In general, Slovakia is considered to be a country with a substantial business environment, and a foreign investor will find a myriad of potential business options.
The income tax rates are considered favourable, being 15% for legal entities, if the income (revenues) of the legal entity for the tax period does not exceed € 100,000 and 21%, if the income (revenues) of the legal entity for the tax period exceeds € 100,000.
The most common type of entrepreneurship in Slovakia is the Limited liability Company (Ltd.)
Over the last number of years, there have been some significant changes made in the process of establishing a company. The registration of a new company is now made solely electronically and must be signed by a verified and qualified electronic signature. Meaning that if you are a foreigner, you will typically need to appoint a lawyer to establish a company for you. The entire process of establishment takes approximately 2 weeks after the lawyer receives all of the necessary documentation.
The establishment of a company by any foreigner is practically without restrictions, as every person has the same right to establish a company as a citizen of the Slovak Republic. However, it should be noted that, when the statutory organ of a company is a person who is not a citizen of the EU it is necessary to obtain certain confirmations and permits. These must be provided with an apostille and an official translation into the Slovak language.
In order for a company to properly do business in Slovakia, it must confirm in which sector it will do business and report necessary activities. For most activities it is not necessary to meet any other criteria, but there are some specific activities where it will be required to prove experience or professional competence.
Your chosen business name must be unique and non-interchangeable, otherwise the registration court will refuse to execute the registration into the Slovakian Registry of Commerce. You can easily check whether the name you have chosen for your company is available via the portal www.orsr.sk. At the same website, you can view and general company data including general data on shareholders and managing directors
After the successful establishment of a company, there is an automatic activation of the electronic mailbox set up by the government for legal entities.
Newly established companies have 10 days from registration in the Register of Commerce before the government automatically activates their electronic mailbox. In practice, in order to be able to ensure the functioning of the electronic mailbox used for communication mainly with state institutions, it is recommended that the function of the statutory body is also performed by, for example, a citizen of the Slovak Republic, through which the communication via electronic mailbox will be ensured. However, there is also the option to log in with alternative authenticators.
If your company does not need an office or premises, you can secure the place of residency of your company in the form of virtual residency. Several companies provide this service and also some additional services.