Specificity of the registering
In Slovakia, when an individual creates a company, as mentioned earlier, they are required to open an account. The initial purpose of this bank account is to serve as an avenue where the share capital of the company will be placed in.
The share capital that a Slovakian company is composed of multiple factors that should not be overlooked. Whether a company is under private or public limited liability, they are still governed by Company Act. The Company Act states that these companies must provide a designated minimum share capital for every member. On the other side of the spectrum, they are not as rigid when it comes to sole traders and partnerships. Owners who are categorized as sole traders and partnerships only have to place the amount that will ensure that their company is running smoothly.
The requirements for creating either a public or private limited liability company are different from the requirements of the other companies previously mentioned. For the private companies, they need a minimum total of 5000 euros. Part of that amount which comes at 750 euros, needs to be placed into the account once incorporation was completed. While for public companies, the base amount required comes at 25 000 euros. A portion of that amount that comes at 7500 euros needs to be placed for the capital.
There is an incorporation procedure that all businesses, no matter what type, must attend to. Listed below are the usual steps involved when getting your company incorporated in Slovakia.
The company name is approved if it is not taken by another business, and a certificate is provided to reserve the name;
Deposit all documents, including notarized documents that prove association and certificate for name registration. Together with signing up in an all-in-one venue for all your needs when it comes to registration of your income tax, trade licenses, and even your company’s health insurance policy;
Deposit share capital in a bank account;
Deliver the trade licenses and the bank deposit slip to the District Court in order to be registered. This information will then be delivered to the County Registry Court;
Wait for five working days before the authorities state this registration in the commercial registry entry so that your business can receive its business identification number.
One of the steps involved in opening a business requires a local bank account. As such, it is necessary for a business owner to have a local bank or a Slovak branch for their foreign financial institution so that they can make the required transactions. It is a simple procedure that can be done quickly so long as all the needed documents are available when the bank account is being opened. The necessary documents should include: Copy of Articles of Association; Information on a company activity; Due diligence documents on stakeholders.
Reserving trade names
If you are a foreign investor who wants to open a business in Slovakia, make sure that you reserve the name you want. There are many factors to consider when selecting the trade name for your company. One of these factors should include uniqueness. You can verify the originality and authenticity of the name you chose with the Trade Register. Once the reservation is made and you have been issued a certificate, you can move forward with your business registration.
Address requirements for business registration
In order to successfully register your business and move forward, one of the most important things to secure is a local address for the business. This is required for both domestic and foreign companies as long as they operate within the country or have subsidiaries present in the country. Those who are interested in checking out the market can simply put up some representative offices which still require formal addresses. To fast-track the registration procedure, there is the option for virtual office services that PFSER can surely help with.
In every business, it is crucial to ensure that your company is registered for tax purposes. In establishing a company in Slovakia, it is vital for to have a Value Added Tax Number, ensuring that company accomplish both financial and commercial transactions.
Types of companies
There are certain entities that can be set up in Slovakia by investors. These entities include: sole ownership of single entrepreneurs who are conducting their business by themselves; partnerships that are limited to only two members; private or public limited liability companies with a least one shareholder; branches, subsidiaries, or representative offices that are under foreign companies but are operating within Slovakia.
Private Financial Services can cater to your needs with extensive information regarding these different types of companies so that you can have the information you need to make an intelligent decision. Being equipped with the proper information is, after all, crucial whenever you are starting a business somewhere.
When an entrepreneur opens a company without any capital, and all the liability for debts or profits goes to him or her, then the business is considered a zivnostnik ( sole proprietorship).
On the other hand, when there are at least five thousand euros available, you can open a limited liability company. It is the type of business that suits small to medium-sized companies. However, the number of shareholders is limited to fifty people, and they can only contribute to the capital.
These shareholders should also appoint an executive who will make the daily decisions for the company when they have their general meeting. A supervisory board will be selected to observe the director’s decisions and report them during public meetings with more considerable capital.
There is also what is known as the Joint Stock Company in Slovakia. This type of company is primarily for large companies that have a share capital of not fewer than twenty-five thousand euros. In comparison, the Public Joint Stock Company in Slovakia lists parts of their stocks in the stock market to make the stocks transferable. As such, there is an increase in share capital. These joint-stock companies need to have a reserve of ten percent of the capital. A board of directors and supervisory board handle the management for these companies.
Term of registering
The moment all the required documents have been submitted to the proper authorities, the freshly created company can begin having transactions in Slovakia in approximately a month’s time or four weeks.
The expected timeline for a company that wishes to successfully create a company in Slovakia:
At a minimum, you will need a week’s worth of preparation in order to complete the documents needed to create the company;
Typically, it takes about a month to officially open a bank account that will be used for your business transactions;
Choosing and reserving your company or trade name will usually take 24 hours;
In less than a week’s time, the company can be officially incorporated with the help of the Trade Register.
In order for a company in Slovakia to complete their incorporation, they will be needing to present the following papers:
Documents legalized through a notary to prove an association;
Receipt for your registration fee;
Certification of bank deposits and proof that your business is distinct from others.
PFSER can provide legal aid by presenting you with a complete list of the necessary requirements. Plus, we can also deliver your documents to the proper authorities that will complete your incorporation.
In order to get a more comprehensive detail when it comes to a company’s formation, you can get in touch with Private Financial Services.