible
hazards and have them eliminated. This procedure
is called evaluation, and a record document is
kept of safety and health protection measures.
The law also stipulates that all employees be cared
for in terms of industrial medicine and safety technology. Firms employing up to 50 persons may avail
themselves of the services of the General Accident
Insurance Commission [Allgemeine Unfallversicherungsanstalt AUVA] at no charge. (Apply to
the provincial AUVA office in your area).
Work assignment limitations
Employers must comply with the stipulations on
working-hour limits, breaks, free weekends, etc.
Certain specially protected persons such as pregnant women and juveniles may not perform any
heavy or hazardous work and may not be required
to work at certain specified times. The Labour
Inspection Board also closely monitors compliance
with these regulations.

3.10.6. Employing foreigners

IMPORTANT NOTE!
Consult a labour-law expert if you are in any
doubt on these matters. Infringement of the
Employment of Foreign Nationals Act can have
severe consequences and entail heavy fines.

EU expansion
10 more countries joined the European Union per
May 1, 2004: Estonia, Latvia, Lithuania, Poland, the
Czech Republic, Slovakia, Hungary, Slovenia, Malta
and Cyprus.
However, citizens of these countries may not immediately begin to work in Austria without authorisation; a graduated seven-year transition period
applies. Depending on political and economic
developments, the labour market will not likely
become freely accessible before two years time
and in seven years time at the latest. Until then,
workers from these countries may only be
employed in accordance with the provisions set out
in the Employment of Foreign Nationals Act.
Exception: Maltese and Cyprian workers may work
in Austria immediately.

3.10.7. Dissolving work relationships

Types of dissolution

Third-country citizens
Workers who are not Austrian citizens or nationals
of an EEA state (15 EU countries and Norway) are
known as third-country citizens. They are not permitted to work in Austria without permission based
on the Employment of Foreign Nationals Act (Auslnderbeschftigungsgesetz). The AMS is competent for issuing the various types of authorisations.

Work relationships are continuous commitments,

existing until they are terminated by the employer,
the employee or by mutual accord.
The various types of dissolution include:
- dissolution during the trial period (one month
maximum)

55

- expiration of a time-limited work relationship

- summary dismissal without notice (if there are
substantiated reasons)
- an employee resigning prematurely (with substantiated reason)
- dissolution by mutual accord
Both employers and employees must comply with
notice periods and deadlines as regards termination
in particular, as derived from the Salaried Employees Act (for employees) and the Business Branch
Collective Bargaining Agreement [Branchen-Kollektivvertag] (for workers). Remember to take into
account special negotiation options for salaried
employees (cf. Ch. 3.10.2).
Especially protected persons
There are specific groups of persons who are legally
protected from dismissal by the employer during
certain times; however, in most cases, there is
nothing preventing the work relationship from
being dissolved by mutual accord (special form
regulations apply).
These groups primarily include:
- pregnant women (from the time they report their
pregnancy until four weeks after parental leave of
absence has expired); when claiming parental
part-time, protection from dismissal is in effect
until no longer than four weeks after the childs
fourth birthday
- persons doing military or civilian service (as of the
time they report receiving their call-up order or
assignment notification until one month after finishing their service)
- staff committee members (until three months
after their functional period has expired)
- the handicapped (as of acknowledgement of their
status from the Federal Social Affairs Office as
handicapped persons with a handicap of at least
50% enjoying protection) and
- apprentices (an apprenticeship is a time-limited
training relationship which therefore cannot be
terminated; premature dissolution is possible, but
only on special grounds).

IMPORTANT NOTE!
Contact a Chamber of Commerce labour-law
expert if a case of dissolving a work relationship
with a specially protected employee arises.

56

3.11

Warranty, guarantee, product liability

3.11.1. Warranty
Warranty is defined as liability (regardless of the
party at fault) for material and legal deficiencies
which already existed at the time of release
and/or delivery of a product or service. Goods or
services are deficient if their properties are other
than those negotiated (if no special properties
have been negotiated, the ones generally presumed apply). A transaction against payment (e.g.
purchase agreement) is necessary for a warranty
to apply.
What terms apply?
- It is generally assumed that a product was
deficient at the time of delivery if a deficiency is claimed within six months thereafter. Once this term has expired, the purchaser and/or the orderer of the product
must evidence that the product was deficient
at the time of release according to its cause.
- The term amounts to two years and three
years for movable and immovable objects
respectively. Note: the three-year warranty
term applies if movable objects become
immovable ones upon installation.
What are the applicable legal consequences?
- Customers/orderers may demand a price reduction if the deficiency is a small one, or that the
contract be cancelled (dissolved) if a deficiency
cannot be repaired, depending on the gravity of
the contractual infringement.
First of all, the customer may only demand that the
object be improved or exchanged, unless this is
impossible or if it would involve disproportionately
great expense for the supplier.
Note: typical deficiencies due to wear and tear
are not grounds for warranty claims.

sumers are involved, entrepreneurs may make

other contractual arrangements.

3.11.2. Guarantee
In contrast to a warranty, a guarantee is a voluntarily negotiated assumption of liability; guarantee claims may not be asserted without a corresponding guarantee declaration. In general, guarantees may be arranged as the parties wish.
Usually, guarantees are dependent upon the discovery or occurrence of a deficiency during the
negotiated term and not on the existence of such
a deficiency at the time of a products release.
Warranties always apply to the contractual partner, whereas it is often manufacturers who provide guarantees. In such cases, the question of
whether the guarantor is at fault is not germane.

3.11.3. Claims for damages

Customers/recipients of goods may only claim
damages if the seller/entrepreneur or his employees are to blame for a deficient delivery / product. The liability terms under damages law are
very long. They are not statute-limited until three
years after discovery of damage and the party at
fault and/or in any case after a period of 30 years
has expired. This means, for example, that if
damage occurs in the eighth year following purchase, there is still time to claim damages during
the period from the eighth year to the 11th.

3.11.4. The Product Liability Act

Claiming deficiencies:

Product liability is liability for specific damage

caused by a faulty product, irrespective of which
party is to blame. It covers consequential damage
only, i.e. not the faulty product itself.

