How to start a company

In Austria

Your business idea

• New or different business idea („me too“)

• Taking over a business• Taking a Franchise

– Who will benefit?– Market?– Competitors?

• www.geschaeftsidee.de • www.nachfolgeboerse.at• www.franchiseboerse.at

Your Qualification

• Are you an entrepreneur?• Personal characteristics?• How do your family feel about this?• Expertise?• Do a test: www.gruenderservice.at

Business Plan

• Helps in decision making• Planning tool: Plan 4 You Easy• Minimum turnover calculation (how much

money must be turned over to make money?)• Business plan handbook

www.i2b

Type of trade

• „free“ or regulated?• Evidence of formal qualification– Individual qualification– Qualification exam– Managing director

under trade law

Legal form• Individual company

– Trade registration– Unlimited personal liability– P+L statement

• Partnership– 2 partners– Unlimited liability– P+L statement

• Limited liability company– € 35.000 base capital– Accounting liability– 25% corporation tax– 25% capital gains tax

The ideal legal form

• Does not exist, depends on:– Capital available, liability risk, size, taxes, etc.

• Individual company advantages:– Quickly established– One „boss“

• Partnership advantages– Shared risk– Mutual support,

complementing each other– Capital problem easier

Social insurance

• Mandatory for– Single businesses– Partners– Liable managers– Liable partners in a plc– Self-employed

entrepreneurs

Insurance

• Health insurance 7,65 %• Pension insurance 17,5 %• Insurance for the self-employed 1,53 %• Accident insurance 8,48 %• Unemployment insurance 6 %

Income tax

• Based on yearly profit• Between 0 % and 50 %• 11.000.- per year tax free• Quarterly advance payment• Tax free profit margin 13 %

(up to 30.000.-)

Turnover- or Value Added Tax

• On all goods and services provided• 20% of net price• Self-assessment• For small businesses:

Tax free up to € 30.000 turnover

Financing your business

• Self-financing or borrowing• State support / incentives• Law for the support of new businesses• Tax and fee exemptions

for new companies