Question

What is the procedure to start up a company is Austria. What are the tax advantages for a person who is the not a citizen of Austria..Disadvantages if any.

Need a ESSAY of 6,500 words.ASAP.

Clear explanation.Do not copy please.and take care of word count.

Answer 1

1. Business Factors

   In 2015 Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the paid in minimum capital requirement, and by lowering notary fees.

   Austria’s competitive advantages rely on one hand on its economic, political and labor stability and, on the other hand, on a highly skilled workforce and its well-established business ties to Central and Eastern Europe. Secondly, Austria has a competitive tax system that provides a competitive corporate income tax rate due to several tax reliefs in comparison to other countries. Furthermore, companies with subsidiaries can benefit from the group taxation provisions in relocating operations to Austria (i.e. establishing headquarters).

2. Cultural Factors

   Austrians do not need a personal relationship in order to do business and their behaviour in public is generally reserved, direct and formal. On a different note, there is small talk in the office as Austrians are serious and focused on accomplishing their business objectives/goals.

It is allowed to set up a business in Austria, provided they it is necessary to be citizens of the EU, the EEA, Switzerland, or to hold an Austrian residence permit. In any case, it is mandatory to apply for a trade license. This can be accomplished at the local authority (municipal or district council, Magistrat or Bezirkshauptmannschaft).

A number of different types of legal business structures can be registered in Austria, namely:

• Limited liability companies
• Public Companies
• Partnerships
• Foreign branches

Each of these business forms has distinct advantages and disadvantages, as well as differing scope of business activities, registration requirements and minimum capital requirements. In most cases it will depend on the degree of commitment a company has to Austria and the planned business activity.

Whether to incorporate in Austria, and what sort of entity to setup are just two of the many choices companies must make when expanding into a new market.

If the company intends to have staff in Austria they must also decide whether they will administer that employment internally or use a Global Employment Organization to handle payroll and Employer of Record responsibilities. A GEO Employer of Record solution is an attractive alternative where

– the company is looking to setup an office quickly

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Austria

– the company needs help with tax, employment, immigration and payroll compliance in Austria

The complexity of employment regulations in Austria makes the use of a GEO advisable coupled with local legal counsel to ensure full compliance with employment laws, for example the drafting of local contracts for workers.

Shield GEO provides a comprehensive service in Austria allowing companies to deploy their staff quickly with reasonable, clearly stated costs and timeframes. The company contracts directly with Shield to employ and payroll their staff on their behalf in Austria.

Shield GEO then becomes the Employer of Record. Shield GEO assumes the legal responsibility for these employees, sponsoring them on work permits, complying with local employment law and running their monthly payroll. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Austria. Read more about outsourced employment through Shield GEO.