If both contractual partners are entrepreneurs, a

purchaser may only claim warranty rights under
the more stringent provisions set out in commercial law (examination of the product at the earliest possible time, reporting a deficiency).
Whereas warranty law is compulsory when con-

However, compensation is not provided for all

types of consequential damage, but only personal
injury and private property damage; corporate
property damage is not compensated.
The following groups are liable for damage caused
by products:

57

 the products manufacturer

- the initial EEA importer
- every entrepreneur having distributed the product
(in the event that neither the manufacturer nor
the importer can be identified).
Entrepreneurs are also liable as manufacturers if
they have declared themselves as such by applying
their names, trademarks or other identifying symbols to a product.
Product deficiency
A product must be faulty at the time it is introduced into commercial circulation. According to
the Product Liability Act, a product is faulty if it
cannot be used with the degree of safety expected
of such a product; incorrect or incomplete instructions in a users manual or in advertising can constitute such a deficiency.
What entrepreneurial action should you take in
this regard?
Usually, you should limit product liability risk by
taking out a corresponding insurance policy.
- Regulatory entrepreneurial accountability
requires comprehensive documentation within a
company. Commercial businesses in particular
need to keep precise records of the type, quantity
and in particular the source (manufacturer) of the
trade products.
- Check all documents connected with a products
presentation for errors and/or completeness
(advertising, instruction manuals, etc.)
- Right of recourse vis--vis foreign manufacturers
must be secured contractually.
- Terms and conditions of sale and delivery are to
be brought into alignment with this legal situation.

IMPORTANT NOTE!
Warranties are compulsory within the legally stipulated periods.
Guarantees may be provided in addition to warranties.

58

3.12

Foreign trade

Effective tools for the whole world

Export is Austrias most important economic
motor, generating a large portion of our jobs and
contributing substantially to the countrys high
standard of living. Exports totalled 89.8 billion
in 2004. The Foreign Trade sections of the Austrian
chambers of commerce have an efficient international business platform provided especially to
help business founders and new companies successfully expand abroad and achieve export results.
The AWO Export Support service is precisely attuned to Austrian export companies needs and specifics. Based on the worldwide network of foreign
trade offices, efficient export strategy consultation begins with an examination of just how ready
a company is to begin exporting. Once this is established and test and target markets have been analysed, the consultants work together with the company to create a tailor-made export strategy,
founded on Export Supports comprehensive market assistance (an essential tool for a companys
future success).
This market support covers the gamut from finding business partners and defining markets all the
way to finalising arrangements between Austrian
companies and foreign firms for the project concerned. The foreign trade offices can even function as an on-site accessory for Austrian exporters;
the AWO also provides support in the specific
handling of a project and assistance in the event
that something should go wrong.
Participating in organised events abroad is a particularly effective way to enter a market individually. AWO experts handle the organisational preparations, whether you are looking at a group show,
a catalogue exhibition or even considering participating in a commercial mission.
The Foreign Trade service also offers a comprehensive programme of organised events within
the country to assist domestic export companies
in constantly expanding their know-how. They
include seminars on branches of business, countries, international project deals, export-trade
conferences, profession-related discussions
and the International Commerce Club series
of events.

The Foreign Trade services know-how pool is the

collector of tributaries from 70 foreign-trade offices throughout the world. Up-to-date information is processed daily for Austrian companies,
made available in a large number of publications
and electronic media, such as the website
wko.at/awo, where you can obtain information
sheets and special publications on all countries
with major export markets.
Basic services are available free to chamber of
commerce members; they can also be invoiced
according to expenditure for intensive and comprehensive project assistance (more than eight
hours per foreign trade office per year).
Export / Import
In general, take into account the EU provisions
under Customs law when considering the
export/import of goods out of or into the European Community. If Community free traffic goods
(Community goods) are conveyed over the EU border for export to a third-party country, they must
be registered under Customs law for export; as a
rule, registration in writing is required. Factors
needing special attention include any obligations
to acquire export authorisation, embargoes, other
prohibitions and restrictions and the import regulations in the country of destination. Goods must
be registered for conveyance into free traffic if
they are being imported into the Community. As a
rule, these registrations are also made in writing;
the requisite documents (such as invoices, import
authorisations, certificates of origin, etc.) must be
included. The entry fees (import VAT, Customs
duties) must be paid for imports.
Working Across Borders
Regulations on gainful employment outside Austria
differ from country to country. As a general rule,
obtain information on the conditions in terms of
trade law, labour law and tax law in the foreign
country concerned before beginning to work
there, since the provisions differ widely in the
various neighbouring countries (EU/non-EU countries) according to the type of work (providing services, assembly work, etc.). Contact the Foreign
Trade department of your chamber of commerce
for information on export, import and working
across borders. (wko.at/awo-ansprechpartner).

59

3.13

Business insurance

3.13.1. Business risks

Whether you are founding a new company or taking over an existing one, you face risks for which
you should be insured. Rather than simply letting
someone sell you a policy, you should systematically acquire insurance yourself according to your
own needs.
Identifying risks:
Start by pinpointing and listing all the risks which
could arise in your firm; the next step is to assess
them.
Assessing risks:
Not all insurable risks should actually be insured.
It depends on how you assess them:
disaster risk; loss so great that it could mean
closing down the company
major risk; the company will continue to exist
in a case of claim, although its targeted objectives cannot be achieved
standard risk: the companys targeted objectives are jeopardised in a case of claim
minor risk: the companys targeted objectives
are not jeopardised; usually, only petty losses
are involved in this case.
Avoiding risks:
Once you have identified and assessed your firms
risks, consider the options available for avoiding
them:
preventing risks (e.g. change manufacturing
procedures, remove a hazardous product from
your sales line, etc.)
reducing risks (e.g. provide fire extinguishers
and safety helmets, store goods outdoors, make
external back-up copies of data, etc.)
shifting risks (e.g. take out insurance, etc.)

