Economy Profile of Austria

Ease of Doing Business in Austria

Rankings on Doing Business topics – Austria

Topic Scores

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally start and formally operate a company (number)

Preregistration (for example, name verification or reservation, notarization)
Registration in the economy’s largest business city
Postregistration (for example, social security registration, company seal)
Obtaining approval from spouse to start a business or to leave the home to register the company
Obtaining any gender specific document for company registration and operation or national identification card

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day (2 procedures cannot start on the same day)
Procedures fully completed online are recorded as ½ day
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes
No professional fees unless services required by law or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

Standardized Company

Legal form Gesellschaft mit beschränkter Haftung (GmbH)

Starting a Business – Austria

Figure – Starting a Business in Austria – Score

Figure – Starting a Business in Austria and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Figure – Starting a Business in Austria – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Starting a Business in Austria – Procedure, Time and Cost

1 Obtain the confirmation from the Economic Chamber that the start-up company is really a new enterprise

Agency : Economic Chamber

A form (NeuFö2), which is available electronically on the homepage of the Austrian Ministry of Finance must be filled in and be confirmed by the Economic Chamber. The Neufö applies to the company formation and to the transfer of businesses.

1 day

no charge

Procedure 1 is optional but it can lead to exemption from paying certain publicly levied fees and taxes. If certain requirements are met, the following fees and taxes will be waived:

Stamp duties and certain administrative fees.
Real estate transfer tax.
Charges for new entries registration in the commercial register and the cadastral register.
For 1 year, certain ancillary wage costs borne by the employer in addition to social security contributions.

Depending on the requested exemptions, companies must obtain confirmation by certain public bodies (Chamber of Commerce or Social Security Organization) that the application form has been completed, after receiving counseling by that body concerning the scope and applicability of the law.

2 Notarize the statutes/articles of association or the declaration of establishment

Agency : Notary

The articles of association (Gesellschaftsvertrag), which must be executed before a notary by notary deed (Notariatsakt), must include the following: name, seat, scope of activities, capital and initial contribution by each shareholder. According to the Federal Act on Electronic Company Formation at the Notary it is now possible to use electronic communication tools to notarize the Articles of Associations.

Cost will depend on the authorized share capital and are subject to negotiation with the notary public.

1 day About EUR 2,000. There is an official fee schedule (“Notariatstarifgesetz”) which is regarded as a maximum amount for notary fees. The notary fees are usually subject to negotiations.

3 Deposit the minimum capital requirement

Agency : Bank or notary

The confirmation fee depends on the bank, ranging from EUR 0 to about EUR 30.

1 day no charge

4 Register the company at the local court (Handelsgericht)

Agency : Local Commercial Court

The application for registering an Austrian limited liability company (Gesellschaft mit beschränkter Haftung, GmbH) must be accompanied by the following documents:

-Declaration of establishment notarized;

-Articles of association;

-A declaration (accompanied by a banker's confirmation) that the demanded amount of primary deposit, to be paid in cash, has been paid;

-Evidence that the free disposability of the paid primary deposit by managing directors is not restricted by counterclaims;

-Specimen signatures of the managing directors;

If the court has doubts about the company name, it may request an opinion from the Chamber of Commerce. A GmbH comes into legal existence upon registration in the commercial registry.

The fixed application fee (court fee) amounts to EUR 34. Individual entries fees can be applied depending on the information to be registered (company name, place of establishement, shared capital, etc). These entries fees can be exempted in case the company is granted with the Procedure 1 exemption.

Public notaries and lawyers are obliged to file any petition as well as related documents, deeds, etc. in electronic form. Otherwise the cost in paper is EUR 52.

Since January 15, 2018, all Austrian legal entities are required to disclose information about beneficial owners. Limited liability companies are exempted from the notification if all partners are natural persons. If no shareholder holds more than 25% of shares, the managing directors registered in the commercial register will be registered by the Federal Institute of Statistics Austria as beneficial owners. If another natural person exercises direct or indirect control over the management of the limited liability company, the limited liability company shall report it in accordance with the Austrian Beneficial Register Act.

