COMPANY formation – Slovak Tax Environment

ADVANTAGES OF SLOVAK COMPANY FORMATION*

• VAT rates of 20% and 10%
• Corporate tax rates of 21% and 15%
• 10% dividend tax for individuals in Slovakia
• A simpler and more transparent tax system
• No local business tax
• Electronic communication with authorities
• More deductible expenses for Slovak companies (e.g., vehicle maintenance costs, VAT on vehicles and fuel)
• The gross minimum wage in Slovakia is €750
• Tax credit for personal income tax is 5,646,48 € per year
• The minimum capital requirement for Slovak company formation is €5,000

*The data is valid for the year 2024.

Process of Slovak Company Formation:

• Contact us via email, and we will send you the necessary forms for the formation. After you complete and return the forms, we will prepare the articles of association within 24 hours.
• If a foreign legal entity/company will own the Slovak company, the current company extract of the foreign entity must be translated into Slovak, which takes 2-3 days, or 1 day in urgent cases. The registration of the Slovak company is completed within 10-14 business days after the signing of the documents. The documents are signed in the presence of our Slovak lawyer and notary, and the personal presence of both the managing director and the owner is required. The general tax number is issued within 7 days after company registration.
• VAT and EU VAT number application: the application is not automatic; Slovak economic activity must be proven. Specialized committees decide on the application within 30 days from the submission.
• The managing director can open a bank account in person after company registration. It is recommended to open an account in euros, but accounts in other currencies or with foreign banks can also be opened.

Limited Liability Company (s.r.o.)

• The limited liability company (s.r.o.) is the most common type of company in Slovakia.
• The minimum capital required for Slovak company formation is €5,000.
• The company is liable for its obligations with all its assets, but the liability of the members is limited to the amount of their capital contribution.
• The company can be founded by one or more natural or legal persons.
• A single individual can only establish up to three single-member companies.
• The name of a Slovak limited liability company must include “spol. s r.o.” or “s.r.o.”
• The supreme body of the company is the annual general meeting, which must be convened at least once a year.

Foreign Business Branch in Slovakia

Before establishing a company in Slovakia, it is worth considering whether it is necessary to establish an independent company or if a branch would suffice to continue your economic activities. A foreign business can conduct economic activities in Slovakia through a registered branch.

A foreign company’s branch in Slovakia does not qualify as a separate legal entity. Its managing director can be a Slovak or foreign citizen, and there is no minimum capital requirement for its registration.