60

3.13.2. Covering risks with

insurance
How to obtain insurance
You can obtain insurance in a number of ways.
Although full-time and part-time insurance company employees are the principal contacts, there
are also independent insurance brokers, consultants and insurance agents. In general, they work
together with several insurance companies,
requesting different quotes and selecting the best
one. Usually, insurance brokers services are free,
since they are paid commission fees by the insurance companies. A fee is payable for consultation
only (and for taking out insurance with other persons or companies).
Overview of business insurance
You should look at the various kinds of insurance
available with greater or lesser scrutiny, depending
on your companys type:
property insurance:
These policies cover material losses connected
with buildings, merchandise, installations, data
carriers, and the like, including in particular
fire damage, burglary, theft, damage due to
storms, tap water, and breakdowns of machinery, electrical appliances and computers.
financial loss insurance:
These policies cover losses of revenue (e.g. due
to machinery downtime) and additional costs
(e.g. attorney fees) incurred due to damage.
Examples include policies covering business liability, legal protection and interruption of operations (because of illness, accident, fire, machinery damage, etc.)
personal insurance:
These policies cover persons who are a companys owner, shareholders and employees.
Examples include life, health, accident and
severance policies. You may also take out
insurance from private companies apart from
and/or in addition to the statutory compulsory
social insurance plans.

Advice on acquiring insurance:

First of all, analyse the risks you may actually

incur.
Then, assess those risks in terms of their effects
(disasters, major/minor risks) and the likelihood that you will incur them (often, infrequently, rarely). A subjective estimate is often
sufficient for assessing such risks.
Consider other possible options for avoiding risk
other than an insurance policy, e.g. decentralised storage to protect your markets in a case of
fire, a functioning fire-protection system, etc.

Be alert to any risk preclusions, have them

explained to you and try to amend them in your
favour.
Many ancillary arrangements kinds of subsidiary clauses can be negotiated in a contract of
insurance. Check them over carefully (e.g.
additional risks included with or without a premium surcharge, premium discounts in
exchange for a deductible, etc.).
Try to negotiate the shortest possible term for
the contract of insurance. (Receiving a longterm loyalty discount despite a shorter term is a
matter for negotiation. Earlier termination
would entail repayment of the discount to the
insurer).

Set down your insurance requirements in detail.

Have your insurer inspect the object to be insured and enter the phrase as inspected in your
application.
Special arrangements must be noted in the
application and appear in the policy as well.

Consider whether you should carry a smaller

risk yourself.
Obtain information on how to proceed if a case
of claim arises.
Never sign a blank contract of insurance.

Ask to have a specialist brought in if there are

complexities in some areas you wish to have
insured.

Check your coverage from time to time to see if

it is in line with your actual risks.

Always obtain several quotes from different

insurers.

You can obtain more information on insurance brokers and agents by going to these websites:
http://wko.at/ihreversicherungsmakler
http://www.dieversicherungsagenten.at.

Obtain precise information on the extent of

coverage and the manner of calculating premiums. Do not be under-insured or over-insured.

61

The Business
Concept

62

The business concept (also frequently called the

company or business plan) is a description of the
idea behind the business start-up and the steps to
be taken to implement it.
There are several advantages to setting down the
business plan in writing:
writing something down requires you to think it
through;
a business concept in writing gives you a guideline for your targets and activities; you can also
review it regularly;
a clear business concept strengthens your position when negotiating with co-operating partners such as banks and suppliers

and market analysis data such as

How is the branch of business developing?
What are the trends and developments perceptible on the market?
How large is the market?
Which customers and groups of customers are
being addressed?
How is the demand situation?
Who are the main competitors?
How am I distinct from my competitors?
How, then, do I position myself on the market?
What advantages does the location offer?

Marketing

The points below reflect the marketing measures to put a business idea into action:
specific offer (products, service, consultation,
assortment)
price structuring incl. conditions such as discounts, payment deadlines, etc.
sales, advertising, sales promotion, publicrelations work co-op
distribution (personal sales, via specialty shops,
trade agents, etc.)
marketing budget

Financial requirements, incl. business plan

capital requirements for investments, ongoing

costs, business constitution expenses, etc.
financing (equity funds, borrowed capital,
other funding sources, subsidies, etc.)
fixed cost and personnel expense planning,
incl. costs of private livelihood
sales planning
financial plan (side-by-side list of income and
expenses per month)

We recommend going to www.gruenderservice.net

for help in preparing your business plan. You will
find detailed guidelines for drawing up your individual concept (including budgeting) in the
business plan module.

The checklist below is merely an outline of the

items usually included in a business plan.

Content of a business plan:

Management summary
This section is of special importance since it
presents the business plans essential key
points briefly, succinctly and in a manner designed to engage the readers attention and thus
giving the addressee an initial look at the company and its objectives. The idea is to arouse
the readers interest. Although it is at the forefront of a business plan in terms of importance,
it may be placed at the end of the plan.

Founders, Management, Key Persons

founders/managing directors careers to date,

training and experience
who is responsible for which duties (organisation)?
employees in key positions
which services are outsourced, e.g. tax accountant, corporate consultant, etc.

The company
Describe your company (company name, date
of foundation, legal form, shareholders, managing directors, ownership structure, purpose
of company, location).

Product or service?
Use this section to describe your business concept and its benefits to customers in detail.

Opportunities and Risks

What opportunities do you see in your business

idea?
What are the risks involved and how can you
minimise or reduce them?

Branch of business, market

This is where to present the business-branch

63

Action Planning / Milestones

What specific steps have you planned for putting
your business idea into action?
Activity plan; who does what and until when?

Annex
Business plans should not be longer than 20 to 30
pages. Therefore, place more detailed or supplementary documentation (such as offers for planned
investments, founders rsums, any memoranda of
understanding, action plans, etc.) in an annex to
your business plan.
IMPORTANT
Prepare your business plan on the Internet at
www.gruenderservice.net
The business plan was prepared in cooperation
with Austria Wirtschaftsservice GmbH [Austria
Commercial Service Ltd.] and is thus accepted as
an attachment for subsidy applications. If you
have problems in preparing your business plan, the
Founder Service or the WIFI in your province can
generally refer you to experts for support (most of
the consultations are subsidised).

