The regulation stated in the Commercial Code govern all the company’s activities in Slovakia. Many of the Commercial Code laws are based on the regulation from the Civil Code (Act 40/1964).
What are the main regulations comprised by the Company Act in Slovakia?
The Commercial Code stipulates that foreign investors are welcomed to do business in Slovakia under the same regulation and benefits as the Slovak residents; the main rule is that the business must be registered with the Commercial Register.
A company has its own legal personality; the representative who acts in behalf of it must be Slovak citizen. In case the representative is from a non EU or OECD country, than a residency permit is requested.
According to the Commercial Code, there are four types of companies in Slovakia: Limited Liability Company, Joint Stock Company, general partnerships, limited partnerships.
The limited liability company is a legal entity based on a minimum share capital of 5,000 Euro, the minimum contribution of each shareholder cannot be less than 750 Euro. A reserve fund must be created in case profits are expected.
A joint-stock company in Slovakia is a large form of company, based on a minimum share capital of 25,000 Euro. A reserve fund must be created for this type of business and consists in 10% of the capital. There are to types of joint stock companies in Slovakia, the public limited liability company (where the shares are freely transferable on a foreign market) and the private limited liability (consists in non transferable shares on a foreign market).
A general partnership is based on the agreement signed between at least two partners, who must guarantee the liability with their own personal assets. They have equal rights in the partnership, even when it comes to management decisions.
A limited partnership is formed by two types of partners: general and limited. The general partners have the right to act in behalf of the partnership and have unlimited liability, unlike the limited partners, who have limited liability according to their contribution and the only decision they can make is regarding the changes of the Memorandum of Association.
A cooperative is another form of Slovak business and if it not formed by at least two legal entities, it has the obligation to have at least five members.
Basically, a company in Slovakia is based on a signed contract showing the fields of activity the company will cover. The day the company is registered with the Commercial Registry, it may start conducting commercial activities. Our company formation specialists can help you open a company in Slovakia and comply with all the rules stated in the Commercial Code.
Other regulation of Business Law can be found in the Act 530/2003 of the Commercial Register, where are stipulated the documents requested for registration for each category of business.
The Act 455/1991 regulates all the operations regarding the Trade Law. The Bankruptcy procedure is regulated in the Act 328/1991. For more details about the rules and regulations related to company formation in Slovakia, please contact our team of local experts.