A political party (from the Latin "pars": part, direction) is an association of people with largely similar ideas about the organisation of a community (state, municipality). The existence and diversity of political parties that participate in the political decision-making process are essential components of the democratic order of the Republic of Austria.
Political parties may be founded freely, provided that there are no constitutional obstacles (e.g. the ban on founding National Socialist organisations). Anyone wishing to found a political party must adopt statutes, publish them and deposit them with the Federal Ministry of the Interior. Upon deposit of the statutes, the political party acquires legal personality. The statutes must regulate the fundamentals of the party and its organisation. These must comply with democratic principles.
Provisions on the formation and statutes of parties, the amount and distribution of state funding, restrictions on election campaign spending, transparency, accountability, donations and sanctions for violations are contained in the Political Parties Act 2012. Federal funding for political parties is regulated in detail in the Federal Act on the Financing of Political Parties 2012.