Starting a Business in Slovakia

Slovakia is a reliable European jurisdiction that is open to foreign entrepreneurs. It offers favorable conditions for conducting international business, making the country attractive to companies seeking to enter the European Union market.

Main Benefits of Business in Slovakia

Central Europe offers entrepreneurs interesting opportunities thanks to its dynamic economy and convenient access to the European Union market. With a population of around 5.5 million, the country has become one of the fastest-growing in the eurozone in recent years. Membership of the EU, the eurozone, the OECD, NATO, and the Schengen area provides access to more than 740 million consumers within a 2,000-kilometer radius. The legislation here is simple, and the tax system is attractive. Companies with a turnover of up to €100,000 pay income tax at 15%, and above this amount, only 21%.

In 2017, a new form of legal entity appeared – a simple joint-stock company, which combines the features of an LLC and a joint-stock company and significantly simplifies the process of setting up a business. Registration is easy and can be done entirely remotely. It is particularly promising for trade with the EU, the IT sector, international transport, industry, tourism, and services. Holding structures are also actively developing. All this makes the decision to open a business in Slovakia attractive to international investors. 

About the Economy and Local Taxes

Before starting a business in Slovakia, you need to learn about the country’s economy. The country’s industrial base relies heavily on mechanical engineering, specifically automobile manufacturing. Large factories belonging to international corporations such as Volkswagen, PSA Peugeot Citroën, and KIA Motors operate here. The launch of their production facilities, along with other enterprises, has made the country a world leader in passenger car production per capita.  

An equally vital sector of the economy is the service sector, which accounts for about 59% of GDP. Any property owner or entrepreneur who opens a company abroad becomes a taxpayer. The tax system in this jurisdiction is as simple as possible: reforms in the early 2000s reduced the burden on businesses by establishing a single tax and abolishing the progressive scale.

Forms of Companies

What business to open in Slovakia? Small and medium-sized businesses often choose to set up a limited liability company. Since 2017, there has been growing interest in simple joint-stock companies, where the minimum capital requirement is just 1€, compared to 5,000 for an LLC. Let’s consider a different type of legal entity:

1. S.R.O. – liability is limited to the contribution, and the personal property of the participants is not affected.
2. A.S. – capital is divided into shares owned by shareholders. 
3. K.S. – along with general partners, there are limited partners whose liability is limited. 
4. V.O.S. – partners are liable for obligations with all their property. 
5. A simple joint-stock company – a hybrid format that allows for establishment by a single participant, unlike a classic joint-stock company, which requires a minimum of four. 

It will also be necessary to specify the scope of activities and obtain the permits required to conduct them. Management of the business in Slovakia for foreigners is assigned to executive directors appointed in accordance with the charter. In addition, a person responsible for a capital contribution is designated, most often one of the participants, and the amount of each member’s contribution is recorded. 

Slovakia Business – Instructions to Start 

“Slovakia – open a business” has its own specifics. A legal entity can be registered by a representative by power of attorney, which is especially convenient for foreign investors. The main condition is that the document must be notarized and apostilled. 

The first step in business registration in Slovakia is to check the chosen name in the Commercial Register. It usually takes one day and ends with the issuance of a reservation confirmation. After that, the founding documents are prepared and certified. For LLCs, a Memorandum of Association and Articles of Association are required, and for joint-stock companies, a complete package including both documents is required. 

Next, you need to obtain a trade license at the “Single Service Centre”, where you will be assigned a tax number and registered in the health insurance system. The final stage is to enter the company in the Trade Register on the basis of the following documents: 

• a standard application form;
• confirmation of the uniqueness of the name;
• a bank statement on capital;
• statutory documents. 

In some cases, the registry may request additional information. The last mandatory step is to register the employer within 8 days after signing the first employment contract and to register employees in the social insurance system before they start working. 

When Can a Foreigner Open a Business in the Country?

If you are planning to start your own business in Slovakia, you first need to make sure that you can do it. A residence permit, whether temporary or permanent, is required and allows the holder to engage in entrepreneurial activities.

