Kategori : ENERGY AGENDA NEWS - Tarih : 12 June 2023
Cıgdem Yorgancıoglu Intervıew Wıth Peter Ch Löschl – INVEST IN AUSTRIA (ABA)
PREAMBLE
Establishing business contacts every year as ADVANTAGE AUSTRIA Turkey in terms of supporting finding the right suppliers and business partners, solving problems and taking part in the information flow for Austrian companies in Turkey or coming to Turkey by ADVANTAGE AUSTRIA Turkey’s offices in Istanbul and Ankara, It organizes many events to improve it. At the same time, it is among their other services to provide detailed information about the business environment and market entry in Austria to companies looking for importers, distributors and sales representatives and who want to communicate with Austrian companies. It is possible to get to know Austria and its economy closely thanks to events such as trade fairs, conferences, presentations, summits, B2B meeting organizations organized by Advantage Austria.
There was a meeting and preliminary interview at the office under the Scope of Consulting Days’ which invites potential investors to learn more about the investing opportunities in Austria! Via Austrian Business Agency / ABA – INVEST in AUSTRIA
Cheers Appreciation and Respect to Highness
It was my pleasure to meet with Mr. Peter Ch.Löschl International Adviser of ABA- Austrian Business Agency ABA at ADVANTAGE AUSTRIA, the Trade Office of the Consulate General of Austria office at Gayrettepe İstanbul. It was very inspiring for my research to hear a few tips on the intricacies of investing in Austria in a short time from someone who is quite impressive in terms of his knowledge and breadth of vision, as well as his kindness and sincere answers to questions.
It was again pleasure to meet with Legal Counsel Arcan Kemahlı LL.M, who is one of the key lawyers of Yalçın Babalıoğlu Kemahlı Law Firm (YBK) i YBK who accompanied to Mr.Löschi throughout the meeting . So First of all, I would like to sincerely thank Mr.Löschi and Mr.Arcan for realizing our meeting and PRELIMINARY interview with Mr.Löschi. Again, I would like to thank to the hospitality rendered. Thanks to everyone in the crew who contributed to the realization of this meeting, Team of Advantage Austria and Ms. Nazmiye.Aykış .And of course thanks to Mr. Mag.Gerhard Lackner ,that meeting realized with his kind approval and consent.
FORMAT OF THE INTERVIEW :
To make sound and viable formuated questions 2 main reference used.
1.Preliminarmy meeting with Mr. Peter Ch.Löschl
2.Scientifically proven Researh based –media based – Facts and Issues by Cigdem Yorgancioglu :
3.Interview questions and answers.
OVERTURE
Austrian Business Agency ABA
You had thoughts about living and starting a business abroad or expanding your existing business in a prosperous country,. You wanted to make investment. Then you faced various, sometimes consecutive, obstacles in your life that made you think you couldn’t meet them. Curious question comes to mind like; how to rent business premises in Austria or how to acquire property. Property acquisition by foreign aliens, permits and licenses required, as well as tax law, , issues regarding equity and debt financing
(granting of loans to Austrian subsidiaries) and foreign exchange law are of particular relevance and will thus be touched upon as well. Rules on book-keeping, financial statements, accounting, internal control systems, tax rules, trade law rules, employee protection rules, environmental rules, unfair competition law and the competition law itself, Then, foreign language became a distinct challenging issue. When your process of mastering the subject was insufficient by saying that we do not know the legislation, multifaceted regulatory issues for international transactions, maybe you push such thought in the back of your mind. After a while, you said yourself there are also other obstacles and difficulties you think you cannot cope with it yourself . So finally you closed that book which I mean “Invest in Abroad …Actually you wanted to Invest in Austria. After a while, you started to hear new things. “Guiding free of charge” .” attractive funding options” and more… in Austria And you said “I wonder” …is it possible? It may be possible!
Again you think doing Business and invest in Austria among the European countries. It may be possible to establish a new business or invest in an existing business. In fact, by taking viable, smart guidance through the right channel, and taking the power of this behind, any business that is taken with determined, assertive, reliable and confident steps gradually will be successful. You may need experts comprising advising body, economists, accountants and financial analysts, investor relations managers, business and securities attorneys, to ensure your success and to ensure avoidance of dispute as possible.
Professional, Individually-Tailored Advice by ABA (Austrian Business Agency )
There is ABA for strategic, tactical, managerial, legislative and technical advice for foreign entrepreneurs and investors, to establish their business in Austria.
International entrepreneurs and businesses are always welcome in Austria. One can establish a company, be a managing director or acquire a company. Austrian law stipulates a variety of companies. In this way, you select precisely the types of firms that fit ones needs (e.g., in terms of liability, taxes, etc.) as long as people do the legal business.
