In 2017, Slovakia introduced a new form of company incorporation, that is a simple company. Experts call it a modification of a limited liability company and a standard joint stock company. It opens up great prospects for the owners of the company’s assets, saves their budget and simplifies the procedure of joining the company and withdrawing from it.
Most often, this form of the company incorporation is chosen by novice entrepreneurs thanks to a simple procedure of joining the business and withdrawing from it. This form of incorporation is also attractive for investors who plan to invest in the business development. That is because it involves the possibility of a quick entry and withdrawal from the company. Also, a simple joint stock company in Slovakia provides for the reliable legal protection for all its participants, i.e. both shareholders and investors.
Benefits of a Simple Joint Stock Company in Slovakia
Yet another significant difference between a simple joint stock company and regular joint stock company is that in case of the simple company a single person can act as its founder. At the same time, this person does not need to have a certain amount of money in their personal bank account. Unlike the simple joint stock company in Slovakia, establishing a regular company involves the participation of four partners. At the same time, one of the shareholders becomes a company director. Anyone can become a supervisory board member.
Also, members of a simple joint stock company in Slovakia who can withdraw from the company at any time without consequences, do not bear any legal liability.
Members of a simple company in Slovakia have an opportunity of simply selling their shares. As opposed to the simple joint stock company, it is quite difficult for the regular joint stock company owners to sell their assets and make a profit.
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Peculiarities of a Simple Joint Stock Company in Slovakia
Unlike an regular joint stock company, the opening of which implies an authorized capital of 25,000 euro, incorporation of a simple company is possible with an authorized capital of 1 euro. For this reason, it can be opened even without financial investments, gradually increasing its authorized capital and attracting investors. At the same time, the minimum stock value is just 1 eurocent, and not 750 euro, as in the case of a regular joint stock company.
Asset transfer made by the simple company members to its other members is exempt from the VAT. This criterion saves a significant part of the budget, both of the organization and its shareholders individually.
A distinctive peculiarity of a simple company in Slovakia is that its shareholders can set their own rights and responsibilities, as well as their scope, regardless of the value of their own shares. This allows for different rights for all shareholders in accordance with their responsibilities. A simple company does not require establishing a supervisory board as part of the management process.
A simple company incorporated in Slovakia may be relocated to another country. But it is necessary to convene General Meeting of Shareholders to resolve this issue.
A non-resident who does not have a residence permit cannot become a simple company director.
Who Benefits from Incorporating a Simple Joint Stock Company in Slovakia?
Such a procedure as incorporating a simple company in Slovakia is beneficial to entrepreneurs who do not have a large amount of financial resources to open a regular joint stock company or a limited liability company. Also, this form of operating a business has certain advantages for those businessmen whose number is not enough to open an regular joint stock company or a limited liability company.
Opening a simple company in Slovakia is advantageous for those who do not want to have their personal information entered in the online public registry for personal reasons. Its shareholders can operate anonymously.
Peculiarities of a simple company also include a possibility for any of its members to suspend their activities and withdraw from the shareholders even without other shareholders’ consent. Also, new members can be accepted to the shareholders in a simplified mode.
What Are the Benefits of Incorporating a Simple Joint Stock Company in Slovakia?
The advantages of a simple company are as follows:Simple management system, as simple as in the case of a limited liability company.
Simple procedure for joining the company and withdrawing from it. It is easier than changing a list of founding members of an LLC.
Ability to limit the influence of shareholders on the company’s executives.
What is the Authorized Capital Size for a Simple Joint Stock Company in Slovakia?
One of the advantages of opening a simple company in Slovakia is a small size of required capital. In practice, you can open a simple company with an authorized capital of just 1 euro. Over time, the capital can be gradually increased via attracting investors. In addition, the minimum value of a common company’s stock is 1 eurocent. This gives the founders ample opportunities to adjust their business.
Incorporation of a Simple Joint Stock Company in Slovakia: Who Can Benefit from It?
Opening a simple company in Slovakia will be beneficial first of all for those businessmen who cannot open an limited liability company or a regular joint stock company due to the lack of funds. Also, opening a simple company could interest a group of entrepreneurs of 2 to 3 people. This number is not enough fro opening a limited liability company. In addition, in the case of a simple company, personal information of its members is not included in the public registers. This allows the shareholders to operate their business anonymously.
In addition, the simple company incorporation can be carried out to:
Maintain a high level of privacy.
Enjoy a simplified procedure of attracting investors.
Get a startup off the ground.
