Business in Slovakia: what is worth knowing about the peculiarities of the local market? Open a company in Slovakia

Among European countries, the Slovak Republic is the most attractive for CIS citizens in terms of moving to permanent place residence. At the same time, the most common method of immigration is business in Slovakia. Maintaining entrepreneurial activity in this country requires lower costs than in other EU countries. In addition, registering a company in the Slovak Republic is a fairly quick and easy process; you just need to familiarize yourself with some of its features.

Immigration based on business

One of the legal ways to move to Europe is business immigration to Slovakia. Having received a residence permit on the basis of entrepreneurial activity, a foreigner can study in any educational institution republics. The maximum period of validity of a residence permit for doing business in Slovakia is 3 years. After this period, the residence permit must be renewed.

The main conditions for immigration to the Slovak Republic on the basis of doing business are registration of business activity, provision of a document confirming the availability of housing (purchased or rented), and availability financial resources in the accounts: 4000 euros (~4700 US dollars) on the company account and 2400 euros (~2820 US dollars) on the personal one).

It should be borne in mind that business emigration allows you to obtain a residence permit for members of the applicant’s family.

Business Laws and Regulations

The organization and conduct of business activities in the Slovak Republic are regulated by the following laws:

• “On Entrepreneurship” - the law specifies types of entrepreneurial activities and requirements for their conduct;
• “On Accounting” - the law specifies requirements for maintaining accounting records;
• “On Income Tax” – the law regulating income tax rates;
• “On Value Added Tax (VAT)” – the law regulating VAT rates;
• “On Consumer Protection” - the law specifies requirements for the quality of products and services, the safety of their use, as well as information about the manufacturer.

In addition to laws, business activities are also regulated regulations:

• Commercial Code – defines the types of legal entities and contracts, as well as General requirements to carry out transactions in the process of entrepreneurial activity;
• Civil Code – defines the principles of conclusion various types transactions, family law rules and inheritance conditions;
• Labor Code - determines the conditions for drawing up employment contract, working time standards, wages, vacation time, etc.

Types of business activities

The government of the country offers foreigners various investment projects in Slovakia - from the sale of bars and hotels to investments in agricultural land. Federal law“On Entrepreneurship” the following types of activities are established:

• Handicraft - to run this type of business you need to have a special education. This category includes such types of business activities as a beauty salon, automobile service, repair and construction, metal processing, production of meat, dairy or confectionery etc.
• Dependent entrepreneurship is a type of activity with the greatest requirements. To establish such a business on the territory of the Slovak Republic, you need to have a special education and fulfill a number of additional conditions. This type of entrepreneurship includes, for example, pharmacy business, work travel agency, installation gas devices. The conditions for each type of activity are specified separately in the appendix to the law.
• Free enterprise is a type of activity, for the implementation of which it is enough to register your own state of emergency and register any type of activity that is not in the lists of “handicraft” and “dependent”. The law does not provide for additional conditions when organizing such a business.

Regardless of what type of activity you intend to engage in, the company should be registered in one of the main organizational and legal forms:

• A limited liability company is the most common form of doing business in Slovakia. The main condition for registering this type of activity is that one of the potential directors has a residence permit in the country or is a resident. The number of directors cannot exceed 50 people, and each of them must make an initial contribution of at least 750 euros (~$880 US).
• Private enterprise - its main advantage is the relatively low costs of its registration. However, it should be borne in mind that such a business cannot be put up for sale or expanded. In addition, the owner of the emergency must pay for health insurance. A foreigner who has expired a residence permit in Slovakia or has problems obtaining it cannot take advantage of the opportunity to open his own business in this country.
• Joint Stock Company – for foundation joint stock company two participants are enough, who can be both individuals and legal entities. Moreover, shareholders can be residents of any country. The minimum contribution for registering a joint stock company is no less than 25,000 euros (~29,380 US dollars).

What type of activity is the most profitable in Slovakia?

If you are interested in the question of what kind of business is in demand in Slovakia, first of all you should pay attention to the tourism niche. The Slovak Republic is quite an attractive country for tourists: there are many thermal springs, and ski resorts. But planning to do tourism business, you need to be prepared for tough competition.

