The main business forms available in Slovakia include:

Limited Liability Company
Joint Stock Company
Partnerships
Co-operative
Branch

Limited Liability Company

A limited liability company is the most common business form used in Slovakia and is relatively simple to form.

Key aspects of a Limited Liability Company (LLC) include:

May be formed by a single member and up to 50
An individual may be the sole member of up to 3 companies, but a single member company may not be the sole member of another LLC
Minimum registered capital is EUR 5,000, and the minimum contribution of an individual member is EUR 750
At least 30% of each member's contribution must be paid up at incorporation, but in the case of a single member LLC the capital must be paid up in full
Each member's liability is limited to the amount of the contribution as specified in the commercial registry
A Slovak resident must be appointed as the company representative
The company’s major decisions are made by its members
The executive director is liable for the company’s operations and for the day-to-day running of the business
The executive director can only be a natural person, not a legal entity
A supervisory board is not required, but it can be voluntarily created and if created must have at least three members
Effective 1 January 2015, distribution of profits by an LLC is limited to 75% of net profits, if the LLC’s share capital is below EUR 5,000.

Joint Stock Company

A Slovakian joint stock company has no limit on the number of shareholders like an LLC and may be public or private, but is more difficult to establish and administer.

Key aspects of a Joint Stock Company include:

Generally formed by at least 2 shareholders, with no maximum limit, although a sole corporate shareholder is allowed
Minimum registered capital is EUR 25,000
Registered capital is divided into shares with a specified nominal value
At least 30% of the registered capital must be paid up at incorporation, and generally must be paid in full within 1 year
Shareholders liability is limited to their contribution for shares in the company
Shares may be issued publicly and traded on a stock exchange
The company is managed by a Board of Directors
A Supervisory Board is a mandatory corporate body that supervises the activities of the Board of Directors

Partnerships

Partnerships may be formed in Slovakia as general partnerships or limited partnerships.

Key aspects of General Partnership include:

Formed by at least 2 partners, who may be natural persons or legal entities
A natural person or legal entity may only be a general partner in 1 partnership (general or limited)
Formed by a partnership agreement drawn up by the partners specifying the company’s activities and partners
No minimum capital requirements
All partners have unlimited liability for the obligations of the partnership up to the extent of their personal property
All partners may engage in the management of the partnership
Key aspects of a Limited Partnership include:
Formed by at least 1 general partner and 1 limited partner, who may be natural persons or legal entities
A natural person or legal entity may only be a general partner in 1 partnership (general or limited)
Formed by a partnership agreement drawn up by the partners specifying the company’s activities, the partners, the shares of each limited partner and indicating which partners are limited and which are general
No minimum capital requirements
General partners have unlimited liability for the obligations of the partnership up to the extent of their personal property, while limited partners' liability is limited to their contribution to the partnership
General partners have the right to manage the partnership and act as representatives, while limited partners may not

Co-operative

A co-operative is a community of an open number of members established either to conduct business, or to satisfy any economic, social or other needs of its members.

Key aspects of a Co-operative include:

Formed by at least five members, or at least two members if both are legal entities
Members of the co-operative do not generally bear liability for the obligations of the cooperative
Minimum registered capital is EUR 1,250, 50% of which must be paid up at incorporation
Activities of the co-operative are managed by a managing board, which is controlled by an audit committee
The supreme body of the co-operative is its members’ meeting

Branch

Foreign companies are allowed to establish a branch in Slovakia in order to conduct business. The branch is not considered an independent legal entity from the foreign parent company, and the parent company is fully liable for the obligations of the branch.

Further information on the general investment, tax and regulatory regime about the country is available at the following external references:

• “Doing Business” report from World Bank - click here

• Reports and publications from OECD – click here

• Reports and publications from IMF – click here

• Reports and news from Tax Justice Network – click here

• Ministry of Finance - click here

• Slovak Investment and Trade Development Agency - click here

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