Ease of setting up a company

The start-up scene in Austria has been waiting for this for a long time, now Minister of Justice Alma Zadic (Greens) and Minister of Finance Magnus Brunner (ÖVP) presented a draft law to change company law today, Thursday. The core: To the initial phase of startups to support, a “flexible corporation” (FlexKap) will be created as a new legal form. Here the minimum share capital is 10,000 euros instead of 35,000 as in a limited liability company. This reduces the minimum corporation tax – five percent of the share capital per year – by around two thirds or 1250 euros per year. The Treasury estimates that all startups together save 50 million euros a year.

The changes apply to start-ups with a maximum annual turnover of 40 million euros and a maximum of 100 employees from 1.1. 2024

The participation of the employees in the company should also be made easier, because start-ups can usually not pay such good salaries and share and thus profit sharing are considered an attractive compensation and motivation for the teams. Currently, when the shares are transferred, there is already a tax liability, although no money is flowing yet. In the future, tax liability will only arise when the shares are sold (within ten years). Taxes are only paid when money is flowing.

It is hoped that this will result in a higher number of start-ups. “Also so that the young people who are bubbling with ideas can better face the biggest challenge, the climate crisis, and thus make the economy greener,” says Zadic. And adds that it makes her personally very proud that the draft law that has now been sent for review is the first in Austria to be written in the female form. Men, like women, are also included.