Business entities in Slovakia
Healy Consultants continues to provide our Clients with the optimum corporate structures fit for doing business in the Slovak Republic. There are several ways of doing business in Slovakia, the most common being the setup of a Slovakia limited liability company (SRO). Foreign companies also have an option of setting up a local branch office.
The Slovakia limited liability company (SRO)
- Slovakia limited liability companies can be registered with only i) one shareholder and ii) one director, who both can be foreigners and do not need to be resident in Slovakia. Minimum issued capital is €5,000, with a required paid up contribution of €750 per shareholder;
- While financial statements must be filed with the tax authority every year, an audit is mandatory only if the company exceeds two of the three following thresholds i) annual turnover over €2 million ii) assets over €1 million and iii) more than 30 employees;
- Best uses for a Slovakia limited liability company: such entity is great for most businesses uses, notably when the business owners do not expect to require investments from third parties and want to keep control over the company management.
The Slovakia joint stock company (AS)
- Slovakian joint stock companies (equivalent to public limited companies) can be established with i) one shareholder ii) one director and iii) a minimum issued capital of 25,000, of which 30% must be paid up before company formation;
- The shareholders of a Slovakian joint stock company must also appoint a Board of administrators including a minimum of three members, whose role will be to oversee the directors and ensure they manage the company in the best interest of the equity holders;
- Just like the Slovakian LLC, a JSC can benefit from an audit exemption provided at least two of the three following conditions are fulfilled: i) turnover below €2 million ii) assets below €1 million and iii) less than 30 employees. Audit is however always mandatory if the company is listed on a stock exchange;
- Best uses for a Slovakian joint stock company: such entity is commonly formed by entrepreneurs willing to seek private equity investment from third parties or register the entity on the Bratislava Stock Exchange.
The Slovakia branch
- Foreign companies can register a branch in Slovakia to conduct productive and commercial operations. The appointment of a local representative, who must be ordinarily residing in Slovakia or in another EU or OECD country, is however mandatory;
- Best uses for a branch office: the main advantage of registering a branch is the ability for the foreign company to prepare only one set of financial statements.
The Slovakia representative office
Slovakian regulations do not distinguish between representative offices and branches. Consequently, refer to the branch descriptive.