64

Appendix

65

5.1

Useful contacts

CHAMBER OF
COMMERCE

TRADE
AUTHORITY

Contacts

Activity

Business Start-Up Service

Comprehensive consultation on starting up a business, NEUFG consultation / confirmation

Other service departments

Tax, social and labour law, general

legal questions, subsidies

Professional groups

business-branch information, reports

of business suspension

District offices/regional offices

Your regional contact person

Contacts

District administration/MA
district office

Activity

offices of provincial governments

66

Federal Ministry of Economic

Affairs

trade registration
authorisation of operational facilities
application for individual licence
appointing trade-authorised managing directors
reporting additional business locations
change of business location
surrender of trade authorisation
deferral requests
licence applications
applications for equal status
application for deferral of reasons for
trade disqualification
surrender of trade authorisation
acknowledgement/equivalence of
work performed abroad and qualifications acquired abroad

REVENUE OFFICE

Contacts

SOCIAL
INSURANCE

Activity

Revenue Office competent for

the area where a business or its
management is located

Contacts

application for a tax number within one month after registering a

trade

fill out the questionnaire and send

it to the Revenue Office

application for a UID (VAT ID) number

ruling for small-scale entrepreneurs if annual net sales do not

exceed 22,000.00

ongoing tax payments (cf. Ch.

3.8., Taxes); tax calendar

filing annual tax return for sales

and income tax (and corporation
tax on a GmbH)

Activity

Social Insurance Institute for

Trade and Commerce

District health insurance commission

report founding a company within

four weeks

register employees within seven days

after they begin work

Important Internet addresses:

http://wko.at
www.gruenderservice.net
www.franchise.at
www.nachfolgeboerse.at
www.help.gv.at
www.sva.or.at

www.bmf.gv.at
www.patent.bmwa.gv.at
www.awsg.at
www.ara.at
www.bka.gv.at
www.on-norm.at

www.innovation.co.at
www.akm.or.at
www.i2b.at
www.jungewirtschaft.at
www.leerelokale.at
www.freielokale-graz.at

67

OTHER
CONTACTS

Contacts

Arbeitsmarktservice
(Austrian Labour Exchange)

Remarks

Arbeitsinspektorat
(Labour Inspection Board)

Bank(s)

Subsidy offices
Waste-disposal companies

Community/municipal authority

Land Unit Register (LUR court)

Company Register

Chamber of Commerce Apprentices Office

Master Craftsman Office/Office of

the Provincial Government
WIFI (Institute for Professional
Advancement)
Notary public

Patents Office
Attorney
Tax consultant

Insurance (private)

Utilities

EDP Register
EAN Austria

68

worker/employee referral
support for unemployed persons in
starting up a company
work permits for foreigners, etc.
monitors compliance with statutory
provisions governing worker protection, etc.
financing
subsidy applications
municipal
private (e.g. ARA Altstoff [Waste]
Recycling Austria)
You are required to register if you
introduce packaging into commercial
circulation. Contact your chamber of
commerce for more information.
building permits
usage authorisation
zoning
entry in the Land Unit Register
mortgages
entry/registration of companies: sole
partnerships only if the annual sales
limit of 400,000.00 is exceeded
enquiries concerning registered firms
informal request for an approval
ruling for training apprentices (prior
to initial apprenticeship training)
apprenticeship agreements
final apprentice examination
trainer, entrepreneur, master, qualification/concession examination
advanced and extended training
course
consultation and preparation of contracts
(obligatory when founding a GmbH)
trademarks, samples
consultation and preparation of contracts
tax consultation, accounting, annual
financial statements, etc.
for buildings, merchandise, etc., liability, legal protection, business
interruption due to illness or accident
electricity, water, gas, telephone, fax,
Internet, etc.
EDP number
EAN code (article numbering code)

5.2

Steps toward founding a business

5.2.1. The 7 steps in founding a

non-recorded company*
1. Consultation on founding, financing and legalities
- from the Business Start-Up Service or the technical
departments at your chamber of commerce

NOTE!
If you are founding your company in Vienna,
you can save a lot of time dealing with official
matters by registering your trade online with
the Vienna Chamber of Commerce. Contact
their business start-up service on
Tel. (01) 514 50-1211 or 1347
or via e-mail at gruenderservice@wkw.at

2. Declaring the foundation of a new business or

the transfer of a business
Certain levies, contributions and fees directly connected with founding a new business or taking
over one (whether or not against payment) are not
collected, provided that you submit a declaration
on founding a new business or taking over an
existing one on the forms provided (Neuf 1 for
new businesses, Neuf 3 for takeovers). Your
chamber of commerce must confirm your declaration. Generally, the Business Start-Up Service, the
technical groups and/or guilds and district offices
are the contacts, where you can also obtain the
official forms.
3. Registering a trade
You will need to include the following when submitting your trade for registration:
3.1. If the entrepreneur evinces qualification himself (e.g. via a masters certificate):
- passport
- police clearance certificate and residence registration form from the country of origin for persons not resident in Austria or resident in Austria
for less than five years
* i.e. a company not entered in the Company Register cf. the
chapter on Legal Forms

Residence confirmation required for non-EU

citizens
proof of qualification (e.g. masters or qualification examination certificate, school or work
certificates) or established individual qualification (trades not requiring a licence are
excepted; no proofs are required at all for
them).
3.2. If the entrepreneur does not evince qualification himself and, instead, appoints a managing
director authorised under trade law (working in
the firm for at least 20 hours a week):
Persons registering a trade must submit:
a passport
police clearance certificate and residence registration form from the country of origin for
persons not resident in Austria or resident in
Austria for less than five years
proof of residence if they are not EU citizens.
Managing directors authorised under trade law
must submit:
a passport
police clearance certificate and residence registration form from the country of origin for
persons not resident in Austria or resident in
Austria for less than five years
social-insurance confirmation (district health
insurance commission) on registration as an
employee working at least 20 hours weekly for
the person registering the trade
proof of qualification (e.g. masters or qualification examination certificate, school or work
certificates)
declaration of the managing director authorised under trade law on his activity in the firm
(on the form provided).
Neither the person registering the trade nor the
managing director under trade law may be disqualified from practising the trade as defined in
Art. 13 of the Trade Ordinance.
4. District Health Insurance Commission (DHIC)
You must report employees to the competent DHIC
without delay after hiring them (commencement
of work).

69

If you employ a managing director under trade

law, you must register him at the DHIC before registering your trade (effectiveness as of the trade
registration is an option), since you must submit a
confirmation from the DHIC on the employment
relationship to the trade authority.

5. Trade social insurance

You must register your trade with the Social Insurance Institute for Trade and Commerce within the
initial month of operation.
The registration for the social insurance commission may also be submitted electronically together
with registering your trade with the district
administrative authority, which will then forward
it to the social insurance commission.