5 Tax Office registration (obtain a VAT number)

Agency : Tax Office

The commercial register automatically informs tax authorities of the registration of new companies. In turn, tax authorities usually respond by requesting that the company file for tax registration. Registration is not available online, several forms must be printed, filled out, and sent by postal mail together with the articles of association, the opening balance sheet, an excerpt of the company register, an identification card of a managing director, and a specimen signature sheet of the representatives.

The VAT number is usually issued simultaneously with the tax identification number. The statutory deadline to obtain a tax number is 1 month. Frequently tax authorities extend an introductory visit to those companies intending to engage in business activities that are eligible for the filing of VAT returns.

Once registered companies can submit all of their tax returns online, via the website: https://finanzonline.bmf.gv.at/

6 Register trade (Gewerbeanmeldung) with the trade authority (Bezirksverwaltungsbehörde)

Agency : Trade authority

and authorities involved (e. g., the production of hazardous goods requires proof of special qualifications of management and approval and control of the production site). Companies can register in person, by postal mail, or online.

7 Register employees for social security

Agency : Social Security

Upon registering in the commercial register, companies with employees must apply for an employer's account number (Dienstgeberkontonummer) electronically via ELDA, the data transmission interface of the statutory health insurance office (Gebietskrankenkasse). In practice, the employer applies for a new account number via ELDA (under the menu item, Online-Services [Kontonummeranforderung]) before a new employee is registered with the statutory health insurance office.

Less than one day (online procedure, simultaneous with

previous procedure)

no charge

Health insurance is obligatory: every new employee must be electronically registered with the statutory health insurance office prior to and no later than the day of employment. Unless the company does not own a computer, the employee must be registered via ELDA. Moreover, the employer must automatically extend obligatory health insurance upon entry. On being registered with the statutory health insurance office, the employee is automatically registered for accident insurance and retirement insurance as provided by law. No further registration is needed. By data transmission, the employee is immediately registered with the competent statutory health insurance office (social insurance office). The employer instantly receives a “sent” report and a

confirmation of registration.

If permission is mandatory, completion of procedures takes longer, depending on the requirements and authorities involved (e. g., the production of hazardous goods requires proof of special qualifications of management and approval and control of the production site). Companies can register in person, by postal mail, or online.

Less than one day (online procedure, simultaneous with previous procedure)

no charge

8 Register with the municipality

Agency : Municipality

Municipalities levy community taxes on all businesses. In addition, particular activities (e.g., organizing a public event) may trigger municipal stamp duties or other minor duties and taxes.

1 day, (simultaneous with previous procedure)

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates
Submitting all required notifications and receiving all necessary inspections
Obtaining utility connections for water and sewerage
Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes

Building quality control index (0-15)

Quality of building regulations (0-2)
Quality control before construction (0-1)
Quality control during construction (0-3)
Quality control after construction (0-3)
Liability and insurance regimes (0-2)
Professional certifications (0-4)

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.
Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

Will be used for general storage activities, such as storage of books or stationery.
Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.
Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.
Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.
Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits – Austria

Figure – Dealing with Construction Permits in Austria – Score

Figure – Dealing with Construction Permits in Austria and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Austria – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Dealing with Construction Permits in Austria and comparator economies – Measure of Quality

Details – Dealing with Construction Permits in Austria – Procedure, Time and Cost

1 Obtain industrial operating permit

Agency : Vienna City Administration

In Austria industrial operating permits (plant permits) are required when the plant (i) could endanger the lives, health or property of neighbors or employees of the plant; (ii) could cause inconvenience to neighbors with respect to noise, dust, smoke or other pollution; (iii) could cause inconvenience to public institutions such as churches, schools, hospitals; or (iv) could possibly endanger the quality of water.