INVEST in AUSTRIA informs and advising people previously coming to Austria, backings them during the whole stages of investment including the backing and care even after relevant project is completed.
If anybody in Turkey intent to establish a company, expand or set up a research facility Austrian Business Agency (ABA) is ready to ensure your company successfully commences operations and propagates in Austria.
Branch of foreign business Foreign entrepreneurs or business entities wishing to perform entrepreneurial activities in Austria may establish a branch office İN Austria (Zweigniederlassung) 1 . The criteria described in subsection 1.1 apply in regards to citizenship status as a requirement to obtaining a license for conducting a business or trade.
FACT : The foreign entrepreneur or business entity will be subject to tax in Austria on the income from the Austrian branch office. Even if the Austrian branch office is not registered with the Commercial Register, the office maintained in Austria can constitute a “branch establishment” for tax law purposes. Potentially, a mere room, e-mail address or fax machine in Austria may suffice for such purposes, providing it can be used for business purposes and transactions may be initiated and carried out from said object.
Question
Cigdem Yorgancıoglu:What is the case the Austrian branch office is not registered with the Commercial Register ? How the tax system works without commercial registration ?
Mr. Peter Ch.Löschl :With a branch office, the foreign owner (or business) is holding all rights and risks. However, this branch needs a tax number and VAT number, (it is not registered in the books of companies) but is noticed by the Tax-number. At the year end the tax declaration for the whole operation ( foreign owner and local branch in Austria) has to be delivered to the Austrian Tax Authorities ( as well as to the tax authorities in the home-land)
Cigdem Yorgancıoglu : When we look at the Austrian business world in general, it is important for the foreigner investor to know the attitudes and tendencies of the final buyers in Austria regarding the products and services in the sector in which they invest. How is the degree of determination shown by the buyers in meeting their business commitments?
Mr. Peter Ch.Löschl :The rule of law is governing the Austrian businesses – most of the transactions are international tradings and as such local trends play a role in the food and fashion business or in touristic sectors
Cigdem Yorgancıoglu Would you please elaborate the function of Enterprise Europe Network Austria (EEN) and how ADVANTAGE AUSTRIA and/or Austrian Business Agency ABA cooperate with them ?
Mr. Peter Ch.Löschl :There a re quite some undertakings on the EU level to support international business and trans-border activities – and where ever there are advantages, we cooperate with EEN.
Cigdem Yorgancıoglu What is the role of The Austrian Federal Economic Chamber (WKO) and how ADVANTAGE AUSTRIA and/or Austrian Business Agency ABA cooperate with them/linked to them ?
Mr. Peter Ch.Löschl: WKO is financed through the Austrian companies and as such is a independent organization. Advantage Austria is part of the WKO and is providing services for Austrian companies to promote and to support international business. Advantage Austria has offices worldwide.
ABA is owned by the Republic of Austria and reports to the Ministry of Economy.
There is a good and close cooperation between the two organization, driven by the wish to serve the Austrian economy.
RENEWABLE ENERGY –ENVIRONMENTAL CONCERN-SUSTAINIBILITY
INVESTMENT –GRANTS- SUBSIDIES -INCENTIVES
Facts :ENVIRONMENTAL FUNDINGS
If one is active in the field of environmental and climate protection, Austria offers an occasion like the central funding instrument “Environmental Funding in Austria” (UFI). It supports people in making investments in environmental and climate protection measures. The fields of renewable heat, energy efficiency and climate-friendly mobility comprise the top priorities. Funding id obtainable for you regardless of how great your company is.
ABA suggesting few The best addresses for your company funding like ;Austria Wirtschaftsservice Gesellschaft mbH (aws),Austrian Research Promotion Agency (FFG),Environmental Funding in Austria,Austrian Hotel and Tourism Bank (ÖHT),Funding Compass Success Storie
FACT: Related to renewable energies there is a law entitled “the Green Electricity Act” which control and regulates the campaign of power generation from wind power, photovoltaics,, solid, liquid or gaseous biomass, landfill or sewage gas and geothermal energy with feed-in tariffs and hydropower (up to certain MW) with investment support. Each year, a fixed quota is available for new contracted renewable energy plants; the level of feed-in tariffs is set by ordinance. Financing is provided by a pay-as-you-go system through end consumers.
H.Cigdem Yorgancıoğlu: Austria is at the lead of technologies that support protection of the environment and cultivating sustainability,. This comprises waste management, recycling, energy efficiency, renewable energy, air pollution and water management, ecological e label products and services . What kind of activities do you carry out in this regard in line with the objectives of ABA and Foreign Investors (Turkish Investor)? How the funding mechanism works ?