In Slovakia, business is going well for the owners of various coffee shops and pastry shops. Therefore, if you are interested in what kind of business can be developed in the Slovak Republic, you should think about restaurant activities. In addition, the production and processing of agricultural products is becoming increasingly profitable.

The field of information technology is now in demand in almost every country, and the Slovak Republic is no exception, offering a wide range of opportunities. The automotive industry and transport are also promising industries in which a foreign entrepreneur can develop his business while making a good profit.

Applying for a business visa

The Slovak Republic is one of the Schengen countries, therefore, to visit it, citizens of states that do not have a visa-free entry agreement must obtain a Schengen visa. The visa can be single, double or multiple entry. Suitable for business trips to Slovakia, which gives the right to stay in the territory of any Schengen country for 90 out of 180 days. If, for the purpose of doing business, you need to stay in the country for more than three months in a six-month period, you can apply for a national long-term visa category D. The decision regarding the validity of the visa is made by the consul in each individual case.

Required documents

To obtain a business visa to Slovakia, you must prepare the following documents:

• + a copy of the first page, as well as the original and a copy of other valid passports;
• original civil passport + copies of pages with marks;
• application form;
• 2 photographs 3.5 x 4.5 cm;
• document confirming the purpose of the trip (invitation);
• a document confirming the availability of financial resources;
• n or address of place of residence, if not indicated in the invitation.

It is not required to submit a business plan for Slovakia to the consulate when applying for a visa, but you can submit it as additional document, confirming the purpose of the trip.

Is it possible to extend a visa?

Extension of a Schengen visa is possible only if there are compelling reasons that do not allow you to leave the country on time, for example, critical condition health or natural disaster. In some cases, extension is possible for national visa holders.

However, most the best option For those who intend to stay in Slovakia for longer than 90 days, a residence permit is issued.

In this case, you should take care of preparing documents immediately upon arrival in the country, since consideration of the application can take up to 3 months.

If you are interested in how to open a business in the Slovak Republic, you should first take care of preparing the necessary documents. After the complete package has been assembled, the documents must be certified by a notary, after which the company must be registered in the Trade Register, and then with the tax service. On top of that, you must obtain a license from the Department of Commerce confirming your right to engage in the type of business activity specified in the articles of association you prepared. However, registering a business in Slovakia is possible without a license, but it depends on the type of activity. As a rule, the license is issued in the name of one of the founders, who is a resident of Slovakia.

Required documents

To register your own business in Slovakia, you need to prepare the following documents:

• charter of the future company;
• memorandum of association;
• certificate of no criminal record of the founder in Slovakia;
• certificate of no criminal record of the founder in his home state;
• a document confirming the registration of the company's legal address;
• a certificate from the bank confirming the transfer of the authorized capital to the company’s account;
• a document confirming that all directors have contributed their shares to the authorized capital.

Bank account

To register your own LLC in Slovakia, you need to open an account with an initial contribution of at least 5,000 euros (~5,875 US dollars). Plus, you need to contribute 15,000 euros (~17,625 US dollars) for the development of the enterprise. This money can be withdrawn from the account if the founder receives a residence permit. If you plan to renew your residence permit in the future, you must take into account that after paying taxes, at least 12,000 euros (~$14,100) of net annual profit must remain in the account.

Taxation of business activities

The taxation system in the Slovak Republic is the same for all forms of enterprises. The costs of maintaining a company in Slovakia require the payment of the following taxes:

• Dividend tax – the rate of this tax depends on many factors:
  • A legal entity that is a resident of Slovakia pays dividends at a rate of 7% to resident individuals.
  • To companies from other countries that have signed a double taxation agreement with Slovakia, the company also pays dividends at a rate of 7%.
  • If dividends are paid to a company from a country that has not signed a double tax treaty, the rate on dividends is 35%.
  • Dividends paid to a legal entity registered in Slovakia are not subject to tax. However, in this case, the company is forced to formalize the payment of labor income tax for its employees and arrange it in the form of social and medical contributions.
• Income tax – income tax for legal entities in Slovakia in 2019 is 21%. Taxes for individuals are charged at a progressive rate depending on the size of the profit: profits up to 35,000 euros (~$41,125) are taxed at a rate of 19%, profits over 35,000 euros - at a rate of 25%.
• VAT – the value added tax rate in Slovakia is 20%. This tax is mandatory for taxpayers whose annual turnover exceeds EUR 49,790 (~USD 58,500).

