Company registration in Slovakia 2019: Country Benefits for Business
Slovakia is one of the jurisdictions offering a favorable tax regime for the operation of the company, especially in the case of foreign trade operations with EU member states. The main export partners with the country were such countries as Germany, the Czech Republic, Poland. The main trading positions - electrically goods, transport, iron and steel.
Pros and cons of registering a company in a given jurisdiction
The main advantages of opening a company in the country are the possibility of registering in a relatively short time - about 3 to 4 weeks. A bank account can be opened both in the territory of Slovakia and abroad. You can open an account remotely, the validity period is from 1 month.
Advantages of jurisdiction for doing business:
• Has a positive reputation, is politically stable;
• It is possible to issue a tax residency certificate;
• Conclusion of double taxation treaties;
• The possibility of obtaining a residence permit after registering a company;
• You can open an account for a legal entity in the country of registration of the latter;
• The country has a good location - in Central Europe, which contributes to the successful development of business;
• The country's economy tends to grow over several years;
• Relatively low tax charges.
The main disadvantage of registering a company in a given country is that capital gains from the sale of shares will be included in the company's income and subject to corporate tax. Therefore, registering an organization for securities transactions is not relevant.
Reporting and tax collection
The reporting period of the company is 1 calendar year. Profit report must be submitted annually.
Features of taxation:
• The size of the corporate tax is 22%, however there is an opportunity to reduce this figure when keeping accounts correctly;
• Value added tax is 20%;
• Payment of dividends, interest, royalties in favor of the company may be taxed at a rate of 10%;
• If the turnover exceeds 49,790 euros, registration as a VAT payer will be required.
A company in Slovakia must pay corporate tax. Its size varies depending on the rate of annual turnover. If the turnover does not exceed 500 thousand euros, it will be 480 euros for non-payers of VAT, 960 for taxpayers. A tax of 2,880 euros will have to be paid if the annual turnover exceeds half a million euros.
The main legal forms
Most often in a jurisdiction is registered an organization that has the form of a limited liability company. Registration can be done by a citizen from any country. Shareholders of the company can become non-residents. The director can become a citizen of the EU, OECD. The smallest share capital is 5 thousand euros. The registration address of the company must be within the territory of Slovakia.
Other legal forms:
• Full partnership;
• limited partnership;
• Joint-Stock Company.
To get answers to questions regarding the registration of a company in Slovakia, please contact our IT - OFFSHORE specialists. We hold consultations and assist in the collection of documents for registration of the company.