Mr. Peter Ch.Löschl : ABA is supporting all business, as long as they are with in the rules of law. If it is within the field of renewable energies. We provide the all our knowledge and guidance ( as you mentioned the various funding organizations )
Once a company is formed in Austria, it has all the same rights (and duties) as any other Austrian company.
FACT : During our interview with Mag.Gerhard Lackner last month he highlighted the fact that Advantage Austria two offices (İstanbul-Ankara) are organizing events for green technology, circular economy and renewable energies and they are working closely together with the related stakeholders in Türkiye for all their events.
H.Cigdem Yorgancıoğlu:How ABA guides corporation/enterprises in their transition to further sustainable,efficient business models?
Mr. Peter Ch.Löschl :
Our focus is on supporting incoming investments.
For the structure or business models of the interested companies we do advice or interfere, nor do we focus on transition to sustainability. I am sure there are good consulting companies on the market.
H.Cigdem Yorgancıoğlu Both Advantage Austria and ABA are on the path of smoothing the “best match” for the companies /investors with the right business partners. What kind of criteria(S) are taken into consideration in this regard ? I mean KPI.
Mr. Peter Ch.Löschl : As mentioned above, Advantage Austria is part of the Austrian Chamber of Commerce, and I am sure they have a system to measure, but I am not privy of it.
ABA is measuring “grosso modo” the amounts of Investment, number of workplaces generated and the importance of an investment for Austria
Cigdem Yorgancıoglu: What do you think about the most suitable ecological business areas of investment in Austria and Turkey in terms of feasibility , fast ROI (Return of Investment ), quality, stability and efficiency?
Mr. Peter Ch.Löschl : This depends all on the Investing company, but of course, there are many discussions ABOUT SHORTENING of supply chains, Life Sciences, mobility, CO2Thematics……..
Cigdem Yorgancıoglu Wind energy is the 2nd prominent renewable electricity resource in Austria after hydropower.What kind of investement advantages available in Austria ?
Mr. Peter Ch.Löschl :This is currently a moving target.
Prices for energy are currently falling again, and subsidies have the purpose, to make a field interesting, even when the result of selling does not match the cost for production plus profits. When the prices were soaring, all was good business – now we have to see.
Cigdem Yorgancıoglu The share of hydropower generation in the Austrian electricity mix is quite promising. If I am not mistaken, during our first meeting, you also pronounced a rate of around 70%. As Cigdem Yorgancioglu, in my opinion, contextual thinking is important in terms of making smart investments and getting quick returns on these investments. In this respect, if we think about it from a broad perspective, it is possible to connect the power of water with the steel industry and the construction sector from a broad perspective.
What would you like to say about the investment prospectives and how the system works? And what does it offer to Austrian Businesspeople and of course Turkish potential investors in this regard?
Mr. Peter Ch.Löschl The efforts undertaken to manage the change from fossil to renewable are huge, the challenges even larger. Green steel, replacement of ois as base for plastic, mobility and alternatives,
Many research projects will have to be successful, and there is not a single country, all countries will have to move. So are the Chances for investments. We have to leave it to the far- sight of investors, to find the proper field (and none of those projects have a short-time return)
FACT : The court fees for entering the GmbH in the Commercial Register are, generally, between € 350 and € 500. Under the Austrian Promotion of Start-Ups Act (German acronym: NeuFöG), newly formed business may be allowed to obtain an exemption from court fees.
Cigdem Yorgancıoglu :How about investment in terms of startups in Austria ?
Mr. Peter Ch.Löschl :If a Startup has moved from pre-seed to the seed and scale up process, it might be the time to go international.
Next to the large corporationm which are supporting startup, thre are quite some hubs to generate some traction for the startups.
For 3rd country citizen, there is a special Red-white-red Card for startups founder with 2 yyear validity ( if necessary wirh extension) – again FFG (research promotion agency) is supporting startups, provided the new product or service is of relevance and has scientifiv aspects.
The city of Vienna gas an yearly program “ VIENNA UP”, an event in Beginning June with hundreds of startups fathoming their chances in Vienna.
FACT-GREEN EVENT “Automobile industry favours diversity for powertrains and energy sources”
In May 2023 – 44th International Vienna Motor Symposium took place in Vienna on which the Automobile and utility vehicle manufacturers from around the world discoursed solutions for a climate-neutral mobility and aimed reduction of greenhouse gas emissions
H.Cigdem Yorgancıoğlu:Would you please clarify if there was any business investment opportunity available there for Turkish people (foreigners)based on the yields of mentioned Symposium ?
Mr. Peter Ch.Löschl : Austria is strongly committee as strong supplier to European car industry and has some key players delivering services and products; chances for any investor depend very much on the products and services in the portfolio.
