The Austrian Flexible Company (FlexKapG) has been in force since 1 January 2024. For founders and growing companies, three things change.
What has changed
The minimum share capital is EUR 10,000, of which at least EUR 5,000 must be paid in cash. The minimum contribution per share falls from EUR 70 to EUR 1. Share transfers and subscription declarations in capital increases can be made by a notarial or lawyer-drawn private deed, a notarial deed is no longer the only form. A FlexKapG with a single founder can be set up without a notary.
Ownership for employees
New are company-value shares. The company can issue them in addition to salary, free of charge and voluntarily. Taxation is generally deferred until sale and follows a flat rate. The Austrian Federal Economic Chamber (WKO) names conditions, including a holding period of at least three years, employment of at least two years, fewer than 100 employees and turnover of no more than EUR 40 million.
Why I settle this before the first round
Anyone who plans to raise capital or give employees a stake is better off choosing the legal form beforehand. According to the WKO, converting a GmbH costs around EUR 2,000 to 3,000 in lawyer and notary fees. The legal implementation belongs with a notary or lawyer. I prepare the decision: funding need, ownership model and how investors will see the company.
The first conversation takes 30 minutes and is free and without obligation. More at Advisory for start-ups and scale-ups.
Source: WKO, FlexKapG FAQs (page dated 13 March 2025).