When issuing a industrial operating permits, the relevant authority usually imposes a number of conditions that the owner of the plant needs to fulfill during its operation. The plant permit is not obligatory required prior to obtaining a construction permit. However, it might be helpful obtaining the plant permit before obtaining a construction permit as the plant permit (potentially) will set out

several requirements that should be considered in respect of the construction permit.

2 Obtain approval of heat and noise insulation

Agency : Independent Expert – Insulation Engineering

This approval is issued by an insulation engineering expert. BuildCo must hire a third-party specialist to conduct this work.

30 days EUR 5,000

3 Obtain expert opinion on structural engineering

Agency : Independent Expert – Structural Engineering

The company must request this opinion from an independent expert.

4 Obtain energy pass (energieausweiss)

Agency : Independent Expert – Energy Engineering

Following the Directive of European Union 2002/91/EC the practice of requiring the so called “Energy Pass” (Energieausweiss) by the Municipality of Vienna has become compulsory for all projects as of January 2009. The energy pass is required when applying for the building permit at the relevant authority of City of Vienna. There are officially licensed companies and individual engineers that issue the energy pass. The prices may range, however on average it is EUR

5 Receive on-site inspection prior to issuance of building permit

Agency : Municipal Building Inspection (Baupolizei; MA 37)

A physical inspection occurs before a building permit is issued. The inspection fee is EUR 7.63 per half hour. The inspection is estimated at 3 hours.

1 day

EUR 46

The Building Inspection (MA 37) of the City of Vienna is provided upon approval of construction

projects and is responsible for monitoring of buildings, orderly expansion of the city, and ensuring the safety of citizens.

700.00 for a building with overall size of 1300.6 sq. m. This procedure will normally take between 1-2 weeks to complete.

11 days EUR 5,000

6 Obtain proof of land ownership

Agency : Land Registry

BuildCo must obtain and submit with the building permit request a proof of land ownership that is not older than 3 months. This can be obtained online via certain authorized/registers companies' websites.

0.5 days EUR 14

7 Hire a licensed engineer for construction supervision

Agency : Private licensed engineer (Prüfingenieur)

BuildCo has to hire an external supervising engineer to supervise the entire construction process. The supervising engineer will visit the construction site at least once per week to ensure that the construction is in line with the relevant construction regulations. The engineers usually charge between EUR 120 – EUR 200 per hour of work.

Application for building permit
Approval of the land ownership of registered land
Current Land Registry copy (not older than three months)
An energy performance certificate (in electronic form) and proof of noise control, heat and sound
For new, additions or modifications: confirmation of the plan or author's plan
Demonstration of compliance with the parking requirement
Static concept or preliminary design including foundations for smaller construction projects report
Confirmation of the principles of accessible design and construction
Design concept for garden areas of the site, for new buildings for construction class III
Proving the availability of sufficient water for firefighting on the plan; information on hydrants
Locations for waste receptacles
For enterprises that are under the Seveso II Directive: documentation of the risks
Required documents for architectural review of the Department of Architecture and Urban Design

Details – Dealing with Construction Permits in Austria – Measure of Quality

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to obtain an electricity connection (number)

Submitting all relevant documents and obtaining all necessary clearances and permits
Completing all required notifications and receiving all necessary inspections
Obtaining external installation works and possibly purchasing material for these works
Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

Is at least 1 calendar day
Each procedure starts on a separate day
Does not include time spent gathering information
Reflects the time spent in practice, with little follow-up and no prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes
Value added tax excluded

The reliability of supply and transparency of tariffs index (0-8)

Duration and frequency of power outages (0–3)
Tools to monitor power outages (0–1)
Tools to restore power supply (0–1)
Regulatory monitoring of utilities’ performance (0–1)
Financial deterrents limiting outages (0–1)

Transparency and accessibility of tariffs (0–1)

To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used.

The warehouse:

Is owned by a local entrepreneur and is used for storage of goods.
Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.
Is a new construction and is being connected to electricity for the first time.
Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:

Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.
Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base.

The monthly consumption:

It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.

*Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity.

