EMCC European Monitoring Centre on Change

Start-up promotion law

Austria
Phase: Management
Type:
  • Access to finance
  • Employment incentive
  • Start-up support
  • Support of business transfers
Last modified: 03 August, 2021
Native name:

Neugründungs-Förderungsgesetz (NeuFöG)

English name:

Start-up promotion law

Coverage/Eligibility

Start-ups and business successions or transfers.

Main characteristics

This law exempts those who establish new businesses from certain administrative costs and from incidental wage costs for their employees.

Some of these exemptions also apply to business transfers or successions. These exemptions include, for example, stamp duty and fees for national administrative documents and for formal procedures related to a transfer. There are also exemptions for court fees incurred while recording a transfer in the company register as well as for corporate taxes on the acquisition of shareholder rights and taxes related to buying property if the value on the basis of which the tax is calculated does not exceed €75,000 (NeuFöG §5).

To benefit from exemptions, the company's successor or new owner must submit an official form confirming the transfer beforehand or hand it in together with the application. This form is provided by the employer organisation representing the respective industry or the social security body but can also be completed and submitted online.

Additionally, for start-ups there are exemptions for parts of incidental wage costs for employees, including housing subsidies (Wohnbauförderungsbeitrag), contributions to the family assistance fund (Familienlastenausgleichsfonds) and to the Austrian Economic Chamber of Labour (Wirtschaftskammer, Kammerumlage), as well as accident insurance (Unfallversicherung). Benefits can be claimed for up to three years for a maximum period of 12 months. During the first year there is no limit on the number of employees for which a start-up can apply. In the second and third year after start-up the exemption of employer contributions can only be claimed for the first three employees.

Funding

  • National funds

Involved actors

National government
Legal framework, funding.
Employer or employee organisations
To be eligible for support, employers must consult with their employer organisation.
Other
If there is no employer organisation for the industry in question, employers must consult with the social security body.

Effectiveness

No information available.

Strengths

The exemption from certain administrative and wage costs supports the establishment of new companies.

Weaknesses

No information available.

Examples

No information available.
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