What do companies need to consider?
Companies from the United Kingdom (mainly "Limited"), whose actual administrative headquarters are located in Austria, were recognised in Austria only on the basis of the European Court of Justice's case-law on freedom of establishment.
This case law continued to apply for the duration of the transition period. Within this period, "Limited" companies resident in Austria could, for example, transfer their business to an Austrian legal form or carry out a so-called cross-border merger with an Austrian corporation.
As of 31 December 2020, limited companies registered in the United Kingdom with an administrative headquarter located in Austria ceased to be recognised as foreign legal entities. As a consequence, the shareholders could be personally liable.