Green Investments – Green Transition, Next Generation Batteries – Renewables – EU Ecolabel- Eco-Friendly Products And Services
FACT :commitment to ecological protection and contributes to refining your company’s image and repute. At that point, the EU Ecolabel is an EU widely recognized ecolabel for environmental excellence is very important. Because labeled products empowers consumers and procedures to make sustainable choices. Furthermore it generates business opportunities. EU Ecolabel upsurges the distinguishability and visibility of the goods/products on the whole EU market, equally in stores and online.
H.Cigdem Yorgancıoğlu What kind of business opportunities are available in Austria for Turkish investors in terms of eco-friendly products and services?
Mr. Peter Ch.Löschl :It all depends on the type of products and service – I suggest to have a look !
FACT: Austria has been seeking alternative sources of gas while racing to fill its gas storage facilities since Feb 2022 Russia’s invasion of Ukraine “Power plants and industrial companies working on upgrading their systems for dual operation to the extent that it is technically and economically feasible. That means that plants can run on natural gas as well as on other energy sources -Austria obtains 80% of its natural gas from Russia but greatest of its electricity comes from hydropower and it uses relatively little gas in power plants. On the other hand gas play an imperative role in industries/manufacturing like steel and paper, and in heating system.
One of the significant advantages of hydrogen is its ability to be stored for months without losing power through discharge, making it an attractive option for long-term energy storage. In comparison, lithium-ion batteries can only store energy for a couple of hours
H.Cigdem Yorgancıoğlu :So 2 issues come into mind for foreign investors gas storage and electricity storage. Would you please elucidate these 2(two) interwoven issues with visionary perspective for investors ?
Mr. Mr. Peter Ch.Löschl: Bio Gas storage and Electricity storage will be one of the deciding factors to our destiny.
R&D is the name of the game – first solutions are on the market, and it is big money investment with high return.
The solution on fermentation for food for animals and humans will lead to attractive biogas – any investor needs time – and a perspective.
FACT: Hydrogen produced from the relevant process can be stored and converted back to electricity when required, providing balancing power for the grid. Most significantly, it can be burned when required without releasing any GHG emissions means low carbon-print. One of the significant advantages of hydrogen is its ability to be stored for months without losing power through discharge, making it an attractive option for long-term energy storage. In comparison, lithium-ion batteries can only store energy for a couple of hours.
Question
H.Cigdem Yorgancıoğlu :Pumped hydroelectric storage (PHS) is currently one of the most widely used forms of energy storage. In the meantime The production of green hydrogen through electrolysis powered by renewable energy sources like solar and wind offers a promising solution for long-term energy storage. What are the horizons available in Austria for foreigner green investors ?
How about the Fermentation of forest and industrial residues
Mr. Peter Ch.Löschl :Conversion of glucose as well as xylose to ethanol needs some new fermentation technologies, to make the whole process cost effective. One of the main Goals of an effective pretreatment process is to reduce energy demands. Biomass drying systems -and fermentation for energy applications
Energy Storage Solutions are linked with Global Food Suppy
DIRECT QUESTION
H.Cigdem Yorgancıoğlu How ABA helping foreign investors especially in the field of Renewable energy accomplish and realizes their sustainability goals ?
Mr. Peter Ch.Löschl :Whoever wants to invest into those fields, needs the access to the existing research projects and existing undertakings.
It will be up to the investor to decide, if this will satisfy him or his co-Investors. The main focus on most options is still on R&D – so we help to establish the necessary network, access to R&D resources and nurture those projects.
FACTS ISSUES and QUESTIONS
From the legal perspective , After Austria’s “Renewables Expansion Law” (EAG), adopted in March of 2021, The government incentive involved in this legislation is a “market premium” subsidy for renewables like wind, solar, or biomass producers. The premium would provide subsidies only when production or manufacturing costs are greater than the price that producers can recover in the electricity market. This replaces the current system of guaranteed feed-in tariffs, which were often considerably higher than market prices. That is the mechanism . Another facts and figures are further central element of the law features investment grants. Operators can apply for grants for the construction of small photovoltaic systems or wind turbines (up to 1 MW capacity), the conversion of biogas plants to “green” gas or hydrogen production, and for electricity storage facilities. The government will determine the grant amount based on the volume of the installations, with a cap between €40 and €60 million ($47-71 million) per year.
Cigdem Yorgancıoglu So based on those facts and figures ; and again based on our preliminary interview in which you mentioned about the equal treatment for all investors; as Turkish people invest and establish Business in Austria they will be “equally treated” like other investors in Austria which means that they can benefit from such incentives and subsidies ?Even taxation is not different for locals or foreigners. There is no discernment in this regard . Is that true ? And If so how ABA would guide potential investors in this regard?
Mr. Peter Ch.Löschl : As soon as a Company in Austria is established, this will be treated exactly as every other company) no matter who the owner is).
