Setting Up a Sole Trader in Austria
Setting Up a Sole Trader in AustriaUpdated on Tuesday 28th November 2017
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The sole trader is the simplest business form in Austria, suited to those entrepreneurs who want to start their individual consulting or services business.
Setting up a sole trader in Austria is performed according to the relevant company and commercial laws. One of our lawyers in Austria can help you register this type of business and comply with the ongoing regulations.
The characteristics of the sole trader
The sole trader is the “one-man business” in Austria, essentially a self-employed individual who works/performs services based on a trade license.
There is no distinction between the entrepreneur and the sole trader, meaning that the owner has the task to provide the needed capital and to manage the company. An important consideration is liability: the owner is liable with his/her own assets.
The sole trader is subject to income tax on the profits it derives from the country, however, it is not subject to the value-added tax for profits under a certain amount per year. One of our attorneys in Austria can help you understand the principles of taxation for sole traders in the country.
Sole trader registration in Austria
Entrepreneurs need to register their sole trader business with the Trade Register. For this purpose, the following identification documents are needed:
- birth certificate and citizenship certificate;
- residence permit for third-country nationals (except Swiss nationals);
- proof of residence;
- proof of academic qualifications (if needed);
- criminal record extract from the country of residence (for non-residents who have been living in Austria for less than five years);
- additional documents for start-ups in accordance with the business profile (additional, only for start-up businesses).
You can contact the experts at our law firm in Austria for any additional questions about sole trader registration and the characteristics of this type of establishment. Alternatively, one of our lawyers can help you covert your sole trader business into a different type of legal entity.