Slovakia

Slovakia is situated in central Europe, bordered by Hungary, Ukraine, Poland, Austria and the Czech Republic.

Capital

Bratislava

Official language

Slovakian

Government

Slovakia is a parliamentary democratic republic with a multi-party system. The Slovak head of state is the president, elected by direct popular vote for a five-year term.

Currency

Euro

Economy

The Slovak economy is considered an advanced one. Slovakia transformed from a centrally planned economy to a market-driven economy.The banking sector is almost completely in private hands, and foreign investment has risen in recent years.

Types of companies

  • Limited Liability Company (s.r.o.)
  • Joint Stock Company (a.s.)

Limited Liability Company (s.r.o.)

  • This is the most common type of companies in Slovakia. 
  • It can be run by foreign or local investors. 
  • The suffix used in the name of a Limited Liability Company is S.R.O. 
  • One director is required to incorporate a company. 
  • Shareholders may be represented by individuals or a limited company and the total number of shareholders can not exceed 50. 
  • Only an individual resident in EU or OECD country may become a director. 
  • A Limited Liability Company must have a registered office address in Slovakia and all corporate documents must be kept at the registered office. 
  • A company must appoint a representative, who must be a Slovak resident. 
  • A General Meeting acts as the governing body. As a rule, a simple majority of shareholders’ votes is enough for a decision to be taken in the General Meeting. 
  • The minimum share capital required for the founding of a limited liability company is EUR 5,000. At least 30% of it must be paid in prior to recording in the commercial register.

Joint Stock Company (a.s.)

  • A Joint Stock Company has a suffix A.S.in its name. It may issue and sell shares to the public.
  • General Meeting of Shareholders is a supreme body of a company. It makes decisions about every change related to the company (changes of the basic capital, appointment of members of the Supervisory Board, the Board of Directors, auditors, etc.) 
  • The Board of Directors is entitled to manage and represent the company. It is elected by the General Meeting. It is not necessary for the members to be the shareholders of company. The Supervisory Board controls activity of the Board of Directors.
  • The minimum number of shareholders is 2. When the shareholder is a limited company, one shareholder is sufficient. A general shareholders’ meeting must be held within 60 days after the incorporation of the company. Legal deeds which have details relating to the company formation must be notarised.
  • The minimum share capital is EUR 25,000. At least 30% of the monetary contributions must be paid prior to the registration of the company. A reserve fund of at least 10% of the registered capital must be set up. 

Taxation of companies

Slovak-resident companies pay tax on their worldwide income. Foreign companies operating in Slovakia are taxed only on revenue derived from sources within Slovakia. Corporate income tax is paid at a flat rate of 19%. There is no withholding tax on dividends. The standard VAT rate is 19%. A reduced rate of 10% is applicable to medicine and some pharmaceutical products, books and brochures. VAT is payable on imports, but in many cases there is no VAT on exports. There is no VAT on financial, banking and insurance services. Property rental is also exempt from VAT. There is no tax on capital duty, capital acquisitions, net wealth tax.

Agreements on avoidance of double taxation

Australia, Austria, Belarus, Belgium, Bosnia-Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Cyprus, Czech, Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Latvia, Libya, Lithuania, Luxembourg, Macedonia, Malta, Mexico, Moldova, Mongolia, Netherlands, Nigeria, Norway, Poland, Portugal, Romania, Russia, Serbia, and, Montenegro, Singapore, Slovenia, South, Africa, Spain, Sri, Lanka, Sweden, Switzerland, Syria, Tunisia, Turkey, Turkmenistan, Ukraine, Vietnam, United, States, Uzbekistan, United, Kingdom.