Getting Electricity – Austria

Figure – Getting Electricity in Austria – Score

Figure – Getting Electricity in Austria and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Austria – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Getting Electricity in Austria and comparator economies – Measure of Quality

Details – Getting Electricity in Austria – Procedure, Time and Cost

1 Submit application to Wiener Netze GmbH and await estimate

Agency : Wiener Netze GmbH

An application can be submitted online, in person or by mail. There are no costs associated with the application.

14 calendar days

EUR 0

An assumption of the technical relevant values, like active and reactive power has to be attached

to the application.

No.

2 Receive external inspection by Wiener Netze GmbH

Agency : Wiener Netze GmbH

An external site inspection is necessary. The waiting time is usually a few days. Someone from the customer’s party has to be present.

9 calendar days EUR 0

3 Submit completion notification for internal wiring and obtain clearance

Agency : Wiener Netze GmbH

The customer needs to obtain a clearance for the internal wiring installation from the network operator Wiener Netze GmbH in order to get an electricity connection (“Fertigstellungsanzeige”). The electrician who installed the internal wiring has to complete a completion notification (electrician completion notification) by sending a note to Wiener Netze GmbH proving that the internal wiring is complying with security and safety standards. This clearance is done automatically, meaning the client does not have to go and pick it up, it is processed electronically. The connection contract will be concluded after the clearance.

3 calendar days EUR 24

4 Obtain external works and meter installation by Wiener Netze GmbH

Agency : Wiener Netze GmbH

The external works start immediately after signing the contract. The utility carries out the external work, providing the required material to build a new transformer on the private ground of the customer. The meter gets installed at the same time.

The utility installs the meter and is the owner of it. Electricity starts flowing immediately if a contract with a supplier of electricity has been signed. The connection fees in Austria are composed of two parts:

Fee for accessing the net ("Netzzutrittsentgelt") which includes all costs such as labor and material cost. The utility installs standard transformers of 360kVA. In the case of a 140kVA connection, the customer would pay about half the cost of the transformer and the remaining capacity would be used by other customers.
Fee for using the net ("Netzbereitstellungsentgelt" at Netzebene 6). With a power connection of 140kVA, the customer is automatically on Level 6, meaning the customer owns the connection to the transformer and is directly connected to the low tension side of the transformer. There are meter installation costs.

5 Sign supply contract with an electricity supplier

Agency : Wien Energie Vertrieb GmbH & CO KG, or another energy supplier

The Distribution System Operator (Wiener Netze GmbH) only provides network services, so the customer needs to conclude a contract with a supplier in order to receive electricity. The customer can choose the electricity supplier of his/her choice – the largest supplier for the Vienna area is Wien Energie Vertrieb GmbH & Co KG, but any other supplier can also be chosen. The supply contract can be concluded already before the external connection works are finished.

Takes place simultaneously with previous procedure.

2 calendar days EUR 0

Details – Getting Electricity in Austria – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally transfer title on immovable property (number)

Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property transfer taxes)
Registration procedures in the economy's largest business city.
Postregistration procedures (for example, filling title with municipality)

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day – though procedures that can be fully completed online are an exception to this rule
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of property value)

Official costs only (such as administrative fees, duties and taxes).
Value Added Tax, Capital Gains Tax and illicit payments are excluded

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)
Transparency of information index (0–6)
Geographic coverage index (0–8)
Land dispute resolution index (0–8)
Equal access to property rights index (-2–0)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

Are limited liability companies (or the legal equivalent).
Are located in the periurban (that is, on the outskirts of the city but still within its official limits) area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Are 100% domestically and privately owned.
Perform general commercial activities.

The property (fully owned by the seller):

Has a value of 50 times income per capita, which equals the sale price.
Is fully owned by the seller.
Has no mortgages attached and has been under the same ownership for the past 10 years.
Is registered in the land registry or cadastre, or both, and is free of title disputes.
Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.
Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.
Will not be subject to renovations or additional construction following the purchase.
Has no trees, natural water sources, natural reserves or historical monuments of any kind.
Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.
Has no occupants, and no other party holds a legal interest in it.

