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Buying a guarding company: trade licence, reliability and responsible management

Buying a guarding company in Austria: trade licence, share deal and asset deal, reliability, managing director, employee register and due diligence under the GewO 1994.

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13 September 2026 · Mag. Bernhard Brandauer, Rechtsanwalt

Buying a guarding company in Austria requires the trade licence to be treated as a core closing issue. Guarding is a regulated trade. The acquisition agreement alone therefore does not authorise the buyer to provide guarding services.

In a share deal, the target company remains the legal entity. Its licence, authority conditions and operating organisation must still be checked for scope and currency. In an asset deal, the buyer needs an appropriate basis for its own operations.

This article applies sections 94 no. 62, 129 and 130, 39, 95 and 91 of the Austrian Trade, Commerce and Industry Regulation Act 1994 (GewO 1994) to transaction diligence. The current licence and authority position must be verified for the individual transaction before signing and before operations begin.

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01 Question 1

Are you acquiring the company or selected assets?

In a share deal, the target company remains the holder of its trade licence. In an asset deal, the buyer must check its own licence and the transfer of the business.

All paths at a glance

Overview of all answers.

01

A share deal can preserve the existing operating structure, but it still requires a current licence and reliability review.

The target company remains the legal entity. Check its GISA extract, the precise scope of its guarding trade, the trade-law managing director and the employees used for guarding activities. Also identify whether a new individual will exercise a controlling influence over the business.

Record the findings as closing conditions, warranties and cooperation obligations in the acquisition agreement.

02

In an asset deal, the buyer must secure its own trade-law basis before starting operations.

A contractual transfer of customers, equipment or employees does not replace the buyer’s own authorisation. Before the transfer, determine which guarding services the buyer will provide and whether the regulated guarding trade is required.

Also plan contract transfers, a possible transfer of business, the employee register and the handover of operational and security records.

03

The structure determines whether the existing trade licence remains with the target company.

Compare share and asset deal structures by reference to the licence scope, liabilities, contracts and personnel. A guarding authorisation is closely linked to the legal entity and the actual organisation of the business.

Before fixing the purchase price or signing, reconcile the intended structure with the licensing position.

04

Missing licence and management documents are a material diligence issue before signing.

Request the GISA extract, trade notifications, decisions, managing director documents and current information on persons deployed for guarding work. Without these records, it is not possible to assess reliably whether the target covers the planned services lawfully.

Unresolved points should be documented as a condition precedent or a specific seller obligation.

What the Austrian guarding trade covers

Section 129(4) GewO 1994 assigns the guarding of businesses, buildings, facilities, construction sites, land and movable property to the guarding trade. It also covers operating alarm and emergency call centres. The listed activities include regulating people and vehicle traffic, security checks, cash and valuables transport within the statutory limits, concierge services, event stewarding and company fire brigade services.

The label “security company” is therefore not enough for diligence. The relevant questions are which services the target actually provides and which wording appears in GISA. Several commercial activities may coexist, but each authorisation must be mapped to the relevant service.

Section 94 no. 62 GewO 1994 lists the security trade, including professional detectives and guarding, as a regulated trade. The licence scope should be a separate workstream in legal diligence and in the warranties of the acquisition agreement.

Share deal: The target company remains the licence holder

In a share deal, the shares change hands while the target legal entity continues. The target’s trade licence does not become the buyer’s personal authorisation. The target remains the trader and must continue to satisfy the trade-law requirements.

Review the current GISA extract, all decisions and conditions, the actual service scope, open administrative proceedings and the trade-law managing director. A planned management change must leave the business with a functioning structure of responsibility.

Also identify whether the transaction brings an individual with controlling influence over the business into the structure. Section 91(2) GewO 1994 can require such a person to be removed in relevant cases. A change of ownership must therefore be reviewed from both a corporate and a regulatory perspective.

Asset deal: The buyer needs its own basis

In an asset deal, the buyer acquires the business or selected assets, not the seller’s company. The agreement can address customer contracts, vehicles, equipment, brands and employees. It does not automatically transfer the seller’s trade-law status to the buyer.

Before operations start, determine which guarding services the buyer will provide and on which trade licence. A regulated trade generally requires proof of competence. If the buyer cannot provide it personally, a suitable managing director must be planned under sections 16 and 39 GewO 1994.

The timetable should cover the trade notification, proof of competence, personal requirements and the review under section 95 GewO 1994. A contractual transition clause cannot replace the required authority to trade.

