How to set up a GesbR (Gesellschaft bürgerlichen Rechts) in Austria
Civil-law partnership — the simplest way for several people to cooperate informally.
This full guide to How to set up a GesbR (Gesellschaft bürgerlichen Rechts) in Austria is part of our premium area. You get step-by-step instructions, checklists, fee breakdowns, authority paths and practical tips for foreign founders.
Quick overview:
| Minimum capital | 0 € |
| Minimum founders | 2 |
| Liability | fully joint and several |
| Accounting | simple cash-basis records |
| Taxation | Income tax (0–55%) |
| Commercial register | no |
| Notary required | no |
| Time to set up | 1 d |
The Gesellschaft bürgerlichen Rechts (GesbR) is a civil-law partnership under ABGB — no commercial register entry, no minimum capital. All partners are personally liable. Often used for project-based cooperations or small joint ventures.
| Minimum capital | 0 € |
| Minimum founders | 2 |
| Liability | fully joint and several |
| Accounting | simple cash-basis records |
| Taxation | Income tax (0–55%) |
| Commercial register | no |
| Notary required | no |
| Time to set up | 1 d |
When does this form make sense?
The GesbR is the right choice for short-lived projects, cooperations between existing businesses or very small joint activities. Once annual turnover exceeds 700,000 €, the GesbR must convert to an OG or KG.
Required documents
- Passports/IDs of all partners
- Written partnership agreement (recommended, not mandatory)
- Trade licenses of the individual partners if the activity is regulated
Founding steps
- Partnership agreement — ideally in writing: purpose, shares, management, exit.
- Each partner registers their trade individually where required.
- SVS registration for each partner.
- Tax office notification — the GesbR receives a tax number for revenue-expense accounting.
- Optional: open a joint bank account under all partners' names.
Costs
- Setup: almost free — only the individual trade registrations
- Optional lawyer for the agreement: 200–800 €
- Accounting software: 0–20 € per month
Typical setup: 0–500 €.
Taxes & social insurance
- The GesbR is tax-transparent — each partner taxes their profit share personally.
- SVS: each partner pays contributions on their share.
- VAT: standard rules, small-business exemption possible.
- Above 700,000 € turnover: conversion to OG/KG mandatory.
- No setup cost, no notary, no commercial register
- Very flexible — partnership agreement can be informal
- Ideal for project cooperations
- All partners fully liable with private assets
- No separate legal personality — the GesbR cannot own property
- Limited credibility externally
- Mandatory conversion at 700,000 € turnover
Common mistakes
- Running a long-term business as GesbR without converting — accidental OG arises by law.
- No written agreement — disputes about profit shares and exits.
- Not registering each partner with SVS.
- Confusing tax transparency with "no tax filings".
Sources
This website is a private information portal and does not constitute legal advice.