The process of company formation in Slovakia
is presented below, along with an overview of the types of companies
available for registration
and an economic overview.
In the beginning of the incorporation procedure in Slovakia
, after drafting the articles of incorporation, finding a registered office and hiring an accounting, the entrepreneur must choose what type of business
he is willing to start in this country. 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
| Quick Facts || |
| Types of companies || |
Private limited liability company
Public limited liability company
Minimum share capital
for LTD Company
| 5,000 EUR, 750 euros per shareholder must be paid upon incorporation |
Minimum number of
shareholders for Limited Company
| 1 |
| Time frame for the incorporation || 1 week |
| Corporate tax rate || 21% |
| Dividend tax rate || |
7%, 35% for resident companies distributing dividends to non-resident shareholders.
| VAT Rate || |
20%, a reduced rate of 10% also applies to certain goods.
| Number of double taxation treaties (approx. ) || 70 |
| Do you supply a Registered Address/Virtual Office? || Yes |
| Local Director Required || No |
| Annual Meeting Required || Yes |
| Electronic Signature || Yes |
| Is Accounting/Annual Return Required? || Yes |
| Foreign-Ownership Allowed || Yes |
| Any tax exemptions available? || 15% reduced rates for companies with revenues of up to 100,000 EUR. |
| Any tax incentives (if applicable) || Investment incentives in certain industries, research and development deductions, intellectual property tax exemptions (Patent Box Scheme). |
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 shares, 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 Slovakian limited 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 a 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 purposes, a representative office
We invite you to read about the Slovak company formation procedure in the scheme below:
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.
Investors who want to open a company in Slovakia, should know that 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 consist 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 a unique income tax number and the registration with the Health Insurance Company.
The following step is the registration with the Commercial Registrar in 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 all employees with the Social Insurance Company before they start working. Our company formation specialists in Slovakia
can help you incorporate your company
in this country, by providing you with complete guidance
throughout the entire procedure. If you want to set up a company in Belgium
, for example, we recommend our partners who are experts in company formation matters in Belgium. We can also put you in contact with our partners from Romania
, in case you want to set up a company in that country.
Steps for opening a company in Slovakia
Those who want to open companies in Slovakia must respect the following procedure:
- choosing the appropriate business form - our company formation agents in Slovakia can assist you in selecting the type of company;
- having the documents needed to file with the Trade Register prepared, which implies their drafting and notarization with a public notary;
- filing the documents with the Companies House in Slovakia and obtaining the company's Certificate of Registration;
- registering for taxation purposes, obtaining the VAT number (if necessary) and registering for employment purposes;
- applying for the necessary licenses and permits which allow a company to undertake activities in a specific business field.
How long does it take to open a company in Slovakia?
The company formation process in Slovakia will usually respect the following timeline:
- the company name reservation takes less than one day and is subject to a small fee;
- the drafting and notarization of the company’ statutory documents take one day;
- the opening of the corporate bank account and deposit of the share capital take another day;
- obtaining the tax form showing the shareholders have no debts to the state takes about 5 days;
- the registration of the company with the Trade Register and the tax authorities takes about 9 days;
- the registration for VAT purposes will take another 5 to 15 days;
- the registration as an employer for health and pension benefits will take one day.
Our local consultants can guide you through the company registration procedure of a Slovak company.
Company formation costs in Slovakia
The costs related to company formation in Slovakia are:
- the registration fee is 150 EUR and must be paid with the Registration Court in Slovakia prior to filing the documents;
- the virtual office costs with us are approximately 50 EUR per month and include various services, among which an address in a reputable office building;
- the minimum share capital: the limited liability company can be registered by depositing 2,500 EUR in a local bank account;
- the company formation fees imposed by our company registration agents in Slovakia is of around 450 EUR and it is one of the lowest in Europe;
- the accounting services offered by our local specialists start at approximately 100 EUR per month for a basic package and can be tailored to the client's needs.
