industrial area, Linz, Austria

Liquidation Procedures in Austria

By Raffaela Lödl-Klein and Mario Kapp, KAPP & PARTNER Rechtsanwälte GmbH

In addition to founding a company, the dissolution of a company should also be considered. In Austria there are two main procedures used to liquidate an Austrian company:

  1. Insolvent liquidation, and
  2. Solvent liquidation.

Insolvent Liquidation

Judicial insolvency proceedings concerning enterprises are governed by the Austrian Insolvency Code. Within the law there is a choice of different insolvency proceedings, namely bankruptcy proceedings or restructuring proceedings with or without self-administration.

Using any of these proceedings presupposes “illiquidity” or “overindebtedness”. All these types of “insolvent liquidation proceedings” are initiated either by the debtor or the creditor and formally opened by court order. The court appoints an insolvency administrator, which acts as a liquidator. In general, the court plays a major part in a liquidation procedure, as it supervises the actions of the administrator. Proceedings may last for several months or years. An advantage of judicial proceedings is that at the beginning or during the proceedings, a debtor can file for a restructuring plan and thereby has the chance to restructure the business and to achieve a debt relief.

Solvent Liquidation

Besides judicial insolvency proceedings there are corporate law rules which govern the voluntary liquidation of a solvent debtor. An Austrian legal entity can be liquidated due to regulations mentioned in the law (e.g., due to lapse of time or a resolution of the shareholders) or contractually agreed reasons.

The process is coordinated by a liquidator (normally the CEO) appointed voluntarily (by the members of the company) or compulsorily (by the court). The liquidator stops ongoing transactions, collects the outstanding accounts payable, and regulates obligations. The decision to liquidate an Austrian company must be signed and registered in the general Commercial Register. After the liquidation procedure has been finished, the company is deleted from the Register.


Mario Kapp

Mario Kapp

GGI member firm
KAPP & PARTNER Rechtsanwälte GmbH
Law Firm Services
Graz-Seiersberg, Austria
T: +43 316 22 59 55
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.kapp.at

KAPP & PARTNER Rechtsanwälte GmbH has four partners and five associates and an outstanding reputation for bankruptcy and real estate law in Austria. The firm mainly focuses on bankruptcy law, reorganisation law, company restructuring, commercial law, banking law, real estate law, and international law.

Mario Kapp was the sole founder of the law firm in 2006. He is also the Managing Partner and specialises in bankruptcy law, corporate law, and business restructuring.
Raffaela Lödl-Klein

Raffaela Lödl-Klein

GGI member firm
KAPP & PARTNER Rechtsanwälte GmbH
Law Firm Services
Graz-Seiersberg, Austria
T: +43 316 22 59 55
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: www.kapp.at

Raffaela Lödl-Klein is Managing Partner of KAPP & PARTNER Rechtsanwälte GmbH, and specialises in real estate and corporate and insolvency law. She joined the firm in 2013.


Published: Debt Collection, Restructuring & Insolvency Newsletter, No. 11, Autumn 2019 l Photo: Gina Sanders - stock.adobe.com

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