UK Companies: Establishment of a Branch Office in Austria

The establishment of a branch in Austria enables an UK legal entity to obtain a trade license in Austria and then to participate in the domestic economic life in a stable and continuous manner.

Steps to set up a branch office in Austria

Resolution on the Establishment of a branch office

• Not an independent legal entity, but an economically independent and geographically separated permanent establishment of a UK company with an independent organization and management.
• The name of the branch must include the name of the UK company.
• Branches must be registered in the Companies’ Register at the seat of the branch.
• The company must have a “permanent representative” with his/her residence in Austria.

Entry in the Companies' Register

Application to the Company Register Court

• Application for entry in the Companies Register signed by managing director(s) of the UK company authorized to represent it.
• Updated shareholders’ agreement or articles of association of the foreign company in the form of a certified copy and, if required, a certified translation
• Resolution by the foreign enterprise on the establishment of the branch.
• Evidence of the foreign company’s valid legal existence (e.g., certified extract of the Companies Register or Commercial Register)
• Evidence of the non-accrual or payment of the capital transfer tax.
• Specimen signature statement(s) by all the managing directors of the foreign company and by the domestic representative, if any, in attested form
• Evidence of regular business activities in the country of origin (for non-EU-based foreign companies only).
• Proof of actual establishment of the branch (e.g., confirmation by Austrian Chamber of Commerce, tenancy agreement).
• In the event that the branch operates a business subject to the Industrial Code, an appropriate trade license is required.

Registration of the Trade Announcement of the Appointment of the Managing Director(s) under Trade Law and Notice of Business Operations to the Revenue Authorities and Registration of Employees

A branch of a foreign company is subject to taxation in terms of income and to value added tax. It has to apply for a tax identification number.

• Double taxation agreements (“Tax Treaties”) to the effect that profits of the foreign company are in principle taxed at its corporate headquarters are in place between Austria and most other countries. You can find the double tax agreement between Austria and the United Kingdom of Great Britain and Northern Ireland here.
• However, profits attributable to the Austrian branch will be taxed in Austria.

Social Security

Registration of the employees with the competent social insurance institution is required prior to the commencement of their work.

February 2nd, 2021 I LBG

Contact & Advice: This information naturally shows basic aspects of the topic - for completeness and correctness no guarantee can be given despite careful preparation. LBG will gladly advise you in your individual situation. Please contact one of our 31 Austria-wide locations (www.lbg.at) or welcome@lbg.at - we will gladly bring you together with one of our experts, who is very familiar with your request.