The Austrian government is keen on assisting startup companies which is why it has recently launched a fund which will help these enterprises when hiring their first employees. The new scheme is called the ancillary wage costs fund and is comprised in the Startup Package which was launched a while back. Our Austrian company formation agents can offer more information on the programs developed by the government with the aim of supporting small and medium-sized enterprises (SMEs).
At the beginning of 2017, the Austrian government pledged to offer more support to SMEs with a focus on startups. If medium-sized companies in Austria needed support in using advanced technologies and received a boost to the research premium, analysts found startups to need support in hiring employees which is how the new 100 million euros ancillary wage costs fund was enabled. Innovative startups are expected to benefit the most from the new program. At this moment, the number of such companies is estimated at 1,500 and calculations show that each of them will receive financial support worth 125,000 euros. The government hopes to help with the creation of 3,000 jobs on an annual basis. The support will be available for a three-year period. The funding will be reduced by 1/3 every year in order to avoid “sudden expenditures”, according to officials.
Our company registration consultants can assist foreign investors seeking to open a company in Austria.
Innovative companies in Austria are the main target of the Startup Package which includes the ancillary wage costs fund, however it is not limited to them alone. Companies must not be operating for more than five years and must have their registered address in Austria or at least a facility in the country in order to benefit from support. Also, startups with more than ten employees must register a 10% growth in terms of workforce in the three-year timespan after being funded. Startups with less than ten employees must create five jobs in the same timeframe.
It is very easy to verify the qualification criteria as each company can take a self-test and see if they can go further with the application.
For assistance in starting an innovative company in this country, please feel free to contact our company formation representatives in Austria.