{"id":129,"date":"2022-12-22T10:04:27","date_gmt":"2022-12-22T10:04:27","guid":{"rendered":"https:\/\/companyformationaustria.com\/?p=129"},"modified":"2023-05-17T00:51:33","modified_gmt":"2023-05-17T00:51:33","slug":"company-act-in-austria","status":"publish","type":"post","link":"https:\/\/companyformationaustria.com\/company-act-in-austria\/","title":{"rendered":"Company Act in Austria"},"content":{"rendered":"\n<p><strong>The Company Act in Austria<\/strong>&nbsp;is based on the&nbsp;<strong>Austrian Commercial Code<\/strong>, the Austrian Trade Law 1994, the New Companies Promotion Act, the Commercial Register Act and the Federal Law on Special Assistance for Small and Medium-sized Enterprises. All these texts of legislation regulate the&nbsp;incorporation,<strong>&nbsp;registration and&nbsp;<a href=\"https:\/\/www.companyformationaustria.com\/why-open-a-company-in-austria\">running of a company in Austria<\/a><\/strong>, therefore it might seem that the&nbsp;<strong>Austrian Company Act<\/strong>&nbsp;is a bit strict.<\/p>\n\n\n\n<p>As a matter of fact,&nbsp;<strong>the Company Act in Austria<\/strong>&nbsp;is quite flexible to a certain extent.&nbsp; Some requirements are also mentioned in the&nbsp;<strong>Austrian Corporate Governance Code<\/strong>. Nevertheless, it is the duty of any foreign investor to find out all aspects about the different&nbsp;types of companies&nbsp;that can be&nbsp;<strong>set up on Austria<\/strong>&nbsp;in order to decide which structure is the best for his own objectives.<\/p>\n\n\n\n<p>Our&nbsp;<strong><a href=\"https:\/\/www.companyformationaustria.com\/about-us\">company formation agents in Austria<\/a><\/strong>&nbsp;can offer more information on the&nbsp;<strong>Company Law<\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationaustria.com\/company-act-in-austria\/#other-laws-providing-for-the-registration-of-an-austrian-company\" title=\"Other laws providing for the registration of an Austrian company\">Other laws providing for the registration of an Austrian company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationaustria.com\/company-act-in-austria\/#types-of-austrian-companies\" title=\"Types of Austrian companies\">Types of Austrian companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyformationaustria.com\/company-act-in-austria\/#choosing-a-company-name-in-austria\" title=\"Choosing a company name in Austria\">Choosing a company name in Austria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/companyformationaustria.com\/company-act-in-austria\/#company-management-in-austria\" title=\"Company management in Austria\">Company management in Austria<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"other-laws-providing-for-the-registration-of-an-austrian-company\"><\/span><strong>Other laws providing for the registration of an Austrian company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Apart from the&nbsp;<strong>Company Law<\/strong>,&nbsp;<strong><a href=\"https:\/\/www.companyformationaustria.com\/company-types-austria\">commercial entities in Austria<\/a><\/strong>&nbsp;are also governed by:<\/p>\n\n\n\n<ol>\n<li>&nbsp; &nbsp; The Limited Liability Company Law which covers the registration of this type of business form;<\/li>\n\n\n\n<li>&nbsp; &nbsp; The Capital Adjustment Law which provides for the share capital requirements and alterations for companies;<\/li>\n\n\n\n<li>&nbsp; &nbsp; The Company Reorganization Law which provides for companies undergoing restructuring;<\/li>\n\n\n\n<li>&nbsp; &nbsp; The Law related to Splitting Companies which provides for mergers and acquisitions;<\/li>\n\n\n\n<li>&nbsp; &nbsp; The Capital Replacement Law and the Business Code are two other main laws.<\/li>\n<\/ol>\n\n\n\n<p>There are several business forms available for registration under the&nbsp;<strong>Austrian Company Act<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"types-of-austrian-companies\"><\/span><strong>Types of Austrian companies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The Company Act in Austria&nbsp;<\/strong>mentions a wide range of companies that can be established in Austria, such as:<\/p>\n\n\n\n<ul>\n<li>&#8211; the&nbsp;<strong><a href=\"https:\/\/www.companyformationaustria.com\/gmbh-registration-austria\">limited liability company<\/a><\/strong>&nbsp;(<strong>GmbH<\/strong>);<\/li>\n\n\n\n<li>&#8211; the public limited company or joint stock company (AG);<\/li>\n\n\n\n<li>&#8211; five types of partnerships.