How to found an OG (Offene Gesellschaft) in Austria

Quick facts

Minimum capital	0 €
Minimum founders	2
Liability	fully joint and several
Accounting	cash basis up to €700k, double-entry above
Taxation	Income tax (0–55%)
Commercial register	mandatory
Notary required	no (recommended for the contract)
Time to set up	1–2 w

When does this form make sense?

The OG fits when two or more people want to run a company together, trust each other and do not want to raise minimum capital. Typical: small craft businesses, family companies, professional groups.

Not ideal when liability risk is high or you want to bring in investors with limited liability — in that case a KG or GmbH is usually better.

Required documents

Passport/ID for each partner
Registration certificates (Meldezettel) for all partners
Residence titles allowing self-employment (third-country nationals)
Written partnership agreement (Gesellschaftsvertrag)
Notarised signature samples for the Firmenbuch filing
Qualification certificate for regulated trades
Proof of business address (lease contract, consent of landlord)

Founding steps

Draft the partnership agreement — shares, management, profit distribution, exit rules.
Register in the commercial register (Firmenbuch) via the competent commercial court; signatures must be notarised.
Register the trade with the district authority (Gewerbeanmeldung).
Register all partners with SVS within one month.
Tax registration with the tax office (form Verf 16 for partnerships).
Open a business account in the name of the OG.
Activate accounting — partners share profits that are taxed personally.

Costs

Commercial register entry: approx. 150–300 € court fee
Notary for signature certification: 50–150 €
Partnership agreement drafted by a lawyer: 300–1,500 €
Trade registration: 0 €
WKO membership fee: 50–250 € per year

Typical total setup: 500–2,000 € depending on complexity of the agreement.

Taxes & social insurance

The OG itself does not pay income tax — profits are allocated to the partners and taxed as personal income (progressive 0–55 %).
VAT rules identical to other businesses; 20 % standard rate.
Each active partner pays SVS contributions on their profit share (~26.8 %).
Above 700,000 € turnover full double-entry bookkeeping becomes mandatory.
Profits are attributed in the year they are earned, regardless of distribution.

Pros

No minimum capital
Flexible profit-sharing rules
Simple tax attribution — no separate corporate tax layer
High credibility vis-à-vis banks and customers (commercial register entry)

Cons

Unlimited joint and several liability of all partners with private assets
Conflicts between partners can paralyse the company
Mandatory commercial register entry (no anonymity)
Exit of one partner may dissolve the OG unless the agreement says otherwise

Common mistakes

Only a verbal partnership agreement — later disputes are hard to resolve.
No exit rules: when one partner leaves, the OG is dissolved.
Missing SVS registrations for all partners.
Unclear profit distribution, unequal effort — resentment and lawsuits.
Filing the Firmenbuch application with incomplete notarisation.