Austrian Flexible Company

An Austrian company built for investment and growth.

The FlexCo (Flexible Kapitalgesellschaft, since 2024) keeps the limited-liability architecture of a GmbH but adds flexible capital measures, easy investor entry, statutory employee participation and lighter shareholder mechanics. Built for companies whose ownership is expected to evolve.

2024Introduced
€10,000Minimum capital
< 25%Employee value shares
GmbH + AGHybrid form
The defining feature, visualised

How the FlexCo splits its capital

The €10,000 capital carries two kinds of interest. The distinctive one — Unternehmenswert-Anteile — gives employees economic upside without ordinary voting control, and is capped by statute.

Ordinary sharesVoting + governance + economic rights · founders & investors
Value sharesEconomic only, no vote
≥ 75%+ ordinary (voting) ◄ statutory cap: under 25% Unternehmenswert-Anteile

Unternehmenswert-Anteile can be issued for less than 25% of the share capital, with a nominal value from €0.01. They generally confer a share of profit and exit value but no ordinary voting rights — and a tag-along (co-sale) right when the founding shareholders sell a controlling stake. Employee participation this way is also tax-favoured.

Structural position

A FlexCo is useful when ownership will change — not merely because it is called flexible.

It earns its place where founders expect investment rounds, employee participation, convertible financing, multiple share issues or more complex governance. A stable owner-managed business with no investment plan may still find the conventional GmbH simpler and equally suitable. The abbreviation is not the advantage — the documents are.

01 · Liability

Limited liability

A separate legal entity; shareholder liability is generally limited to the agreed capital, subject to statutory exceptions.

02 · Capital

Flexible capital measures

Authorised and conditional capital and other investment-style mechanisms can be built into the articles.

03 · Team

Employee participation

Unternehmenswert-Anteile give a statutory route to economic participation with restricted voting rights.

04 · Governance

Adaptable mechanics

The articles can allow circular written resolutions and governance suited to a larger, changing shareholder group.

FlexCo vs Austrian GmbH

Same limited-liability base — different tools on top

Both are Austrian limited-liability companies with €10,000 minimum capital. FlexCo adds specialised capital and governance tools; it does not remove tax, accounting, filing or director obligations.

Issue
FlexCo
GmbH
Minimum capital
€10,000
€10,000
Employee participation
Statutory Unternehmenswert-Anteile (under 25%)
Ordinary shares or contractual schemes
Share transfers
Private deed by notary or lawyer possible
Generally a full notarial deed
Written resolutions
Circular resolutions without unanimous method consent
More restrictive mechanics
Capital measures
Authorised / conditional capital, financing instruments
Conventional capital-increase procedures
Own shares
Permitted in defined statutory situations
More restrictive
Typical use
Investment rounds, options, changing ownership
Stable owner-managed businesses
Unternehmenswert-Anteile

Economic participation without ordinary shareholder control

Enterprise value shares are a specialised statutory instrument — not ordinary founder shares with a different label.

Economic rights

A share of value

Holders participate in distributable profit and relevant exit value under the statutory framework and the company's documents.

Restricted control

No ordinary vote

They generally do not carry ordinary voting rights, though statutory information and protection rights still apply.

Exit protection

Tag-along on a sale

The articles must handle the statutory co-sale right that applies when founders dispose of a controlling participation.

Necessary but not sufficient

Unternehmenswert-Anteile are not a complete employee-incentive plan by themselves. The company still needs rules on allocation, vesting, termination, repurchase, valuation, tax treatment, information, confidentiality and the employee's position during an exit.

A simplified investment round

From term sheet to updated cap table

The real sequence depends on the instrument, shareholder approvals and whether the investment is equity, convertible funding or another form.

01

Commercial term sheet

Valuation, amount, ownership, governance rights, conditions and intended use of funds are agreed.

02

Legal & financial review

Ownership, contracts, IP, employment, tax, litigation and existing financing are reviewed.

03

Corporate implementation

Shareholder approvals, capital measures, articles and investment documents are executed.

04

Registration & cap-table update

The capital change is completed, funds documented, and corporate and beneficial-owner records updated.

When the flexible form fits

Six situations where FlexCo solves a real problem

FlexCo is not only for tech startups. The question is whether the company needs a more adaptable capital and participation framework than a standard closely-held GmbH.

External investment

Planning funding rounds

New share issues, investor entry and recurring changes to the capital structure.

Employee incentives

Sharing economic value

Statutory participation rather than relying only on bonuses or contractual phantom plans.

Convertibles

Staged financing

Instruments with later conversion or subscription rights, subject to legal and tax design.

Multiple founders

Evolving ownership

Vesting, leaver, transfer and future-dilution arrangements across a founder group.

Equity in deals

Acquisition strategy

Issuing interests to investors, strategic partners or acquisition counterparties.

International

Global investors

An Austrian legal form that still presents a recognisable investment and participation framework.

Formation route

Design the form before the documents are signed

A one-person formation can be simple. A multi-founder or investor-ready FlexCo needs more detailed constitutional and contractual preparation.

01

Ownership plan

Founders, investors, employee pool, percentages, voting and future financing.

02

Design the articles

Name, purpose, capital, shares, resolutions, capital measures, governance.

03

Shareholder agreement

Founder obligations, investor rights, vesting, transfers, confidentiality, exit.

04

Participation framework

Ordinary interests, Unternehmenswert-Anteile, options or contractual incentives.

05

Capital contribution

Open the formation account or use another permitted process; document it.

06

Execute formation

The required notarial or permitted simplified process for the structure.

07

Firmenbuch

Submit company, director, capital and constitutional documents to the court.

08

Operating setup

Tax, beneficial ownership, banking, licensing, accounting and employment.

Start a FlexCo structure brief

Send the founders, the intended cap table and the next financing step

Include founders, expected investment, proposed employee participation, voting arrangement, funding rounds, management locations and intended Austrian activity. We map whether FlexCo offers a real advantage over a GmbH and identify the formation and governance workstreams.