The incorporation of a company is a significant step by an entrepreneur which has to be thoroughly pondered, since there are some important viewpoints which must be considered very carefully. Should once the business idea be given you will have to deal with the election of corporate form, supply of capital, regulations in the articles of association and lots of other issues. A counsel's advise may provide support for young entrepreneurs and incorporators already at an early stage and accompany them on the way of decision-making.
Upon the foundation of a company in Austria one of the weighty resolutions shall be the election of the right corporate form. Here you must lay down first of all the personal constellation: will you be a sole incorporator or do several persons wish to join forces in order to operate a company? The question is important already due to the fact that certain corporate forms (e.g. sole proprietorships) are only possible alone and in themselves, while other forms of company (e.g. personal companies) require at least two entrepreneurs.
The second question you have to pose to yourself is turning around the liability for the obligations arising from the operations of the business or company. The limited liability in the event of capital companies, the "GmbH" as limited liability company and the "AG" as company limited by shares, is opposed to the overall personal liability in the event of personal companies, which are somewhat more flexible in the incorporation, however, in the event of a difficult economic situation they can have an impact threatening even the existence of the entrepreneur.
Finally, there are also financial viewpoints playing a part: while capital companies must be supplied with a certain minimum of registered capital, the foundation of personal companies or sole proprietorships is conceivable without providing any capital worth mentioning.
If you have decided yourself for incorporating a company, the next step is to define the legal relationship of the members to each other and vis-à-vis the company. This is done in the framework of the articles of association, for whose mandatory minimum contents there are statutory prescriptions in the event of capital companies. It is reasonable to forecast here already some prognostics for the future and to include regulations in excess of the mandatory minimum, in order to take measures for any potential later conflicts.
The corporate name is practically the name of the company. The better you chose it the more efficiently will it allow to be promoted. However, there are certain restrictions. Thus for instance the corporate name must be capable to be pronounced so that symbols or special signs which cannot be pronounced are not allowed. You have to take care already before making the articles of association whether the desired corporate name has not yet been allocated, since in the event of confusable corporate names the entry in the company register may be refused.
The Esztegar Law Office furnishes ongoing advisory services for young entrepreneurs and incorporators on their way to self-reliance and supports you, among other things, upon
- choosing the right corporate form,
- selection of the corporate name,
- formulation of the articles of association,
- reporting to the industrial authority,
- entry in the company register,
and in all issues raised by the foundation of a company in Austria.