Slovakia
Company formation in Slovakia
Slovakia is a small country in Central Europe, with most of its territory taken up by tall mountain ranges popular among skiers in the region. While Slovakia is a relatively new state, since it separated from Czechoslovakia in 1993 , its Slavic people have a long history and rich culture. With over 500 castles and a population of about 5 million, Slovakia is the country with the highest number of castles per capita. Slovakia is a Republic, and a member of the European Union since 2004. It is also a member of the Schengen visa zone, which means that Slovak citizens and residents can travel without a visa to all other Schengen member states. The currency in Slovakia is the euro (EUR), which adds to the financial stability of your ventures there.
Company incorporation in Slovakia
In Slovakia, the Limited Liability Company is referred to as s.r.o. (short for “spoločnosť s ručením obmedzeným”, which means the same). The s.r.o. is a very popular form of business in Slovakia because it is relatively quick and easy to set up. The low share capital requirement of EUR 5,000 and the fact that the local currency is the euro make setting up a business in Slovakia popular among third-country investors. Company setup takes 2-4 weeks, after which you need to open a corporate bank account, and apply for a VAT number (which will also be your EU VAT number), which takes another month or so. For compliant operation, your Slovak company will also need a registered seat and an accountant. While preferred by the tax authority and for ease of operation, in Slovakia it is not obligatory for companies to have a corporate account with a local bank.
Slovakian taxes
Slovakia offers the lowest dividend tax and the lowest standard VAT in the region. At the same time, corporate tax is a bit higher than in other countries. Of course, normal business expenses are deductible from the tax base, and your costs may be significantly reduced.
Corporate tax: 21%
Dividend tax: 7%
Standard VAT: 20%
Our services
Can be done in person in Slovakia or through a power of attorney (POA) from abroad. After you provide the relevant data and certifications (e.g. no criminal record), our lawyer prepares all the documents for you to sign, complemented by the right authorizations for our team that will allow for a quick and smooth procedure.
VAT registration is a separate procedure. It can be started only after your company is registered (within a month or so), and it usually takes another month. Once your Slovak VAT number is granted, it will double as an EU VAT number.
Having a Slovak bank account is required for VAT registration, so opening a corporate bank account should be taken care of as soon as the company is registered. While opening the bank account is possible with a POA (which is enough for VAT registration), you will be able to start using the bank account only after a visit to one of the branch offices of the same bank, either in Slovakia or abroad. If travel to Slovakia is difficult for you at the moment, please speak to our team about the best solution for opening a SK bank account from abroad.
The virtual office is a service we offer that provides your company with a local address in Slovakia required for the company registration. We also have expert staff to handle your official mail sent to your registered seat, who will forward mail to you with instructions if needed. Even when you have already set up your own shop or office, it makes sense to leave your seat with us so your employees can focus on other tasks while you do not have to worry about registering a new seat each time you move your office., or about missing important deadlines.
The right accountant can help you keep tabs on your finances while keeping your Slovak company compliant with tax regulations. Instead of hiring an accountant as a full-time employee, for small and medium-sized companies it makes sense to outsource your accounting to us. Prices will depend on the volume of work involved, like the number of employees, bank accounts, incoming and outgoing invoices – but it will still be more cost-effective, especially in the beginning of your operation.