Registering Property – Austria

Figure – Registering Property in Austria and comparator economies – Ranking and Score

DB 2020 Registering Property Score

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Austria – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Registering Property in Austria and comparator economies – Measure of Quality

Details – Registering Property in Austria – Procedure, Time and Cost

1 Obtain a land registry extract from either the competent District Court, a notary public or an attorney-at-law

Agency : District Court, Notary public or Attorney-at-law

Before purchasing a property, the buyer inspects the government land register for any legal requirements, rights and restrictions including the seller’s ownership title, mortgages, liens, pre-emption rights, rights of way, canals, lines, brooks.

Less than one day,

online

The extract from the government land register will contain that information about any Austrian property and can be obtained at any district court [Bezirksgericht] or mapping office [Vermessungsamt]. Public notaries, lawyers and other people or authorities dealing with the

transaction of property also have access to the property database.

EUR 14.4; (For an

electronic uncertified land registry extract the fees are EUR 3.53 per lot. For a certified land registry extract, obtained from a District Court, the fees are EUR 14.40.)

2 Authenticate signatures and authorization of representatives, and property acquisition tax clearance from the notary

Agency : Notary

At the notaries office the parties can combine three steps:

The signatures of seller and buyer must be authenticated on the contract. That can be done by the notary or in court. Fees for signature authentication is set in the Act on Fees of Public Notaries, last amended by the regulation Federal Law Gazetta BGBI II NR 218/2010. Court fees may differ slightly to the notary’s. Provided that more than one signature should be authenticated in one document (e.g. sales agreement), the costs for the further signature amount to 50% of the costs stated.
In case of a corporation as seller or buyer the authorization of the signing representatives must be proven, and this is done together with the authentication of the signatures; otherwise a certified excerpt out of the business register produced by the High Court (Landesgericht) must be presented to the Land Book.
The parties must pay the Property Acquisition Tax or Transfer Tax (Grunderwerbssteuer) which, in this case, amounts to 3.5 % of the purchase price. They must present to the Land Register a clearance certificate (Unbedenklichkeitsbescheinigung) furnished by the tax authorities certifying that the tax was paid (time to complete: tax assessment will last about 4 weeks; to get the certificate after paying the tax further 2 weeks; no extra costs). This clearance certificate may be substituted by a self-assessment declaration (Selbstbemessungserklärung) filed by a notary or a lawyer (attorney at law/solicitor) if the tax is paid to the notary or lawyer who cooperates with the tax authorities.

The notary public or the attorney-at-law usually issues the clearance certificate stating that the real estate transfer tax (3.5% of the purchase price) and registration fee for the Land Register (1.1% of the purchase price) have been paid. The registration fee for the Land Register rises from 1% to 1.1 % of the purchase price due to the regulation Federal Law Gazetta BGBI I Nr 111/2010 and is effective as of January 01, 2011. The certificate will be issued immediately after the notary or lawyer has received the amount of the real estate transfer tax and registration fee. The money for the purchase and the taxes is given to the notary/lawyer on a trust account. The parties may set up the contract themselves or use a standard template. In late 2005, the Act concerning “Changes in the vocational law of notary public, attorneys-at-law and civil engineers” was announced, providing for the use of electronic signatures which are to be submitted electronically to the courts. This Act has therefore created the legal basis for online registration and electronic notarial attestation. This reform is effective as of July 1, 2007.

3 days EUR 100,119.72; (EUR

3 File the application at the competent District Court (Land Registry)

Agency : District Court (Land Registry)

As of November 1, 2009, applications to transfer and register a property are required to be submitted electronically via an online data-exchange system called WebERV. The WebERV is an online-based form of communication between the courts, notaries and lawyers for submission of claims, briefs and applications and delivery of court transcripts, orders and decisions. This system provides standardized masks and forms for various kinds of applications such as registration of the ownership, registration of mortgages, precedence (Vorrangeinräumung) and cancelations.

