Start a business in Slovakia: Tips for a successful launch

1. Why Slovakia is an attractive business location

Slovakia is an appealing destination for many entrepreneurs. With its strategic location in Central Europe, lower labour and operating costs, business-friendly tax policies, and quick company formation, the country offers many advantages. Especially for Austrian or German business owners, Slovakia can be an excellent choice to benefit from these economic advantages.
However, like any country, Slovakia has important legal, tax, and administrative requirements. With proper preparation, you can avoid common mistakes and successfully build your business.

2. Choosing the right legal form

The first major step when setting up a business in Slovakia is choosing the right legal form. The most common choice is the limited liability company (s.r.o.), which offers limited liability and flexible management.

Key points:

• s.r.o. as the most common choice: The Slovak "Spoločnosť s ručením obmedzeným (s.r.o.)" is comparable to the Austrian GmbH and is often the best option for entrepreneurs.
  
  Tip: An s.r.o. can be established by just one person, with a minimum capital requirement of only €5,000.


• Alternatives to the s.r.o.: Other options include a sole proprietorship (živnostník), a limited partnership (k.s.), or a joint-stock company (a.s.), although the latter is typically for larger enterprises.
  
  Tip:These different legal forms have varying tax implications for both the company and the shareholders — it’s worth reviewing these thoroughly.

3. Official procedures and business registration

A company in Slovakia can be set up within just a few days — provided all documents are complete and the required registrations are done correctly.

Key points:

• Commercial register entry: The s.r.o. must be registered with the Commercial Register (Obchodný register), which usually takes 10 to 30 working days.
  
  Tip: Prepare and double-check all formation documents carefully to avoid delays.


• Business licensing: Depending on your business activity, you may need either a free trade licence (no proof required) or a regulated licence (with proof of qualifications).
  
  Tip: Check in advance which type applies to your business to avoid unnecessary delays.


• Tax registration: Companies must register with the tax office and, if necessary, apply for a VAT number (IČ DPH).
  
  Tip: If you work with clients in Austria or other EU countries, apply for VAT registration early.

4. Tax environment and social security

Compared to Austria or Germany, Slovakia often offers tax advantages. Corporate tax is 10% for taxable income up to €100,000, 21% for income between €100,000 and €5 million, and 24% for income above €5 million. There are also various opportunities for tax optimisation. However, it's essential to understand local tax rules.

Key points:

• Corporate tax and VAT: Corporate tax rates range from 10% to 24%, while the standard VAT rate from 2025 will be 23%, with reduced rates (from 2025: 19%) for certain goods and services.
  
  Tip: Small businesses may qualify for VAT exemptions under certain conditions.


• Social security for business owners: Directors of an s.r.o. may be required to register for social security under certain circumstances.
  
  Tip: If you are already insured in Austria, check whether an A1 certificate can help you avoid double social security contributions.

5. Bank account and accounting obligations

For doing business in Slovakia, a corporate bank account is necessary. It is used for depositing share capital (for an s.r.o.) and for ongoing business transactions.

Additionally, there are legal accounting and reporting requirements, which vary depending on company size.

Key points:

• Opening a bank account: A Slovak business account is not mandatory, but it is often practical and in some cases required.
  
  Tip: Choose a bank operating in both Austria and Slovakia to simplify cross-border transactions.


• Accounting obligations: Depending on your legal form, you may use simple bookkeeping, while others require double-entry accounting.
  
  Tip: Working with a local tax advisor can help you benefit from tax advantages and avoid bookkeeping mistakes.

Conclusion: Good preparation makes for a smooth start

Starting a company in Slovakia can be worthwhile — whether for tax advantages, lower operating costs, or proximity to Austria.

However, proper preparation is essential to avoid common pitfalls.
With the right legal form, careful registration, and forward-looking tax and financial planning, you can set up your company smoothly. Professional advice is particularly valuable for foreign founders unfamiliar with local regulations.

(This article is for general information only and does not replace professional legal or tax advice. For specific questions and personal support, please feel free to contact us.)