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Austria: Limited liability companies

The partners holding a majority stake (more than 50%) are obliged to apply for starting insolvency proceedings whenever necessary and the company does not have a managing director. These proceedings are very burdensome because they require e resolution to be passed by the general meeting in order to change the articles of partnership, a registration at the tribunal keeping the commercial register and the notification of creditors.

The minimum corporate income tax amounting to 5% of the registered capital is reduced from yearly 1,750 euro to 500 euro. For existing private limited liability companies the changes have taken place since 1st January 2014. The corporate income tax rate applied is 25% of profits. It is possible to offset the tax due with the sums of minimum corporate income tax paid in previous years.

Regardless of the turnover, also private limited liability companies founded with the reduced amount of registered capital have to apply double entry accounting.

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Austria: New rules for private limited liability companies

 The new rules governing private limited liability companies have come into force on 1 July 2013. The most relevant change is the reduction of the minimum capital for newly founded companies from 35,000 to 10,000 euro. However, only half of this amount has to be contributed in money while the second half may consist of contributions in kind.

If the contract submitted to a notary public meets all requirements as far as the content is concerned und if the new private limited liability company is founded by a natural person, the related costs, which currently are cut from 1,100 to 600 euro approximately, are further reduced.

 

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The new rules entail also changes in the management of a company. Already previously managing directors were

obliged to convoke an extraordinary general meeting whenever the book keeping showed a loss of half of the registered capital. As of 1 July the meeting has to be convoked also if the equity ratio emerging from the balance sheet falls below 8% and the notional period of discharge of debts is more than 15 years. Resolutions passed by the general meeting have to be communicated to the tribunal keeping the commercial register.

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