Enhancing flexibility: Austria has introduced the flexible company (Flexible Kapitalgesellschaft, “FlexCo”) as a new type of legal entity. After years of efforts to make its corporate law landscape more attractive to founders and venture capital investors, the Austrian legislature enacted a legislative package in December 2023. It will become effective as of 1 January 2024.
This legal alert aims to summarize the main characteristics of the FlexCo and its differences from the commonly used limited-liability company (GmbH). The conclusion outlines considerations to take into account when deciding whether to incorporate in Austria in the legal form of the FlexCo instead of the GmbH.