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Austrian corporate law

Austria's GmbH capital after 2024: what the cut to €10,000 changed.

Austria replaced the former €35,000 minimum with a permanent €10,000 GmbH threshold. This guide separates nominal capital, the €5,000 initial cash payment, the end of Gründungsprivilegierung, and how Austria now sits on the European map.

Effective 1 Jan 2024Reform date
Updated Jul 2026Current position
€10,000Minimum Stammkapital
€5,000Paid before registration
Before 2024
€35,000
Old statutory minimum GmbH capital
−71% permanent, not a privilege
Since 2024
€10,000
Standard GmbH capital — a full GmbH, no low-capital suffix
€10,000Nominal minimum
€5,000Cash before registration
€500Annual minimum tax
€25,000German GmbH, for contrast
Executive conclusion

Austria did not create a mini-GmbH. It made €10,000 the normal capital of the standard GmbH.

A new Austrian GmbH can now be formed with statutory capital of €10,000, of which generally €5,000 is paid before registration. It still enters the market as a full GmbH — no warning suffix, no temporary privilege — and remains subject to ordinary accounting and capital-maintenance rules. The entry ticket got cheaper; the obligations did not disappear.

Geography · where Austria now sits

Most of Europe abolished meaningful capital. Austria kept a credible floor.

Minimum share capital for a private limited company, 2026. The Netherlands, France, Italy, Spain and Germany's UG all sit at a symbolic €1 (or a cent). Germany's full GmbH stays at €25,000. Austria chose the middle — low enough to be accessible, high enough to be taken seriously.

Minimum capital · private limited company · € · 2026
NetherlandsBV
€0.01
FranceSARL
€1
SpainSL
€1
ItalySRL
€1
GermanyUG
€1
AustriaGmbH
€10,000
GermanyGmbH
€25,000
€0€12,500€25,000

Indicative 2026 minimums. Several €1 jurisdictions attach a profit-reserve requirement until capital reaches a set level (e.g. €3,000 in Spain, €10,000 in Italy, €25,000 for the German UG). Confirm current rules before relying on any figure.

The strategic read

A €1 company is easy to register and hard to bank — it signals nothing about funding. Austria's €10,000 keeps the GmbH name credible with banks and counterparties while removing the €35,000 barrier that used to deter service and software businesses. It is a deliberate "accessible but real" position, not a race to the bottom.

01 · The reform

The lower level is permanent — and it is the ordinary GmbH

From 1 January 2024 the minimum Stammkapital of an Austrian GmbH fell from €35,000 to €10,000. The change applied to the ordinary GmbH itself rather than creating a separate low-capital form, so the company still uses the plain GmbH designation with no suffix warning that it was incorporated under a reduced-capital regime. This is the key difference from the German UG (haftungsbeschränkt), which does carry a distinct name.

Core distinction

€10,000 is now the standard rule, not a temporary concession. A new GmbH no longer needs a special Gründungsprivilegierung clause to reach the lower level.

02 · The old system & the privilege

Before the reform: €35,000 nominal, with a temporary discount

Under the old rule a GmbH had €35,000 nominal capital — often disproportionate for consulting, software and professional-services businesses with no heavy assets at launch. Austria softened this with Gründungsprivilegierung, which let a qualifying new GmbH begin under a lower contribution framework for a limited period.

It worked, but it was awkward: it created two layers — the nominal capital in the documents and the lower privileged amount actually governing contributions — and it was temporary, so the company eventually had to align, producing future amendments, notarial work and register changes. Once the general minimum itself became €10,000, a separate privilege at the same level lost its purpose.

04 · The current rule

A standard GmbH now starts with €10,000 nominal capital

The articles allocate the €10,000 among the shareholders through their Stammeinlagen. Two equal shareholders might take €5,000 each; a 70/30 split, €7,000 and €3,000. Voting, profit rights and vesting can require more drafting than simply dividing the number — especially with investors.

Issue
Current Austrian GmbH
Minimum nominal capital
€10,000
Typical cash before registration
€5,000 in a standard cash formation
Legal-form designation
GmbH — no low-capital suffix
Temporary startup privilege required
No
Minimum permitted after reduction
€10,000
05 · Nominal vs paid-in

€10,000 and €5,000 describe two different legal facts

Nominal capital is the amount stated in the articles and allocated among shareholders — minimum €10,000. Paid-in capital is what is actually contributed before registration — generally at least €5,000. A company can therefore have €10,000 nominal with only €5,000 paid; the other €5,000 is not cancelled — it stays an outstanding shareholder contribution that matters in insolvency, creditor protection and share transfers.

