Establishing a company in Slovakia is an increasingly popular choice for foreign entrepreneurs seeking access to the European Union market. With its educated workforce, strategic Central European location, and stable liberal market economy, Slovakia offers a reliable and business-friendly investment environment.
This guide provides essential information on the main types of legal entities and the key aspects of the Slovak tax system to help you successfully navigate the process of establishing a company in Slovakia.
Country Overview
Official Name: Republic of Slovenia (Republika Slovenija)
Capital: Ljubljana
Population: Approximately 2.1 million (as of 2024)
Official Language: Slovene
Religion: Christianity (mainly Roman Catholic), with a growing secular population
Climate: Temperate continental and Mediterranean mix; mild along the coast, colder inland with snowy winters
Time Zone: UTC+01:00 (UTC+02:00 during daylight saving time)
Phone Code: +386
Currency: Euro (EUR)
| Company Type | Key Features |
|---|---|
| Limited Liability Company (S.R.O.) | – Most common company form in Slovakia – Can be established by 1 or more individuals or legal entities (foreign or local) – Minimum share capital: €5,000 – Liability: Limited to capital contribution – Foreign ownership: 100% allowed – Ideal for: SMEs and foreign investors due to easy setup and flexible structure |
| Joint Stock Company (A.S.) | – Suitable for large-scale or publicly traded companies – Can be founded by 1 legal entity or 2 individuals – Requires corporate bodies: General Meeting, Board of Directors, Supervisory Board – Minimum share capital: €25,000 – Foreign ownership: 100% allowed – Ideal for: Businesses planning expansion or public share offerings |
| Branch Office | – Extension of a foreign parent company (not a separate legal entity) – Must register with Slovak Trade Registry and Tax Office – No capital requirement – Operates under the legal responsibility of the parent company – Ideal for: International companies wanting a Slovak presence without forming a new entity |
This structure is ideal for small to medium-sized businesses due to its flexibility, simple incorporation process, and limited liability protection. If you’re considering establishing a company in Slovakia, an S.R.O. is often the go-to option for foreign investors.
Taxation in Slovakia
Understanding the local tax system is a crucial part of establishing a company in Slovakia. Here’s a quick overview:
| Tax Type | Rate / Threshold | Description |
|---|---|---|
| Corporate Income Tax | 21% | Applies to worldwide income for Slovak companies. Foreign branches taxed on Slovak-source income only. |
| Value Added Tax (VAT) | Standard rate: 20% Reduced rate: 10% | Reduced rate applies to selected goods and services (e.g. pharmaceuticals, books, food items). |
| VAT Registration | Mandatory if turnover exceeds threshold | All businesses exceeding the annual threshold must register and comply with VAT reporting. |
Conclusion
Whether you’re planning to open a limited liability company, a joint stock company, or a branch office, establishing a company in Slovakia offers strategic benefits for international expansion. From straightforward legal procedures to favorable tax policies, Slovakia stands out as a competitive option within the EU for foreign investors.
For more information or personalized assistance with establishing a company in Slovakia, please contact us.
