Company Formation and Registration

Forming a new limited liability company (s.r.o.) requires careful adherence to statutory steps and regulations. The first step is to prepare the necessary documents and complete the forms that will later be submitted to the Commercial Register (ORSR). Among the most important documents is the founding deed, which contains basic information about the company—such as the company name, scope of business, registered office, and details about the sole owner(s) or managing directors.

When establishing an s.r.o., it is also necessary to state the amount of registered capital, which must be at least €5,000. This step requires a bank statement confirming that the capital has been deposited into a business account. The forms must be properly completed and signed by all founders. After completing the documents and meaningfully verifying the data, the application is filed with the ORSR.

For the official submission, additional documents will be required, such as consent to place the company’s registered office and a declaration of meeting the conditions for conducting business activities. In addition, an administrative fee for the Commercial Register entry must be paid, typically ranging from €300 to €1,000 depending on various factors. After successful submission and processing, a certificate of registration is issued, which is necessary for further business activities.

Financial and Tax Obligations

Establishing a new s.r.o. creates multiple responsibilities regarding financial and tax obligations. One of the first tasks is registration for VAT (DPH) and obtaining a Tax Identification Number (DIČ). VAT registration is mandatory in several cases, for example when the company’s turnover over the last 12 months exceeds a set threshold, which is regularly updated. This registration enables entrepreneurs to charge VAT and claim input VAT deductions on purchases. If turnover is lower, it may be more advantageous to remain a non-VAT payer to simplify administration and reduce costs.

To avoid fines and penalties, it is important to observe deadlines for filing tax returns and fulfilling other administrative requirements. Keeping up with current regulations and legislation is essential, as tax laws can change. Another key step when setting up an s.r.o. is opening a business bank account. This account is crucial for separating personal and company finances and makes it easier to track business income and expenses. A dedicated bank account also increases credibility in the eyes of customers and suppliers.

Keep in mind that proper management of these obligations is the foundation of a successfully operating s.r.o. Make sure you have a clear overview of your tax and financial commitments and, in case of doubt, consult professionals who can provide valuable advice and help ensure compliance.

Employer Obligations and Employment Relations

A newly established s.r.o. assumes the role of employer from the start and must comply with numerous obligations within employment relations. The first step is to register the employer with the Social Insurance Agency and the health insurance company, a key step to ensure employees are properly covered and insured. Registration should be carried out without delay to avoid sanctions and fines. This requires not only administrative skill but also an understanding of statutory obligations.

Another important duty is to draft employment contracts. These contracts must be clearly formulated and include all relevant information such as salary conditions, working hours, and employee responsibilities. Poorly prepared contracts can lead to ambiguities and issues, so it’s important to devote proper attention to this aspect.

In addition, the employer is responsible for complying with occupational health and safety (OHS) and fire protection regulations. These standards are required to protect employees and prevent workplace injuries. The employer must organize training and ensure the necessary measures to protect employees from risks.

The most common mistakes in hiring are insufficient documentation and failure to meet legal requirements. To avoid these errors, it is important to have a system in place to monitor compliance with all employment obligations. Tracking legislative changes and regularly updating employment conditions are essential for maintaining the legal safety of a newly established s.r.o.

Accounting and Legislative Requirements

For a newly established s.r.o., it is important to keep in mind that bookkeeping and compliance with legislative requirements are key aspects that must be carefully managed from day one. Laws and regulations are designed to ensure transparency and accountability. Every s.r.o. is obliged to keep accounts in accordance with Slovak law and file regular tax returns.

The first step is to set up accounting, which can be managed by an internal employee or outsourced to an accounting firm. A newly established s.r.o. must regularly file VAT returns if it exceeds the set turnover threshold—no later than the 25th day of the month following the end of the tax period. Deadlines for corporate income tax returns are also important and must be met by March 31 of each following year. Do not forget that advance payments of income tax must also be made each month, which again highlights the need for precise planning.

If the entrepreneur fails to prepare financial statements by June 30 of the following year and does not meet tax return deadlines, they may face sanctions or fines from the tax authorities. It is also important to retain accounting records for at least 10 years. For more information, it is recommended to follow the official websites of the Ministry of Finance of the Slovak Republic or the Financial Administration of the Slovak Republic, where the necessary and up-to-date information is available. These sources can provide practical guidance and help avoid the most common accounting mistakes.