Share deal and asset deal

Comparing the trade-law workstreams

The acquisition structure determines where the licensing review starts.

Trade-law diligence points when acquiring a guarding company
Workstream Share deal Asset deal
Legal entity Target company continues Buyer acquires business or assets Review the buyer’s organisation
Trade licence Remains linked to the target Buyer needs its own basis Match the scope before transfer
Responsible management Review managing director and authority Managing director or buyer’s own competence Secure appointment and notification
Reliability Review controlling and key persons Review buyer and appointed persons Allow for authority checks
Employees Review existing organisation and registers Reorganise transfer and notifications Evidence suitability and reliability

This comparison does not replace a review of the specific GISA entry, decisions and planned activities.

Responsible management and authority to issue instructions

Section 39 GewO 1994 defines the role of the managing director. The managing director is responsible to the trader for technically proper operation and to the authority for compliance with trade-law rules. The person must be able to participate in the business and must have independent authority to issue instructions.

A legal entity operating a trade requiring proof of competence must satisfy additional requirements concerning the managing director’s position and employment. The appointment and departure must be notified to the competent district authority. For a guarding company, check whether the planned management and staffing model works in practice and meets the statutory requirements.

A name on an organisational chart is not enough. The data room should show the employment or corporate position, qualifications, actual decision-making powers and communication with the authority.

Reliability of management and guarding staff

Reliability matters at several levels. Under section 95 GewO 1994, the authority reviews the required reliability for certain regulated trades, including the security trade under section 94 no. 62. The appointment of a managing director for these trades requires approval.

Section 130(8) GewO 1994 permits the use of employees for reserved activities only if they have legal capacity and the required reliability and suitability. Under section 130(9), a list of persons used for guarding work must be submitted no later than two weeks before their use; changes must be notified within two weeks. These duties affect day-to-day operations and must be included in the staffing plan for a transaction.

Serious breaches can affect the trader’s reliability. Section 87 GewO 1994 provides for withdrawal of a trade licence where the required reliability is no longer present. Ask specifically about authority findings, administrative penalties, pending proceedings and missing notifications.

Clarify before signing: Request the current GISA extract, exact licence scope, management documents and personnel records. In an asset deal, the buyer must secure its own authorisation and start date separately. An initial consultation (EUR 180) can help structure the open transaction questions.

Diligence documents and agreement terms

The data room should contain the GISA extract, trade notifications and decisions with conditions, management documents, operating and deployment instructions and current registers of persons used for guarding work. Review insurance, customer contracts, authority correspondence and pending administrative or court proceedings as well.

The acquisition agreement should address the licence and its scope, the accuracy of personnel and proceedings information, the absence of withdrawal or prohibition grounds and cooperation with management and authority notifications. An asset deal additionally requires the buyer’s own trade notification, contract consents and a reliable business-transfer plan.

Connect the licensing workstream with the general structural questions. The article Share deal versus asset deal compares the two forms. The article on FlexCo shares and value shares covers the participation structure of a FlexKapG.

Legal sources

The key provisions are sections 16 GewO 1994 on proof of competence, 39 on managing directors, 94 no. 62 on the security trade, 95 on reliability review and approval of management, 129 and 130 on guarding, and 87 and 91 on withdrawal and controlling influence. Verify the consolidated position using the RIS research for the GewO 1994 and the specific GISA and authority records. The BMWET overview of the guarding trade provides additional official information.

FAQ

Buying a guarding company.

Can the acquisition agreement transfer the seller’s trade licence? +

The agreement does not automatically transfer the seller’s trade-law status to the buyer. In a share deal, the target remains the licence holder. In an asset deal, the buyer needs its own appropriate basis for trading.

What should be checked in a share deal? +

Review the GISA extract, exact scope, conditions, pending proceedings, management and individuals with controlling influence. The organisation and reliability of guarding staff must also be checked.

Does a guarding company need a responsible managing director? +

The rules in sections 9 and 39 GewO 1994 apply to a legal entity. For a regulated trade, competence, personal requirements and actual authority to issue instructions must be checked. Appointment and departure must be notified; for section 94 no. 62 trades, appointment requires approval.

What is the deadline for the employee register? +

Section 130(9) GewO 1994 requires the register of persons used for guarding work to be submitted no later than two weeks before use begins. Changes must be notified within two weeks. The operational start date must reflect this requirement.

Topics
Guarding tradeTrade licenceReliabilityManaging directorDue diligence

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