Organizing a business in Slovakia for citizens of CIS countries

Registration own business in Slovakia is relatively in a simple way immigration to European country. Business laws do not prevent foreigners from doing business in Slovakia.

Business in Slovakia for Russians, Ukrainians, Belarusians or citizens of other CIS countries offers the same opportunities, regardless of the immigrant’s citizenship.

Purchasing an existing business

Compared to registering a business from scratch, purchasing a ready-made business in Slovakia greatly simplifies the preparation of documents for its re-registration. In this case, the founder is not required to provide a business plan, nor is he required to pay an initial contribution of 5,000 euros (~$5,875). However, it is necessary to have a certain amount of money that you plan to invest in the development of the enterprise.

If you want to buy cheap ready business in Slovakia, you must ensure that there are no debts or fines imposed on the company. To do this, please read the attached documents as carefully as possible. In particular, you need to inquire about the reasons for the low cost of business. To do this, it is advisable to hire a lawyer and an auditor who will help you deal with the documentation. If everything is in order with the papers and you decide to buy this business, then you need to register it with the same authorities as the new one, and also re-register it in your name.

Offshore companies

The Slovak Republic cannot be called a classic offshore zone, however, this country is quite favorable in terms of taxation. Business people seek to register an offshore company in Slovakia primarily in order to use it as a parent holding company with subsidiaries in other EU countries. The advantages of registering a parent company in Slovakia are transparent legislation, high economic indicators and a relatively easy paperwork process.

Experience of entrepreneurs in Slovakia: Video

Based on organization private enterprise (živnosti ) has its own characteristics that you should know. Unlike a limited liability company, private entrepreneur in Slovakia(živnostnik)is obliged to pay monthly contributions to the pension and health insurance funds. In terms of extending a business residence permit in Slovakia for new term It is more profitable to have a private enterprise than a company in Slovakia. According to the Law on Foreigners of October 21, 2011, in order to renew a residence permit for a new period, the director of a company in Slovakia must show a net profit of 60 x the minimum subsistence level, and a private entrepreneur must show only 20 x the minimum subsistence level. That is, private entrepreneurs who want to extend their residence permit in Slovakia for a new period are required to have three times less profit earned in the previous year. But it must also be taken into account that the director firms, unlike private entrepreneurs,is not obliged to pay social pension contributions, health insurance contributions.

When you calculate all the necessary payments for the renewal of a residence permit for the director of a Slovak company and a private entrepreneur, you will see that, as a result, the private entrepreneur still invests less money in the project for obtaining permanent residence in Slovakia than the director of the company. Although you should keep in mind that if the private entrepreneur’s profit increases, his pension and medical contributions increase proportionally. The more profit a private enterprise has, the more its monthly deductions increase. And with a certain income, a private entrepreneur begins to pay more funds for the maintenance of the private enterprise than the director of the company. It turns out that it is more profitable to have a state of emergency only to carry out the minimum turnover required to renew a residence permit in Slovakia. There is an undoubted advantage when registering a private enterprise - that you do not need to invest authorized capital and that you only need a bank certificate for 4,000 euros, and not for 20,000 euros for the initial application for a residence permit in Slovakia. The disadvantage of registering a private enterprise in Slovakia is that a private entrepreneur does not have the right to engage in foreign economic activity.

A significant difference between a company in Slovakia and private entrepreneurship in Slovakia is generated by the fact that according to the laws of Slovakia it is possible get a job in Slovakia on behalf of your private enterprise. Many employers in Slovakia, and even quite large ones (such as factories), prefer not to hire workers directly, but to enter into agreements with them as private entrepreneurs to perform the same amount of work. That is, a disguised way employment in Slovakia through private enterprise creates additional employment opportunities.

