When you’re ready to expand to Austria, you have to set up a subsidiary to legally operate in the country. Incorporating in Austria is the first step you need to take before you can handle your payroll, hire employees, and give out compensation and benefits. However, it can take weeks or months to incorporate fully, and the process can draw your attention away from your parent company.
Globalization Partners understands the complications of an expansion. We offer Austria subsidiary outsourcing services to help make your growth into Austria easier. As a global PEO, we’re experts in Austria subsidiary laws, and we’ll use our existing subsidiary to help you start working in just a few days.
How to Set Up an Austria Subsidiary
Learning how to set up an Austrian subsidiary should start with some considerations about how and where you want to operate. Austria’s subsidiary laws can vary by city or region and make it either easy or difficult to incorporate. If you’re not sure what area is best for you, we recommend working with a consultant or lawyer who can recommend a good physical office space.
The Austria subsidiary setup process also hinges on what type of entity you choose to incorporate as. You can incorporate as a limited liability company (LLC), public company, partnership, or foreign branch. The entity you choose will impact what kind of activity you can perform in Austria. Most companies incorporate as an LLC because the structure can benefit both the subsidiary and your parent company.
Setting up your Austria subsidiary as an LLC will include the following steps:
- Obtaining confirmation from the Economic Chamber that your start-up company is really a new enterprise
- Notarizing your statutes and articles of association or the declaration of establishment
- Depositing your minimum capital requirement at the bank
- Registering your company at the local court
- Obtaining a VAT number
- Registering trade with the trade authority
- Registering your employees for social security
- Registering with the municipality
Austria Subsidiary Laws
Austria’s subsidiary laws require you obtain a trade license, then another license to pay resident employees. You can apply for your trade license locally at the municipal court or with a district management team. LLCs also need an Austrian bank account so that they can pay employees — this step typically takes four weeks to complete.
Keep in mind that Austria’s subsidiary laws vary based on the entity you choose. It can take anywhere from a few weeks to a few months to register, and you’ll also need to hire people who understand human resources, taxation, employment compliance, and more.
Benefits of Setting Up a Austria Subsidiary
Going through the Austria subsidiary setup process will help you start working in the country and get you started with hiring employees, choosing a payroll option, and giving out compensation and benefits. Choosing a limited liability structure will also protect your parent company from any costly litigation and allow your subsidiary to use a company culture that fits Austria’s culture.
Your company can realize more benefits faster through Austria subsidiary outsourcing. Globalization Partners offers this service to our customers looking to expand without establishing a subsidiary first. As the Employer of Record, we can hire employees who work on your behalf and take the stress of compliance off your shoulders and onto our own.
Other Important Considerations
If you decide to learn how to set up your Austria subsidiary alone, we recommend working with an expert in the country’s subsidiary laws, such as a consultant or lawyer. If not, you should designate a current employee or company executive to learn all these laws so that you can stay compliant.
It’s also a good idea to work with your accounting department to set aside the overall costs of incorporation. Many steps in the process also involve fees, and we recommend budgeting for these fees ahead of time. You can also work on clearing your schedule so that you’re available to travel to Austria if need be. If you’re too busy handling operations at your parent company, choose another company executive who’s available for the process.
Let Globalization Partners Help With Your Expansion
Globalization Partners wants to help companies like yours enjoy an easy expansion to Austria. Contact us today to learn more about Austria subsidiary outsourcing.