As mentioned earlier, we can establish links to the existing programs, research projects or help to establish a new R&D Project.
Cigdem Yorgancıoglu :
Surplus Energy Perspective And Renewable Energy Cooperatives
Cigdem Yorgancıoğlu : Concerning the Energy and climate protection programs of the federal states and municipalities, many cities and municipalities have formulated strategies with varying degrees of liability for their respective sphere of influence. So At this point, can we talk about an investment opportunity that can be evaluated carefully and skillfully for Turkish investors?
Mr. Peter Ch.Löschl : With every project there is a related risk factor – there are local players as well.
There are investments opportunity (e.g. 3rd parties were engaged to finance the switch from traditional lamps to LED )
Renewable Energy Cooperatives
FACT &ISSUES The mayor of Stanz im Mürztal is building a renewable energy cooperative and it comes with a whole new economic model At the eastern tip of the Alps in Austria ,small town of Stanz im Mürztal where a genuine renewable energy revolution is developing. The municipality of Stanz launched a programme to create one of Austria’s first renewable energy cooperatives. The initiative was spearheaded by the local Mayor Friedrich Pichler, who explained that the ultimate goal of the project is to include 100% of the residents in the cooperative based on the sources of different medias. He has an article, published by the ORF, Austria’s national broadcasting service, saying that citizens will be able to collect renewable kilowatt hours they have produced and track that on their mobile phones like airline miles. He went a step further, by suggesting that locals would be able to exchange surplus kilowatts and say, go to the store and buy eggs with energy.
Cigdem Yorgancıoglu :The quality of a good energy storehouse is to provide power in the case of energy failures. .Storing and providing the extra energy to the clients and consumers with less power loss, with a abridged cost, is important issue how the surplus can be valued in this regard ?
Mr. Peter Ch.Löschl : The net for transporting electricity have been built to transport power from ones source to many users.
Wind and Sum are producing day and night – and delivering the power backwards. and the nets are not strong enough. Local hubs are part of the answer.
Envıronmental Concern
FACT :An integrated business facilities permit will be required for certain facilities which are capable of causing particular nuisances to the environment as a result of air, water and soil emissions (“IPPC facilities”). These include, inter alia, facilities in the power sector, chemical industry, metal industry, etc. Special requirements in terms of environmental protection, technology, accident prevention, etc., must be met in order to obtain such approvals. For the purposes of accident prevention, the so-called Seveso III business facilities bear enhanced obligations. These are facilities which work on a larger scale with certain hazardous materials (chlorine, ammonium nitrate, etc.). In such cases, the owner is required to prepare a safety plan and a safety report. These are subject to regular audits.
Cigdem Yorgancıoglu :Does ABA provide additional consultancy services as well in such audit processes after the establishment phases of the company are completed? If so (if answer is “Yes”), is this chargeable consulting ?
Mr. Peter Ch.Löschl : Answer is NO. There are specialists on the market, supporting those projects.
Clean Energy
FACT : Much of Austria’s energy comes from clean sources. Based on various resources averages Austria’s power generation mix is already very green, with over 77% currently coming from renewable sources, mostly hydro and wind. The new legislation aims to reach 100% renewable electricity in 2030 by adding 27 renewable Terawatt/hours to replace fossil fuels that currently supply 23% of the market.
On the basis of Summary of the European Commission assessment of the draft National Energy and Climate Plan 2021-2030 Austria has a very determined sectoral objective of a 100% renewable electricity system by 2030, which could be an opportunity for highlighting, in the final plan, the interactions with the energy efficiency, energy security and internal market dimensions of the Energy Union and with future trends in energy sector like…
A number of energy projects are promising the Austrian motorway operator a sustainable future, with the hope of electrical independence by 2030. The energy sectors have one of the foremost roles to play in driving forward international policy and supporting investors, developers and funders with the challenges and opportunities that are coming their way.
Cigdem Yorgancıoglu :How to seize the İNVESTMENT opportunities for the mentioned facts above ?
Mr. Peter Ch.Löschl :2030 is very close, I cannot fathom, if there are specific investment-options for foreign investors and with what conditions. However, if there is an interested investor, we can support the contact with one or more stakeholders.
FACT: The most important fair in the field of environmental technologies and waste management “IFAT Eurasia International Environmental Technologies Fair” took place between 27.-29.04. in Istanbul- TÜYAP Fair and Congress Center Istanbul. ADVANTAGE AUSTRIA was participating with 10 Austrian companies at the fair and presented the newest technologies.
Cigdem Yorgancıoglu: Was there any involvement of ABA during that fair in terms of advising potential investor from Turkey on those technologies and sector ? And any business investment initiatives are taken .
