Establishing a Slovak Republic subsidiary will bring your company a host of benefits. You can start recruiting talented employees who will grow your company, providing new products and services abroad and establishing profitable business relationships that will give your company an advantage over the competition. However, you won’t see these benefits until you establish a subsidiary or work with a global PEO.
Globalization Partners can help you start working in as little as a day with Slovak Republic subsidiary outsourcing, while establishing your own subsidiary would take months if not a year. Learn more about the benefits of working with us for your Slovak Republic expansion below.
How to Set Up a Slovak Republic Subsidiary
The process of setting up a Slovak Republic subsidiary can change based on certain factors, such as location, structure, and business goals. Location, for example, can change your costs, availability, and the Slovak Republic subsidiary laws you have to follow. If you don’t know what region or city is best for your headquarters, you can benefit from working with a consultant, lawyer, or another expert.
Your company also needs to decide on what type of subsidiary is best for your business goals and needs. Do you want to perform a wide range of activities like a resident company? Incorporating as a limited liability company (LLC) or a joint-stock company are great options. Do you need a smaller scale entity to match your smaller presence? A branch or representative office may be best.
Many companies choose to incorporate as an LLC for the favorable tax laws, incorporation process, and more. The Slovak Republic subsidiary setup process for an LLC includes:
- Drafting all required documents
- Obtaining the tax authority’s consent for Slovak residents to verify their taxpayers’ history
- Opening an in-country bank account
- Paying all share capital
- Obtaining chosen trade licenses
- Registering in the Commercial Register
- Registering as a taxpayer at your respective tax authority
Slovak Republic Subsidiary Laws
Every location and entity will come with different Slovak Republic subsidiary laws that you must follow. For an LLC, you must have at least one shareholder and one director. Neither of them have to be Slovak Republic citizens, and they don’t need to live in the country. Keep in mind that you must deposit minimum share capital of at least 5,000 EUR with a required paid-up contribution of 750 EUR from each member in your bank account in the country.
Although you need to file financial statements with the tax authority each year, you only need to file an audit if you meet two of the following three requirements:
- Annual turnover of over 2 million EUR
- Assets over 1 million EUR
- More than 30 employees
Benefits of Setting Up a Slovak Republic Subsidiary
While the incorporation process may seem daunting, you will get the benefit of working in the Slovak Republic legally when you’re done. Most companies go through the Slovak Republic subsidiary setup process as an LLC to minimize the parent company’s liability. You can also run your subsidiary differently from the parent company with an LLC since each will operate somewhat independently.
These benefits of incorporating are great, but it will take you up to a year to realize them. Fortunately, Globalization Partners can provide all these benefits and more quickly, helping you start working in the Slovak Republic in as little as a day. Through Slovak Republic subsidiary outsourcing, we’ll handle everything from hiring employees and running payroll to providing compensation and benefits and more. We’ll act as the Employer of Record too, so you can stay compliant without lifting a finger.
Other Important Considerations
If you still decide to incorporate on your own, the biggest thing you’ll need is an expert in the Slovak Republic’s subsidiary laws. This individual can help you stay compliant and avoid any fines or delays that impact when you start. You should also set aside time and money for the entire process as well so that you don’t have to worry about any surprises.
Let Globalization Partners Help With Your Expansion
You don’t need to stress about your expansion — Globalization Partners is here to help your company succeed with Slovak Republic subsidiary outsourcing services and more. Contact us today for more information.