6. Revenue Office
Report your trade activity and apply for a tax
number at the Revenue Office within the first
month of operation. The registration for the Revenue Office may also be submitted electronically
together with registering your trade with the district administrative authority, which will then forward it to the Revenue Office.

7. Community / City
Notify the community or city administration of
employees you have hired (for municipal tax purposes).

5.2.2. The 9 steps toward founding

an OEG, KEG, OHG or a KG
1. Consultation on founding, financing and legalities
- from the Business Start-Up Service or the technical departments at your chamber of commerce
NOTE!
If you are founding your company in Vienna,
you can save a lot of time dealing with official
matters by registering your trade online with
the Vienna Chamber of Commerce. Contact
their business start-up service on
Tel. (01) 514 50-1211 or 1347
or via e-mail at gruenderservice@wkw.at

70

2. Declaring the foundation of a new business or

the transfer of a business
Certain levies, contributions and fees directly
connected with founding a new business or taking
over one (whether or not against payment) are not
collected, provided that you submit a declaration
on founding a new business or taking over an existing one on the forms provided (Neuf 1 for new
businesses, Neuf 3 for takeovers). Your chamber
of commerce must confirm your declaration. Generally, the Business Start-Up Service, the technical
groups and/or guilds and district offices are the contacts, where you can also obtain the official forms.
3. Articles of association
OEGs/KEGs and/or OHGs/KGs are constituted on
the basis of articles of association (concluded
between at least two persons); there are no special formalities involved and the articles may be
concluded orally or in writing. However, we recommend that they be made in writing with the
assistance of an attorney or notary public for evidentiary reasons.
4. Entry in the Company Register / application
for registration
Trading companies do not fully exist in legal terms
until they are entered in the Company Register.
Shareholders may draw up an application for registration themselves.
However, the signatures appearing on the applications must be certified by a notary public or a
court (district court).
You will need to submit the following documents
when applying for registration:
articles of association (if they exist; this is not
compulsory, although we recommend it)
sample signatures of all executives holding
authority of representation (personally liable
shareholders), certified by a notary public or a
district court
questionnaire on the companys scope (available from the chamber of commerce or a
court) and/or chamber of commerce examination of full merchant status (required for
OHGs/KGs only)
You must provide the following information with
your application for the registration of a company
even if you do have articles of association:
official company name (the surname of at least

one personally liable shareholder must be

included limited partners [partially liable parties] may not appear in the name). The legalform indication OEG or KEG must be appended
if the company is an OEG/KEG; & Co may be
added as an indication of the legal form if the
business is an OHG/KG.
limited-partner contributions made by the individual limited partners
the location of the companys head offices and
its main business address
indication of the branch of business (max. 40
letters)
shareholders names, dates of birth and
addresses
personally liable shareholders who are not
authorised signatories must also be entered in
the Company Register
representation arrangements
residence authorisation and valid work permits
and/or exemption certificates are additionally
required for third-countries (non EEA citizens);
the exemption certificates also apply to citizens of the new EU member states with the
exception of Maltese and Cyprian nationals.

5. Trade registration
You must submit the following documents when
registering your trade:
extract from the Company Register (trades
which are OHGs and KGs can register before
they are entered in the Company Register
articles of association are sufficient documentation in this case, the Company Register
extract is to be submitted within a year. Company Register extracts are requisite for OEGs
and KEGs).
police clearance certificates and residence
registration forms from the country of origin
for managing directors authorised under trade
law and all personally liable shareholders not
resident in Austria or who have been resident
in Austria for less than five years
declaration that there are no reasons for disqualifying a trade due to circumstances involving insolvency or prior convictions as set out in
Art. 13 of the Trade Ordinance, viz. from all
persons with executive power (e.g. companymanaging shareholders, shareholders with
majority holdings, shareholders with minority
holdings but with special co-executive rights or
company-managing authority, etc.).
Managing directors authorised under trade law
must also submit:

a passport
social insurance commission confirmation on
the employees registration for at least 20
weekly hours (not required if the managing
director under trade law is a personally liable
shareholder)
proof of qualification (e.g. masters or qualification certificate, school or work certificates)
or individual qualification acquired (except in
the case of trades not requiring a licence)
declaration from the managing director authorised under trade law on his employment in the
company (using the form provided)

The managing director under trade law and the

personally liable shareholders must not be disqualified from practising the trade as defined in
Art. 13 of the Trade Ordinance.
6. District Health Insurance Commission (DHIC)
You must report employees to the competent DHIC
without delay after hiring them (commencement
of work).
If you employ a managing director under trade
law, you must register him at the DHIC before registering your trade (effectiveness as of the trade
registration is an option), since you must submit a
confirmation from the DHIC on the employment
relationship to the trade authority.
7. Trade social insurance
All shareholders in an OEG/OHG and personally
liable shareholders in a KEG/KG (full partners)
must be insured with the Social Insurance Institute
for Trade and Commerce (SITC), where insured
persons must register within one month. The registration for the social insurance commission may
also be submitted electronically together with
registering your trade with the district administrative authority, which will then forward it to the
social insurance commission.
As of January 1, 2000, employed partners must
also be insured with the trade social insurance
commission if their income exceeds certain limits.
8. Revenue Office
Register your trade activity and apply for a tax
number for the shareholder(s) and the company
within the initial month of operation. The registration for the Revenue Office may also be submit-

71

ted electronically together with registering your

trade with the district administrative authority,
which will then forward it to the Revenue Office.
9. Community / City
Notify the community or city administration of
employees you have hired (for municipal tax purposes).

