Starting a Company in Slovakia

Slovakia, located in the heart of Central Europe, offers significant advantages for foreign investors. As an EU member using the Euro, with a competitive tax system and a strong industrial base, Slovakia has become a preferred destination for company formation. For Turkish entrepreneurs, the geographic proximity and access to the EU single market make Slovakia an ideal place to establish a business. However, navigating the bureaucratic and legal procedures can be challenging without proper guidance. Marcaworld provides the expertise and support needed for a seamless incorporation process.

Why Start a Business in Slovakia?

Strategic Location

Slovakia borders Austria, Hungary, Czechia, and Poland, offering direct access to both Western and Eastern European markets. This makes it an excellent hub for logistics and trade.

EU Membership and Euro Currency

Slovakia joined the European Union in 2004 and adopted the Euro in 2009. This reduces currency risks and simplifies trade within the EU.

Competitive Tax System

With a corporate income tax rate of 21% and favorable VAT policies, Slovakia provides an attractive fiscal environment.

Investment-Friendly Policies

The Slovak government offers tax incentives, grants, and special economic zones to attract foreign investment. Key sectors include automotive, IT, energy, and logistics.

Types of Companies in Slovakia

S.R.O – Limited Liability Company

The most common business form. Requires a minimum share capital of EUR 5,000. Liability is limited to contributions.

A.S – Joint Stock Company

Requires a minimum capital of EUR 25,000. Suitable for large-scale businesses and public companies.

Branch of a Foreign Company

Foreign companies can open a branch in Slovakia. Liability remains with the parent company, but the branch operates locally.

Steps to Incorporation

1. Reserve a Company Name

The chosen name must be checked and reserved in the Slovak Commercial Register.

2. Open a Bank Account and Deposit Capital

A corporate bank account must be opened, and the minimum share capital deposited.

3. Draft and Notarize Articles of Association

The articles must outline the company’s activities, shareholders, and management. They are notarized before submission.

4. Registration with the Commercial Register

Once the documents are submitted and approved, the company officially exists as a legal entity.

5. Tax and Social Security Registration

The company must register with the tax office and, if hiring employees, with the social security authorities.

Slovak Tax System

Corporate Income Tax

The standard corporate tax rate is 21%, competitive within the EU.

VAT

The standard VAT rate is 20%. A reduced 10% rate applies to selected goods and services.

Double Taxation Treaty

Slovakia and Turkey have signed a double taxation agreement, ensuring that the same income is not taxed twice.

Marcaworld’s Role in Slovakia

Marcaworld helps entrepreneurs establish their businesses in Slovakia by providing:

• Advice on choosing the right company type
• Name reservation and legal documentation
• Banking assistance and capital deposit
• Commercial Register and tax registration
• Ongoing accounting and compliance services

Slovakia is a highly attractive country for investors due to its central location, EU membership, and favorable tax system. With Marcaworld, entrepreneurs gain a reliable partner who manages the entire incorporation process efficiently, allowing them to focus on building their business.