Mr. Peter Ch.Löschl :No, we did not participate.
FACTS :The Renewables Expansion Act
On 17 July 2021, the Austrian government passed the Renewables Expansion Act (Erneuerbaren-Ausbau-Gesetz) which was aimed at covering 100% of Austria’s domestic energy consumption with renewables by 2030 and making the country climate neutral by 2040.
The act calls for a 1-billion-euro annual investment scheme aimed at everything from photovoltaic systems, wind farms, biogas and hydropower. In addition, it features the so-called collective amendment, for creating private, non-profit orientated energy communities.
The idea, according to a government press release, was to encourage small groups of people, say, neighbours, extended families or small businesses to pool their resources together and take an active part in Austria’s energy transition.
Austrian Recovery & Resilience Plan / 1.Sustainable Construction / Climate neutral transformation – Renewable Expansion Act
Source: IEA/IRENA Renewables Policies Database
Last updated: 18 November 2022
Cigdem Yorgancıoglu Knowing the fact that ,On the path of decarbonization The Austrian government passed the Renewables Expansion Act (Erneuerbaren-Ausbau-Gesetz) on 2021.The Act was aimed at covering 100% of Austria’s domestic energy consumption with renewables by 2030 and making the country climate neutral by 2040.Regarding the encouragement of communities and public acceptance of renewable energy to make it easier to attract private investments in the clean energy transition;
Was there any network activity or any virtual matchmaking event organized by ABA or INVEST AUSTRAIA to enable Foreigner Clean Energy Investors (Turkish Investors) and Communities come together to accelerate Climate neutral transformation -transition compliant with Austrian Sustainable Recovery & Resilience Plan(s)?
Cigdem Yorgancıoglu By 2030, Austria aims to generate by 100% of the country’s electricity from renewable energy sources, with one million roofs to produce solar electricity, all built in Austria, with 260 million EUR investment to be covered in the next two years. What kind of investments would be attractive for Turkish people in this regard ?
Mr. Peter Ch.Löschl : Again, 2030 is very soon.There is currently a shortage on certain parts – there might be a opportunity,
Cigdem Yorgancıoglu :What kind of legally accepted professional Company structure/establishment would be attractive for Turkish people in this regard ?
Mr. Peter Ch.Löschl : we usually suggest a GmbH – (Limited) which is the most used formation in Austria.
EMPLOYEMENT –WORK PERMITS
FACTS
For Seconded Aliens/Foreigners – Secondment Authorisation
FACT :The term ‘secondment’ designates an arrangement under which an employee is temporarily assigned to work either for another part of their employer’s organization or for a different employer within the same group, or for a different, ‘host’ organization, such as an employer’s client or business partner. In a transfer, the employment relationship to transferred to the new employer (i.e. the original company is no longer the employer), whereas in a secondment situation, the employee remains under the employment of the original company but may perform work for the secondee company.
An international secondment is when your company sends you to work in a different country, either for a different branch of that same company or another company. 2/ Unlike an expatriate, you’ll remain employed by your home country, meaning you won’t need to change your residency or tax status.
Expatriation and secondment do not have the same consequences: for example, an expat is no longer a tax resident in his/her home country. But a seconded worker is still considered as one. But it is mainly from the point of view of social protection that the differences are felt.
Secondments should amount to a minimum of six months, and not exceed a period of two years.
Again with the terms; the term external secondment denotes to the temporary transfer of an employee from one organization, the releasing employer to another, the host organization, for an agreed period of time.
A secondment can be a significant change for an associate, and they may not know what to expect in their new role. Taking a secondment may also make an associate unsure about their future within the firm, which can lead to anxiety and stress.
FACT : An entrepreneur in Austria may only employ an alien if an employment authorization or secondment authorisation has been issued for that employee or if a confirmation of notice or an EU secondment confirmation (for seconded aliens; see also subsection 3.4) has been issued, or the employee holds a valid work permit or exemption certificate. The public authority in which jurisdiction is vested is the regional office of the Austrian labour market service (German acronym: AMS).
Regarding the minimum secondment period?
Secondments should amount to a minimum of six months, and not exceed a period of two years.
Cigdem Yorgancıoğlu :
How the Question Formulated ? As I understood from our first meeting, there is no hiring, recruiting and direct and permanent employment occasion offered (From Turkey) for those who invest in Austria from Turkey. However, it is sometimes possible to employ temporary staff from Turkey for a limited and reasonable period of time, up to a maximum of 5 or 6 months. I suppose it is based on “ Secondment of foreign employees from third countries to Austria Foreign employees employed by a foreign employer from a third country who lack an office within the Austrian federal territory will, as a general rule, require employment authorization. Where the work being performed does not last longer than six months” However, in the construction sector employees always need employment authorization, would you please clarify further and what is the motivation of legislation for such sectoral exception
Apart from this , there is a “red white which was created long before in order to introduce, flexible system of immigration in Austria. The aim of this measure is to enable qualified workers from outside the EU, as well as their family members, to migrate to Austria on a permanent basis, pursuant to criteria that apply both in individual respects and in line with labour market policy. The red white red card is issued for a 24-month period and grants authorisation for temporary.