5.2.3. The 11 steps to founding a

GmbH
1. Consultation on founding, financing and legalities
- from the Business Start-Up Service or the technical departments at your chamber of commerce

NOTE!
If you are founding your company in Vienna,
you can save a lot of time dealing with official
matters by registering your trade online with
the Vienna Chamber of Commerce. Contact
their business start-up service on
Tel. (01) 514 50-1211 or 1347
or via e-mail at gruenderservice@wkw.at

2. Declaring the foundation of a new business or

the takeover of a business

managing director(s) and the assignment of

authority of representation (sole authorised signatories, perhaps together with executive signatories) unless such appointments and assignments
have already been set out in the companys articles of association. Here, the general shareholders meetings power to revoke managing director
appointments can be limited in the articles of
association so that the meeting may only exercise
the power on important grounds. The relevant
minutes can either be drawn up privately or be
certified by a notary public.
The managing directors (at least one) need not be
shareholders in the GmbH.
5. Bank confirmation
You will need a bank confirmation on the deposit
of the equity capital (minimum equity capital
amounts to 35,000.00, of which at least
17,500.00 must be paid in) into the companys
account, of which company management may
freely dispose.
6. Entry in the Company Register / application
for registration
The following documentation is required in addition to the certified Company Register entry (the
application itself must also be certified):

Certain levies, contributions and fees directly

connected with founding a new business or taking
over one (whether or not against payment) are not
collected, provided that you submit a declaration
on founding a new business or tasking over an
existing one on the forms provided (Neuf 1 for
new businesses, Neuf 3 for takeovers). Your
chamber of commerce must confirm your declaration. Generally, the Business Start-Up Service, the
technical groups and/or guilds and district offices
are the contacts, where you can also obtain the
official forms.

3. Articles of association
The founders (there may be only one) prepare the
articles of association, which must be drawn up in
the form of a notarial deed.
4. Shareholders resolutions
These resolutions concern the appointment of the

72

articles of association in the form of a notarial

deed
certified shareholders resolution on the
appointment of managing directors (certified
by a notary public or district court)
list of shareholders including their names,
dates of birth and usual residences and signed
by the managing director
list of managing directors including their
names, dates of birth and usual residences
bank confirmation
managing directors sample signatures (certified by a notary public or district court)
certificate of conformity from the Revenue
Office concerning fees and transaction taxes
(payment of company tax)

7. Trade registration
You must include the following documentation
with your trade registration:
extract from the Company Register
police clearance certificates and residence

registration forms from the country of origin

for managing directors authorised under trade
law and all shareholders with executive power
in company management if they are not resident in Austria or who have been resident in
Austria for less than five years
declaration that there are no reasons for disqualifying a trade due to circumstances involving insolvency or prior convictions as set out in
Art. 13 of the Trade Ordinance, viz. from all
persons with executive power (e.g. companymanaging shareholders, shareholders with
majority holdings, shareholders with minority
holdings but with special co-executive rights or
company-managing authority, etc.).

Managing directors authorised under trade law

must also submit:
a passport
social insurance commission confirmation on
the employees registration for at least 20
weekly hours (not required if the managing
director under trade law belongs to the executive organ appointed to represent the company
in public, i.e. if he is a managing director
under commercial law)
proof of qualification (e.g. masters or qualification certificate, school or work certificates)
or individual qualification acquired (except in
the case of trades not requiring a licence)
declaration from the managing director authorised under trade law on his employment in the
company (using the form provided)
The managing director under trade law and the
majority shareholders must not be disqualified
from practising the trade as defined in Art. 13 of
the Trade Ordinance.

8. District Health Insurance Commission (DHIC)

You must report employees to the competent DHIC
without delay after hiring them (commencement
of work).
If you employ a managing director under trade
law, you must register him at the DHIC before registering your trade (effectiveness as of the trade
registration is an option), since you must submit a
confirmation from the DHIC on the employment
relationship to the trade authority.
9. Trade social insurance
Unless the company-managing shareholders are
already covered under ASGV insurance (which is
substantially more expensive than GSVG insurance), they are to be registered with the Social
Insurance Institute for Trade and Commerce within
the first month of their activity. The registration
for the social insurance commission may also be
submitted electronically together with registering
your trade with the district administrative authority, which will then forward it to the social insurance commission.
10. Revenue Office
Register your trade activity and apply for a tax
number within the initial month of operation. The
registration for the Revenue Office may also be
submitted electronically together with registering
your trade with the district administrative authority, which will then forward it to the Revenue
Office.
11. Community / City
Notify the community or city administration of
employees you have hired (for municipal tax purposes).

73

5.3

The New Companies Promotion Act

This Act exempts both newly-founded companies

and company takeovers (whether against payment
or not) from various fees and charges, provided
that they are in line with certain stipulations.

5.3.1. Privileged new businesses

in the sense of NEUFG
A new business is defined as:

a commercial operation created by establishing

a previously non-existent business structure
and newly begun in the fields of trade, agriculture, forestry, or independent (freelance) practice
one whose owners* (the person[s] running the
businesss operation) have not worked in a
comparable manner (in a comparable branch of
business) either in Austria or abroad within the
last 15 years
one which is not merely new due to a change
in legal form
one whose owner has merely changed, whether
the takeover has been against payment or not
one whose business structure is not expanded
by extant businesses or independent business
division during the calendar month of new foundation and the 11 calendar months following

Prerequisites in the sense of NEUFG must continue for two years.

[Neugrndungs-Frderungsgesetz NEUFG]

* Definition of business owner:

Irrespective of any other special provisions which

may be set out in the articles of association, business owners (i.e. the principal managers) are
sole proprietors
unrestrictedly personally liable shareholders of
partnerships (e.g. shareholders in an
OHG/OEG, full partners in a KG/KEG)
not unrestrictedly personally liable shareholders in partnerships if they either hold at least
50% of the companys assets or if they hold more
than 25% of the companys assets and are additionally authorised to manage the company
(e.g. a partner in a KG/KEG holds 30% and is
additionally entrusted with managing the company)
shareholders in a KG (e.g. shareholders in a
stock corporation or GmbH) if they hold at
least 50% of the companys assets or if they
hold more than 25% of the companys assets
and are additionally authorised to manage the
company.

Note:
In order prevent misuse, during the first two
years following the foundation/takeover of a
business, business ownership may not pass over
to a person who was active in a comparable way
as a business owner in the last (within the foregoing 15 years). If this business ownership regulation is not complied with, the NEUFG benefits are retroactively forfeit and the business
owner must inform the authority concerned
without delay of this circumstance.

5.3.2. Privileged business takeover in the sense of NEUFG

A business takeover is defined as

a change of the businesss owner* with regard

to an already extant business (independent
business division) via transfer of the business
(whether against payment or not) and
one whose principal manager (the owner) has
not been operationally active in a comparable
and executive manner to date.
Prerequisites in the sense of NEUFG must continue for two years.

74

5.3.3. Privileges
Subject to the applicable stipulations, various
costs are not incurred in connection with founding
a new business or taking over one:
revenue-stamp fees and Federal administration
levies
on all writings and official actions directly connected with founding a new business/taking over
one.

