Slovakia is a European state that offers comfortable conditions to foreigners wishing to live and do business in the country. The economy of Slovakia is rapidly growing thanks to wise policies that the local Government implements. The measures taken by the authorities have changed Slovakia immensely since Czechoslovakia disintegrated. Today, it is a modern European state attracting investors from Europe, Asia, and America. Some of them settle down in Slovakia as the rules of acquiring a residence permit in the country are quite simple.
Slovakia can serve as a platform for entering the European markets, both east and west. The business environment is favorable in the country and the living standards are high. The Government is interested in attracting foreign investments, as Slovakia is still a developing economy. But the Government efforts are evident: more and more business people from other parts of the world choose to set up companies in Slovakia and live there permanently.
Why register a company in Slovakia?
Slovakia will suit both rookie businesspersons and weathered ones. If you have a well-thought-out business plan, starting a business is easier in Slovakia than in most other European countries. If you have plenty of investment capital, you can use the country as your place d’armes to later conquer the European markets and then the world markets too. Here are the main reasons to register a company in Slovakia:
- Political stability and rapid economic growth. These factors evoke respect to Slovakia on the part of the international community and they attract a number of foreign investors to the country. The Government’s efforts deserve praise indeed.
- Friendly attitude to foreigners. Obtaining a legal residence permit in the country is not difficult at all and when you have one, you become almost a full citizen of Slovakia. Foreign business people and professionals enjoy the same legal protection, have access to the same medical services, tax incentives, insurance opportunities, and other benefits that the native-born Slovakians have.
- A foreign national can register for the VAT in Slovakia.
- The country has signed several treaties on avoidance of double taxation so you can expand your business operations to Slovakia without having to pay the taxes twice.
- The opportunity to open a corporate bank account for a Slovakian-registered company. The banking sector is well developed in the country but you will be well advised to apply for professional assistance when setting up a bank account for your Slovakian-based company.
- The registration of a company in Slovakia gives the foreign national legal grounds for applying for a residence permit in the country. After holding a temporary residence permit for five years, you become eligible for a permanent residence permit.
Taxes in Slovakia
Unlike many other European countries, Slovakia has a tax system that looks very attractive to a foreign entrepreneur. Here are the taxes levied in Slovakia:
- VAT – 20%;
- Corporate tax – 21% and there are possibilities to reduce it;
- No interest nor royalty tax in the condition that the interests/ royalties go to an EU country;
- If the company annual turnover exceeds 50,000 euros, it has to be registered as a payer of the VAT.
Types of companies that can be registered in Slovakia
The Slovakian Government offers a wide range of opportunities to foreign nationals wishing to do business in the country. The following forms of company ownership are available there:
- Sole proprietorship;
- Limited Liability Company;
- Private/ Public joint-stock company;
Any form of business ownership has its own advantages and disadvantages. Let us briefly consider each form of company ownership.
A Sole proprietorship is the easiest company to set up and the cheapest one. It may be a suitable form of company ownership if you are a beginner entrepreneur wishing to start a small business in Slovakia. There are some drawbacks, however, associated with sole proprietorships. These include the following ones:
- The Sole proprietor has to cover the cost of the medical insurance policy;
- Business expansion is problematic and sale is impossible;
- If problems occur with your residence permit, you will not be able to carry on the business in Slovakia.
Registering a Limited Liability Company in Slovakia
An LLC is the most popular form of business ownership in the country. Before setting up an LLC in Slovakia, you will have to decide on the following issues:
- Choose the company name;
- Determine who is going to be the company owners and directors;
- Decide on the amount of the company registered capital;
- Define the types of business activities that the company is going to be engaged in.
These issues have to be reflected in the prospective company corporate documents. In addition to that, a Slovakian-registered LLC shall meet the following requirements:
- The minimum required amount of the registered capital is 5,000 euros. Each company owner shall contribute at least 750 euros to the registered capital. The maximum number of company stockholders is 50 people.