Cigdem Yorgancıoglu :How we relate RED whıte CARD with Turkish investors and people or is it allied ?
Simple –Direct Question :
Cigdem Yorgancıoglu :Considering the facts mentioned above; How the employement systems work for Turkish people wanted to work for Turkish Investors/Companies in Austria ?
Mr. Peter Ch.Löschl : I ask to refer to the link for migration: www.migration.gv.at
TURKEY- EU Association Agreement with Turkey
FACT &ISSUES Based on the EU Association Agreement with Turkey, relief is available for the extension of employment permits to Turkish employees who have been legally employed for at least one year. This relief also applies when employment authorization is being issued to that employee’s family members for the first time
Cigdem Yorgancıoglu :Is it possible to elaborate the part about Turkey a little more, ? What should Turkish investors do in terms of general procedures if they need to bring in employees for certain jobs from Turkey when necessary or if the deadlines need to be extended? Or If ABA still will be involved in such stages even after 1 year ?
Mr. Peter Ch.Löschl : Again I refer to : www.migration.gv.at
RESEARCH AND DEVELOPMENT –R&D
ATTARCTIVE SECTOR FOR INVESTMENT
FACT :In a country comparison, Austria is ranked second in supporting company research and development. Many international companies which have establish research operations in Austria and continuously expand them highly value the funding opportunities. The 14% research tax credit applies to costs incurred for Research and experimental development. Funding is available for both the company’s in-house research and contract research – tax-free and without any cap.The research tax credit provided is available to companies regardless of their size.
There is a challenging and promising saying” In Austria, investors can expect a broad selection of funding programmes, from subsidies and public grants to the assumption of guarantees.
Cigdem Yorgancıoğlu :Improving energy efficient ,competent and large-scale technology for energy storage will help society overcome one of the most prominent issues with using renewable energy , so this might be one of the R&D topic. improve the efficiency and reliability of the batteries is another one or in general Different Energy Storage Technologies. When looking at various sources, these are a few issues that come to my mind about R&D investment for Austrian or foreign investors. In which areas do you think R&D would be more efficient?
Mr. Peter Ch.Löschl : R&D is an important issue in Austria and there are thousands of research programs underway.
FFG ( WWW.FFG.AT ) id the right agency to talk to. In any case, participating in one Austrian research program means to have either a company in Austria or being listed in an existing (or new) project as foreign partner (cross border cooperation)
Fact :For extra generated energy, there is a need for an efficient, reliable, and low-cost storage system. the world’s attention has turned toward supercapacitors as a good alternative of batteries. The foremost rewards of supercapacitors are their light weight, volume, greater life cycle, turbo charging/discharging, high energy density and power density, low cost, easy maintenance, and no pollution.
Fact : Austria has sustainably invested in research, technology & innovation (RTI), putting it at the cutting-edge of EU research in many fields.( Austria’s research expenditure accounts for around 3 percent of GDP and is thus significantly above the EU average. ). Overall, R&D investment in Austria has more than doubled since 2000. Austria’s foundations as a research location are based on Customized funding & financing, both in applied R&D and basic research, Tax incentives for companies intensively involved in research.
Preliminary explanation of the formulation of the Question
In fact, we see and witness the answer to this question partially within the framework of the activities that are performed by INVEST AUSTRIA Which I have already attended before ., The event I personally attended including the B2B meetings are proof of this. On the other hand , it is important to underline this for the ABA- Austrian Business Agency as well.
Question
Cigdem Yorgancıoglu :How the Effective networking between science and business within competence centers and clusters are realized in terms of FORİGN İNVESTMENT Business in the fields of R&D ? At this point, what kind of guidance and facilitation does the ABA provide?
Mr. Peter Ch.Löschl :Once a company is established in Austria, the treatment is all the same – access to all competence centers and Innovation Hubs is open.
In case there are difficulties, we help to establish communication.
(there are ca 50 Competence centers, equally Christian Doller laboratories and a number of Innovation hubs for access and support.
Funding fpr special programs are found under www.fffg.at
Austrian Business Agency ABA
Cigdem Yorgancıoglu : The ABA is the first point of call for foreign companies wishing to establish research units in Austria. In the meantime, supposing the ABA itself is not responsible and involved for /in funding. How ABA – Austrian Business Agency ABA guides investors in this regard ?
