Austria is considered one of the most attractive countries for setting up a holding company. Moreover, Austria is considered by many foreign investors “the ideal holding company location” because of the tax advantages this type of structure offers. Among the benefits an Austrian holding company offers refer to taxation.
Our company registration agents in Austria can offer a detailed definition of the holding company and the purposes it is established for.
The holding company falls under the Austrian Commercial Code as it can take one of the following forms:
No matter the type of entity one wants to use, they must have the articles of association prepared and filed together with the certificate of incorporation of the parent company with the Companies Registrar in Austria. The minimum share capital required to register a holding company under the form of a private company is 35,000 euros and half of the amount must be deposited upon the registration of the company. For the public company, the minimum capital required is 70,000 euros. In the case of an Austrian holding company registered as a public company, the whole capital must be deposited when the company is incorporated.
Foreign investors should also know that they can also purchase shelf companies for holding purposes in Austria. Our company registration consultants in Austria can assist you in buying ready-made companies in this country.
As mentioned in the beginning, taxation is the best reason for which one would choose to set up a holding company in Austria. It only suffices to state that Austria has concluded more than 80 agreements for the avoidance of double taxation which can help the foreign owner of a holding company to benefit from numerous tax exemptions when repatriating profits from its subsidiaries in Austria. The corporate tax rate applicable to holding companies in Austria is 25% while dividend payments are exempt from taxation in this country.
From a non-taxation point of view, the holding company has no restrictions on the activities it undertakes in Austria.
For assistance in opening a holding company, please feel free to contact our Austrian company formation representatives.