A residence permit in Slovakia upon registration of private entrepreneurship also gives the right to obtain permanent residence in Slovakia after 5 years. It also provides an opportunity to reunite families. Moreover, an individual entrepreneur in Slovakia can hire workers.

Our services. Private enterprise in Slovakia.

Our services when applying for a residence permit on the basis of private enterprise are divided into two stages:

1. To apply for an entrepreneurial residence permit in Slovakia, we create a package that includes prepared documents for registration of private entrepreneurship in Slovakia, registration, provision of a responsible person, production of a certificate of good conduct in Ukraine with an apostille, judicial translations of certificates into the Slovak language, provided legal address for business , support, writing a business plan, filing an appeal in case of refusal, postal transfers, notarizations, cost of the card. This turnkey kit costs 1,750 euros, with an advance payment of 1,000 euros when signing an agreement on our services, and the remaining amount of 750 euros is given to us by the emigrant after submitting the completed set of documents to the emigration police.
2. after receiving the decision to issue you Residence permit in Slovakia on the basis of private entrepreneurship we offer you the second stage of our services, which is valued at 750 euros, which includesproduction of a police clearance certificate in Ukraine with an apostille (if you are a citizen of Ukraine), judicial translation of a police clearance certificate, registration of private entrepreneurship, support through medical authorities (clinic, insurance company).

Each of these packages undoubtedly includes our advisory support, a meeting upon arrival in Slovakia, accommodation, assistance in everyday matters (within reason, of course).

If, before registering a state of emergency in Slovakia, you decide to obtain a student residence permit based on enrollment in language classes, then we offer you three blog services:

1. obtaining a student residence permit in Slovakia 1300 euros (which includes payment for courses, registration, support,production of a police clearance certificate in Ukraine with an apostille, judicial translation of certificates)
2. subsequent registration of a state of emergency in Slovakia 750 euros
3. changing the type of residence permit to “business” - 500 euros, which includes confirmation of addresses (registration address of the state of emergency and registration), support, support through authorities, cost of the card for a residence permit and notary services.

This worries many domestic entrepreneurs. This is not surprising, since the country has many advantages for doing business and is interested in investment from abroad. The country is advantageously located in the center of Europe and can offer relatively affordable labor and is included in the list of the most promising states for starting a business.

The registration process itself is quite simple:

• choose a name for the company;
• confirm availability authorized capital;
• determine the founder and the ratio of shares between partners;
• appoint a general director;
• register a legal address;
• approve the type of activity.

Joint-Stock Company– this type of organization implies that the company will have:

• one founder;
• several directors forming the board;
• observers;
• Slovak address;
• amount – from 25,000 euros.

Documentation:

1. Founding agreement and charter of the organization.
2. Certificates confirming that none of the managers have been previously convicted.
3. Confirmation of the official address of the company.
4. Bank statement confirming capital availability.

Private enterprise

Also, to run your own business, you can register as individual entrepreneur. For example, if we open a small business based on the provision of intermediary services or small sales, then it is better for him to remain a private entrepreneur, who is required to make contributions to social fund after some time.

Monthly premiums for health insurance will depend on your salary level. Business registration in Slovakia takes about a month. The last stage the new company will be entered into the Trade Register.

So, where does your move to Slovakia begin?

**We must remember that laws are not the constitution, and they are constantly changing. The latest change to the migration law of Slovakia came into force on 05/01/2018. Now, if you do not have visa-free entry into the EU, then you need to obtain a visa (D), which we will help you obtain by preparing a full package of documents, and, if necessary, we will provide you with an interpreter for an interview at the Slovak consulate.

STEP #1.

SIGNING THE AGREEMENT.

At this stage, we closely communicate with you and determine which of the options presented below for obtaining a residence permit will be most suitable for you.

1 . (IP) -It's more a budget option in terms of content. A more accurate description is under the title link.