Temporary status allows you to start or buy a business in Slovakia while staying for the purpose of study or family reunification, with the exception of certain cases related to caring for disabled relatives. There are categories that don’t require a special permit for entrepreneurship:

• persons with Slovak status living abroad;
• researchers;
• EU Blue Card holders;
• foreigners with permanent residence in another European Union country. 

Restrictions apply to those in a tolerated stay regime or with temporary status without the right to work. Entrepreneurial activity is also not available to persons awaiting a decision on asylum.

Duration and Cost of Starting a Company

Registering a new company usually takes about 2 weeks after submitting all required documents. To ensure the process runs smoothly, many entrepreneurs turn to business support for foreigners who accompany the procedure from start to finish. 

The total costs include several obligatory components. A state fee of €150 is paid to the Registry Court before submitting the documents, a virtual office costs approximately €50 per month and provides a legal address in a prestigious business center, the minimum authorized capital for a limited liability company is €2,500, and is deposited into an account at a local bank. In addition, agents charge a registration fee of approximately €450.

Features of Buying a Ready Business

Purchase a business in Slovakia simplifies the process of re-registering a company. Unlike starting a business from scratch, there isn’t a need to submit a business plan or contribute €5,000 in start-up capital. 

The advantage is obvious: an entrepreneur can start working immediately, taking over a company with already contributed authorized capital, and sometimes even with staff, clients, and existing contracts. Such a company is easy to resell at any time, even the day after the documents are drawn up. Buying a ready-made company allows you to immediately manage the business at your own discretion, without the necessary bureaucratic barriers. 

Buying a company in Slovakia is a quick process if you engage experienced lawyers. Once a business has been selected, an audit is conducted, and the owners’ information is verified. Next, the documents are prepared, and the parties proceed to sign the agreement.

The new owner receives a package of supporting documents and the right to open an account. The signing of a purchase and sale agreement, which formalizes the transfer of rights, is a crucial step. It must comply with local legislation and be entered in the Commercial Register. 

Accounting System in Slovakia

In addition to understanding how to start a business in Slovakia, you need to know the specifics of reporting. Enterprises are divided into micro-enterprises, small and large companies, and each category has its own financial reporting rules. Any registered entity is required to submit an annual report for the reporting period, which usually coincides with the calendar year, although owners may choose a different option. At the end of the period, reports reflecting the results of operations are prepared, and late submission may result in penalties. 

Companies with a turnover of more than €50,000 register as VAT payers, but voluntary registration is available for those who want to take advantage of this system. For monthly tax payments, the deadline for submitting declarations, checklists, and sales reports is the 25th of the following month, and payment is made on that day. All documentation and requests are submitted electronically in Slovak, but these obligations can be delegated to another person by power of attorney.

Support Programs for Foreigners Launching a Business in Slovakia

The country has established a well-developed support system for entrepreneurs, including government agencies, university centers, and private accelerators. These structures help startups and companies at various stages of development by offering advice, training, and access to useful contacts. In some cases, they provide financial assistance or help attract investment. Here are a few examples:

1. Government organizations – SARIO, the Slovak Business Development Agency, and the National Business Center.
2. University incubators – STU in Bratislava, TUKE in Košice, UNIZA in Žilina.
3. Private accelerators — Challenger, Perry Talents, HealthCareLab, Lifbee, Fintech Hub.
4. Investment funds – Crowdberry and Neulogy Ventures, which participate in seed and venture rounds alongside international investors.

For foreign entrepreneurs, contacting these institutions at the start of a project helps to strengthen their business plan, increase credibility when applying for a residence permit, and simplify access to national and European funding. 

Additional opportunities are opened by the Research and Innovation Authority (VAIA) initiative, which focuses on digitalization and the introduction of new technologies. As part of the Economic Recovery Plan, €28 million has been allocated to support scientific institutions, companies implementing automation, and enterprises developing new products. 

In addition to national initiatives, European ones are also available. Slovakia participates in the Eurostars and Cascade Funding programs, which support research and innovation projects and provide an additional funding channel for businesses.