Documentation on the fact that the company is owned by Austrian or European Community citizens. This system is effective as of November 1, 2009 and is provided for by the "Grundbuchs- Novelle 2008" (Land Registry Amendment 2008), Federal Law Gazetta Part 1 No. 100/2008 (BGB1 I 100/2008). As per this law, it is mandatory for attorneys and notaries to submit their applications concerning the transfer and registration of property using this system. Registration with the Land Registry has a binding effect as from the date of application, i.e. from this moment the company becomes the owner of the entire property (land, building, etc.). The fee for registration (paid to the attorney at law or notary) is freed from the trust account. Also, the notary/lawyer transfers the real property transaction tax to the tax office and transfers the

purchase price to the seller. The documentation shall include:

17 days

EUR 44; (EUR 44 (if the

application and all deeds are submitted via Web ERV) or EUR 62 (if the application and all deeds are not submitted via WebERV))

Sales agreement
Clearance Certificate of the tax authority verifying the payment of land transfer tax or self- assessment certificate
Documentation on the fact that the company is owned by Austrian or European Community

Details – Registering Property in Austria – Measure of Quality

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Strength of legal rights index (0–12)

Rights of borrowers and lenders through collateral laws (0-10)
Protection of secured creditors’ rights through bankruptcy laws (0-2)

Depth of credit information index (0–8)

Scope and accessibility of credit information distributed by credit bureaus and credit registries (0-8)

Credit bureau coverage (% of adults)
Number of individuals and firms listed in largest credit bureau as a percentage of adult population

Credit registry coverage (% of adults)

Number of individuals and firms listed in credit registry as a percentage of adult population

Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary secured transactions system exists. Then two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced according to the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a secured lender, BizBank.

In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

ABC is a domestic limited liability company (or its legal equivalent).
ABC has up to 50 employees.
ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Getting Credit – Austria

Figure – Getting Credit in Austria and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Austria and comparator economies

Details – Legal Rights in Austria

Figure – Credit Information in Austria and comparator economies

Details – Credit Information in Austria

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Extent of disclosure index (0–10): Disclosure, review, and approval requirements for related-party transactions
Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for prejudicial related-party transactions; Available legal

remedies (damages, disgorgement of profits, disqualification from managerial position(s) for one year or more, rescission of the transaction)
Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and allocation of legal expenses
Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of shareholder suits indices
Extent of shareholder rights index (0-6): Shareholders’ rights and role in major corporate decisions
Extent of ownership and control index (0-7): Governance safeguards protecting shareholders from undue board control and entrenchment
Extent of corporate transparency index (0-7): Corporate transparency on ownership stakes, compensation, audits and financial prospects
Extent of shareholder governance index (0–20): Sum of the extent of shareholders rights, extent of ownership and control and extent of corporate transparency indices
Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.

The business (Buyer):

Is a publicly traded corporation listed on the economy’s most important stock exchange.
Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speciﬁcally required by law.
Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members.
Has not adopted bylaws or articles of association that go beyond the minimum requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory.
Is a manufacturing company with its own distribution network.

The transaction involves the following details:
Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to Buyer’s ﬁve-member board.
Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.
Mr. James proposes that Buyer purchase Seller’s unused ﬂeet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.
The proposed transaction is part of the company’s principal activity and is not outside the authority of the company.
Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently.
The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and directors that approved the transaction.

Protecting Minority Investors – Austria

Figure – Protecting Minority in Austria – Score

Figure – Protecting Minority Investors in Austria and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conﬂict of interest regulation index and the extent of shareholder governance index.

