Start-Up Founders – Red-White-Red Card
If you are a third-country national with an entrepreneurial vision, Austria offers a unique opportunity to bring your start-up ideas to life through the Red-White-Red Card for Start-up Founders. This pathway allows you to establish your own company in Austria, focusing on innovative products, services, or technologies. Below is an overview of the eligibility criteria, point-based system, where to file your application, required documents, and more.
Eligibility Criteria for Start-Up Founders
To qualify for the Red-White-Red Card as a start-up founder, you must fulfill the following requirements:
- Establish an Innovative Company
You must plan to develop and introduce innovative products, services, processing methods, or technologies to the market. Your application must include a detailed business plan outlining how you intend to establish and manage the company. - Personal Management Involvement
As a start-up founder, you are expected to personally exert controlling influence over the management of the newly established company. - Capital Investment Requirement
A minimum capital of €50,000 is required ( Not required to invest initially ) - Meet the Points-Based Criteria
You must score at least 50 points based on your qualifications, work experience, language skills, and other factors. Details of the points system are outlined below.
Points System for Start-Up Founders
Austria uses a points-based system to evaluate your eligibility as a start-up founder. Here’s how points are awarded across various criteria:
- Qualification
Maximum Points: 30
- Completed vocational education or specialized skills: 20 points
- Completed a tertiary education program (minimum 3 years): 20 points
- Completed a diploma, Bachelor’s, Master’s, or Doctor’s program in Austria: 30 points
- Work Experience
Maximum Points: 10
- 1 point for each half-year of relevant work experience.
- Language Skills
Maximum Points: 15
- German (A2 level): 5 points
- German (B1-B2 level): 10 points
- German (C1-C2 level): 15 points
- English (B2 level): 10 points
- French, Spanish, Bosnian, Croatian, Serbian (B1 level): 5 points for each language
- Bonus Points
Maximum Points: 30
- Additional investment capital of €50,000 or more: 10 points
- Admission to a business incubator or funding from a start-up funding agency in Austria: 10 points
- Age up to 35 years: 10 points
Where to File the Application?
You are required to submit your application for the Red-White-Red Card in person at one of the following locations:
- In Your Home Country or Country of Residence
Submit your application to the Austrian embassy or consulate in your home country or current country of residence. - In Austria (After Legal Entry)
After legally entering Austria, you may submit your application to the competent residence authority in Austria, such as:- Provincial Governor (Landeshauptmann/Landeshauptfrau)
- Authorized Regional Administrative Authority (Bezirkshauptmannschaft)
- Local Administrative Authority (Magistrat)
Documents to Submit
When applying for the Red-White-Red Card as a start-up founder, you will need to submit the following documents:
- Valid travel document (e.g., passport)
- Photo (45x35mm, not older than six months)
- Health insurance covering all risks (compulsory health insurance or equivalent)
- Vocational education/training certificate or diploma as evidence of completed education
- Testimonial or training report as evidence of special skills or know-how
- For tertiary education, submit proof of completion and a document reflecting the institution’s status
- Proof of work experience (testimonials and work certificates)
- Language skills in German or English (an internationally recognized certificate not older than five years)
- Investment capital evidence, including available equity
- Business incubator admission or funding agency contract (if applicable)
- A business plan demonstrating the innovation of your products, services, or technologies
- Articles of association proving controlling influence on management (except for one-person companies)
- Craft authorizations (Gewerbeberechtigungen) for self-employed activities (if available)
The authority may require additional documents, such as a police record extract or certificate of good standing, to speed up the application process.
When Will the Red-White-Red Card Be Issued?
Once your application is submitted, the residence authority forwards it to the Public Employment Service (Arbeitsmarktservice, AMS). The AMS will review your case, focusing on the macroeconomic benefit of your start-up, including investment capital transfer and job creation.
- The AMS has three weeks to issue its expertise on the benefit of your start-up.
- If the AMS provides a positive opinion, the residence authority will issue the Red-White-Red Card if all other requirements are fulfilled (e.g., health insurance).
If the application is accepted, the Austrian representation will inform you accordingly. If a visa is required, you will need to apply for a Visa D to enter Austria and collect your residence permit from the local residence authority.
The Red-White-Red Card is valid for up to 24 months and allows you to reside in Austria and pursue your self-employed occupation.
Can Start-up Founders Take Up Employment?
If you wish to switch from self-employment to an employed occupation, you can apply for a different Red-White-Red Card, such as:
- Very Highly Qualified Workers
- Other Key Workers
- Skilled Workers in Shortage Occupations
In this case, you must meet the specific requirements, score the required number of points, and provide a legally binding job offer.
By fulfilling these requirements and submitting the necessary documents, you can obtain the Red-White-Red Card and establish your start-up in Austria, taking advantage of its business-friendly environment and innovative ecosystem.
