Company in Slovakia
Slovakia is one of the Central European countries with a stable economy and financial sector. It is one of the Member States of the European Union for which the introduction of the new currency through entry into the Eurozone has initiated significant economic growth. High rates of economic development and a favourable legal and tax system for businesses are important factors why setting up a company in Slovakia is considered attractive. It is also worth noting that the country offers exceptionally favourable conditions for entrepreneurs interested in conducting business activity in the form of a s.r.o., which is the Slovak equivalent of a limited liability company operating in Poland.
Taxes in Slovakia
Corporate tax in Slovakia is 21%. Resident companies are taxed on their worldwide income. Non-resident companies are taxed only on income earned in Slovakia, at the same rate as resident companies. Expenses are generally tax deductible if incurred to generate, secure and maintain taxable income.
Establishing a business in Slovakia is profitable because of the tax deductibility of business-related expenses incurred by the entrepreneur in many areas. Social security contributions paid by the employer in respect of employees are tax deductible. VAT charged to the profit and loss account is deductible only if certain conditions are met.
Initial costs are tax deductible in the period in which they are incurred. In general, interest expenses incurred to generate taxable income can be treated as deductible, subject to thin capitalization rules. Tax losses may be carried forward in equal amounts over a four-year period.
Types of companies under Slovak law
Business registration in Slovakia may be effected in the form of Slovak law equivalents of a general partnership (verejná obchodná spoločnost – v.o.s.), limited partnership (komanditná spoločnost – k.s.), limited liability company (spoločnost’ s ručením obmedzeným – s.r.o.) or joint-stock company (akciová společnost – a.s.).
There are several formalities required to open a company in Slovakia. Regardless of the form of company you choose, there are specific steps you must follow. The first of these is to reserve a company name, which must be unique. To guarantee this uniqueness, the entrepreneur can reserve up to 3 names. Next, the articles of association must be drawn up and notarized by a notary public in Slovakia. Next, the future company owner must open a company bank account and deposit the share capital and obtain a confirmation from the bank.
It is also necessary to obtain a certificate from the tax authorities stating that the partners have no tax arrears. Subsequently, the procedure for registering the company in the commercial register and obtaining a tax number can be initiated. The last step is to obtain a VAT number and to register for social security. After completion of those steps the company in Slovakia may start its activity.
Amount of capital
Incorporation of a company in Slovakia in case of s.r.o. company, which is a Polish equivalent of a limited liability company, requires a minimum initial capital of EUR 5,000, with no less than EUR 750 from each partner. In the case of a joint-stock company, a minimum capital of EUR 25,000 is required. As a general rule, no share capital is required to establish a partnership in Slovakia, but Slovak legislation requires that a limited partner invest at least €250.
Time required to establish a company in Slovakia
Opening a company in Slovakia involves a fairly simple procedure. Registration of a company in Slovakia takes approximately 25 days and the formalities can be done electronically.
Ready-made company in Slovakia / buying company in Slovakia
It is also possible to buy a company in Slovakia. Buying a company in Slovakia is one of the easiest ways to start a business in this country. After buying a company, it is possible to change its name, registered office and subject of activity, and these changes will be registered in the court register. A ready-made company in Slovakia is a good solution for investors who want to start business immediately.