Slovakia

General Information

Area – 48,845 sq. km

Population – 5,428,411 people

Capital – Bratislava

Official language – Slovakian; Hungarian is also widespread

Official currency – Euro (EUR)

Key Aspects

Slovakia became the EU member in 2002. The country is also a member of the World Trade Organisation and Organisation for Economic Collaboration and Development. One of the major advantages of starting business in Slovakia is the possibility to use it as a holding company that may have several subsidiaries in different countries of the European Union and beyond.

Treaties for the avoidance of double taxation were signed with 67 countries. Information about the beneficiaries is disclosed only during the inspection performed by the regulatory authority or based on a court decision.

A resident company pays tax on the entire income regardless of where it was earned. A non-resident company pays tax on the profit earned in Slovakia only.

Company Type

A Limited Liability Company (LLC) is the most popular and convenient form of a legal entity.

Authorised Capital

The minimum amount of the authorised capital is determined at the level of EUR 5,000, and each shareholder must pay the minimum of EUR 750. At least 30% of each shareholder’s payment and half of the total authorised capital must be paid up prior to the moment of a company’s incorporation.

Corporate Legislation

The legal system in Slovakia is continental and a variation of the Austro-Hungarian legislation.

Main Requirements for Company Directors and Shareholders

Slovak companies must have at least one director (if it is a natural person and non-resident of the EU, it must have a residence permit to live in Slovakia) and at least one shareholder (up to 50). Information about the directors and shareholders is kept in public registers.

Accounting

All companies in Slovakia must keep accounting records and file financial accounts. In a number of cases auditing is required. Declarations are filed by all companies in the course of three months at the end of a tax period.

Taxation

Value added tax – 20%

Corporate tax – 22%

Dividends in Slovakia are not subject to taxation.

Questions that need to be answered to prepare incorporation documents

∙ Passport details of the founders

∙ Passport details of the directors

∙ Photocopy of the ID pages of the founders’ and director’s international passports

∙ Types of the firm’s activity

∙ Utility Bill of the directors and founders, current email addresses and phone numbers

∙ Several proposed firm names