+421 915 980 808

  clients(at)lawyersslovakia.com

+421 915 980 808
clients(at)lawyersslovakia.com
Company Formation Slovakia

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

The Share Capital in Slovakia

Updated on Tuesday 02nd May 2023

Rate this article
5 5 1
based on 2 reviews


Share Capital in Slovakia
 
The share capital of an enterprise is the contribution paid the owner or owners of a Slovak company for two reasons: as a requirement of the Company Law and to have the financial means to starts their activities.
 
Regarding the share capital in Slovakia, foreign investors should know that the amount that has to be paid depends on the type of business that they choose to incorporate. In order to form a company in Slovakia as soon as possible it is recommended to ask for the counsel of a team of Slovak company formation experts.
 

Types of Slovak business entities

 
Many foreign investors choose to start a business in Slovakia as its economy is one of the fastest growing in the whole Europe. Furthermore, the cheap and skilled workforce, the convenient flat tax rate and also the geographical position, make the Slovak Republic a country with many advantages in what investment is concerned. 
 
There are various ways of doing business in the Slovak Republic and each type of legal entity usually has a different share capital that has to be paid. The most commonly incorporated are the following: the limited liability company, the joint stock company and foreign investors can also opt for establishing a branch office for a parent-company overseas. 
 
Any individual of any nationality and residence can be a shareholder or a director in a Slovak company and the legal structure itself has to hold a registered office in the area. 
 
Our company formation agents can guide you through the procedures needed for a startup in Slovakia and can offer you complete details about the share capital needed for each type of company.
 

The share capital for Slovak companies

 
Opening companies in Slovakia requires the submitting of some documents, notarizing them, the registration with different Slovak authorities and also a minimum share capital (the sum depending on the type of the incorporated company):
 
the Slovak limited liability company is the most often established company and it can be incorporated by minimum one director and at least one shareholder; the required share capital to start an LLC is 5,000 euro which must be paid at the time of incorporation;
 
● the joint stock company can be either private or public and it requires at least one director and one shareholder; this type of business setup requires at least 25,000 euro share capital;
 
● the Slovak branch office is only allowed to conduct business activities with the condition to state the planned future activities upon incorporation; the branch must have at least an office manager for the overseeing of the company’s operations in the country; there is no demand for a share capital.
 

What to consider about a company’s share capital

When starting a business in Slovakia there are certain mandatory steps to consider, no matter the legal form you choose. Having a share capital for the enterprise is one of them, no matter if you decide for a limited liability company or for other types of businesses, such as sole proprietorships or partnerships. The main difference in terms of capital contribution is that in the first case, the Company Act provides for specific amounts to be deposited in an established period of time, while in the second case, there is no minimum amount imposed by the law.

As its name says, the share capital is deposited by the shareholders, as it is divided into quotas that go to each participant. In exchange, a person or another company, depending on who the stakeholder is, will be entitled to the profits of the business, in accordance with the contribution.

If you want to know more about this topic, you can obtain information from our company formation agents in Slovakia.

Division of the share capital: types of shares

A Slovak company’s share capital is divided into shares. There are several types of shares a business can issue. These are:
  1. ordinary;
  2. preference;
  3. redeemable.
They can be issued in accordance with the objectives of the shareholders. Some of them can be issued by private limited liability companies, while others by public entities, as they are intended for sale to the general public, which is one of the characteristics of a joint stock company in Slovakia.
 
These types of shares are further divided into 3 classes, as follows:
 
  • - they can have voting rights attached;
  • - they can be non-voting shares;
  • - they can provide the right to gain dividends;
  • - they can offer winding up or disposal rights.
 
The decision on the number of shares to be issued and their class is made during the creation of the company and must be stipulated in the Articles of Association.
 
The share capital of a company in Slovakia can comprise various types of shares, and if you want to open a business here, you can get useful insight on the importance of making the right choice from this point of view from our local specialists.
 

Amending a Slovak company’s share capital

 
There are two changes that can impact a company’s share capital:
 
  • - its increase;
  • - its decrease.

 

Both of them must be made in accordance with specific rules, as imposed by the Company Law. The increase or decrease must be made during a shareholders’ meeting when the decision must be registered. Then, the Articles of Association must be amended followed by the notification with the Trade Register.
 
Each case is particular and can follow specific procedures, which is why if you need support in making such changes, you can rely on our Slovak company registration officers.

 

Capital funds in Slovakia

Although though they have been in use for a while, from January 1st, 2018, the Slovak Commercial Code explicitly recognized and regulated a new class of equity funds called "capital funds from contributions." These funds may be generated by any capital business form in Slovakia, including joint stock and limited liability entities, and are regarded as a supplement to contributions to a company's registered capital.
 

Why start a business in Slovakia

 

Slovakia is one of the economies that is expected to register an accelerated growth in the following years, according to data issued by the European Commission:
 
  • - a 1.5% economic increase is predicted for 2023;
  • - a 2% GDP growth is expected in 2024;
  • - inflation is also set to decrease by 9.7% in 2023 and 5.3% in 2024.
 
You can contact our company incorporation experts so as to receive full information about the share capital in Slovakia, as well as assistance throughout the process of a Slovak company formation.
 

Many foreign investors choose to start a business in Slovakia as its economy is one of the fastest growing in the whole Europe. Furthermore, the cheap and skilled workforce, the convenient flat tax rate and also the geographical position, make the Slovak Republic a country with many advantages in what investment is concerned. 

Meet us in Slovakia


Call us now at +421 915 980 808 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 our 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.

Contact us

Testimonials

mihai-cuc1.jpg

My clients were interested in starting a branch office in Slovakia. The team of specialists at CompanyFormationSlovakia.com was very helpful, offering us complete guidance.

Mihai Cuc, Partner of MHC Law Firm

Read more testimonials