How to start a sole proprietorship (Einzelunternehmen) in Austria

The fastest and cheapest legal form — ideal for solo self-employed professionals.

Quick facts

Minimum capital	0 €
Minimum founders	1
Liability	unlimited personal
Accounting	cash basis up to €700k, double-entry above
Taxation	Income tax (0–55%)
Commercial register	optional, mandatory above €700k turnover
Notary required	no
Time to set up	1–3 d

When does this form make sense?

The sole proprietorship is a good fit if you start alone, have a low liability risk and do not need large investments on day one. Typical examples: IT freelancers, consultants, craftsmen (with a qualification certificate), small-scale online sellers.

Not ideal if your business carries high damage risks (construction, advisory work with large client assets) or if you plan to take on several co-owners quickly.

Required documents

Passport or national ID card
Austrian registration certificate (Meldezettel)
Valid residence title allowing self-employment (third-country nationals)
Criminal record extract from your home country (max. 3 months old, certified translation)
Qualification certificate for regulated trades (master exam, diploma, proof of practice)
If needed: lease contract or proof of ownership for business premises

Founding steps

Choose your trade: check whether your activity is a free or regulated trade (WKO trade list).
Register with the district authority (Bezirkshauptmannschaft / Magistrat): online via USP.gv.at or in person, with all documents.
Receive the trade license (Gewerbeschein): for free trades you may start working from the day of registration.
Register with SVS (within one month of the trade registration).
Tax registration with the tax office using form Verf 24 — you receive a tax number.
Apply for a VAT ID (form U 15) — required above 35,000 € turnover or for EU trade.
Open a business bank account and set up bookkeeping (FreeFinance, BMD, Bexio).
Optional: register in the commercial register (Firmenbuch) — name protection and accrual accounting become possible.

Costs

Trade registration: 0 €
WKO membership fee: 50–250 € per year (depends on sector)
Criminal record extract from home country: 5–50 €
Certified translations: 30–80 € per page
Optional Firmenbuch entry: approx. 100–150 € plus notary fees
Bookkeeping software: 0–25 € per month

Realistic total setup cost without advisors: 50–500 €.

Taxes & social insurance

Income tax: progressive 0–55 %, tax-free amount 12,816 € (2024).
VAT: standard 20 %; small-business exemption possible up to 35,000 € turnover (from 2025: 55,000 €).
SVS social insurance: ~26.8 % of the contribution base (pension, health, accident, self-employed provision). The first 3 years are provisional and recalculated later.
Municipal tax: 3 % on wages if you employ staff.
Bookkeeping: cash-basis (Einnahmen-Ausgaben-Rechnung) up to 700,000 € turnover; above that full double-entry bookkeeping.

Pros

No setup costs, no share capital
Can start within days
No mandatory balance sheet (up to 700,000 €)
Full control and full profit
No notary required

Cons

Full personal liability with private assets
No tax privileges (no separation of private and business assets)
Harder to bring in investors or partners
Business formally ends if the owner dies or is unable to work

Common mistakes

Confusing free vs. regulated trade — no qualification certificate obtained.
Forgetting SVS registration — later back payments and penalties.
Not setting aside reserves for the year-3 SVS recalculation.
Mixing private and business accounts — a bookkeeping nightmare.
Choosing the small-business exemption even though VAT deduction would have been cheaper (e.g. large initial investments).