€5,000 still owed
Paid before registration Subscribed but unpaid — still callable = €10,000 nominal capital
06 · Use of capital & existing companies

Company money — not money frozen in a bank

After registration the GmbH can generally use the capital for legitimate business expenditure — rent, software, salaries, professional fees, inventory. It need not sit untouched in the formation account, but it must stay within the company's sphere. What a shareholder cannot do is simply withdraw it: payments back to shareholders must satisfy Austrian capital-maintenance rules, need distributable profit and proper approval, and unlawful returns of protected capital can create repayment claims.

An old €35,000 GmbH does not shrink automatically

The statutory minimum changed, but an existing company keeps the capital recorded in its articles and the Firmenbuch until it is formally changed. A €35,000 GmbH stays a €35,000 GmbH — reducing it is a separate corporate procedure, not a bank withdrawal or a spreadsheet edit.

08 · Formal capital reduction

Reducing registered capital is a creditor-protection procedure

  • 1 · Review the balance sheet and purpose — why reduce, and can the company legally support it.
  • 2 · Prepare the shareholder resolution — the reduction and article amendment in the correct corporate and notarial form.
  • 3 · Address creditor protection — publication, notification, waiting-period or security requirements.
  • 4 · File with the Firmenbuch — the new capital becomes effective on registration.
  • 5 · Implement any repayment lawfully — only after the legal and timing conditions are met.

The capital may not be reduced below the current statutory minimum of €10,000.

11 · Minimum corporate tax

The cut also lowered the minimum-tax base

Austrian corporations can owe a minimum corporate income tax even with little or no profit, calculated by reference to the statutory minimum capital. With a €10,000 base, the annual minimum Körperschaftsteuer is generally €500 (about €125 per quarter). It is not the same as the ordinary 23% corporate income tax — where the profit-based tax is higher, that larger figure applies.

The math

€10,000 minimum capital × 5% = €500 minimum annual tax. Lowering the capital floor from €35,000 also pulled the minimum-tax base down with it.

13 · Austria vs Germany

A standard GmbH at a lower threshold than Germany

A German GmbH has €25,000 statutory capital, with at least €12,500 generally paid before registration. Germany also offers the lower-capital UG — but, unlike the Austrian GmbH, the UG carries a distinct designation and a statutory profit-reserve mechanism. Austria's move gives you a full, plainly-named GmbH at less than half Germany's capital.

Feature
Austrian GmbH
German GmbH
German UG
Statutory capital
€10,000
€25,000
Below €25,000
Typical initial cash
€5,000
€12,500
Full subscribed
Legal designation
GmbH
GmbH
UG (haftungsbeschränkt)
Special profit reserve
No
No
Yes
Austrian GmbH vs German UGCapital, market perception, statutory reserves and the route to a full German GmbH.
Read →
14 · Capital planning

The statutory minimum is not the financial plan

The reform lowered the legal threshold; it did not finance the business until revenue is stable. €5,000 may be plenty for a founder-led consultancy and far too little for a trading or staffing company. Match the funding to the operating model, not to the law's floor.

Business type
Capital-planning concern
Founder-led consulting
Low fixed costs may make the statutory level proportionate
Software / digital
Development, staff and customer-acquisition costs
Trading company
Inventory, logistics and supplier prepayments
Employment business
Payroll falls due before customers pay
Regulated activity
Licensing, qualifications, insurance and substance
International subsidiary
Parent funding and intercompany agreements
Six capital mistakes

Where founders misread the €10,000 rule

Most errors come from treating nominal capital, cash paid, company liquidity and shareholder liability as though they were one number.

01

Calling €5,000 "the share capital"

€5,000 is the initial cash payment. The nominal capital remains €10,000.

02

Treating the unpaid half as cancelled

The outstanding €5,000 can still be called and stays relevant to the shareholder's position.

03

Assuming the money is frozen

After registration the funds may be used for legitimate business expenditure.

04

Withdrawing capital personally

Company money cannot be returned to shareholders outside capital-maintenance rules.

05

Expecting old capital to fall by itself

An existing €35,000 GmbH needs a formal reduction to change the registered amount.

06

Funding only to the legal minimum

The statutory amount may not cover payroll, stock, licensing or first-year costs.

Information, not legal or tax advice. Capital, reserve and tax rules change and depend on your facts and jurisdiction; the European figures are indicative 2026 minimums. Confirm the current position with the competent authority or a qualified adviser before acting.
Capital & formation review

Decide how much the company needs — not only how little the law permits

Send the ownership, activity, expected first-year expenses and intended funding. We identify the appropriate nominal capital, initial payment and financing route for the Austrian GmbH.