Cigdem Yorgancıoglu I suppose Mergers & Acquisitions Laws and Regulations covering issues for foreign investors as well. Is it legally possible and viable (reasonable to do business ) for a Turkish investor / and her/his Company , merge with another Austrian company in each sector including the Energy Sector and if so what are the foremost advantages ?
LEGAL BUSINESS – BUSINESS MORAL ETHICS AND VALUES
Cigdem Yorgancıoglu : Austria has adopted the EU Money Laundering Directive into its national law as part of the international drive to combat and prevent money laundering. So any detected or reported suspicious transactions in business will end up with the necessary precautions and sanctions by the Authority. The potential investors should be fully aware about the fact that Austria is not a paradise for anyone in any illegal business.
Would you like to highlight any point in this regard? There is no doubt that such illegal issues which mentioned on the fact above are subject to the provisions of criminal law and are secured by the law and regulations . On the other hand, business ethics and moral values are also an important issue. At this point, does the ABA also provide guidance to foreign investors, taking into account issues specific to Austria?
Mr. Peter Ch.Löschl : If there are questions, we will handle it – but there is no guidance in ethics.
ESTABLISHMENT OF COMPANY
In the Register phase of establishing company, which is the 2nd stage after the preparation relevant person needs to complete the application form and have it notarized by the company management. the Required documents: Notarized certified memorandum, Resolution regarding the appointment of the company management. (which is not required if already included in the memorandum),Certified declaration of sample signature by the company management, proof of the payment of the cash contribution, declaration of all managing directors. The application for entry into the Commercial Register is submitted directly to the Commercial Court. What kind of services ABA offers .Only consulting and advising or ABA involved in registration process .Or any responsibility of ABA may arised in this connotation ?
Mr. Peter Ch.Löschl :NO, ABA is advising only. If services are needed, the market is offering lawyer, Bookkeeping specialist notaries, speaking Turkish language.
Fact : During Business registration which is the 3rd Step ,the relevant person (who must be over the age of 18 based on the current regulation and a rule ) wish to establish Company , He/She need a business license for economic activity not only in Austria , of course almost all over the world. There are licensed, regulated and free trades. Though that person needs to be over the age of 18 to perform a free trade and show the criminal record certificate, the other types of professional competence, doc may required as a proof of qualifications and/or experience. If you do not have the necessary qualifications or do not have a work permit for Austria, you can also recruit a “managing director under trade law” for at least 20 hours a week. INVEST in AUSTRIA is ready to inform about the required business registration for people planned activities in Austria.
Cigdem Yorgancioglu :Is there any possibility for Foreign (Turkish ) investor who has insufficient competence to perform business and recruited Managing Director ,to study and learn the necessary requirement to achieve in the business field they wish to perform ?.
Mr. Peter Ch.Löschl : NO, This is not in our line.
OECD
FACT :The OECD Guidelines for Multinational Enterprises and the Austrian National Contact Point
The OECD Guidelines for Multinational Enterprises (OECD Guidelines) are the most comprehensive set of government-supported recommendations on responsible business conduct in existence today. 36 OECD countries and 12 other countries (Argentina, Brazil, Colombia, Costa Rica, Egypt, Jordan, Kazakhstan, Morocco, Peru, Romania, Tunisia, Ukraine) and the European Union have committed themselves under international law to promote and implement these principles and standards for responsible business conduct consistent with applicable laws and internationally recognised standards.
The Austrian National Contact Point
National Contact Points (NCPs) have been established in all adhering countries to offer dialogue and conciliation platforms on questions pertaining to the OECD Guidelines.
One of the central tasks of the Austrian National Contact Point (Austrian NCP) is to enhance the awareness and effectiveness of the OECD Guidelines. The exchange of experiences and cooperation with other NCPs should also be fostered. The Austrian NCP serves as a contact point for companies, civil society, other stakeholders, interested parties and other NCPs.
FACT : Türkiye is one of the 20 founding members of the OECD
Cigdem Yorgancıoğlu: Would you please kindly eloborate if there is any investment opportunity and horizons for Turkish investor here ?
Mr. Peter Ch.Löschl : ABA is handling incoming requests – if one request id coming from an NCP, we will handle it,
I am not aware of any activities of ABA within the frame of OECD
Resources :
https://www.enerjigazetesi.ist/cigdem-yorgancioglu-diplomatik-roportaj-avusturya/
https://investinaustria.at/en/doing-business/
https://www.bmaw.gv.at/en.html
https://data.worldbank.org/country/austria?view=chart
Electricity production from renewable sources, excluding hydroelectric (% of total) 16.5 -(2015)
https://www.ffg.at/en/content/austria-research-location
https://www.worldometers.info/electricity/austria-electricity/
