| Quick Facts | |
|---|---|
| Applicable legislation | For foreign countries |
Best used for | Highly regulated activities, such as banking, insurance, financial operations |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Approx. 7 weeks |
| Management | Local for non-EU and non-EEA companies |
| Legal representative required | Yes, for non-EU and non-EEA enterprises |
| Local bank account | Yes, but not mandatory |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office’s debt and obligations |
| Corporate tax rate | 23% on profits obtained in Austria |
| Possibility of hiring local staff | Yes |
Table of Contents
Which services do you offer to establish a branch in Austria in 2026?
We are able to help foreign businesses with the whole process of establishment and first compliance steps of the Austrian branch. Our services include:
- evaluation if the branch office is appropriate for the intended activities of the company in Austria;
- preparation and coordination of the registration documents of the branch;
- notarization and German translation of corporate documents of the foreign entity;
- help with Companies Register application;
- help with nomination and registration of the branch office representative;
- organization of the registered address in Austria;
- help with registration of trade license (if required);
- coordination of tax registration and VAT-related matters;
- help with social security and employment registrations;
- ongoing accounting, taxation and corporate compliance;
- help with further changes in the registration data of the branch;
- deregistration of the branch in case of discontinuation of activities in Austria.
Which are the characteristics of Austrian branch offices in 2026?
In order to be considered a branch office, a company registered under the Austrian Company Law must:
- be a permanent establishment and represent the interests of a foreign company in Austria;
- depend on the parent company when it comes to the activities it undertakes in Austria;
- bear the same name as the parent company and be registered with the Austrian Trade Register;
- foreign companies outside the EU and EEA must appoint a local representative for their branches.
What are the documents needed for opening a branch office in Austria in 2026?
Before starting any commercial activities, the parent company’s representatives must submit at the Companies Register specific documents notarized and translated into German:
- a copy of the foreign company’s registration certificate, issued by the Trade Register in its home country;
- the articles of incorporation or the memorandum of association of the branch office;
- the certificate of good standing of the foreign company, issued by the Trade Register;
- the minutes of the management board’s meeting presenting the decision of opening a branch;
- the address of the branch’s registered office in the Austrian city where it will operate;
- the branch’s representative (not necessarily an Austrian resident).
We invite you to watch a video about the Austrian branch:
How branch taxation in Austria works?
We remind interested foreign companies in opening a branch in Austria that the main taxes for companies applicable in 2026 (which also apply to branches) are the following:
- 23%: the corporate income tax rate;
- 24% withholding tax on dividends (unless the company receiving the dividend payment holds at least 10% of the shares of the company distributing the dividends); a different rate applies to dividend payments to resident individuals;
- 20% value-added tax; reduced rates of 10% and 13% also apply, and some types of goods and services are subject to 0% (such as exports);
- social security contributions, given the fact that the branch will have employees in Austria; these can vary, however, the employer’s contribution can amount to 21.03% of the salary paid to the employee, up to a certain monthly cap.
What needs to be done after the registration of the branch in Austria?
Registration at the Companies Register is only one of the procedures required for the operation of a branch in Austria . After the Austrian branch starts operating, there may be other administrative measures to consider:
- Tax registration: the Austrian tax authorities have to be informed about the activities and address of the branch within a month of the start of activities.
- VAT registration: the foreign company with its premises in Austria has to consider registering for Austrian VAT and get the Austrian tax number/VAT number.
- Trade registration: the branch has to have trade authorization for those activities which are regulated by the Gewerbeordnung.
- Social insurance: if the branch hires employees in Austria, corresponding social insurance registrations have to be done.
- Accounting & taxation: the branch has to keep records which are required to determine its tax liability in Austria.
How does an Austrian branch differ from a subsidiary?
There are several implications of this classification between a branch and a subsidiary:
- there is no need to create a new company in Austria;
- there is no severance of the legal tie to the foreign parent company;
- it will be possible for the branch to function as an organisational unit of the foreign company;
- the activities and representation of the branch will be tied to the legal personality of the foreign company;
- one needs to take into account the risks of liability.
For more information about opening a branch, you may contact our specialists in company formation in Austria.