Residence permit on the basis of a sole proprietorship or a company

Slovakia is currently the most loyal country for business emigration among all EU countries. In Slovakia there is a huge number of famous car factories, developing agriculture, offices of world IT leaders. Since the country's population is quite modest - only 5.5 million people, and economic growth is at a high level, the country is still loyal to business emigrants in order to saturate the economy with professionals and attract investment. Every person has the right to register as an entrepreneur or open his/her own company in Slovakia and on the basis of this obtain a residence permit.

Main advantages of business emigration to Slovakia

The most inexpensive way to obtain a residence permit in an EU country within 3 months.

● Ability to do business or work officially in Slovakia as well as throughout the EU.

Low taxes (19% of net profit for a sole proprietorship, 21% of net profit for a firm).

● Ease and security of doing business. In Slovakia, the laws really work, there is no complicated bureaucracy.

● Loyal attitude in all public services.

● Ability to obtain a mortgage at 1.29% per annum for 30 years.

The possibility of family reunification at the same time as the entrepreneur or company director obtains a residence permit.

● Safety for the family. Slovakia is a very calm, non-conflict country.

● Minimum requirements for the renewal of a residence permit.

● After 5 years, the entrepreneur and his family receive permanent residence status for life, and after 10 years, it is possible to become Slovak citizens.

Slovakia Garant s.r.o. specializes in providing support services for obtaining a residence permit in Slovakia on the basis of entrepreneurial activity or opening/purchasing a company. We also provide accounting services for sole proprietorships and companies, including those required for the extension of residence permits.

What to choose: a sole proprietorship or a company?

All people who have decided to emigrate on the basis of business to Slovakia ask themselves the question “Which legal form to choose for doing business in Slovakia? Which is better: an entrepreneur or a company?” In the following table we will show the main pros and cons of sole proprietorship and firm in Slovakia.

Characteristics	Entrepreneur (živnostník, podnikateľ)	Company (spoločnosť)
Conditions for obtaining a residence permit	Availability on one personal account from 5000 euros, on the second personal account from 3000 euros.	Availability on company account from 24000 euros, on personal account from 3000 euros.
Conditions for extension of residence permit	Residing in the country more than 50% of the time in the year, filing tax returns, paying taxes, profit for the year over 5000€ (approx. 7000€ turnover)	Taxes paid in the amount of at least 3500 euros for the reporting year; availability of 2600 euros in the personal account.
Taxes and contributions	15% corporate income tax. Persons; if the turnover for the previous year exceeds 7000 euros, social and pension contributions of 182 euros/month must be paid; mandatory health insurance contribution of 80 euros/month.	21% income tax; 7% when dividends are withdrawn. No social security and pension contributions if there are no employees.
Tax bonuses	350 euros per year for each child.	No
Compulsory insurance	The self-employed person is entitled to state insurance, under the terms of which he/she is obliged to pay 80 euros per month for insurance. All children of the self-employed person up to the age of 18 are also entitled to state insurance. There is no additional payment. The amount of the payment depends only on the previous year’s turnover and not on the physical health of the entrepreneur or his children.	A director of a company is not entitled to state insurance. A director is obliged to have commercial insurance. The cost of commercial insurance depends on the physical condition of the insured person, the package of covered services, and the number of past medical services. Each member of the director’s family must have a separate commercial insurance policy, which must be paid for separately. We recommend commercial insurance from AXA (you can apply online here).
Easy access to funds	You can withdraw and deposit without limit.	Withdrawals can only be made through dividend withdrawals or through business expenses, which must be supported by documents.
Number of directors	Only the entrepreneur himself.	Up to 50 people per firm.
Number of employees	No restrictions	No restrictions
Responsibility	The sole proprietor is liable with all his property.	The firm has limited liability only with its assets and authorized capital.
Restrictions on doing business in EU countries	There is no restriction if there is a VAT payer’s certificate.	There is no restriction if there is a VAT payer’s certificate.
VAT payer	Voluntary at any time, or compulsory when turnover exceeds €50,000 per year.	Voluntary at any time, or compulsory when turnover exceeds €50,000 per year.
Additional benefits	Less requirements for the extension of residence permit. Compulsory insurance of about 80 euros/month covers both the entrepreneur himself and all his children.	High status and solidity of a European company. With large turnovers, total taxes are lower than in a sole proprietorship.
Who’s good for it?	For small businesses, for example: hairdressing salon, cleaning services, retail ice cream, coffee, etc. And also for employees who work with an employer under a service contract.	For any business with high turnover.

If you have already decided which status for doing business in Slovakia is more acceptable for you, then we will consider the list of documents required to obtain a residence permit on the basis of a PE or a company:

● Application for residence permit in Slovakia filled out in Slovak (download the application form);

● Passport with open D visas (for visa-free countries – only biometric passport);

● Certificate of no criminal record with an apostille, translated into Slovak by a Slovak court interpreter, from your country of citizenship and from all countries where you have lived in the last three years for more than 90 days per half year;

● Bank certificates on the availability of funds: for sole proprietorships – personal account from 5000 euros, for residence – personal account from 3000 euros, for companies – company account from 22400 euros, personal account from 3000 euros;

● Residence in the territory of Slovakia;

● Entrepreneur’s certificate or articles of incorporation of the company;

● Two 3 x 3.5 cm color photographs.

All documents must be no older than 90 days at the time of applying for a residence permit, this is important!

It is quite difficult to collect this package of documents on your own, there is a high probability of making mistakes that will result in the application for a residence permit not being accepted. Besides, collecting documents on your own can be much more expensive (article about it) than the services of a Slovak consulting company, which will do it “turnkey”. Our company Slovakia Garant professionally provides turnkey services for collecting documents and obtaining a residence permit in Slovakia. Our services for obtaining a residence permit are formed in packages. All prices for services are available on this page of the website.

You can apply for a residence permit for family reunification at the same time as the main Guarantor.

Basically, to start the process of applying for a residence permit, you need to send us a scan of your passport and a certificate of no criminal record with an apostille. Then we will do everything ourselves: register a sole proprietorship or a company for you, register you in Slovakia (if necessary, if you do not have your own or rented accommodation yet), prepare all permits and translations of documents. We will keep you informed about all the processes at all times. When you arrive for your application, we will take you “by the hand” and accompany you to all the necessary authorities. You do not have to worry about anything.

Our company will do everything to make the process of obtaining a residence permit for you was fast and left pleasant memories.

If you still have questions, still have not decided whether to choose a sole proprietorship or a company – write to us by any means at the contacts at the top of the site, or fill out a request for a callback. We will listen to you carefully, advise you, and recommend a solution that will best suit your needs and expectations.

Slovakia Garant s.r.o. aims at long-term relationships with clients. We will advise you and do everything to make sure that you start your business in Slovakia as correctly as possible. Satisfied customers are the most important indicator of our work.