Total: registration costs (IP) and residence permit per adult - 2600 euros

2. REGISTRATION OF YOUR COMPANY

To register a company (S.R.O.) you need to sign all Required documents at the Slovak consulate (in your city) and send it to us by express mail. Then, when signing the agreement, you pay in any way convenient for you 30% of the cost of the service, which goes towards registering the company, state fees and notary fees in accordance with the agreement concluded with us. After agreeing on the name of the company and types of activities, our experienced lawyers will prepare all the necessary documents.

As soon as the company is registered (by proxy from you), you come to Slovakia and we will quickly prepare the main package of documents, accompany you to the bank to open a preliminary account in order to deposit funds confirming that your commercial intentions are not fictitious - this is one of the requirements of the migration law , (minimum - 21,000 euros) - We can provide support for this position and 2500 euros in a personal account is the minimum cost of living for a year per adult. Then, after receiving a decision to grant you a residence permit, you can withdraw this amount.

After the company has already been registered, you need to resolve the issue of accommodation and provide us with either a rental agreement or a certificate of ownership of the property. We can also provide you with this service.

If you have an account that already contains 2500e (or the equivalent in rubles), then without coming to Slovakia you can provide a bank statement confirming that this amount has been in the account for at least 3 months before submitting documents for a visa D. And together with the full with the package of documents that we will send you, request a visa D.

After receiving a D visa, you come to Slovakia for final registration of a residence permit.

On the day of submitting documents to the immigration police, you pay the remaining 70% for the services of our lawyers for registration, according to the contract. After you receive a residence permit card, the original director is removed from the company and you yourself become the founding director of your company.

Included in the price:
- services of our lawyers for the preparation of constituent documents;
- registration with a notary;
- obtaining a bank confirmation of the deposit of the required amount into the authorized capital of the company
- return of the amount of the authorized capital;
- registration of the company in the state trade register;
- registration of a company with the tax department;

Providing a legal address with current postal services for a year - 250 euros;
- preparation of the founders’ decision to appoint the founder as the founder (director);
- state fees for company registration.

Total: costs for registering a company and residence permit per director - 2800 euros

Additional charges:

Changes in the constituent documents of the company, if necessary (after receiving a residence permit card) - 199 euros.

Documents required for obtaining a residence permit:

Housing lease agreement or certificate of ownership of real estate;
- foreign passport (passport expiration date must be at least 1.5 years);
- certificate of good conduct with an apostille;
- a certificate from a bank in Slovakia in the amount of 21,000 euros from the company’s account
- a certificate from a bank in Slovakia in the amount of 2500 euros from a personal account
- 2 photographs 3*3.5 cm (80% of the face in the photo, open forehead and ears);
Based on this package of documents, we prepare the main package of documents for applying for a residence permit.

- for one applicant and his family members

For 2, 3 adults who are not relatives

To conduct activities exceeding 30,000e/year.

Necessary documents for company registration: international passport, civil passport, police clearance certificate with apostille, TIN

3 . PURCHASE OF A READY COMPANY WITH VAT

Due to latest changes The legislation has made it significantly more difficult for foreigners to register a VAT paying company. The problem is the security deposit of 100,000e. But if you join a ready-made company with VAT, then you avoid the obligation to pay this deposit.

The cost is ready-made company with VAT - 3800 euros.

REGISTRATION OF A RESIDENCE PERMIT IN SLOVAKIA.

STEP #2

One of mandatory conditions To obtain a residence permit, you need to confirm your place of residence in Slovakia (at this point we will provide you with all possible assistance). In case you do not already have one in Slovakia own apartment or at home, you must provide the immigration police with a notarized rental agreement and an extract from the real estate cadastre for this housing. You need to understand that such an agreement cannot be a mere formality - you must actually live at the specified address. Immigration police officers will definitely come with a check to make sure that the declared place of residence corresponds to the actual one.

When purchasing a ready-made company, or when we register a new company for you and in advance with prepared, certified papers, all documents are submitted in one visit, 2-3 days. Then you come to receive a residence permit card, or if you have undergone a medical examination in advance, we can receive your card for you and send it by mail.

You must have the following documents:

international passport, civil passport, TIN,

certificate of good conduct with apostille

2 photos 3.5x3

OBTAINING A RESIDENCE PERMIT CARD.

