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What is a regulated business licence in Austria and who needs one?

Starting a business in Austria is notoriously complicated, but the amount of bureaucracy will depend on whether you need a business licence or not. Here’s what you need to know.

Published: 17 May 2023 14:51 CEST

What is a regulated business licence in Austria and who needs one?

Some professions in Austria require a regulated business licence before you can register as self-employed. (Photo by George Milton / Pexels)

Not every business owner or freelancer in Austria needs a business licence, but for those that do, there are two types – free and regulated.

The right one – and whether you need a business licence at all – will mostly depend on the profession and the type of work you do.

So if you think you might need to apply for a business licence but are unsure about the process, here’s an overview of how it works in Austria.

What is a business licence?

A business licence is a licence to trade in Austria, although not everyone needs one to start working independently.

If a profession falls under the new self-employed (Neue Selbständige) category, like artists, writers, lecturers, scientists and psychologists, then a business licence is not required.

But other professionals will need a licence before they can operate commercially, with the free business licence being the most common type issued in Austria.

What is the difference between a free and regulated licence?

For both types of business licences, applicants have to show proof of residency and age (at least 18), as well as provide a criminal record check.

To get the regulated licence though, applicants have to submit proof of qualifications related to the business, have relevant working experience in the field and in some cases, even pass an exam. Professions that need a regulated business licence include hairdresser, florist, masseuse, mechanic and business consultant.

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For some international residents in Austria, this can be a tricky part of the process, especially if their qualifications and experience are from another country.

Vienna-based business consultant Miglena Hofer told The Local: “Many foreigners come to Austria qualified to do what they are good at but can’t make money [through self-employment] because they have to undergo this procedure.

“If they don’t have the experience, the best way is to find a job with that profession in Austria and then switch to self-employment later, perhaps one to three years depending on what is required.”

However, with the free licence, there is no requirement to have qualifications or relevant experience before registering a business, which makes the entire process quicker and easier.

Examples of professions that fall into this category include digital marketer, web developer, translator and photographer.

How long does it take to get a regulated business licence?

The process of getting a regulated business licence can take some time, depending on the evidence an applicant has to submit and where in the country they apply.

Miglena works with many international residents in Austria that want to set up a business and said she had noticed an increase in the number of clients in recent months, as well as the time it takes to process applications.

She said: “Currently it takes five to seven months for an application to be processed in Vienna.

“It can be easier to register for a business licence in other provinces. In Vienna, they have the biggest number of applications, which is part of why the delay is so long.”

To speed up the process, Miglena advises prospective entrepreneurs to collect as much paperwork as possible in advance. This includes references from previous employers and any certificates for relevant qualifications, including any necessary translations.

In Vienna, the Department for Commercial Law, Data Protection and Civil Status (MA 63) is responsible for assessing applications for a regulated business licence.

Additionally, applying for a business licence (either free or regulated) also requires membership in the Austrian Chamber of Commerce, known as the WKÖ, which is subject to an annual fee. This can vary depending on the type of business.

Useful words and phrases

New self-employed – Neue Selbständige

Regulated businesses – Reglementierte Gewerbe

Entrepreneur – Unternehmer/Unternehmerin

Business registration – Gewerbeanmeldung

Business licence – Gewerbeberechtigung

Useful links

List of businesses that need a regulated business licence in Austria (in German)

How to register as self-employed in Austria?

Business Service Portal

Self-employed in Austria

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COMPARE: The best commuter towns if you work in Vienna

Public transport works well in Austria, and over the past few years, especially after the Covid pandemic, most companies have become more flexible when it comes to allowing their employees to work from other places than the office.

This means that living outside Vienna has become more possible than earlier. If you work in the capital, there are many nearby towns and cities within reach.

Baden bei Wien

Baden bei Wien, a cute spa town in Lower Austria, is listed as one of UNESCO’s World Heritage sites.

You can reach Baden from Vienna in about 30 minutes by train. If you drive, it will take you around 40 minutes.

As a place to live, Baden bei Wien offers a great mix of beautiful nature and culture. The town is located in the forested areas known as Vienna Woods where you can enjoy different hiking and biking trails just outside of town. There are also many forests to explore and wineries to visit.

Baden has a rich cultural heritage, and one of its highlights is The Kurpark, a beautiful park in centre of the town, with gardens, fountains, and historic buildings. It is also where the famous spa, Römertherme, is located.

Throughout the year, the town offers various festivals and events such as the Badener Sommernacht and the Beethoven Festival.

Unfortunately, property prices in Baden bei Wien are not cheap and the town has some of the most expensive real estate in Lower Austria. It is still cheaper to rent something in Baden than in Vienna though, as rent prices in the capital are 8.7 percent higher, according to Numbeo.

Kurpark in Baden bei Wien. Photo by Roman Vasilovski on Unsplash

Korneuburg

Korneuburg is a historic town in Lower Austria, located on the banks of the Danube River.

Because it only takes about 30 minutes to reach the town from Vienna, it is a popular place to live if you work in the capital.

