Austria has passed an amendment to the Limited Liability Companies Act from 1st July 2013 with the aim of reducing the costs connected with setting up an Austrian limited liability company. A new provision has also been introduced into the Insolvency Act (sub-paragraph 3a of section 69,), according to which majority shareholders of an insolvent company shall be obliged to file for insolvency proceedings if the company does not have any legal representatives.
The most important amendment is the reduction of the minimum nominal capital of a GmbH to €10,000 (£8,600. Also the establishment of a GmbH with registered share capital of EUR 10,000 will now cost EUR 600 of notary’s fees (including notarization). Overpaid minimum corporate income tax will be refunded in the course of the assessment for the year 2013.
Under sub-paragraph 3a IC of section 69, if a domestic or foreign capital company has no legal representatives, the obligation to file for insolvency proceedings lies with the shareholder effective from 1 July 2013, if the shareholder has a participation of more than half the share capital.
According to the new rules, a managing director who fails to file for insolvency in due time is personally liable to the company’s creditors for the damages suffered by them as a result of the delayed filing. If the new sub-paragraph 3a IC of section 69 is applicable, such liability due to delayed filing will also be incurred by majority shareholders.
