Whether graphic design, selling in an online shop or a hair salon: anyone in Austria who offers something on a self-employed basis very often needs a trade licence (Gewerbeberechtigung) for it. Registering a trade in Austria is free of charge and can be done online. One question comes first, though: is the planned activity a free trade, or is it a regulated trade that requires proof of qualification?
This article shows when a trade licence is needed, how free and regulated trades differ and which requirements apply. After that, it goes step by step through the registration, via GISA and the USP, the documents and the competent authority. At the end come the costs, the registrations that follow and dormancy. The information comes from the Austrian Economic Chamber (Wirtschaftskammer Österreich, WKO), the Ministry of Economy (BMWET), the Business Service Portal (Unternehmensserviceportal, USP) and the Trade Regulation Act (Gewerbeordnung, GewO).
Key points at a glance:
- According to the BMWET, every activity that falls under the Trade Regulation Act requires a valid trade licence; the trade registration is made with the trade authority of the location.
- Free trades do not require proof of qualification, regulated trades do.
- The trade registration is free of charge.
- If all requirements are met and the documents are complete, the activity can in principle start immediately; for some trades only after a legally binding decision or the GISA entry.
- If the requirements are met, the authority enters the trade in the Austrian trade information system (Gewerbeinformationssystem Austria, GISA) within three months.
When do you need a trade licence?
According to the USP, anyone who wants to carry out an activity that falls under the Trade Regulation Act on a self-employed basis, regularly and with the intention of making a profit needs a trade licence. Colloquially, the trade licence is called Gewerbeschein. Sole traders need a trade licence in Austria just as legal entities, such as a GmbH, and registered partnerships do. Companies also appoint a managing director under trade law (gewerberechtlicher Geschäftsführer).
Since 1 May 2018, the so-called Gewerbelizenz has bundled all trade licences of a business in one. Anyone who already had a trade does not need to do anything about it. Which licence fits your own case depends on the planned activity. Because the classification is not always clear-cut, the WKO recommends getting advice from the Economic Chamber.
Free and regulated trades: the difference
The Trade Regulation Act distinguishes three types. A regulated trade is expressly listed in section 94 GewO, a partial trade (Teilgewerbe) in section 31. Everything not named there that falls under the Trade Regulation Act is a free trade. For the trade registration, the main difference lies in the proof of qualification:
| Free trade | Regulated trade | Partial trade | |
|---|---|---|---|
| Legal basis | All trades not listed as regulated or partial trades | Expressly listed in section 94 GewO | Expressly listed in section 31 GewO |
| Proof of qualification | Not required | Required, access requirements set by ordinance | Evidence of qualification needed |
| If the proof is missing | Not relevant | Individual qualification or managing director under trade law | Individual qualification or managing director under trade law |
A regulated trade is therefore open to anyone who meets the general requirements and can prove the required qualification. For free trades, registration with the general requirements is enough. Regardless of this, specific rules on exercising the trade can apply to individual activities.
Regulated trades: examples from the list
The list of regulated trades in section 94 GewO includes, among others, opticians, bakers, master builders, funeral services, electrical engineering, butchers, hairdressers, the hospitality trade, real estate agents and property managers, cosmetics, life and social counselling and massage. Many of them are marked as crafts (Handwerk). If you are unsure whether a plan is on this list, the full list is in the law itself.
For some regulated trades, the authority also checks reliability. According to the BMWET, this applies, among others, to master builders, electrical engineering, gas and plumbing technology, travel agencies, the security trade, commercial financial advice and the weapons trade. For some trades, liability insurance or another form of liability cover must also be proven, for example for real estate agents or insurance intermediaries.
Proof of qualification
The proof of qualification (Befähigungsnachweis) shows that someone has the technical and commercial-legal knowledge, skills and experience for a regulated trade. The competent ministry sets out by ordinance which evidence is enough for each trade. According to the WKO, the following certificates, among others, can be used:
If the formally required proof of qualification is missing, the authority can, on application, establish individual qualification based on previous training and work. Alternatively, except for example for chimney sweeps and insurance mediation, a managing director under trade law who has the qualification can be appointed. Companies such as an OG, KG, GmbH or AG have to appoint a managing director under trade law in any case.
Requirements for the trade registration
In addition to the proof of qualification for regulated trades, there are general requirements that apply to every trade registration. For sole traders, according to the BMWET and the USP, these are:
In addition, a sole proprietorship generally needs a business location in Austria, but no residence in Austria; the residence can also be in another EEA state. Whether a rented or owned flat is suitable as a location depends, according to the WKO, among other things on the zoning and on the lease or the condominium agreement. For some activities, the operating facility also needs a permit. For companies, the entry in the commercial register is added.
Registering a trade: step by step
The trade registration in Austria is informal. If you want to register a trade, here is the process; according to the WKO, the BMWET and the USP, it takes six steps:
Clarify the exact name of the trade, for example with advice from the Economic Chamber, and check whether it is free or regulated.
Set the business location and check whether zoning, the lease and, if needed, an operating facility permit fit.
Have your passport, further certificates such as a marriage certificate if needed and, for regulated trades, the proof of qualification ready. This includes the declaration on grounds for exclusion.
Submit the registration to the trade authority of the location, in person, in writing or online via GISA, the USP or the WKO.
If all requirements are met and the documents are complete, the activity can in principle start from the day of registration.
If the requirements are met, the authority enters the trade in GISA within three months. An extract from GISA follows as confirmation.
Registering a trade online via GISA and the USP
Registering a trade online works directly via the Austrian trade information system. According to the WKO, GISA can be used to register and surrender trades, move locations, register further branches and appoint managing directors under trade law. Alternatively, the USP bundles the founding steps for sole proprietorships in one place, from the NeuFöG declaration to the trade registration and the registrations with the tax office and social insurance.
