Open Company in Slovakia and Get Access to the European Market
Slovakia has many advantages that will significantly contribute to the development of your business:
- Let’s start with the location. It is the very center of Europe. This means that, in addition to beautiful nature and pleasant climate, you have excellent logistics to the EU countries without any additional duties or barriers.
- If you have a Schengen visa from Slovakia, you can freely travel to other 25 Schengen countries, such as Germany, France, Italy, etc.
- The country where you decide to start a business uses a single European currency – the euro, which is also the official currency in 19 other countries. This means less costs associated with phenomena such as:
- currency exchange,
- exchange rate fluctuations,
- Slovakia has done a lot of work to support small and medium-sized businesses. Does your venture need funding? You have at your disposal:
- low interest rate (as low as 2% per year),
- long term (up to 10 years),
- deferred payments (up to 2 years),
- guarantees (up to 80% of the loan amount).
- An additional bonus without which a smooth development of business is impossible is a stable and transparent legal system according to the best European standards:
- protection of the rights and interests of business,
- equal and fair treatment of foreign investors.
Types of Companies in Slovakia: Which One to Choose?
The main types of companies that can be registered in Slovakia are:
- Limited liability company (SRO). This is the ideal option for small and medium-sized businesses:
- It is very easy to create such a company by one founder with a minimum share capital of 5000 euros.
- To manage the company, you only need a director, or at most a board of directors.
- The profit tax is 21%.
- Joint stock company (AS) is the choice of large entrepreneurs aimed at attracting investments:
- You can’t do it alone here – you will need two founders and 25,000 euros for the share capital.
- The company is headed by a general director and a board of directors.
- The profit tax is the same as for companies with less scope of activity – 21%.
- Branch or representative office. This type of company is suitable for foreign companies that want to expand their activities in Slovakia. Here you need to distinguish between these two types of companies:
- A branch has the right to engage in commercial activities.
- A representative office is only responsible for advertising and information policy.
- Taxation depends on the type of activity and the country of origin.
As for liability and reporting, everything depends on the size of the company. The larger the enterprise, the more documents and approvals from various authorities and institutions will be required.
What Does the Process of Company Registration in Slovakia Entail?
There are many subtleties and nuances in this process, which can be easily handled by an experienced team of lawyers from Finexmo. But to put it briefly, to meet the requirements of the Slovak government, you will need:
- to choose a good and appropriate name,
- to prepare the founding documents,
- to pay the state fees,
- to open a bank account,
- to obtain a tax number.
The cost of registration depends on the type of company and the chosen method of registration, but approximately ranges from 300 (online) to 1000 euros (notary). Plus the payment for the services of hired specialists.
For some types of activities, such as pharmaceutical or financial, you will need special permits, licenses or certificates.
Expected Expenses for Running a Business
As in other countries, this part of business includes expenses for:
- keeping accounting records,
- filing annual tax and financial reports,
- paying taxes and social contributions,
- registering as a VAT payer if necessary, etc.
The cost of maintenance depends on the volume and nature of activity, but usually ranges from 100 to 500 euros per month.
What you need to know about taxes if you Register company in Slovakia
Slovakia has one of the lowest VAT rates in Europe – 20%. And the moment you’ve been waiting for: if your annual turnover does not exceed 49,000 euros, you are exempt from paying it.
You will surely agree with us that this is a very profitable offer. Just imagine how much you can invest in the development of your business under such conditions.
You can also apply additional investment deductions, which allow you to reduce your tax base by a certain percentage of the cost of your investments, if you are engaged in production or scientific research. This is a real chance to reduce your tax base by 100% or 200% of the cost of your expenses.
Quick results without unnecessary costs: Cooperation with Finexmo
If you want to register and maintain a company in Slovakia without any hassle and expense, you can contact Finexmo. Contact us for a free consultation and more information.