Doing business in Slovakia
- How quickly can I set up a business?
- What is the minimum investment needed?
- How can I raise finance?
- What are the legal requirements for setting up my business?
- What structure should I consider?
- What advice can you give me in regards to payroll and taxation requirements?
- Is there anything else that I should know?
How quickly can I set up a business?
Approx. 1 week
Formation of business legal entity requires:
· Articles of Association /Foundation Deed (AoA) and other legal documents, such as Signature Specimen, Registered Seat Approval, etc.;
· Trade licenses based on the scope of business activities;
· Registration in the Commercial Register, including information about Ultimate Beneficial Owner(s) of the legal entity.
What is the minimum investment needed?
Legal entities, which require minimum share capital:
· Limited Liability Company with minimum share capital of 5 000 EUR, Minimum contribution of each shareholder of 750 EUR;
· Joint stock company with minimum share capital of 25 000 EUR;
· Simple Joint Stock Company with a minimum share capital of 1 EUR;
· Cooperative with a minimum share capital of 1 250 EUR;
· Limited Partnership with a minimum share capital of limited partner is amounting to 250 EUR;
· General Partnership is without the requirement of minimum share capital.
How can I raise finance?
· Incoming investors or established companies may be supported by investment incentives:
· Regional investment incentives;
· R&D super deduction 100%;
· Patent box;
· Open calls for EU funds.
· Real estate investments
· Greenfield investments;
· Brownfield investments.
What are the legal requirements for setting up my business?
· Feasibility study – location, sources (human/material), customers, logistic conditions/;
· Legal analysis on a suitable legal entity and ownership structure;
· Tax/Financial study of the investment in Slovakia;
What structure should I consider?
· Ownership structure from legal and tax perspective;
· Management structure including resources available in local market;
· Stability of legal system, tax environment, administrative burden;
· Human mentality, availability of sources.
What advice can you give me in regards to payroll and taxation requirements?
Minimum brutto gross salary of 646 EUR /Since 2022/.
· Employer 25,2 % from gross income up to limit of 7 931 EUR;
· Employee 9,4 % from gross income up to limit of 7 931 EUR.
· Employer 10 % from gross income with no limit;
· Employee 4 % from gross income with no limit.
Personal income tax rates:
· 15 % for entrepreneurs (self-employed activities) with taxable income less than 49 790 EUR;
· 19 % up to tax base amounting to 37.981,94 EUR
· 25 % for part of tax base exceeding the threshold 37.981,94 EUR.
Corporate income tax rates:
· 15 % for companies with taxable income not exceeding 49 790 EUR; (self-employed activities) with taxable income less than 49 790 EUR;
· 21 % for companies with taxable income exceeding 49 790 EUR;
Value added tax rates:
· 20 % a basic rate;
· 10 % a reduced rate applies to certain basic foodstuffs, meat, milk, and bread, some pharmaceutical products, certain medical aids, certain books and similar products, specific accommodation services, certain healthy foods and print media.
VAT Group is enabled in Slovakia.
Mechanism of split payments introduced since 1st of January 2022.
Is there anything else that I should know?
Utilization of tax losses:
· Tax losses may be utilized during 5 consecutive taxable periods, up to 50% of the tax base reported for the respective taxable period. This restriction does not apply to micro-taxpayers;
· Tax losses reported before 2020 may be utilized equally over 4 consecutive taxable periods.
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