Korneuburg offers quiet living near beautiful nature and water. It is a popular alternative to the more stressful and crowded Vienna.

The town has many parks, and in the surrounding area, you will find great nature spots like the hill Bisamberg, where you can enjoy marked hiking and cycling trails.

Korneuburg is known for its rich history, and some of the town’s highlights are Korneuburg Castle, which was built in the 12th century, and the cute and small old town with its narrow streets and historic buildings.

In Korneuburg, The Local found one bedroom apartments to rent for less than €700 per month.

Mödling

Mödling, located around 14 kilometres south of Vienna in Lower Austria, is known for its closeness to nature and rich cultural heritage.

It only takes 15 minutes of train travel to reach Mödling from Vienna. If you travel by car, it will take you 30 minutes.

Mödling is known for its surrounding nature and offers many hiking, jogging, and mountain biking trails. It is also famous for having one of the region’s best via ferratas (klettersteig) for beginner climbers, Mödlinger Klettersteig.

The town also has a rich cultural heritage. For example, Beethoven dedicated the music Mödlinger Tänze (Mödling Dances) to the town, and there is also a Beethoven museum where you can go and learn more about the famous composer.

Furthermore, Mödling is famous for The Mödling Wine Festival, which is held annually in the historic town centre. Here you can go to try local wines, culinary dishes, and listen to traditional music.

The Local found property prices per square meter for Mödling to cost around €3,986.

City centre of Mödling. Photo by Roman Vasilovski on Unsplash

Neusiedl am See

If you want to live near a big lake, settling down in Neusiedl am See in Burgenland might be a great idea.

This town is surrounded by Austria’s most famous wine regions, and it only takes you 40 minutes to travel there from Vienna by train, and a similar time by car.

The town is a popular summer and spring day trip destination for people living in Vienna who want to escape the city to spend some time at the lake. The town centre offers a mixture of modern and traditional cafes, restaurants and bars.

The lake is a great place for enjoying sports such as kite surfing, cycling, hiking, and swimming. Many people also visit the area for birdwatching since it is home to a diversity of birds.

Property is generally considered to be quite affordable in Burgenland, but Neusiedl am See is one of most expensive district in the province.

If you want to buy a house, the average price per square meter is €3.623.Prices for apartments are expected to be similar.

A boat of a sailing school sails in front of the marina in Neusiedl am See. (Photo by Alex HALADA / AFP)

Klosterneuburg

Klosterneuburg, located in the Vienna Woods in Lower Austria, is home to a population of 27,500.

If you are coming from Vienna, you can reach Klosterneuburg in about 40 minutes by train, while driving takes around 30 minutes via the B14 and the B227.

The town is known for its historic Klosterneuburg Monastery that was built in the 12th century and is described by Wienerwald Tourismus as “one of the most beautiful and charming forest communities in the Vienna Woods”.

Klosterneuburg has a historical city centre where you can meet up with your friends, eat at one of the restaurants, do your groceries or maybe visit some of the museums to check out an exhibition.

Since the town is located in the Vienna Woods, nature is easy accessible and you can reach many hiking trails just by walking from the city centre.

According to Numbeo, rent prices in Klosterneuburg are 50.4 percent lower than in Vienna. To rent a one bedroom apartment you have to pay around €715 in Klosterneuburg, according to Numbeo.

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Wiener Neustadt

Wiener Neustadt is a city located in Lower Austria, and a more affordable and quieter alternative to living in the capital.

The city is one of the largest rail transport hubs in Austria and is well connected to the capital, which you can reach in about 30 minutes by train. Driving takes around 50 minutes if you go via the S Autobahn/E59.

This city is also a great alternative to Vienna if you love nature since it is surrounded by it. Wiener Neustadt offers bicycle lanes and trails, including the EuroVelo 9 – a long-distance cycle path connecting the Czech Republic, Austria, and Slovenia.

Schneeberg is also located nearby, which is the highest mountain in the area and a great place to go if you want to enjoy hiking, ski touring, and some great views.

The price for buying an apartment in the centre of Wiener Neustadt is around €3,500 per square meter. Rent prices are in general 37 percent lower than in Vienna, according to Numbeo.

Woman biking through a park in Wiener Neustadt. Photo by Michael Pointner on Unsplash

St. Pölten

St. Pölten is the capital of Lower Austria and it is known for having both an entrepreneurial and an art scene.

From Vienna, you can take a direct train and reach St. Pölten in about 20 to 30 minutes, whereas driving takes you one hour. Using the train is very convenient since the train station is centrally located in the old town of St.Pölten.

The city has a cute historical town, with small streets and historical buildings like the church, The Diocese of Sankt Pölten. And if you feel like enjoying some cultural performances, you can visit the famous Festspielhaus.

St. Pölten offers affordable living in a city near nature. The mountain Schneeberg is very nearby and it does not take you long to get there if you want to enjoy hiking, climbing or skiing.

The Local found one bedroom apartments to rent in the city for less than €600 per month.