These include:

reporting a trade requiring registration

application for individual qualification if statutory confirmation of qualification is lacking
acknowledgement and authorisation of management appointments
approval of the trade business facility
enclosures and certificates needed when filing
business-foundation information, as well as for
entitlements and official actions.

Writings and official actions primarily concerned

with founding a new business or taking over one
are not exempt from such charges if they are connected with

general personal qualification requirements

(e.g. masters examination certificates, citizenship certificates) or
general requirements in rem (e.g. application
for a building permit to construct a business
building, building negotiation records) or

legal transactions conducted in connection with

founding a new company or taking over one (e.g.
inventory contracts, loan and credit agreements).

exemption from property acquisition tax if

real estate is invested in a newly-founded business as a constitutional investment
Property acquisition tax is not collected on taxable procedures directly connected with the
takeover of a business unless their value determinant for calculating tax exceeds EUR
75,000.00.

court fees for entry in the Company Register

directly connected with the foundation of a
new business/takeover of a business.

court fees for entry in the Land Unit Register

(1%) for the acquisition of property based on
the articles of association directly connected
with the foundation of a new business (does
not apply to business takeovers), provided that
company rights or shares in the companys
assets are granted as quid pro quo.

Company tax (1%) for the acquisition of company rights directly connected with the foundation of a new business/takeover of a KG
(stock corporation, GmbH, GmbH & Co
KG/KEG).

Incidental wage costs (not applicable to

takeover of a business): the employer contributions into the family allowance fund (4.5%) due
for employees during the calendar month of
new foundation and the 11 calendar months
following, employers housing support contributions (0.5%), statutory accident insurance
premiums (1.4%) and the Chambers Levy 2
(between 0.36% and 0.46%), therefore totalling
6.86% maximum.

5.3.4. How to acquire exemptions

Applicants must fill in a declaration form (official
form Neuf 1 if they are founding a new business
and Neuf 3 if they are taking over one) and have
them confirmed by the legal professional representatives in order to acquire a subsidy or exemption. The NEUFG confirmations are carried out in
the chambers of commerce for the most part by
the Business Founder Service, the professional
groups and the district offices.
The Social Insurance Institute for Trade and Commerce is competent to certify if the business
owner cannot be allocated to a legal business representative.
See the following pages for sample forms.

75

E
L
P
M
A
S
You should fill out this form directly in the Business Start-up Service at your chamber of commerce.

76

Sehr geehrte Betriebsinhaberin ! Sehr geehrter Betriebsinhaber !

Zur Frderung der (entgeltlichen oder unentgeltlichen) bertragung eines Betriebes (Teilbetriebes) nach dem 31. Dezember 2001 werden
bestimmte Abgaben und Gebhren, die unmittelbar im Zusammenhang mit der (Teil-)Betriebsbertragung stehen, nicht erhoben. Fr die
Inanspruchnahme der Begnstigungen mssen Sie die folgende Erklrung unterschreiben und bei den jeweils in Betracht kommenden
Behrden (z.B. Finanzamt, Gericht, Bezirkshauptmannschaft, Magistrat, Landeshauptmann) bzw. Parteienvertretern (z.B. Notar bei
Selbstberechnung der Grunderwerbsteuer) vorlegen.

Erklrung der (Teil-)Betriebsbertragung

( 5a iVm 4 Neugrndungs-Frderungsgesetz)
Angaben zum Betrieb:
Name bzw. Firmenbezeichnung und Anschrift der Antragstellerin/
des Antragstellers

Zutreffendes bitte ankreuzen

Bei natrlichen Personen Angabe der Versicherungsnummer/
Geburtsdatum

Die folgenden Voraussetzungen fr die bertragung eines Betriebes (Teilbetriebes) liegen vor:
Es liegt ein Wechsel in der Person des Betriebsinhabers in Bezug auf einen bereits vorhandenen Betrieb (Teilbetrieb) auf Grund einer ent geltlichen oder unentgeltlichen bertragung des Betriebes (Teilbetriebes) vor.
Die nach der bertragung die Betriebsfhrung beherrschende Person (Betriebsinhaber) hat sich bisher nicht in vergleichbarer Art beherrschend betrieblich bettigt.

Der Kalendermonat der (Teil-)Betriebsbertragung ist (voraussichtlich) der Monat/Jahr

Kalendermonat der (Teil-) Betriebsbertragung

Jahr

Ich beanspruche, dass die folgenden Abgaben und Gebhren fr die unmittelbar durch die (Teil-)
Betriebsbertragung veranlassten Vorgnge nicht erhoben werden:

Stempelgebhren und Bundesverwaltungsabgaben

Gerichtsgebhren fr die Eintragungen in das Firmenbuch

Grunderwerbsteuer, soweit der fr die Berechnung der Grunderwerbsteuer anzusetzende Wert den Betrag von 75.000 Euro
nicht bersteigt.
Gerichtsgebhren fr die Eintragungen in das Grundbuch zum
Erwerb des Eigentums von Grundstcken

Gesellschaftsteuer fr den Erwerb von Gesellschaftsrechten

Diese Erklrung wird (voraussichtlich) bei folgenden Behrden vorgelegt werden:

An das Gericht

An die Bezirkshauptmannschaft

An den Magistrat

An das Finanzamt

An

Ich nehme zur Kenntnis, dass ich den betroffenen Behrden unverzglich mitzuteilen habe, wenn innerhalb von 5 Jahren folgende
Umstnde eintreten:
1. Der Betrieb oder wesentliche Grundlagen werden entgeltlich oder unentgeltlich bertragen
2. Der Betrieb oder wesentliche Grundlagen werden betriebsfremden Zwecken zugefhrt
3. Der Betrieb wird aufgegeben

Ich versichere, dass ich die Angaben nach bestem Wissen und Gewissen
r i c h t i g und v o l l s t n d i g gemacht habe. Mir ist bekannt, dass die
Angaben berprft werden und dass unrichtige oder unvollstndige
Angaben strafbar sind.

http://www.bmf.gv.at

An den Landeshauptmann fr

Datum, Unterschrift bzw. firmenmige Zeichnung

Besttigung der gesetzlichen Berufsvertretung/Sozialversicherungsanstalt der gewerblichen Wirtschaft ( 5 iVm 4 Abs. 3 NeuFG)
Die Erklrung der (Teil-)Betriebsbertragung wurde unter Inanspruchnahme der Beratung erstellt.
Gesetzliche Berufsvertretung bzw. Sozialversicherungsanstalt der gewerblichen Wirtschaft.
Bezeichnung und Anschrift

NeuF 3

Datum, Stempel und Unterschrift

Bundesministerium fr Finanzen

You should fill out this form directly in the Business Start-up Service at your chamber of commerce.

