Slovakia offers numerous advantages for corporate entities and IT entrepreneurs. Located in the heart of Europe, it is a member of both the EU & the Eurozone. The competitive 21% corporate tax rate and government support through investment incentives, tax benefits, and grants make doing business in Slovakia an attractive option, particularly for the IT and high-tech sectors.
Slovakia’s business climate benefits from a growing IT sector driven by a skilled workforce and relatively low labor costs compared to Western Europe. Additionally, the well-developed infrastructure makes business registration in Slovakia a strategic choice for any business or startup.
Legal forms of companies in Slovak Republic
Entrepreneurs in Slovak Republic can choose from several legal forms of business: SRO (spoločnosť s ručením obmedzeným)– limited liability company, jednoduchá spoločnosť na akcie (JSA) — simple joint-stock company, and AS (akciová spoločnosť) — joint-stock company. Our team specializes in registering SRO in Slovakia.
SRO (spoločnosť s ručením obmedzeným) is the most popular business structure in Slovakia, with over 95% of all commercial entities choosing this form. This is due to its convenience and the participants’ limited liability.
- Minimum share capital: To register an SRO in Slovakia, a minimum share capital of €5,000 is required.
- Contribution requirements: Each shareholder must contribute at least €750. If a participant’s share is planned to be less than 15%, the total share capital must be increased. Contributions can be made in cash without mandatory transfer to the company’s bank account. However, due to cash transaction limits, if the contribution exceeds €5,000, it must be transferred to the company’s payment account.
Participants and restrictions:
- An SRO can have between 1–50 participants. If more are planned, consider registering a joint-stock company.
Restrictions for individuals:
- Individuals with outstanding tax debts cannot be founders of an SRO in Slovakia.
- An individual can be the sole participant in no more than three companies, but they can be a co-participant in an unlimited number of companies.
Restrictions for legal entities:
- A company with a single participant cannot be the sole founder of another SRO.
Management and residency:
- At least one director (a natural person) must be a citizen of an EU or OECD country or hold a residence permit.
- A secretary is not legally required.
- The company must have a registered address within Slovakia’s jurisdiction.
Transparency and beneficiaries:
- Beneficiary data is available in the register.
- Information about beneficial owners is submitted to a special register but is not public. It is accessible only to competent authorities.
Advantages of an SRO in Slovak Republic:
- Participants are liable for the company’s obligations only up to the amount of their contributions.
- Paying medical and social insurance contributions is optional if the company has employees.
- There is no mandatory requirement for an office or staff, although a resident director is required.
