COMPANY formation

ADVANTAGES OF SLOVAK COMPANY FORMATION*

• 20% and 10% VAT rates
• 21% and 15% corporate tax rate
• 7% dividend tax for non-insured Slovakian owners
• simpler and more transparent tax system
• no local business tax
• electronic administrative communication
• more deductible costs for operating a Slovak company (e.g. car maintenance costs, VAT accounting for car and fuel)
• Slovak gross minimum wage is 700 Eur
• non-taxable part of the tax base for a natural person is 4922,82 Eur per year
• for Slovak company formation the share capital is 5 000 Eur

* The data are valid for the year 2023.

SLOVAK COMPANY FORMATION PROCEDURE

• contact us by e-mail, we will then send you our incorporation spreadsheet – after filling it in, send it back to us and we will prepare the articles of association within 24 hours
• if a foreign legal entity/company will be the owner of the Slovak company, it is necessary to translate the current extract from the business register of the foreign legal entity into Slovak, this will be done in 2-3 days, in urgent cases in up to 1 day
• the registration of the Slovak company will be done within 10 working days after signing the documents
• the documents are signed in the presence of our Slovak lawyer and notary, both the managing director and the owner must be present in person
• time required for the general tax number: 7 days after company registration
• VAT number application: application is not automatic, proof of economic activity in Slovakia is required. The application will be decided by specialized committees within 30 days from the date of submission of the application
• opening a bank account must be done in person by the managing director after company registration, a euro bank account is mandatory, but it is also possible to open an account in another currency or with a foreign bank

MOST COMMON FORMS OF ENTREPRENEURSHIP IN SLOVAKIA

Limited liability company (= “Spoločnosť s ručením obmedzeným”)

• the most common form of company in Slovakia is the limited liability company (s.r.o.)
• minimum share capital required to set up a company in Slovakia is 5 000 Eur
• the company is liable for its obligations with all its assets, but the liability of its members is limited to the amount of the payable share capital
• a limited liability company may be established by one or more natural or legal persons
• when setting up a company in Slovakia, it is worth bearing in mind that an individual may set up a maximum of three one-person companies
• the name of a limited liability company in Slovakia must include the words “spol. s r. o.” or “s. r. o.”
• the company’s main body is the annual general meeting, which must be convened at least once a year

A BRANCH OF A FOREIGN ENTERPRISE IN SLOVAKIA

• before setting up a company in Slovakia, it is advisable to consider whether it is necessary to set up a separate company or whether it is sufficient to establish a branch in order to carry on business activities
• a foreign company can carry on business in Slovakia even if it has a branch registered in Slovakia
• a branch of a foreign enterprise in Slovakia is not a separate legal entity
• its managing director may be a Slovak or a foreign national
• there is no minimum capital requirement for its registration

HEAD OFFICE SERVICE

We offer our clients the provision of domiciliation services as an additional activity on request:

• the provision of an officially registered office in Komárno
• placement of a sign at the entrance
• on-call service at the registered office during working hours
• representation in the event of on-site inspections
• receipt of mail and parcels
• scanning and emailing postal items
• free use of meeting rooms (by prior arrangement)
• phone call management