For more details about the costs involved in starting a business in this country and on how to open a company in Slovakia, our incorporation agents are at your disposal.
Other ways of starting a company in Slovakia
One of the most employed ways of starting a business in Slovakia is by purchasing a shelf company. This type of company, also known as ready-made or aged company, is already registered and available to start operating as soon as the transfer of ownership has been completed.
Most of the shelf companies in Slovakia are registered as limited liability companies and can operate at national and international levels.
Among the advantages of buying a shelf company, we mention that it is a very flexible business form, which allows for privacy by appointing nominee shareholders. Also, the Slovak ready-made company is operational in a few days after being purchased.
Our company formation representatives in Slovakia can help foreign investors who want to buy shelf companies.
Taxation of companies in Slovakia
One of the most important aspects related to starting a business in Slovakia is taxation. According to the Tax Code, companies in Slovakia must pay the following taxes:
- - the corporate tax which is imposed on all the sources of income and is levied at a rate of 21%;
- - withholding taxes on dividend payments which are levied at a rate of 35%;
- - withholding taxes applied to interest and royalties payments which are also levied at a 35% rate;
- - the value added tax which is applied at different rates (the standard rate is 20%).
It should be noted that Slovakia has signed numerous double taxation agreements under which reduced rates apply to foreign investors with business activities here. For an easy understanding of the taxation system in Slovakia, we offer accounting services. If you also need legal assistance in Slovakia, we can put you in contact with our partner law firm.
FAQ on how to open a company in Slovakia
1. Is it possible for a non-resident to establish a business in Slovakia?
Yes, non-residents who decide to open companies in Slovakia
can do so and what is more, the laws for a Slovak startup are rather similar for both Slovak residents and foreigners.
2. What are the costs for opening a company in Slovakia?
The start-up costs in Slovakia
vary depending on what type of company
you decide to establish in the country and also on the additional services (if any) you choose for your future business.
3. How long does it take to incorporate a Slovak company?
Opening a company in the Slovak Republic should not take more than a week if all the documents are in order and if they are all filed when requested. There are also some requirements that need to be met and asking for the help of a company formation firm in Slovakia is the advisable way to proceed when incorporating a legal entity on the country’s territory.
4. What are the most important steps for incorporating a company in Slovakia?
When opening a company in the Slovakia, the main steps that need to be completed are as follows:
● choosing the type of company;
● choosing a suitable name for the company and receive the approval of the Company Registrar in Slovakia;
● notarizing articles of association and related papers at a notary's office;
● putting together the application (with all the required information) so as to register your new company with the Company Registrar in Slovakia.
5. What are the requirements for opening a bank account?
If you wish to open a bank account in Slovakia, you need to submit a proof of identity (a passport or Slovak ID card). Our local experts can help you open a bank account in Slovakia and assist you through the other procedures for setting up a Slovak company.
6. Is there a minimum share capital needed for the incorporation in Slovakia?
There are several legal entities you can establish in Slovakia and depending on the type you choose to set up, the share capital varies. Our specialists in company formation in Slovakia can offer you complete information on the amount required for each legal entity (limited liability company, limited partnership, etc).
7. Are business permits and licenses necessary in Slovakia?
Yes, depending on the business activities you choose to operate in Slovakia, you could be requested to present a business permit or a license.
8. Why should I decide on investing in the Slovak Republic?
Amongst the most important reasons why you should invest in Slovakia, are the following:
- favorable geographical position;
- stability in economy and politics;
- Slovakia’s currency – Euro;
- low labor costs;
- highly-developed industry;
- fast-developing infrastructure.
Economy overview in Slovakia
Many foreign businessmen are willing to start businesses in Slovakia
, mainly because of the financial environment
(currency is in EUR, the flat tax is 19%, dividend tax is 0%), but also for the highly trained workforce
. Situated in 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.
Moreover, our company incorporation specialists
can help you if you are interested in company formation services in Seychelles
by putting you in contact with their partners.