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Bus<strong>in</strong>ess Structures<br />
Types of Bus<strong>in</strong>ess Structures<br />
The ma<strong>in</strong> <strong>bus<strong>in</strong>ess</strong> structures used <strong>in</strong> <strong>Austria</strong> are:<br />
• Limited liability companies<br />
• Partnerships<br />
• Foreign branches<br />
Companies<br />
The most popular legal form of <strong>bus<strong>in</strong>ess</strong> enterprises is the company<br />
with limited liability, called GmbH (Gesellschaft mit beschränkter<br />
Haftung), which may be established for almost all <strong>bus<strong>in</strong>ess</strong> purposes.<br />
The liability of each shareholder is limited to the full amount of the<br />
share <strong>in</strong>vestment. Limited liability companies can be set up by one or<br />
more shareholders; the shares cannot be traded on a stock exchange<br />
but must be transferred by means of a notarial deed.<br />
The <strong>Austria</strong>n stock company is called AG (Aktiengesellschaft). It is a<br />
corporation, whose shares are traded on a stock exchange. As dist<strong>in</strong>ct<br />
from the GmbH, the AG is more flexible <strong>in</strong> transferr<strong>in</strong>g the shares,<br />
thereby enabl<strong>in</strong>g it to raise funds on capital markets. However, as<br />
opposed to the GmbH, a supervisory board is compulsory for the AG<br />
and shareholders’ assemblies are subject to stricter formal<br />
requirements. The f<strong>in</strong>ancial statements of an AG are subject to<br />
compulsory audit by a certified public auditor whereas for a GmbH<br />
audit is only obligatory for medium-size and large entities.<br />
6 <strong>PKF</strong> - <strong>Do<strong>in</strong>g</strong> <strong>bus<strong>in</strong>ess</strong> <strong>in</strong> <strong>Austria</strong> - Bus<strong>in</strong>ess Structures
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