Figure – Protecting Minority Investors in Austria and comparator economies – Measure of Quality

Details – Protecting Minority Investors in Austria – Measure of Quality

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure

Tax payments for a manufacturing company in 2018 (number per year adjusted for electronic and joint filing and payment)

Total number of taxes and contributions paid or withheld, including consumption taxes (value added tax, sales tax or goods and service tax)
Method and frequency of filing and payment

Time required to comply with 3 major taxes (hours per year)

Collecting information, computing tax payable
Preparing separate tax accounting books, if required
Completing tax return, filing with agencies
Arranging payment or withholding

Total tax and contribution rate (% of commercial profits)

Profit or corporate income tax
Social contributions, labor taxes paid by employer
Property and property transfer taxes
Dividend, capital gains, financial transactions taxes
Waste collection, vehicle, road and other taxes

Postfiling Index

Time to comply with VAT refund (hours)
Time to obtain VAT refund (weeks)
Time to comply with a corporate income tax correction (hours)
Time to complete a corporate income tax correction (weeks)

Using a case scenario, Doing Business records taxes and mandatory contributions a medium size company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax laws, time taken to comply with the requirements of postfiling processes and time waiting.

To make data comparable across economies, several assumptions are used:

TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government.

The VAT refund process:

In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018.

The corporate income tax audit process:

An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period.

Paying Taxes – Austria

Figure – Paying Taxes in Austria and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Austria and comparator economies – Measure of Quality

Details – Paying Taxes in Austria

Details – Paying Taxes in Austria – Tax by Type

Details – Paying Taxes in Austria – Measure of Quality

Notes:

Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction.

N/A = Not applicable.

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Documentary compliance

Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy
Obtaining, preparing and submitting documents required by destination economy and any transit economies
Covers all documents required by law and in practice, including electronic submissions of information

Border compliance

Customs clearance and inspections
Inspections by other agencies (if applied to more than 20% of shipments)
Handling and inspections that take place at the economy’s port or border

Domestic transport

Loading or unloading of the shipment at the warehouse or port/border
Transport between warehouse and port/border
Traffic delays and road police checks while shipment is en route

To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions:

Time:

Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours.

Cost:

Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and are informed about exchange rates.

Assumptions of the case study:

For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy.
It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000.
The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport or land border crossing.
All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process.
A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy.
Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

Trading across Borders – Austria

Figure – Trading across Borders in Austria – Score

Figure – Trading across Borders in Austria and comparator economies – Ranking and Score

DB 2020 Trading Across Borders Score

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Austria – Time and Cost

Details – Trading across Borders in Austria

Details – Trading across Borders in Austria – Components of Border Compliance

Details – Trading across Borders in Austria – Trade Documents

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to enforce a contract through the courts (calendar days)

Time to file and serve the case
Time for trial and to obtain the judgment
Time to enforce the judgment

Cost required to enforce a contract through the courts (% of claim value)

Average attorney fees
Court costs
Enforcement costs

Quality of judicial processes index (0-18)

Court structure and proceedings (-1-5)
Case management (0-6)
Court automation (0-4)
Alternative dispute resolution (0-3)

The dispute in the case study involves the breach of a sales contract between two domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the case are used:

The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of adequate quality.
The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater.
The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater.
The Seller requests the pretrial attachment of the defendant’s movable assets to secure the claim.
The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate.
The judge decides in favor of the seller; there is no appeal.
The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

Enforcing Contracts – Austria

Figure – Enforcing Contracts in Austria – Score

Figure – Enforcing Contracts in Austria and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Austria – Time and Cost

Figure – Enforcing Contracts in Austria and comparator economies – Measure of Quality

Details – Enforcing Contracts in Austria

Details – Enforcing Contracts in Austria – Measure of Quality

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to recover debt (years)

Measured in calendar years
Appeals and requests for extension are included

Cost required to recover debt (% of debtor’s estate)

Measured as percentage of estate value
Court fees
Fees of insolvency administrators
Lawyers’ fees
Assessors’ and auctioneers’ fees

Other related fees

To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:

A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.
The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.
The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise.

In addition, Doing Business evaluates the quality of legal framework applicable to judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered.