<\/li>\n<\/ul>\n\n\n\n<p>The&nbsp;<strong>partnerships&nbsp;<\/strong>are divided as follows:<\/p>\n\n\n\n<ul>\n<li>&#8211; non-trading partnership (GesbR),<\/li>\n\n\n\n<li>&#8211; general partnership (OG),<\/li>\n\n\n\n<li>&#8211; limited partnership (<strong>KG<\/strong>),<\/li>\n\n\n\n<li>&#8211; silent partnership (<strong>StG<\/strong>),<\/li>\n\n\n\n<li>&#8211; limited partnership with a limited liability company as general partner (<strong>GesmbH&amp;Co.KG<\/strong>).<\/li>\n<\/ul>\n\n\n\n<p>The Labor Law is strongly linked to the&nbsp;<strong>Company Act in Austria<\/strong>. It is mentioned in the text of the law that employers are the one responsible for&nbsp;<strong><a href=\"https:\/\/www.companyformationaustria.com\/workforce-in-austria\">registration of the employees<\/a><\/strong>&nbsp;with the social security system. Employment contracts are also regulated by the Labor Law in Austria. Foreign employees need a work permit that is usually obtained by the employer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"choosing-a-company-name-in-austria\"><\/span><strong>Choosing a company name in Austria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The Company Act in Austria<\/strong>&nbsp;stipulates some conditions regarding the&nbsp;<strong>name of a company in Austria<\/strong>. It is mandatory that the name comes from the activity of the company or it must be related to the names of the shareholders. It is also compulsory that the name of the company is audited by the&nbsp;<strong><a href=\"https:\/\/www.companyformationaustria.com\/register-company-austria\">Chamber of Commerce in Austria<\/a><\/strong>. Sometimes, the authorities can decide to change it or bring modifications, such as including the words \u201cAustria\u201d or \u201c\u00d6sterreich\u201d. The name of the company in Austria has to be unique, according to&nbsp;<strong>the Company Act in Austria<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"company-management-in-austria\"><\/span><strong>Company management in Austria<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Another key requirement related to&nbsp;<strong><a href=\"https:\/\/www.companyformationaustria.com\/open-a-travel-agency-in-austria\">opening a company in Austria<\/a><\/strong>&nbsp;is the appointment of company directors or managers. The&nbsp;<strong>Company Law<\/strong>&nbsp;provides for the following management structures for a company:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; an Austrian company must have at least one managing director;<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the case of a public company, a supervisory board is required;<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the shareholders can also participate in the decision-making procedures;<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; there are no specific requirements related to the citizenship of company directors.<\/li>\n<\/ul>\n\n\n\n<p>If you need more details about the&nbsp;<strong>Company Act<\/strong>&nbsp;or any other issues related to&nbsp;<strong>company formation in Austria<\/strong>, don&#8217;t hesitate to&nbsp;<strong><a href=\"http:\/\/companyformationaustria.com\/contact\">contact us<\/a><\/strong><a href=\"http:\/\/www.companyformationaustria.com\/contact\">.<\/a>&nbsp;We can also help you obtain&nbsp;<a href=\"https:\/\/www.companyformationaustria.com\/residence-permit-for-investments-in-austria\">residency by investment in Austria<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Company Act in Austria&nbsp;is based on the&nbsp;Austrian Commercial Code, the Austrian Trade Law 1994, the New Companies Promotion Act, the Commercial Register Act and the Federal Law on Special Assistance for Small and Medium-sized Enterprises. All these texts of legislation regulate the&nbsp;incorporation,&nbsp;registration and&nbsp;running of a company in Austria, therefore it might seem that the&nbsp;Austrian [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":92,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[22,8,9],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Company Act in Austria<\/title>\n<meta name=\"description\" content=\"Company Act, the main law that regulates the incorporation and activities performed by different types of companies in Austria.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/companyformationaustria.com\/company-act-in-austria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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