How to open a company in Slovakia? Discover the key steps

If you want to set up a business in Slovakia you will have to complete numerous formalities and procedures. We present the most important information that will help a foreign trader to take their first steps on the Slovak market.

Slovakia is one of the most popular business locations in Europe when it comes to the place of business. It ranks 46th in terms of investment attractiveness among 183 countries around the world, 1st in the CEE region.

Strategic location, great market potential or still emerging investment opportunities are just some of the reasons for setting up your business in Slovakia.

Choose a legal structure

To set up a business in Slovakia, it is first necessary to choose appropriate legal structure. There are many business structures to choose from, however, traders starting their business in Slovakia most often choose the following:

a limited liability company (s.r.o.)
a branch

What is a limited liability company?

One of the most common forms of doing business in Slovakia is a limited liability company, the operation of which is regulated by the Commercial Code. It is a separate entity which, upon an entry in the business register (Business Register – OR SR) acquires legal personality.

A limited liability company in Slovakia is a common choice due to preferential tax conditions and because the procedure for setting it up is relatively simple and transparent. A limited liability company may be established by one or more natural or legal persons regardless of nationality or place of registered office.

The main bodies of a limited liability company are:

General Assembly
Managing Director
Supervisory Board (under certain conditions)

The purpose of setting up a company may be arbitrary, but it must comply with legal regulations. This type of company is most often chosen by small and medium-sized enterprises. The minimum share capital of a limited liability company is EUR 5,000, while the minimum contribution of one shareholder is EUR 750.

How to set up a limited liability company in Slovakia?

Currently, a limited liability company can only be registered electronically, via the portal slovensko.sk. You can register a company either through the registration courts or through a registrar, i.e. a notary public.

To register a company through the slovensko.sk portal, you will have to have an active account confirmed by an electronic signature and:

sign articles of incorporation (according to the template available on the website of ministry of justice)
pay contributions to share capital required from the shareholders
appoint the Managing Director
appoint the Supervisory Board (if applicable)
submit relevant declarations
register in the Business Register (OR SR)

last but not least verify signatures on documents at a notary or registry office that require it.

In order to carry out the company’s line of business, you need to obtain a trade authorisation to be issued by the Department of Trade Licensing of the District Office (Trade Licensing Office).

However, it should be noted that the slovensko.sk portal only works if the person has all the access data.

In the case of a Slovak citizen, he or she has a built-in chip in his or her ID card, to which he or she must activate all the necessary codes and accesses.
In the case of a foreign person, it is necessary to have residence card, obtain and activate all the necessary codes and accesses. It might be administratively demanding to handle all access data from the foreign police and the competent authorities.

After registration of the company data will be automatically transferred to the Tax Office for corporate income tax registration.

Branch of a foreign company in Slovakia

Opening a business in the form of a branch of a foreign company is the solution chosen by some foreign traders. No obligation to set up a separate economic entity saves money and time and promotes control of activities in the chosen country.

Download our brochure: Doing business in Slovakia

What is a branch of a foreign company?

A branch acts for and on behalf of the parent company, therefore any right acquired, or liability incurred directly affects the foreign parent company. The activities of a branch are generally limited. This means that a branch must carry out the same type of economic activity as its foreign parent company and the scope of its activities must not go beyond what is defined in the articles of incorporation of the parent company. A branch also has no separate bodies such as Managing Director or General Assembly.

A branch does not have separate assets either – it uses the capital of the parent company but may be obliged to provide up-to-date documentation in order to assess its financial situation, for example when the branch takes part in a tender procedure.

Who can open a branch in Slovakia?

Foreign persons may do business in the territory of the Slovak Republic under the same conditions and to the same extent as Slovak persons, unless otherwise provided by law.

How to register a branch of a foreign company in Slovakia?

A branch may start its business activity once it is registered in the Business Register (OR SR). The application is submitted electronically via the portal slovensko.sk.

The application must be accompanied by the necessary documents, including the articles of incorporation of a parent company, a copy of an entry from the register with a certified translation into Slovak or the address in Slovakia of a person authorised in the branch to represent a foreign trader.

Registration of the company in the Central Register of Beneficial Owners

An important step in setting up a company in Slovakia is the registration in the Central Register of Beneficial Owners. The register collects and processes beneficial ownership information of entities and its main purpose is to counteract money laundering and terrorist financing.

Since the end of 2018, data on the beneficial owners are also entered in the commercial register. Each change must be updated by the company in the central Register of Beneficial Owners.

Open a bank account in Slovakia

Opening a bank account is not mandatory, but we recommend it, because it allows you to organise the company’s finances and reduces possible tax risks. However, there are certain conditions that trigger the obligation to have a company bank account, which are as follows:

According to Act No. 394/2012 Coll. on the restriction of cash payments, as amended, it is forbidden to make cash payments in excess of EUR 15,000; if the company is going to make cash payments in excess of EUR 15,000, it will have to set up a bank,
account. simplified accounting is another advantage, as the bank account only contains transactions from the business and is separate from private transactions, which would have to be charged to personal consumption in a single linked account,
You can have easier access to a loan as the bank where you keep your business account records your account movements and can possibly give you more favourable terms or approve the loan earlier.

To open a bank account in Slovakia, it is necessary to fill in documents that contain information such as data about the company and its beneficial owner (KYC), reasons for opening a bank account in a particular bank branch and country, or the amount of income. In most banks, it is possible to open a bank account remotely, without the obligation to appear in person.

An account opening process may vary from one financial institution to another due to individual internal procedures. One thing is sure, regardless of the bank in which you decide to open an account, the company must be registered in the Business Register.

What is a ready-made company?

Traders who would like to avoid a longish process of registering a new business and immediately start doing business can buy a ready-made company. A ready-made company is already registered in the Business Register, has a bank account, IČO and DIČ number (Company ID and VAT ID) and registration for EU VAT. A process of buying a ready-made company takes only a few days and is an ideal solution for traders who value convenience and cost efficiency.