Outcome

Whether business continues operating as a going concern or business assets are sold piecemeal

Recovery rate for creditors

Measures the cents on the dollar recovered by secured creditors
Outcome for the business (survival or not) determines the maximum value that can be recovered
Official costs of the insolvency proceedings are deducted
Depreciation of furniture is taken into account
Present value of debt recovered

Strength of insolvency framework index (0- 16)

Sum of the scores of four component indices:
Commencement of proceedings index (0-3)
Management of debtor’s assets index (0-6)
Reorganization proceedings index (0-3)
Creditor participation index (0-4)

Resolving Insolvency – Austria

Figure – Resolving Insolvency in Austria – Score

Figure – Resolving Insolvency in Austria and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Austria – Time and Cost

Figure – Resolving Insolvency in Austria and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Austria and comparator economies – Recovery Rate

Details – Resolving Insolvency in Austria

Details – Resolving Insolvency in Austria – Measure of Quality

Note:

Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Hiring

(i) whether fixed-term contracts are prohibited for permanent tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum wage;(v) ratio of minimum wage to the average value added per worker.

Working hours

(i) maximum number of working days allowed per week; (ii) premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a weekly rest day and for overtime work; (iv) length of paid annual leave.

Redundancy rules

(i) whether redundancy can be basis for terminating workers; (ii) whether employer needs to notify and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

To make the data comparable across economies, several assumptions about the worker and the business are used.

The worker:

Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
Is a full-time employee.
Is not a member of the labor union, unless membership is mandatory.

The business:

Is a limited liability company (or the equivalent in the economy).
Operates a supermarket or grocery store in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Has 60 employees.
Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them.
Abides by every law and regulation but does not grant workers more benefits than those mandated by law, regulation or (if applicable) collective bargaining agreements.

Redundancy cost

(i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Employing Workers – Austria

Details – Employing Workers in Austria

PEO Austria

Austria, as a Professional Employer Organization (PEO) country, offers a highly favorable environment for businesses seeking to expand their operations. With its strategic location at the heart of Europe, Austria serves as a gateway to various European markets. As a PEO destination, Austria provides comprehensive solutions for managing a company’s HR and employment-related functions, making it an attractive option for foreign companies looking to establish a presence without establishing a legal entity. The country’s business-friendly policies, skilled workforce, and stable economy further contribute to its appeal. Moreover, Austria’s commitment to innovation and technological advancements ensures that businesses operating within its borders have access to cutting-edge resources and expertise. Overall, Austria stands out as an excellent PEO country, offering a blend of accessibility, support, and opportunities for businesses to thrive in the European market.

PEO services in Austria offer a practical and efficient solution for international companies looking to establish a presence in this vibrant European market. By partnering with a reputable PEO service provider, businesses can delegate their human resources, payroll, and compliance needs to local experts. The PEO acts as the official employer of record, ensuring compliance with Austrian labor laws and regulations. This simplifies the process of market entry, as foreign companies can avoid the complexities of setting up a legal entity. PEO services also provide access to a skilled local workforce, promoting seamless operations and cultural integration. With administrative tasks handled by the PEO, businesses can focus on their core objectives and take advantage of Austria’s strategic location, stable economy, and business-friendly environment.

Business Reforms in Austria

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. =Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2020

Employing Workers: Austria changed regulations pertaining to working time.

DB2015

Starting a Business: Austria made starting a business easier by reducing the minimum capital requirement, which in turn reduced the paid-in minimum capital requirement, and by lowering notary fees.

DB2012

Resolving Insolvency: Austria passed a new law that simplifies restructuring proceedings and gives preferential consideration to the interests of the debtors.

DB2011

Registering Property: Austria made it easier to transfer property by requiring online submission of all applications to register property transfers.

DB2009

Enforcing Contracts: Austria made enforcing contracts easier by making electronic filing mandatory in civil matters and thereby increasing the efficiency of proceedings.

DB2008

Trading across Borders: Austria made trading across borders easier by introducing an electronic customs clearance system and a risk-based inspection system.

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