Company Formation in Vienna: GmbH, UG & Sole Trader – All Legal Forms

From choosing your legal form and notary appointment to trade licence and commercial register (Firmenbuch): we guide your company formation in Vienna – including a registered business address in 1010 and consulting in English and German. €0 setup – paid annually.

Request formation consulting Business address overview

Company Formation in Vienna – How to Get Started

Austria is one of the most business-friendly countries in Europe: trade licences are filed electronically, the commercial register is fully digitalised, and a limited company can be incorporated within a few weeks. For founders in Vienna, the first strategic decision is the most important one: which legal form fits your venture? The answer depends on three factors – liability, capital requirements and administrative burden.

As Mergus GmbH, based at Am Gestade 3 in Vienna's 1st district, we accompany founders through the entire process – from the choice of legal form and notarial deed to the commercial register entry and trade licence application. Beyond consulting, you receive the right registered seat for your new company with our fully registered business address.

Legal Forms Compared: GmbH, UG & Sole Trader

GmbH (Ltd.)

Share capital from €35,000 (€17,500 in cash)
Liability limited to company assets
Notary + commercial register required
Corporate income tax 23%

UG (limited)

Share capital from €1 possible
Reserve: 5% of profits up to €10,000
Notary + commercial register required
Ideal startup legal form

Sole trader

No minimum capital required
Unlimited liability (incl. private assets)
Trade licence only, no register entry
Income tax, low administrative burden

Beyond these three most common forms, partnerships (OG, KG) serve specific structures, and since 1 January 2024 the Flexible Kapitalgesellschaft (FlexCo) offers a GmbH variant with a minimum share capital of €10,000 and simplified rules for employee participation. We help you identify the form that best matches your business model.

The GmbH – Austria's Classic Limited Company

The GmbH is the standard legal form for companies that want to signal professionalism and limit personal liability. The minimum share capital is €35,000; for a cash formation, at least half (€17,500) must be paid in immediately, while the remainder may be contributed as in-kind contributions (e.g. equipment, software, receivables).

Formation requires a notarised deed of incorporation or articles of association. The company is then entered into the commercial register (Firmenbuch) and acquires legal personality upon entry. Shareholders are liable only up to their contributions; management is exercised by one or more managing directors, who may also be external appointees. Profits are taxed at a corporate income tax rate of 23%, and the company must prepare annual financial statements.

The UG (haftungsbeschränkt) – Starting with as Little as €1

The Unternehmergesellschaft is the "small GmbH" for founders with limited start-up capital. It can be incorporated with a share capital of €1 and offers the same liability protection as the GmbH. As a balancing requirement, Austrian law obliges the UG to retain 5% of annual profits until the share capital reaches €10,000.

Important: in-kind contributions are not permitted for a UG – capital must be paid in cash. The company name must include the suffix "Unternehmergesellschaft (haftungsbeschränkt)" or "UG (haftungsbeschränkt)". Once the business has grown, the UG can be converted into a GmbH tax-neutrally – a step we gladly prepare for our clients.

The Sole Trader – The Uncomplicated Way In

A sole proprietorship is the fastest and most cost-effective form of self-employment in Austria. There are no capital requirements and no commercial register obligation – for free trades, a trade licence application to the competent authority is sufficient. The price for this simplicity is unlimited liability: your private assets answer for business debts.

Austrian trade law distinguishes between free trades (no proof of qualification required; e.g. retail, IT services, consulting) and regulated trades (proof of qualification required; e.g. hospitality, master builders, hairdressing). Sole traders pay progressive income tax on profits and may use simplified cash-basis accounting up to €700,000 in annual turnover – a considerable advantage over the full accounting obligations of a GmbH.

The Administrative Route Step by Step

The path to your own company in Vienna runs through clearly defined stages:

Check and reserve the company name: The commercial register is searched to verify availability and legal compliance of the proposed name.
Choose the legal form and draft the deed: For GmbH and UG, the deed of incorporation or articles of association must be notarised.
Pay in the share capital: Capital is deposited into a bank account; the bank confirmation is attached to the registration.
Commercial register entry: The application is filed electronically with the Commercial Court of Vienna by a notary, attorney or tax adviser.
Trade licence: Filed electronically via the Unternehmensserviceportal (USP) or directly with the municipal district office; no qualification proof is needed for free trades.
Tax office: After registration you receive your tax number; a VAT number (UID) is issued on request for EU-wide trade.
Social security: Managing directors and sole traders register with the SVS (Austrian social insurance for self-employed persons).

