Limited liability company in Slovakia

Limited liability company in Slovakia is the most favorite form of legal entity to make business.  Its basic capital consists of shares of it shareholders.

 

Characteristics of a limited liability company in Slovakia are:

1) It can be established even by one sole shareholder that means one physical person or by one legal entity,

2) Part of its business name shall be „ limited liability company“ in Slovak abbreviated as s.r.o., or  spol.s.r.o.

3) It shall be established for the purpose of making business but not only,

4) It cannot have more shareholders than 50,

5) Minimum basic capital requested by law is 5000 EUR,

6) Minimum share of one shareholder is 750 EUR,

7) It is lable for its credits by all its property but provides guarantee up to the amount of its share that is not paid up in the Commercial register,

8) It is obliged create reserve fund.

 

Before establishing your limited liability company in Slovakia you should know:

– a limited liability company with a sole shareholder cannot be a sole founder nor a sole shareholder in a limited liability company,

– a physical person can be a sole shareholder only in three  limited liability companies,

– a limited liability company in Slovakia cannot be established by a person who has debts against tax authorities in Slovakia.

 

During the existence of the limited liability company amount of basic capital can be increased or decreased but it can never be lower than the minimum requested by law.

What shall you do when all the above is clear? Then you shall be ready to sign the Memorandum of Association.  The Slovak Commercial Code specifies what the obligatory information is and what can be modified in the Memorandum of Association.

For further information send us your email check our article what shall contain a memorandum of association of a limited company in Slovakia.