77

5.4

Index of key terms

Accounting
Advertising, types of

51 ff

Corporation tax

50

10

Cost calculating

51 ff

Current-account loan

AMS Business Founder

Programme

46

Association

35

Assortment policy

10

Authorisation of
business premises

26

AWS Austria
Wirtschaftsservice Co.

18

15

General business
partnership

30, 36, 37, 69 ff

General commercial
partnership
36, 37, 69 ff
Global (blanket) accounting 51

Damages, claim for

57

Goods, distribution of

10

Deficiency report

57

Guarantee

57

Direct marketing

10

Discount

16

Distribution policy

10

Health insurance

40 ff

Bank discussions

16

District Health Insurance

Commission
68 ff

Basis for premiums

41

Dormant partnership

38

Income tax

45, 49

Benefits in kind,
entitlement to

Double-entry bookkeeping

51

Insurance, compulsory

40, 43

42

Business concept

8, 62

Business Founder offices

Capital, acquiring
Capital, third-party
Capital requirements
Co-insurance

79

14 ff
15
12 ff
42

Collective bargaining
agreement

54

Communication policy

10

Company designation

36

Income-expense accounting 51

Insurance policies

Earning limits

45

Effective interest rate

16

Employees, finding new

53

Employing foreigners

55

Investment loan

15

Job vacancy, description of

53

Equity capital (own capital) 14

Leasing

15

Establishment designation
cf. Company Designation

36

Legal form

Evidence of qualification

21

Licence, trades not

requiring a

12

Financial plan

13

Founding bonus

18

Limited
partnership

Founding a business,
steps toward

68

Loan subsidy

Foreign trade

59

Location

Company under civil law 34, 37

Franchising

39

Competition clause
Contacts (founding/
takeover)

Freedom of establishment

24

Company name,
official
Company
Register

Contacts with the

authorities

78

28 ff
29 ff, 36
29 ff, 34

53
65 ff
65

Freedom to provide services 24

Freelance contract
for services

28 ff, 37 ff
21 ff

Limited business
partnership
31, 36, 37, 69 ff

Financing

Company form

60 f

Limited-liability
company
32, 36, 38, 71

17 ff
26

Managing director authorised

under trade law
22 ff
Marketing

54

37, 69 ff

Marketing mix

8
10

Marketing objectives

Marketing tools

10

Multiple insurance

44

Product liability

57 ff

Qualities, personal, for

entrepreneur

NEUFG
New entrepreneur
promotion scheme

Operating funds,

73

Regulated trades
17 ff

Representation

21

30, 32, 33, 34

12

Sales promotion

Organising offers

10

Sales tax

Overtime

53

Small-scale entrepreneur
regulation
41 ff

Partnership, founding a

28

11
48 ff

Small-sum regulation

Potential, entrepreneurial

47

Tax schedule

48

Terminating work
relationships

55

Time limitation

53

Trade authorisation

23

Trade authority

22

Trade law

20

Trade registration

requirement

Pension insurance

Tax number

Social insurance

31, 32, 33,

35, 40 ff, 54

Sole partnership 29, 36, 37, 68,

11

Subsidies

Premium basis, maximum

44

Supplier credit

17 ff, 45, 73
16

Premium basis, minimum 41, 45

Pricing

10

Taxes

Pricing policy

10

Tax consultant

Transfer of business

39

Trial period

53

Types of trades

20

Unemployment insurance

42

Warranty

57

49

40 ff

PR (Public Relations)

68, 70, 71

47 ff

Work contract

53, 54

Work relationship

53

Worker protection

55

47

79

5.5

Your Business Start-Up Service offices throughout Austria

VIENNA
Business Founder Service,
Vienna Chamber of Commerce
Stubenring 8-10, 1010 Vienna
Tel.: 01/514 50-1347
Fax: 01/514 50-1491
e-mail: gruenderservice@wkw.at

VORARLBERG
Business Founder Service,
Vorarlberg Chamber of Commerce
Wichnergasse 9, 6800 Feldkirch
Tel.: 05522/305-1144
Fax: 05522/305-108
e-mail: gruender.service@wkv.at

LOWER AUSTRIA
Business Founder Service,
Lower Austrian Chamber of Commerce
Landsbergerstrasse 1, 3100 St. Plten
Tel. 02742/851 17700
Fax: 02742/851 17199
e-mail: gruender@wknoe.at

BURGENLAND
Business Founder Service,
Burgenland Chamber of Commerce
Robert-Graf-Platz 1, 7001 Eisenstadt
Tel.: 05 90 907-2210
Fax: 05 90 907-2015
e-mail: maria.eberhard@wkbgld.at

UPPER AUSTRIA
Business Founder Service,
Upper Austrian Chamber of Commerce
Hessenplatz 3, 4020 Linz
Tel.: 05 90 909
Fax: 05 90 909-2800
e-mail: service@wkooe.at

STYRIA
Business Founder Service,
Styria Chamber of Commerce
Krblergasse 111-113, 8021 Graz
Tel.: 0316/601-600
Fax: 0316/601-1202
e-mail: gs@wkstmk.at

SALZBURG
Business Founder Service,
Salzburg Chamber of Commerce
Julius-Raab-Platz 1, 5027 Salzburg
Tel.: 0662/88 88-541
Fax: 0662/88 88-188
e-mail: gs@wks.at

CARINTHIA
Business Founder Service,
Carinthia Chamber of Commerce
Europaplatz 1, 9021 Klagenfurt
Tel.: 05 90 904-730
Fax: 05 90 904-734
e-mail: gruenderservice@wkk.or.at

TYROL
Service Point, Tyrol Chamber of Commerce
Business-Founding Consultation
Meinhardstrae 14, 6021 Innsbruck
Tel.: 05 90 905-2222
Fax: 05 90 905-1385
e-mail: gs@wktirol.at

80