The Austrian FlexCo: A New Era of Flexibility for Global Entrepreneurs

Austria’s entrepreneurial landscape is set to experience a significant shift with the introduction of the FlexCo (Flexible Company), a new legal entity designed to empower businesses with unprecedented adaptability and streamlined operations. This innovative corporate form, a hybrid of the traditional GmbH and AG, is poised to revolutionize the way businesses operate, particularly for start-ups seeking a less rigid structure.

One of the most notable advantages of the FlexCo is its reduced minimum capital requirement. With a minimum share capital of € 10,000 and with a minimum initial deposit of € 5,000, the FlexCo lowers the barriers to entry for aspiring entrepreneurs, fostering a more inclusive and accessible business environment.

The FlexCo’s streamlined decision-making processes further enhance its appeal. By allowing for text-based voting (enabling decisions through e-mail and other simple digital signature solutions) and split voting (allows a trustee to vote as each trustor prefers), businesses can make crucial decisions more efficiently and collaboratively. The ability to issue fractional shares adds another layer of flexibility, enabling companies to create diverse share classes tailored to specific investor needs.

A standout feature of the FlexCo is the introduction of Company Value Shares (CVS), a new class of shares designed for employee participation. Up to 25 % of the share capital can be issued in the form of CVS, and these shares have a minimum nominal value of only one cent. As such these shares make equity participation accessible to a wider range of employees, fostering a sense of ownership and alignment between employees and the company’s goals.

The FlexCo also simplifies the transfer of ownership by eliminating the need for a notarial deed, reducing bureaucratic hurdles and promoting a more agile business environment. Additionally, its flexible capital measures, such as the ability to acquire and hold its own shares, provide businesses with greater financial autonomy.

The FlexCo represents a significant leap forward in Austria’s efforts to create a more dynamic and competitive business landscape. By embracing flexibility, innovation, and employee participation, the FlexCo empowers entrepreneurs to build thriving businesses on their terms. As more businesses embrace this new corporate form, its transformative potential is poised to shape the future of Austrian entrepreneurship.

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