Individual Entrepreneurs

In Austria the legal term individual entrepreneur describes companies that are managed by a single natural person. This person conducts his business using his own name and is liable to income tax and is fully and limitlessly liable for all debts arising from his business.

For individual entrepreneurs an entry into company register is obligatory as soon as an annual turnover of EUR 700,000 is reached. If the turnover is below this threshold a registration on a voluntary basis is possible. For registered individual entrepreneurs the suffix e.U. (“eingetragenes Unternehmen” - registered company) to the company name is mandatory.

Individual entrepreneurs are not within the scope of the Austrian UBO Act in its current version. Accordingly there is currently no requirement for individual entrepreneurs to register to the UBO register. Even in case constellations in which undisclosed trust relationships influence the beneficial ownership structure or control is exercised over the individual entrepreneur, there is no obligation or possibility to register to the UBO register.

Since there is no obligation to register UBO register for individual entrepreneurs, there is of course also no obligation to verify the register entry least once a year. Moreover, it would seem likely that - as in the case of certain one-man limited liability companies - an annual verification of the register entry can be omitted, since the sole proprietor of the company would be aware at any time, who is the true beneficial owner of his company.

However, it is not excluded that the situation for individual entrepreneurs will change in the course of further actions against terrorist financing and money laundering and that these will also be included in future versions of the Austrian UBO act. However, currently there are no indications in this direction yet.

Examples (german)

WiEReG-Beispiel-Einzelunternehmen WiEReG-Beispiel-Einzelunternehmen