In the begining of the incoporation procedure in Slovakia, after drafting the articles of incorporation, finding a registred office and hiring an accounting, the entrepreneur must choose what type of business he is willing to start in this country before registration. He/she can choose to open a company or to lay the foundation of a partnership. Our company formation agents in Slovakia can help you choose the most suited form of business for your objectives. Do not hesitate to contact our team of business consultants.
We invite you to watch our concise video which presents important details about the process of establishing a company in Slovakia, from the available types of companies in this country to the company registration procedure.
Types of business entities in Slovakia
> The Companies
Forming a Slovakian S.R.O. A limited liability company in Slovakia, the Spolocnost s Rucenim Obmedzeným (S.R.O) can be incorporated only after depositing a minimum share capital of 5,000 Euro in a bank account by one or more shareholders (but not more than 50). The General Meeting is taking the important decisions, appoints an Executive and in some cases a Supervisory board.
A joint stock company, Akciová Spolocnost (A.S) on the other hand is based on a minimum share capital of 25,000 Euro and can take two forms according to the share transferability: it can be private or public. A private joint stock company cannot freely trade its share, unlike the public joint stock company (which is also listed on the European stock market). The management of a joint stock company is composed of the General Meeting, the Board of Directors and the Supervisory Board.
> The Partnerships
A Slovakian general partnership is based on an agreement between two or more partners, fully and equally liable for the company’s debts and profits. All the decisions in the Slovakian general partnership are taken by them and their personal assets are subject to claim if the partnership cannot pay its debts.
A Slovakianlimited partnership is based on a silent partner that has to make an initial contribution of minimum 250 Euro to the capital (its liability is based on his contribution) and a general partner with unlimited liabilities and decisional power.
> Other forms of business
A sole proprietorship incorporated in Slovakia is the most common form a small business can take and it is managed by a single investor fully liable for the debts. His personal assets are also subject to claim in case of insolvency.
The foreign investors are invited to incorporate a Slovak branch of their parent company, which will have the entire capital provided by it and will have no legal personality. Other option would be to open a subsidiary or for research puposes, a representative office.
Incorporation procedure in Slovakia
The Slovakian particularity related to company formation is that the companies can be incorporated by a third party invested with Power of Attorney, fact which can be very appealing especially for the foreign investors. The only condition is that the Power of Attorney is fully notarized and apostilled.
The first step a newly formed entity must take is checking the chosen name for its new company at the Commercial Register, process which takes around one day and has as a result the issuing of a certificate of name reservation. After that, the specific documents must be notarized. The main company documents consists in the Memorandum of Association or a Foundation Deed and in certain cases, the Articles of Association for the private limited liability companies while the stock companies must provide a Deed on Establishment, a Memorandum of Association and the Articles of Association.
A trading license must be obtained from the Slovakian One stop shop which will also provide an unique income tax number and the registration with the Health Insurance Company. The following step is the registration with the Commercial Registrarin Slovakia based on the following documents and information:
- a standard application;
- the proof of the uniqueness of the name;
- a bank certificate stating the capital;
- the Memorandum of Association;
- the Deed of Incorporation and the Articles of Association.
*Certain documents can be specifically requested by the Registry in certain cases.
The last requirement for entity incorporation in Slovakia is registering as an employer within 8 days of the first employment contract and registering of all employees with the Social Insurance Company before they start working. Our company formation specialists in Slovakiacan help you incorporate your company in this country, by providing you with complete guidance throughout the entire procedure.
Economy overview in Slovakia
Many foreign businessmen are willing to start businesses in Slovakia, mainly because of the financial environment (currency is in EUR, flat tax is 19%, dividend tax is 0%), but also for the highly trained workforce. Situated in the Central Europe, with a highly developed infrastructure, Slovakia is a favorable environment for traders. It is a NATO, EU, OECD, WTO member, assuring a stable economic environment. This country has signed double tax treaties with more than 60 states, offering an attractive perspective for entrepreneurs thinking of a startup in Slovakia.
Call us now at +420 721 565 868 to set up an appointment with our consultants, who are handling company formation in Slovakia. Alternatively you can incorporate your company without traveling to Slovakia.
As an CorpexLab client, you will benefit from the joint expertize of local accountants and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Slovakia.