Recently, more and more entrepreneurs in Slovakia have been choosing an s.r.o., a limited liability company, instead of a živnosť.
The reason is clear.
In 2026, for many business models, a company has become more attractive in terms of taxes, social contributions, liability, and further business scaling.
For example, legal entities with taxable income of up to €100,000 are subject to a 10% corporate income tax rate. For an entrepreneur who is an individual, income from business activities of up to €100,000 is subject to a 15% tax rate.
In addition, the rules on social insurance for SZČO changed in 2026, and the minimum social contributions for some entrepreneurs are already €303.11 per month.
Official information from Finančná správa:
Taxation of legal entities, Finančná správa SR
https://www.financnasprava.sk/sk/podnikatelia/dane/dan-z-prijmov/pravnicke-osoby/informovanie-dan-prijem-po?utm_source=chatgpt.com
Taxation of živnostníci, Finančná správa SR
https://www.financnasprava.sk/sk/podnikatelia/dane/dan-z-prijmov/fyzicke-osoby/zivnostnici?utm_source=chatgpt.com
Social contributions for SZČO in 2026, Sociálna poisťovňa
https://www.socpoist.sk/socialne-poistenie/platenie-poistneho/poistne-szco-od-1-jula-2026-mikroodvod?utm_source=chatgpt.com
That is why we are seeing more and more people register an s.r.o. instead of a živnosť.
It is also worth remembering that the cost of registering a company has increased recently. Therefore, before starting a business, it makes sense to calculate not only the initial costs but the entire life cycle of the company.
But there is one thing that people think about much less often when starting a business.
When entering any door, it is a good idea to understand in advance how you can get out.
What should you do if, after two, three, or five years, you no longer need the company?
Can you simply close it?
Do you need to carry out a liquidation?
Can you transfer the company to another person?
And where do the claims come from that closing a company costs either €300–400 or more than €1,500?
Let’s take a closer look.
OPTION 1. TRANSFER OR SELL THE COMPANY TO ANOTHER PERSON
In everyday language, people often say: “transfer the company.”
Legally, this usually means transferring or selling the obchodný podiel, the ownership interest in an s.r.o.
The owner of the company changes, and, if necessary, the director, registered office, and other details may also be changed.
But there is one key thing to understand:
the company itself is not closed.
It continues to exist with the same IČO, its accounting and tax history, contracts, rights, and obligations.
Therefore, this is a perfectly normal option if the company is “clean” and there is someone who wants to continue using it.
But this is not liquidation.
OPTION 2. VOLUNTARY LIQUIDATION OF THE COMPANY
This is the classic and legally most straightforward way to permanently close an s.r.o.
The owners decide to:
- terminate the company’s activities;
- place the company into liquidation;
- appoint a liquidator.
After the relevant entry is made in the register, the following is added to the company’s name:
„v likvidácii“
After that, the liquidator:
- reviews the company’s assets and liabilities;
- deals with creditors and debtors;
- settles outstanding debts;
- terminates contracts;
- carries out the necessary accounting operations;
- prepares the final financial statements;
- prepares the documents required for the company’s final removal from the Obchodný register.
And this is where the amount many people have heard about comes in:
€1,500
In a standard voluntary liquidation, it is necessary to pay a preddavok na likvidáciu, a liquidation advance of €1,500.
This amount is established directly by a legal regulation issued by the Ministry of Justice.
Important:
€1,500 is not a government fee for closing the company and it is not a legal firm’s fee.
It is a special advance intended to cover the liquidator’s remuneration and expenses.
Official source, Vyhláška Ministerstva spravodlivosti SR č. 193/2020 Z. z., § 3:
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/2020/193/?utm_source=chatgpt.com
That is why, when someone says that “liquidation costs more than €1,500,” there may be nothing unusual about it.
In addition to the advance, there may also be:
- accounting expenses;
- notarial expenses;
- liquidator’s fees;
- legal assistance;
- registration-related actions.
At the same time, the application for the final removal of the company from the Obchodný register is not subject to a court fee.
And this is where the phrase sometimes comes from:
“You can close a company for free.”
In reality, the final výmaz from the register may be free of charge. But before that, the entire relevant procedure must be completed.
Official explanation from the Ministry of Justice:
https://www.justice.gov.sk/faq/k-problematike-vracania-sudneho-poplatku-v-pripade-odmietnutia-vykonania-zapisu/?utm_source=chatgpt.com
HOW LONG DOES LIQUIDATION TAKE?
This is another important point.
Standard liquidation is not a two-week procedure.
The Obchodný zákonník provides that the liquidator may prepare the final documents no earlier than six months after the notification that the company has entered liquidation.
If there is a tax liability or a tax audit is being carried out, this period may be extended further.
Therefore, for a normal voluntary liquidation, you should expect at least several months.
Official text of the Obchodný zákonník:
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/1991/513?utm_source=chatgpt.com
OPTION 3. TERMINATION OF THE COMPANY WITHOUT LIQUIDATION
This is where things get more interesting.
Sometimes you may hear lawyers say:
“If the company has not actually operated for several years, we can close it for around €300–400.”
And this is not necessarily some kind of “grey-area” scheme.
Slovak legislation does provide for situations in which a company may be terminated by a court and subsequently removed from the register without standard liquidation.