For the online trade registration, identification is key. According to the City of Vienna, an immediate electronic entry in GISA is only possible with ID Austria or an EU login; without it, the form can still be submitted. Since the last amendment of the Trade Regulation Act, a sworn declaration (eidesstattliche Erklärung) that there are no grounds for exclusion can also be made. Electronic registrations can then be entered in GISA immediately, without the authority manually checking the grounds for exclusion.
Documents for the trade registration
The trade registration itself contains the personal details, i.e. name, birth details, place of residence and nationality, as well as the exact name of the trade and the location. For sole proprietorships, the WKO lists the following attachments:
A criminal record certificate is generally not required. Only those who have not lived in Austria or have lived there for less than five years submit one from their country of origin or previous residence; with a sworn declaration, it is not needed. If the master data is already stored in GISA, the personal documents do not have to be submitted again. For companies, the trade authority retrieves the commercial register extract itself electronically.
Competent authority, for example in Vienna
The competent authority is the trade authority in whose area the business location lies. That is the district authority (Bezirkshauptmannschaft) or, in cities with their own statute, the municipal authority (Magistrat). Anyone who wants to register a trade in Vienna turns, according to the BMWET, to the municipal district office (Magistratisches Bezirksamt) or to MA 63, depending on the trade. As a service, the WKO can also forward the registration electronically to the authority.
How much does the trade registration cost?
The trade registration costs nothing. According to the BMWET, all filings, documents and certificates under the rules on access to trades are exempt from federal fees and charges, including GISA extracts and an application to establish individual qualification. For a new business, the New Business Promotion Act (Neugründungs-Förderungsgesetz, NeuFöG) also provides relief on further taxes and fees.
Registering a trade therefore costs nothing, but running it does. With the trade registration, you become a member of the Economic Chamber, and the membership comes with an annual basic contribution (Grundumlage) whose amount varies by industry. On top of that come the social insurance contributions, which according to the WKO are based on the income from the business; a minimum contribution base applies even with low income.
After registration: the SVS, tax office and dormancy
Registering the trade does not quite finish setting up the business. The BMWET reminds founders of a new business to register at the same time with the Social Insurance Institution for the Self-Employed (Sozialversicherungsanstalt der Selbständigen, SVS) and with the tax office, and to register employees with the Austrian Health Insurance Fund (Österreichische Gesundheitskasse, ÖGK). The trade authority forwards the trade registration to the SVS automatically, but the business still has to register with the SVS itself within the first month after founding. The start of the activity is also reported to the tax office within one month.
Anyone who temporarily does not carry out a trade can register it as dormant. According to the WKO, the dormancy notice (Ruhendmeldung) and later the resumption must be reported to the Economic Chamber within three weeks, informally by e-mail or via the WKO eServices. For some trades, such as real estate agents, insurance intermediaries or master builders, the notice goes directly to the trade authority. With social insurance, a retroactive dormancy notice is possible for up to 18 months, provided no activity subject to compulsory insurance was carried out from that date. While the trade is dormant, the activity may not be advertised, offered or carried out.
In short: A trade is registered informally and free of charge with the trade authority of the location, online via GISA or the USP if you wish. Regulated trades require proof of qualification, free trades do not.
A business account for the trade
Once the trade is up and running, a separate account helps keep income and expenses apart from private money. With Vivid, sole traders and new self-employed persons (Neue Selbständige) from Austria can open a business account, including for self-employment on the side; a GmbH can as well. Opening the account itself costs nothing. What the account offers for the start:
Even on plans without a monthly fee, individual services can incur charges. These include additional cards, cash withdrawals above certain allowances or premium features from higher plans.
Vivid at a glance: an online business account for tradespeople in Austria, with plans from €0 a month and invoicing directly in the account.
An account that separates trade and private
Open the Vivid business account online and keep business and private matters apart from the start.
Frequently asked questions
How do I register a trade in Austria?
Informally with the trade authority of the location, i.e. the district authority or the municipal authority. This can be done in person, in writing or online via GISA, the USP or the Economic Chamber.
How much does the trade registration cost?
Nothing. The trade registration is exempt from federal fees and charges. With the registration, however, membership of the Economic Chamber begins, with its basic contribution.
What is the difference between a free and a regulated trade?
A regulated trade is on the list in section 94 GewO and requires proof of qualification. No proof of qualification is required for a free trade.
Can I register my trade online?
Yes, via GISA or the USP. With ID Austria or an EU login, an immediate electronic entry in GISA is possible.
When can I start working?
In principle from the day of registration, if all requirements are met and the documents are complete. For trades with a reliability check and after an application for individual qualification, only once the decision is legally binding. For some intermediary trades, only once they are entered in GISA.
Which documents do I need?
A valid passport, the declaration that there are no grounds for exclusion and, for regulated trades, the proof of qualification. Depending on the case, further documents are added.
What happens if I do not have the proof of qualification?
Then the authority can, on application, establish individual qualification. Alternatively, a managing director under trade law who has the qualification can be appointed.
This article is for general information only and is not legal advice. The rules, deadlines and amounts mentioned come from the information published by the Austrian Economic Chamber, the Ministry of Economy, the Business Service Portal and the City of Vienna and from the Trade Regulation Act; for your own case, the Economic Chamber is the right point of contact. Payment services are provided by Vivid Money S.A., 21 rue Glesener, Luxembourg, L-1631, Luxembourg, an Electronic Money Institution authorized and regulated by the Commission de Surveillance du Secteur Financier, Luxembourg, under the register number W00000015.
