The Flexible Capital
Company (Flexible Kapitalgesellschaft – FlexCo), which came into effect on 1
January 2024 in Austrian company law, has been introduced as a hybrid company
type between the Gesellschaft mit beschränkter Haftung (GmbH) and the
Aktiengesellschaft (AG). Created under the 2023 Companies Law Amendment Act
(GesRÄG 2023), FlexCo aims to offer a less bureaucratic and more flexible
corporate structure for start-ups, social entrepreneurs and SMEs. While
retaining the core principles of the GmbH, it integrates innovative elements
from the AG, such as capital increases, the ability to repurchase its own
shares, and financing tools. Notable features of the FlexCo include low capital
requirements (minimum individual contribution of EUR one), share transfers without
notary approval, company value shares, and the option for written voting. Tax
advantages that encourage employee participation and flexible decision-making
processes make FlexCo attractive in the modern business world. However, with
only 666 FlexCo companies established compared to 12,194 GmbH companies
according to 2024 data, this new structure has not yet gained full acceptance
in the market. Since FlexCo balances tradition and innovation through a
regulatory dualism approach, holding significant potential in financial
reporting, transparency, and corporate accountability. This study, therefore,
aims to analyse FlexCo’s legal framework, characteristics, and long-term
impacts.