Commercial companies in Slovakia are the cornerstone of the economy and business.
There are several types and types of commercial companies in Slovakia, which are regulated in the Commercial Code.
These companies differ according to their legal form, structure and method of management.
The main types of commercial companies include sole proprietorships, a simple company limited by shares, a limited liability company (s.r.o.), a joint stock company (a.s.) and a limited partnership.
The choice of the appropriate type of company depends on the particular needs and expectations of the entrepreneur.
What is a trading company
A trading company is a legal form of organisation that engages in commercial activities with the aim of making a profit.
It may be formed by one or more natural or legal persons working together to achieve common business objectives.
Within a trading company, there may be a division of responsibilities, rights and profits among its members or shareholders, depending on the particular type of company.
Types of companies under Slovak and European law
Commercial companies can be divided into partnerships and limited liability companies.
These two categories differ in several key aspects such as the way they are managed, the responsibilities of the shareholders and the ownership structure.
In the Slovak Republic there are several types and kinds of companies.
Among the most common are:
- A public limited company is a form of company consisting of two or more members who have unlimited and joint liability for the company’s obligations.
This type of company is based on mutual trust between the partners and is often used for smaller companies or family businesses.
- A limited liability company (s.r.o.) is a legal form of a commercial company which is a separate legal entity and which is characterised by the limited liability of its shareholders.
In this form of company, the shareholders are liable for the debts and obligations of the company only up to the amount of their contribution to the company’s share capital.
This means that the personal assets of the partners are protected from the claims of the company’s creditors.
- Joint stock company (JSC) – a type of company that issues shares and allows the owners of the shares to share in the profits and decide on the management of the company.
The liability of shareholders is limited to the amount of their contribution.
- A limited partnership (limited partnership) is a form of business partnership that consists of two or more partners, at least one of whom has unlimited liability for the obligations of the partnership (general partner) and at least one of whom has limited liability (limited partner).
This form of company combines elements of a public company and a limited liability company.
- A European Company (SE) or Societas Europaea is a form of public limited company that is recognised within the European Union (EU) and the European Economic Area (EEA). This type of company allows businesses to operate throughout the EU and EEA with one legal structure, simplifying cross-border activities and reducing administrative and legal costs.
- A European Economic Interest Grouping (EEIG) is a legal form of business set up by the European Union to facilitate and promote cross-border cooperation between businesses within Member States.
An EEIG allows companies, sole traders and other entities (such as municipalities or non-profit organisations) to work together on joint projects or activities with minimal legal and administrative barriers.
Laws relating to companies in Slovakia
These are some of the basic laws that apply to companies in Slovakia:
- Commercial Code (Act No. 513/1991 Coll.) – regulates the legal aspects of the establishment, operation and termination of companies, as well as their rights and obligations.
This Act contains provisions relating to various forms of commercial companies, such as joint stock companies, limited liability companies, limited partnerships and public companies.
- Income Tax Act (Act No. 595/2003 Coll.) – this Act regulates tax obligations and procedures concerning the taxation of income of companies in Slovakia.
- Accounting Act (Act No. 431/2002 Coll.) – the Act sets out the rules and obligations concerning accounting and financial reporting of companies in Slovakia.
It stipulates how companies are to keep accounts, how they are to prepare financial statements and what are the obligations regarding auditing.
- Act on Bankruptcy and Restructuring (Act No. 7/2005 Coll.) – regulates the procedures and rules concerning bankruptcy and restructuring of commercial companies in Slovakia.
- Act on Public Procurement (Act No. 343/2015 Coll.) – applies to commercial companies participating in public procurement as suppliers and sets out the rules and procedures for public procurement of goods, works and services.
- The Act on Collective Bargaining (Act No. 2/1991 Coll.) regulates the rights and obligations of companies and employees in the field of collective bargaining and the conclusion of collective agreements.
Depending on the specific area of business and activities of the company in Slovakia, other specific laws and regulations may also apply.
For example:
- Act on the Protection of Competition (Act No. 136/2001 Coll.) – regulates rules relating to competition, such as prohibitions on cartel agreements, abuse of dominant market position and control of concentration of undertakings.
This Act applies to trading companies operating on the Slovak market.
- Personal Data Protection Act (Act No. 18/2018 Coll.) – sets out the obligations and rules regarding the processing of personal data by commercial companies in Slovakia.
It is also necessary to take into account the rules of the European Union in the field of personal data protection, in particular the General Data Protection Regulation (GDPR).
- Act on Trade Business (Act No. 455/1991 Coll.) – regulates the conditions and procedures for obtaining a trade licence, which is necessary for the performance of certain activities by commercial companies in Slovakia.
- The Labour Relations Act (Act No. 311/2001 Coll.) – also known as the Labour Code – regulates the rights and obligations of companies and employees in the field of labour relations, such as working conditions, wages, working hours, leave, protection of mothers and fathers, protection against discrimination, and more.
- Act on Copyright and Copyright-Related Rights (Act No. 185/2015 Coll.) – regulates the rights and obligations of commercial companies regarding copyright and related rights, as well as the protection of intellectual property.
These are some of the basic and specific laws that apply to companies in Slovakia.
It is important to note that depending on the specific area of business and activities of a commercial company in Slovakia, even more specific laws and regulations may apply.
Therefore, it is important for companies to comply not only with national laws but also with relevant European legislation, such as European Union directives and regulations, which have a direct or indirect impact on the activities of companies in the Member States.
If you need specific legal assistance or advice, it is important to consult with a specialist lawyer or attorney who is familiar with the area of business and relevant laws and regulations.
In this way, the company can ensure that it complies with all the obligations and rules laid down by the laws of the Slovak Republic and the European Union.