The Obchodný zákonník, in § 68b, sets out the grounds on which a court may decide to terminate a company.
For example, one of the grounds provided by law is a situation where a company has been in breach of its obligation to provide the relevant accounting documentation for more than six months.
Official source:
§ 68b Obchodného zákonníka, Slov-Lex
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/1991/513?utm_source=chatgpt.com
The Civilný mimosporový poriadok also provides a mechanism under which, following court proceedings, a company may, under certain conditions, be removed from the Obchodný register bez likvidácie, without liquidation.
Civilný mimosporový poriadok č. 161/2015 Z. z., Slov-Lex
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/2015/161/?utm_source=chatgpt.com
With this option, there is no classic voluntary liquidation and, accordingly, no standard mechanism requiring the €1,500 advance for the liquidator.
Therefore, an amount of €300–400 may simply represent the cost of legal assistance with such a procedure.
But there is a very important clarification:
THE FACT THAT A COMPANY HAS NOT BEEN ACTIVE FOR THREE YEARS DOES NOT, BY ITSELF, MEAN THAT IT CAN AUTOMATICALLY BE CLOSED FOR €300.
You need to look at:
- whether there are legal grounds for terminating the company;
- whether the company has any assets;
- whether it has debts;
- whether it has creditors;
- what its accounting and tax situation is.
In other words, this is not a “cheaper liquidation.”
It is a different legal procedure.
WHAT IF ASSETS ARE DISCOVERED AFTER THE COMPANY HAS BEEN REMOVED FROM THE REGISTER?
The law provides for this situation as well.
If a company has already been removed from the register without a legal successor, but it is later discovered that the company still has assets, dodatočná likvidácia, additional liquidation, may be initiated.
In other words, you cannot simply “forget” about the company’s assets and have it removed from the register in this way.
OPTION 4. WHAT IF THE COMPANY HAS SERIOUS DEBTS?
If the company has not simply stopped operating but is insolvent and has debts that it cannot repay, the situation needs to be analysed separately.
In such cases, the issue may involve konkurz, bankruptcy proceedings, rather than ordinary voluntary liquidation.
Therefore, you definitely should not use a “cheap closure” as a way to get rid of a company with debts.
CAN YOU SIMPLY “FREEZE” AN s.r.o.?
You can effectively stop conducting business through it.
But the company does not cease to exist.
It remains in the Obchodný register.
This means that accounting, tax, registration, and other obligations continue to apply.
Therefore, “the company is not operating” and “the company is closed” are two completely different things.
AND THIS IS ESPECIALLY IMPORTANT FOR FOREIGNERS
If the owner or director of an s.r.o. is a citizen of a third country and their residence permit in Slovakia is specifically linked to the business activities of that company, you should not close the company first and only then think about what to do with your residence permit.
Closing the company may mean that the purpose for which the residence permit was issued has ceased to exist.
Therefore, the sequence should be the other way around:
first check the immigration consequences, determine a new legal basis for your stay if necessary, and only then close or transfer the company.
LET’S SUMMARIZE
If you no longer need your s.r.o., there are several options:
Transfer or sell the company to another person.
The company continues to exist, but the owner changes.
Carry out standard voluntary liquidation.
This is the classic procedure involving a liquidator, a €1,500 advance, and a period of at least several months.
If there are legal grounds provided by law, the company may be terminated by a court and removed from the register without liquidation.
This is where offers for legal assistance costing €300–400 sometimes arise.
If the company is insolvent, bankruptcy proceedings may be required.
Therefore, an s.r.o. itself is a good and, in many cases today, highly advantageous tool for doing business in Slovakia.
There is no need to be afraid of opening one.
But you do need to understand the rules of the game both when starting a business and when exiting it.
The right company is one where the owner understands in advance what to do in every possible scenario.
Before registering, selling, or closing an s.r.o., it is worth separately checking the accounting, tax, and, for foreigners, immigration situation.
OFFICIAL SOURCES:
Obchodný zákonník č. 513/1991 Zb.
Slov-Lex, Obchodný zákonník
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/1991/513?utm_source=chatgpt.com
Vyhláška Ministerstva spravodlivosti SR č. 193/2020 Z. z. on liquidation
Slov-Lex, Vyhláška č. 193/2020 Z. z.
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/2020/193/?utm_source=chatgpt.com
Civilný mimosporový poriadok č. 161/2015 Z. z.
Slov-Lex, Civilný mimosporový poriadok
https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/2015/161/?utm_source=chatgpt.com
Ministerstvo spravodlivosti SR, Obchodný register
Official information on court fees in the Obchodný register
https://www.justice.gov.sk/faq/sadzby-sudnych-poplatkov-vo-veciach-obchodneho-registra/?utm_source=chatgpt.com
Finančná správa SR
Corporate income tax
https://www.financnasprava.sk/sk/podnikatelia/dane/dan-z-prijmov/pravnicke-osoby/informovanie-dan-prijem-po?utm_source=chatgpt.com
Sociálna poisťovňa
Social insurance rules for SZČO in 2026
https://www.socpoist.sk/socialne-poistenie/platenie-poistneho/poistne-szco-od-1-jula-2026-mikroodvod?utm_source=chatgpt.com