- The company CEO shall be a citizen or a legal resident of Slovakia, in accordance with the local legislation. We will be delighted to help you acquire a legal residence permit in the country.
- The prospective company owner has to be free from debts.
Private/ Public joint-stock company
The required registered capital is 25,000 euros (1 euro for a private company). Shares are issued each having a nominal value. Bearer shares are not permitted, all shares shall be registered. Professional lawyers recommend opening a joint-stock company in Slovakia (private or public) when the number of company owners exceeds 50 people.
The process of company registration in Slovakia
Citizens of all national states can start companies in Slovakia. A physical person or a corporate entity can act as the company founder in the country. The company director shall be an EU citizen or a citizen/ legal resident of Slovakia. The process of company formation can be divided into four stages and it will be a good idea to acquire some professional support there as some potential difficulties may be involved.
The first stage is a preparation stage and the following things have to be done there:
- Choose the company name;
- Choose the company owner(s);
- Choose the company director;
- Define the types of prospective business activities;
- Choose a legal address for the company.
At the second stage, you have to collect a number of documents to be taken to a notary public. This is the initial stage of company registration proper. You have to prepare the following documents that the notary is going to verify:
- Your residence permit (residence card);
- The company’s By-laws;
- Proof of company legal address (a special form to be acquired from the building owner);
- A police clearance from your home country. It has to be apostilled;
- A completed company registration form.
When the notary signs all the documents, you can apply for a business license. Electronic applications are accepted. Normally, it takes a week to obtain the license. With the license in hand, you have to submit the application for company registration to the Company Registrar. The following documents are required:
- Company By-laws;
- A proof of ownership of less than three companies;
- A proof of absence of debts;
- Residence card;
- A proof of company legal address;
- A police clearance;
- Company registration form.
At the final stage of company registration in Slovakia, the documents go to the court of law that is to certify the company formation. This is when you pay the state duties. As a rule, the procedure takes 7 days. When the court makes the decision, you acquire a tax identification number and there you go: your Slovakian-based company is fully operational!
As you can see, the process of company formation is rather complicated, but we will gladly assist you in this matter. Please apply for our services to make setting up a company in Slovakia fast and simple.
Register a new company or buy an existing one?
You do not have to establish a new company in Slovakia. Instead, you can buy a readymade company, or a shelf company, as it is sometimes called. The key features of a shelf company are as follows:
- It has been registered with the sole purpose of selling it to a new owner;
- The required registered capital has been deposited;
- It has no unpaid bills nor other liabilities;
- You can resell the company at any time you like, even one day after buying it;
- You can start performing business operations with your new company right after is has been registered in your name.
Normally, a readymade company will have no history, as it has been established not for doing business but to be sold.
Professional assistance in company registration in Slovakia
The process of registering a company in Slovakia has certain nuances and some potential pitfalls that you will be able to avoid if you apply for our assistance. We have vast experience in setting up companies in many countries, we know the Slovakian ways of doing things, and we will provide support to you at every stage of company registration. Instead of going through the local bureaucracy yourself, hire us for this purpose and registering a company in Slovakia is going to be a breeze for you. The price for this service starts at 1,500 euros but please contact us to discuss the details. You are welcome to send us an email, call us on the phone, our use the live chat.
Why should I register a company in Slovakia?
Slovakia is a politically stable country and its economy is rapidly growing. It is located in the center of Europe, which gives Slovakian-based companies easy access to the European markets. The country boasts a favorable business environment and a flexible tax system.
What taxes are payable in Slovakia?
Comparatively low taxes is what attracts many business people to Slovakia. In particular, no tax is levied on interests and royalties that go to residents of the EU countries. The VAT is 20% and the corporate tax is 21%. When the company annual turnover reaches 50,000 euros, it has to be registered for the VAT.
What forms of company ownership are available in Slovakia?
There you can register a sole proprietorship, a limited liability company, and a private or a public joint-stock company. Slovakia offers vast possibilities for doing international business.