Notary & Commercial Register – What You Need to Know

The notary plays a central role in forming a capital company: he or she notarises the deed of incorporation, certifies signatures and files the registration with the commercial register. The registration fee is calculated on the share capital at 1% (minimum approx. €34, maximum approx. €1,050) plus ancillary charges.

The commercial register in Vienna is maintained by the Commercial Court and is fully electronic. The company comes into existence on the day of entry – only from that moment may it engage in legal transactions (beyond preparatory acts). Including publication, the entire process typically takes one to two weeks.

Costs & Timeline of Company Formation in Vienna

GmbH: notary, court fees and ancillary costs – typically €2,000 to €3,500 in total; timeline approx. 1 to 3 weeks.
UG: thanks to the low share capital, often below €1,500; usually 1 to 2 weeks.
Sole trader: only the modest administrative fee for the trade licence; operational within a few days.

The figures above are benchmarks for public fees (notary, court, publication). Our formation consulting itself is included in the annual package – you pay no hidden extras.

The Right Seat: Business Address 1010 Vienna

GmbH and UG require a domestic business address as the registered seat of the company; your website's legal notice must also list a fully registered address. Our business address at Am Gestade 3, 1010 Vienna is suitable for the commercial register entry, the trade licence application and official deliveries (RSb) – while keeping your private address protected.

For international founders we provide consulting in English and German and support special topics such as GDPR representation (Art. 27 GDPR) for companies outside the EU. Further details are available on our business address in Vienna page.

The Founder Package – Business Address with Consulting Included

For founders

€1,000 net/year

Annual package · Paid annually · Valid for 12 months · No setup fee

Registered business address, 1010 Vienna
Commercial register (Firmenbuch) possible
Formation consulting EN/DE included
Mail reception + digital scan service
RSb official mail accepted

Request consulting

Transparent costs instead of "from €49" teaser pricing: our annual price is clear and consulting is included.

Frequently Asked Questions about Company Formation in Vienna

Which legal form suits me best?

It depends on liability, capital and administrative burden: choose a GmbH or UG to protect your private assets; choose a sole proprietorship to start quickly and cost-effectively. We advise you personally on the decision.

How much capital do I need for a GmbH?

The minimum share capital is €35,000, of which at least €17,500 must be paid in cash for a cash formation. The remainder may be contributed in kind. A UG can be formed with as little as €1.

What does forming a GmbH in Vienna cost?

Budget €2,000 to €3,500 in total for notary, court fees and publication. A UG is usually cheaper due to the low capital; a sole proprietorship costs only the modest administrative fee.

How long does company formation take?

A sole proprietorship is operational within days, a UG usually in 1 to 2 weeks, and a GmbH with cash formation in about 1 to 3 weeks – depending on notary appointment and bank confirmation.

Is a notary mandatory?

Yes, for GmbH and UG the deed of incorporation or articles of association must be notarised by law. A sole proprietorship does not require a notary.

What is the difference between a UG and a GmbH?

The UG is a GmbH variant with a lower minimum share capital (from €1 instead of €35,000) but a statutory reserve obligation of 5% of profits until €10,000 is reached. In-kind contributions are not permitted for a UG.

Can a foreigner form a company in Austria?

Yes. EU citizens may form companies under the same conditions as Austrian residents; third-country nationals must meet residence and trade requirements depending on the activity. We consult in English and German and support GDPR representation under Art. 27 GDPR.

Do I need a trade licence?

Anyone pursuing a commercial activity in Austria needs a trade licence, regardless of the legal form. Free trades require no proof of qualification; regulated trades do. The application is filed electronically via the USP.

Can I use your business address as the registered seat?

Yes. Our fully registered address at Am Gestade 3, 1010 Vienna is suitable for the commercial register entry, the trade licence and the legal notice – including mail reception and RSb official mail.