Setting up a partnership (OG) or a limited partnership (KG)

What

These forms can have a purpose like freelancing, agricultural or forestry activities. A partnership (OG) is a company managed under its own name and the partners are liable towards the creditors of the company without restriction (with their entire assets). However, a limited partnership (KG) is a company managed under its own name where the liability towards the creditors of the company is limited to a certain amount for a certain part of the partners (Kommanditist), but where the liability is unlimited for the other part (Komplementär).

Steps

STEP 1: You can consult with specialised departments and experts at the Austrian Economic Chamber (Wirtschaftskammer – WKO).

STEP 2: Give a declaration of the start-up and your business purpose.

STEP 3: You and your partner (at least 2) have to arrange a partnership agreement.

STEP 4: Application for the commercial registration (Firmenbuch). You’ll need the application certified by a public notary.

STEP 5: (Electronic) Business registration: you’ll need the following documents:

• Passports of all persons of decisive influence
• Commercial registration
• Criminal record certificate of the country of origin for the director manager and all liable partners, if they don’t live in Austria or live there for less than five years.
• Confirmation that there is no reason to disqualify the partnership in pursuing business.

The following are additionally required for the director manager under trade law:

• Passport
• State medical insurance (Gebietskrankenkasse – GKK) of registration as a worker working at least 20 hours per week.
• Proof of competence
• Statement of the director manager under trade law about his/her activity in the enterprise.

STEP 6: State medical insurance (Gebietskrankenkasse – GKK). If you employ a director manager under trade law, you have to register him/her at the GKK before registering your business.

STEP 7: You have to register the director manager with the Commercial Social Insurance if they have not been insured with the State medical insurance.

STEP 8: You report your commercial activity with the fiscal authorities during the first month and apply for a tax number for the partner(s) and the company at the regional department of the Ministry of Finance.

STEP 9: Certain activities require permission of the authorities. Contact the municipality.

Where

• District Administration Office or municipality (Bezirkshauptmannschaft or Magistrat). You can find the competent authority in your place of residence (in German): help.gv.at/at.gv.brz.linkaufloesung/help/applikation-flow?execution=e5s1.
• State medical insurance (Gebietskrankenkasse – GKK). You can find the office responsible for your place of residence (in German): sozialversicherung.at/portal27/esvportal/content?contentid=10007.683713&viewmode=content.
• Ministry of Finance (Finanzamt). You can find the office responsible for your place of residence here (in German): bmf.gv.at/service/anwend/behoerden.