OpusGuide: Slovakia – Limited Partnership

Slovakia for years has been one of leading economies in East-Central Europe. This has been achieved thanks to simplified procedure of company registration and lower tax levels than in neighboring countries. Beneficial agreements about avoiding double taxation are still binding, so this country still attracts foreign capital.

 

 

LEGAL FORM	Limited partnership of Slovak law, Komanditna Spoločnost.
POLISH EQUIVALENT	Limited partnership of Polish law.
BUSINESS ACTIVITY	Any that is legally accepted, except from licensed activity, contrary to PKD (Polska Klasyfikacja Działalności – Polish Classification of Activities), for every kind of activity declared in company’s agreement, it is necessary to pay a single fee.

AUTHORITIES AND OTHER IMPORTANT POSITIONS/ FUNCTIONS	owners	General Partners (generálny partner) – are entitled to represent the company; they are responsible for company’s liabilities with all their capital; they participate in company with all rights and obligations; they do not have to contribute financially. Limited Partners (komanditista) – are responsible for company’s liabilities to the amount of their financial contribution; they participate in Company by placing shares in exchange for their contribution; the share is transferable; minimal contribution is 250,00 EUR.
	management	General Partners.
	supervision	Shareholders’ meeting decides to accept financial report signed by General Partners.
	other	Shareholders’ meeting makes the most important operational decisions, such as consent to purchase and sell immovable properties, decisions concerning company’s activities, its termination, personal changes, etc.
APPLICATON OF FIDUCIARY		Not regulated by Slovak law, fiduciary secrecy not recognized by courts, but acceptable on the basis of agreement freedom.
MINIMAL SHARE CAPITAL		Limited liability amount – at least 250 Euro.
ACCOUNTING/AUDIT		Is carried out according to international accounting standards; Company is obligated to report annually to Commercial Register of Slovakia and to corresponding tax authorities.
REGISTERED OFFICE		Company’s registered office has to be on the territory of Slovakia.

TIME LIMITS	foundation	Kind of register: constitutive. Company has to be registered in Commercial Register of Slovakia. Average waiting time: 3 weeks (which is made of about 2 weeks to obtain so called trading licence and 1 week to make the entry in the Register).
	liquidation	Duration: 6-9 months.
	strike-off	Not present in Slovak law.
BANK ACCOUNT		Any bank, also outside Slovakia.
CURRENCY		Euro.
OFFICIAL LANGUAGE		Slovak.
FINANCIAL YEAR		The same as calendar year. One can choose another reference period. The first income tax year may be shortened at the end of given calendar month.

TAX RESIDENCY	Legal person having its registered office or a place of actual management on the territory of Slovakia is treated as Slovak tax resident and is subject to unlimited tax liability. Income from foreign sources is treated as income from Slovak market. Companies which are not residents are only taxable from income obtained in Slovakia.
INCOME TAX (CIT)	Corporate Income Tax rate: 22%.
SPECIAL FISCAL SYSTEM	Since 2004 tax-free are among others: income in the form of dividends, no matter who and how obtains them.
WITHHOLDING TAX (WHT)	Royalty payments and interest paid to non-residents are subject to 19% WHT tax, unless the agreement on avoiding double taxation provides different conditions.
RULES ON COMBATTING VAT EVASION	Transfer prices: YES Thin capitalization: NO CFC: NO

 

* Data current as of April 28, 2014