STEP #3.
According to current legislation In Slovakia, the immigration authorities must issue a residence permit card within 90 days. To obtain a residence permit card, you need to personally arrive in Slovakia within 180 days from the date of the decision to grant you residence permit status. We can accompany you to your local immigration police station if necessary. Or receive your card by proxy and send it to you by courier.
IMPORTANT REQUIREMENTS:
- Within 30 days after receiving the residence permit card, you are required to undergo a mandatory medical examination (if there are dangerous infections, your residence permit will be canceled),
- obtain medical insurance within 3 days,
register changes in the state trade register regarding your appointment as director within 60 days, and also provide all confirmations to the immigration police.
The cost of a medical examination is 150 euros. The cost of accompanying you to the clinic for a medical examination from Liptovsky Mikulas is 50 euros. (on your transport) and 100e (on our transport).
The cost of medical insurance is from 370e to 650e (UNION).

Program ()., subject to your provision of all necessary documents.

Two to three months before the expiration of the residence permit card, you will need to contact us to continue your status

Slovakia is one of those countries where bureaucratic nuances are kept to a minimum. Here, in a developed European space with a stable economy, it is possible to conduct profitable activity, reducing the tax burden by legally. Thanks to time savings and favorable legislation, registering a company in Slovakia is a very popular solution.

Prifinance employees will take care of all organizational issues. You will only need to provide personal data to open a company in Slovakia and make an advance payment. Attention! We do not take the entire amount at once. The advance payment for opening a company is 30%.

about country

As such, a classic offshore zone does not exist in Slovakia, however, the jurisdiction is of stable interest to business owners. The legislation provides for the creation of companies in the form of OJSC ( minimum size authorized capital - 25 thousand euros) or LLC (minimum size of the charter capital - 5 thousand euros). The issue of bearer shares and without par value is not permitted.

The director of the company (at least one) can be a resident individual. His personal data is entered into an open register. There are no residency requirements for shareholders. They can be individuals and legal entities.

Slovakia has signed agreements with 40 countries on the elimination of double taxation. There is no need to organize audits. At the same time, registration and maintenance of a company in Slovakia require reporting.

Tax payment issues

All legal entities operating in the country are required to pay income tax - 22%. Its amount is reduced by the amount of all non-taxable deductions. The income tax rate is quite low when compared with other European countries - only 19%. The basic VAT rate is 20%. In some cases, a reduced rate of 10% may be applied. There is no need to pay taxes on dividends in Slovakia. Legal entities pay tax on the vehicle. The amount is determined technical parameters cars.

Excise duty is levied on the following groups of goods:

• strong alcohol and alcohol;
• wine and beer drinks;
• electricity;
• tobacco and products made from it;
• mineral fuel;
• gas (coal, natural).

Advantages of the zone

The main benefits that company owners receive:

• bringing business to the international stage;
• increasing the company’s prestige in the eyes of partners and banking structures;
• developed economy and transparent legislation;
• simple and inexpensive registration of new organizations;
• absence of tax on profits, the source of which is dividends (the law does not make any distinctions - any company can pay dividends);
• investment protection.

One of the main reasons for creating companies in Slovakia is the possibility of using them as a parent holding company, which will have “subsidiaries” in the EU countries and abroad. In this way, taxation can be legally optimized, which to some extent compensates for the lack of classic offshore companies in Slovakia. Our specialists will tell you more.

By collaborating with Prifinance, you will save yourself from wasting time on organizational issues and bureaucratic nuances. Registration of a company in Slovakia with the support of our experts will take place quickly and correctly.

Slovakia adheres to the provisions of the BIT. These are agreements that countries enter into with the aim of supporting economic and financial relationships, creating preconditions for mutually beneficial cooperation, and stimulating investment. As a result of such agreements, an environment is created for attracting direct and portfolio investments, and bans are introduced on discriminatory measures regarding the ownership and disposal of foreign capital.

Such agreements have been signed with 50 countries around the world, which Slovakia considers its most important partners. This list includes the CIS, including Russia.