Start Your Own Business in Austria
Self-employment is the starting point. When you are ready to protect your personal assets, bring on partners, or unlock tax advantages, it may be time to form a company in Austria.
HustleHub AI provides general information only, not tax, legal, or financial advice. Austrian tax and business rules may vary by Bundesland and profession. Always check official guidance from BMF or WKO, or speak to a qualified Steuerberater.
From side hustle to business owner
Many successful businesses start as side hustles. The typical progression in Austria:
Side activity (Nebenjob)
Self-employed alongside employment. Often as Neue Selbstständige or with a Gewerbe.
Einzelunternehmen
Full-time sole proprietorship. Gewerbeschein if required. SVS insurance. Personal liability.
GmbH
Private limited company. Separate legal entity. Limited liability. Körperschaftsteuer 23%.
Not everyone needs to progress to step 3. Many self-employed people stay that way permanently and do very well.
Business structures compared
| Feature | Einzelunternehmen | GmbH (Standard) | GmbH (Gründungsprivilegiert) |
|---|---|---|---|
| Setup | Gewerbeschein (~€50-100) + Finanzamt | Notary + Firmenbuch (€2,000-€5,000) | Notary + Firmenbuch (reduced costs) |
| Minimum capital | None | €35,000 (€17,500 paid in) | €10,000 (€5,000 paid in) for first 10 years |
| Liability | Personal (unlimited) | Limited to company assets | Limited to company assets |
| Tax | Einkommensteuer 0-55% | Körperschaftsteuer 23% + personal tax on salary/dividends | Körperschaftsteuer 23% + personal tax |
| Admin | E/A-Rechnung or double-entry | Full double-entry + annual financial statements + Firmenbuch publication | Same as standard GmbH |
| Best for | Solo operators, low-to-moderate income | Established businesses, liability protection | Startups wanting limited liability at lower cost |
This is a simplified comparison. The right structure depends on your income, risk, and growth plans. Always consult a qualified professional.
When to stay solo vs form a company
Stay self-employed when...
- Your income is moderate and the Einkommensteuer rate is acceptable
- You want minimal setup costs and administration
- You are testing a business idea
- You are a Neue Selbstständige with low liability risk
Consider a GmbH when...
- You want personal liability protection
- Your profit is high enough that Körperschaftsteuer 23% is more efficient
- You want to bring in partners or investors
- Clients or contracts require a Kapitalgesellschaft
How to form a company in Austria
- Choose a company name and check availability at Firmenbuch
- Draft the Gesellschaftsvertrag (articles of association)
- Execute the incorporation deed before a notary (Notar)
- Open a bank account and deposit minimum share capital
- Register at the Firmenbuch (Commercial Register)
- Register with the Finanzamt and get a Steuernummer
- Register a Gewerbe if applicable
- Register managing directors with SVS or ASVG
- Set up double-entry bookkeeping
- File annual financial statements with Firmenbuch
Austria offers a gründungsprivilegierte GmbH with reduced minimum capital (€10,000 instead of €35,000) for the first 10 years, making it more accessible for startups. The WKO Gründerservice provides free startup advice and workshops. Austria's Körperschaftsteuer rate was reduced to 23% (from 25%), making the GmbH more attractive for profitable businesses.
HustleHub AI opportunities that can become businesses
Freelancing
Writing, design, dev, marketing
E-Commerce
Online selling and reselling
Local Services
Cleaning, handyman, services
Teaching & Tutoring
Coaching and education
Content Creation
YouTube, podcasting, writing
Launch Your Hustle
Build tools and comparisons
Austria SE Guide
Self-employment basics
Trending
Most popular right now
Austria
All Austria listings
HustleHub AI provides general information only, not tax, legal, or financial advice. Austrian tax and business rules may vary by Bundesland and profession. Always check official guidance from BMF or WKO, or speak to a qualified Steuerberater.