Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
If you plan to start a business in Europe, Slovakia is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Slovakia, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Slovakia?
- Promising location
Slovakia is situated in the heart of Europe, offering easy access to key markets in the region. Its proximity to economically developed countries such as Germany, Austria, the Czech Republic, and Poland creates significant opportunities for international trade. With a well-developed transportation infrastructure, including road, rail, and air connections, Slovakia serves as an ideal logistics hub for businesses.
- Favorable tax system
Slovakia offers one of the most competitive tax regimes in the European Union. The corporate tax rate is 21%, lower than in many neighboring countries. Moreover, the government actively implements tax incentives for innovative businesses, research, and development, helping to reduce operational costs and foster growth.
- Developed industrial economy
Slovakia is a hub for industrial production, particularly in the automotive and high-tech sectors. The country is home to manufacturing plants of renowned companies such as Volkswagen, Kia, and Jaguar Land Rover, which create a favorable business ecosystem. Access to advanced infrastructure and a vast network of suppliers ensures convenience and efficiency for companies operating in Slovakia.
- Access to investment incentives
Slovakia actively supports new businesses through an extensive system of investment incentives. Special conditions are offered to companies that create jobs or operate in regions with higher unemployment rates. Businesses can benefit from tax reliefs, infrastructure development subsidies, or reimbursement of training costs, significantly reducing initial financial burdens.
- Opportunity to obtain a residence permit
Starting a company in Slovakia allows foreign entrepreneurs to obtain a residence permit. This allows legal residency in the country and free travel across the Schengen zone. Additionally, the residence permit grants access to numerous social and economic benefits, including education, healthcare, and the ability to involve family members in the business.
How to register a company in Slovakia and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Choosing a trade name in the Slovak Commercial Register;
- Choosing a registered office;
- Choosing a line of business (in order to carry out the company’s line of business, you need to obtain a trade authorisation to be issued by the Trade Licensing Office);
- Designation of executive directors and an administrator of contributions;
- Preparing incorporation documents;
- At least 30% from each contribution of the shareholder, but altogether at least 50% of the minimum registered capital must be paid before the application for the registration of the company is filed with the Slovak Commercial Register;
- Registering a company;
- Registration in the local tax authority.
Requirements for registering a company in Slovakia in the example of a Limited liability Company / Spoločnosť s ručením obmedzeným (S.R.O.):
- Shareholders: at least one shareholder with any citizenship.
- Director: at least one director that must be a citizen of the EU or OECD.
- Company Secretary: not required.
- Minimum Share Capital: where the company has several members, the minimum amount of contributions per member shall be € 750 and the company’s minimum registered capital (total contributions of all members) shall constitute € 5,000; the contribution may also be a non-capital contribution (a real estate, claim, know-how, patent), in which case it is necessary to provide an expert opinion certifying that the value of the non-capital contribution corresponds to the value of the pledged contribution to the company’s assets.
- Liability: a company has limited liability only for its assets and share capital.
- Accounting: tax returns along with the financial statements must be submitted annually within three months after the end of the financial year.
What do you have to know about taxes when registering a company in Slovakia?
Corporate income tax (CIT):
- The basic CIT rate is 21%.
- 15% is the reduced CIT rate for taxpayers with taxable income not exceeding € 60,000 per tax period.
Personal income tax (PIT):
- The standard PIT rate is 19%
- If the income exceeds the amount of €38,553 the exceeding part will be taxed at the rate of 25%.
Value-added tax (VAT):
- The standard VAT rate is 20%.
Reduced VAT rates:
- 0% on the export of goods and services, and intra-community supplies of goods under some conditions;
- 5% on rental housing;
- 10% on limited goods and services.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Slovakia. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Slovakia, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Slovakia and pave the way for your business success!
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
