Types of Slovak Companies

 

 

Foreign investors who come to Slovakia with the purposes of opening companies must comply with the requirements imposed by the Company Act. This law allows them to conduct business operations here under the same conditions as local entrepreneurs by setting up various types of structures.

 

Several types of companies can be established in Slovakia, according to the needs and possibilities of the owners. Each type of legal structure has its own particularities and our Slovak experts in company formation matters can advise you upon the most suited type for your business needs.

 

With a vast experience in company formation in Slovakia, our local specialists can help foreign investors set up any type of business form in accordance with their needs. 
 

The Company Law in Slovakia

• - the business forms which can be registered by natural persons and corporations;
• - the number of shareholders and company management requirements for each business form;
• - the obligation of choosing a unique trade name and having a registered address in Slovakia;
• - the share capital requirements for each business form covered by the law;
• - the obligation of registering the company with the tax authorities and obtaining specific permits;
• - the obligation of registering any company, no matter its form, with the Trade Register.

 

 

 

The main types of companies according to Company Law in Slovakia

• - the sole proprietorship or the sole trader which is the simplest business form in this country;
• - the partnership which can be general or limited and must be made up of at least two participants;
• - the limited liability company which can be private or public, depending on the size of the business;
• - the branch office and the subsidiary which are available for foreign companies seeking to enter the Slovak market.

 

The sole proprietorship (živnostník) is a type of business managed and owned by a single investor with unlimited liability. The registration costs are minimal and the duration of the process doesn’t exceed one week. This type of business may not be sold, unlike the companies.
 

 

The limited liability company in Slovakia (Spoločnosť s ručením obmedzeným) is a company based on a share capital of 5,000 Euro and can be founded by at least one shareholder (maximum 50). The management of the limited liability company in Slovakia is assured by an Executive appointed by the General Meeting of Shareholders. A Supervisory board can also be appointed. For more information about the particularities of limited liability companies in Slovakia, you can rely on our team of specialists in company incorporation matters.
 

Joint Stock Company in Slovakia (Akciová spoločnosť) is a type of company designed for a large business. The minimum share capital is 25,000 Euro divided into stocks. A joint stock company can perform business activities only after the registration with the Commercial Registry.

There are two types of joint stock companies: public or private.

 

A public joint stock company has a part of its shares listed on a stock market from members of the European Economic Area. These shares are freely transferable unlike the shares of a private joint stock company. A public joint stock company may be transformed into a private joint stock company if the shareholders decide so during a General Meeting. A reserve fund must be created and consists of 10% of the joint stock company’s capital. The management of the joint stock company is assured by the general meeting of the shareholders, the board of directors and the supervisory board. The number of Directors may be stated in the Articles of Incorporation. The Supervisory Board must consist of at least three members.

 

The joint stock enterprise can also be used to open a SPV company in Slovakia.
 

 

A Slovakian General Partnership (verejná obchodná spoločnosť) is no different from the rest of the general partnerships around the world. The partners are equally liable for the company’s debts even with their own personal assets. All the decisions are equally taken by the partners unless it’s stipulated differently in the Articles of Incorporation.

 

The limited partnership (komanditná spoločnosť) in Slovakia is a rare form of partnership. It is based on a partnership agreement between two or more partners, called the general partners and the silent partners. The silent partners must make a contribution to the share capital of at least 250 Euro. Their liability is in the limit of their contribution. The general partners are not required to make an initial contribution and have unlimited liability and decisional power. 

 

The shelf company and the holding company in Slovakia

Setting up a branch office in Slovakia

 

• - it depends entirely on the foreign company establishing it, meaning it cannot take any management decisions;
• - it is quite easy to create and has low setup and maintenance costs;
• - its activities are limited to those of the parent company and must be sanctioned by it;
• - it can repatriate the profits under the double tax treaties signed by Slovakia.

The Slovak subsidiary company

 

Documents needed to open a company in Slovakia

• - the Memorandum and Articles of Association, which must be drafted in Slovak and notarized;
• - information about the company’s shareholders and managers or directors;
• - information about the legal address of the company – every company registered here must have a registered address in Slovakia in order to be deemed a resident;
• - information about the share capital of the company in accordance with the requirements imposed by the law.

Company formation steps in Slovakia

 

Business licensing in Slovakia

 

What to consider when choosing the type of company to register in Slovakia

• - your liability as a business owner;
• - the share capital you need to consider;
• - the taxes you and/or your company will pay;
• - if you qualify for business incentives/exemptions/deductions/reductions.

• - a private limited liability company;
• - a joint stock company;
• - a limited partnership where you are a limited/silent partner.

 

1. consider the business startup costs of a sole proprietorship and partnership;
2. consider the administrative costs of these entities.

Taxation of businesses in Slovakia

• - sole traders and partnerships that are levied at individual level;
• - companies that are applied the corporate tax.

• - 19% for an annual income up to EUR 47,537;
• - 25% for an annual income EUR 47,537;
• - in their case, business activity is taxed separately at a lower rate of 15% if the annual taxable value does not exceed EUR 60,000.

• - for a revenue under EUR 50,000, a EUR 340 fee is applied;
• - for a taxable income between EUR 50,000 and EUR 250,000, a EUR 960 fee is levied;
• - for taxable income between EUR 250,000 and EUR 500,000, a EUR 1,920 fee is applicable.
• - for a revenue of EUR 500,000 and above, a EUR 3,840 is imposed.