Starting a trades business in Austria: the guide for every trade

Which trade licence do you need?

The first step is not a logo but a sober question: which trade are you registering? The Gewerbeordnung (GewO, Austria's Trade Act) distinguishes free trades, which anyone can register with a form, from regulated trades, where you have to prove your qualification. Almost all technical crafts belong to the second group. § 94 GewO lists them exhaustively; some are expressly called a craft (Handwerk), others such as electrical engineering or master builder are not.

If you offer several services, you often need several licences. A plumber who renovates bathrooms and installs heat pumps typically registers gas and sanitary engineering and heating engineering. A master builder, on the other hand, may plan and coordinate a lot of work by other trades within a building project under § 99 GewO, but may only carry out part of it himself. Check the exact wording once too often rather than once too little: a missing licence usually only comes to light when a competitor or the authority starts asking.

Proof of competence and the qualified managing director

For a regulated trade you have to prove your professional qualification. There are several ways to do this, and not all of them require the master craftsman exam.

• Master craftsman or qualifying exam: the classic route. Since 2020, masters may put the title "Meister" or "Mst." in front of their name (§ 21 GewO).
• Other certificates: for each regulated trade, a regulation sets out which combinations of training and experience count as equivalent, for example a relevant HTL (technical college) diploma plus work in the field. The WKO Gründerservice (start-up service) tells you which combination applies to your trade.
• Individual proof of competence (§ 19 GewO): you submit certificates, employer references and project records, and the authority confirms that you have the necessary skills. This takes longer, but it is a realistic route for experienced professionals without an exam. If your competence only covers part of the trade, the licence is restricted accordingly.
• Gewerberechtlicher Geschäftsführer (§ 39 GewO): if you have no proof yourself, you bring in someone who does. This person must be employed in the business for at least half the normal weekly working hours with full social insurance, or be a member of the company's board or management.

Registering your trade via GISA and USP

The trade authority is the Bezirkshauptmannschaft (district authority), or the Magistrat (city council) in statutory cities such as Linz, Graz or Salzburg. You don't have to go there in person, though: as a sole trader or single-member GmbH you register online through the Unternehmensserviceportal (USP, the federal business service portal), or directly in the GISA procedure with ID Austria. Registration itself is free of charge. For a regulated trade it counts as filed as soon as all required documents are with the authority; from then on you may work.

A practical tip: only register the trade when you really want to start. From the day of registration, chamber fees and SVS compulsory insurance apply, even if the first job is still weeks away. If you don't need the licence for a while, you can put it on hold (ruhend melden) with the WKO.

Sole trader, e.U. or GmbH?

Most trades businesses start as sole traders. It is quick, cheap and simple, but you are liable with your private assets. With larger jobs, your own employees or liability risks like those in building and roofing, the numbers start to favour a GmbH (limited company).

Since 2024 the minimum share capital of a GmbH has been just €10,000 (§ 6 GmbHG), of which €5,000 must be paid in cash. Add notary and tax adviser fees and double-entry bookkeeping. Important for tradespeople: a GmbH also needs a qualified managing director under trade law with proof of competence. That is usually you, in your role as the company's managing director.

Economic Chamber, Landesinnung and SVS

With the trade licence you automatically become a member of the Wirtschaftskammer in your federal state and of the relevant trade organisation, in the crafts usually the Landesinnung (regional guild). The guild negotiates collective agreements, organises master craftsman exams and training, and helps with questions on standards and warranty. The basic fee varies by guild and federal state.

At the same time you are insured for health, pension and accident with the Sozialversicherung der Selbständigen (SVS, social insurance for the self-employed). At first the SVS charges provisional contributions based on a minimum contribution base. Once your income tax assessment is available, it recalculates. This is exactly where many founders start sweating in their third year, because a back payment for a good year and a higher advance payment for the current year fall due at the same time.

Tax office, UID number and the small business rule

You register with the tax office within one month of starting your activity, most easily via FinanzOnline or the USP. You receive a tax number and, on request, a UID number (VAT ID). You will need the UID at the latest when you order material from other EU countries or work for businesses.

• Small business rule: since 2025 you stay exempt from VAT up to an annual turnover of €55,000. If you exceed the limit by no more than 10 %, the exemption still applies until the end of the year, but not in the following year.
• Opting out can pay off: if you buy tools, a van and machines for €40,000 at the start and mainly work for businesses, standard taxation lets you reclaim input VAT. Have this calculated before your first invoice.
• Cash register: if you take cash or card payments from customers, the cash register obligation (Registrierkassenpflicht) applies from €15,000 annual turnover, provided more than €7,500 of it is cash sales. Card payments count as cash here.
• E-invoice: electronic invoices are mandatory for jobs from federal government agencies. For municipalities and businesses they are optional, but increasingly expected.

Workshop, storage and operating permit

Many founders start with an office in the living room and material in the van. Once you have machines, a paint booth or a vehicle lift, you need proper business premises. Before you sign a lease, clarify two things with the trade authority and the municipality:

Insurance: what is mandatory and what pays off

There is no general obligation to take out business liability insurance in Austria, with one important exception: under § 99 (7) GewO, master builders must prove liability insurance of at least €1 million per claim, or €5 million with higher turnover. In practice, though, general contractors, property managers and public clients almost always ask for a confirmation of cover before you can start.

Funding and advice

The best support for tradespeople is often unspectacular: free advice. The WKO Gründerservice helps with the wording of your trade, your business plan and funding applications, the Landesinnung with technical questions. On top of that there is:

• Neugründungs-Förderungsgesetz (NeuFöG): exempts the start-up from certain fees and charges and lowers non-wage labour costs for your first employees. You need the NeuFö 2 form.
• Austria Wirtschaftsservice (aws, the federal development bank): guarantees and subsidised loans, for example when the bank asks for security for machines, a workshop or vehicles.
• AMS business start-up programme: if you start your business from unemployment, the AMS (public employment service) can provide advice and financial cover during the start-up phase.
• Regional funding: every federal state has its own programmes for investment, digitalisation or business succession. Conditions change often, so ask for the current terms.

Your first appearance: getting found online

Your first jobs often come from former colleagues, acquaintances and property managers. But almost every customer checks these recommendations online: does the business really exist, what do the references look like, what are others saying? If all you have is a mobile number on your van, you lose enquiries to the competitor with a website.

What such a website costs and what to look out for when comparing offers is covered in How much does a website for tradespeople cost?. Which content really brings in enquiries is shown in Website content for trades businesses.

A realistic timeline

An example: a master tiler from Wels hands in his notice in February with a three-month notice period. In March he clarifies the wording of his trade with the Gründerservice and gets advice from his tax adviser on the small business rule. In April he orders a used van, takes out business liability insurance and has his website built. On 2 May he registers the trade via the USP and sends his first two quotes the same day. Without a workshop, a start like this is easily doable in eight to twelve weeks. If you need an operating permit for your premises, plan for several months instead.