Start-Ups – Common Legal Issues

Austria recently experienced a significant boom in start-ups¹ and has produced some major international players (eg, Runtastic, bwin, last.fm and Whatchado). That said, starting a business in Austria requires an understanding of the peculiarities of the legal system. This update discusses some of the common legal risks and issues that come along with starting a business in Austria.

Legal form and liability

Start-ups usually take the legal form of a sole entrepreneur (if there is only one founder) or a civil law association (if there is more than one founder). Neither of these legal forms provide limitations of the founders' liability. As such, founders are exposed to personal liability.