Obligations After Establishing an LLC in Slovakia

Establishing an LLC in Slovakia – the beginning of business

Many entrepreneurs think that by establishing a company and registering it in the Commercial Register of the Slovak Republic (ORSR), everything ends.
In reality, it is only the beginning of your legal obligations. After registering the company in the Commercial Register, you must complete several steps – from registration at the tax office, through setting up a bank account, to activating the electronic mailbox.

 

First steps after registration in the Slovak Commercial Register

After the court registers your company in the Commercial Register or during the establishment of the company you will receive:

• IČO (Identification Number of Organization),
• DIČ (Tax Identification Number),
• access to the electronic mailbox (if you activated it).

Now it is time to go through the following steps:

• Obtaining an ID card with a chip,
• Registration of the company at the tax office,
• Activation of the electronic mailbox,
• Opening a business bank account,
• Notification to insurance companies (if you will employ),
• Securing accounting,
• Marking the company’s registered office.

 

1. Obtaining an ID card with electronic chip (eID)

Since 2018, all limited liability companies (LLC) in Slovakia must communicate with authorities electronically – via the portal www.slovensko.sk.
For this electronic communication, an ID card with a chip (eID) is necessary.

 

Why is an ID card with a chip mandatory?

The managing director of the company is the statutory body – i.e. the person who legally represents the company and signs documents on its behalf.
In order for the managing director to perform these acts electronically, he must have a valid ID card with an electronic chip, a personal security code (BOK), and a qualified certificate for electronic signature (KEP). Without an eID card the managing director cannot: sign electronic documents, log into the e‑mailbox on slovensko.sk, communicate with the tax office, court or institutions, nor fulfill the legal obligation of electronic communication.

 

Who must have an eID and when to obtain it

Every managing director of a company (including foreigners with permanent residence in Slovakia) must have an issued ID card with a chip.
If you establish the company as a natural person, it is recommended to obtain an eID immediately after registering the LLC in the Commercial Register, because official communication with the state is active from the day of registration.

 

2. Registration of a Slovak company at the tax office?

Every newly established LLC must be registered at the tax office. The process usually takes place automatically upon registration in the ORSR, but it is recommended to verify the registration – especially if you intend to be a VAT payer.

Steps:
The tax office will assign you a DIČ (Tax Identification Number). This document is delivered to the company’s registered office by post or directly to the electronic mailbox on www.slovensko.sk. If you want to be a VAT payer, you must submit a special application – voluntarily or mandatorily. After approval of the application, you will receive a VAT registration certificate.

 

VAT registration in Slovakia – when is it mandatory and when voluntary?

Mandatory VAT registration after exceeding turnover.

According to § 4 of the VAT Act there are two types of VAT registration. (i) The first is mandatory VAT registration after exceeding turnover, and (ii) the second is voluntary VAT registration without exceeding turnover.

Obligation to submit an application for VAT registration due to exceeding turnover arises in these two cases

• Exceeding turnover of €50,000 – according to § 4 para. 2 letter a) of the VAT Act, if as a domestic taxable person under § 4 para. 1 letter a) of the VAT Act you exceeded turnover from supply of goods or services in the value of €50,000 in a calendar year. You become a taxpayer only on the first day of the following calendar year, after the year in which you exceeded the turnover. The tax office registers you, assigns an identification number and issues a decision on registration for tax no later than ten days from the date of delivery of the application for registration for tax, while the identification number for tax becomes valid on the first day of the calendar year following the calendar year in which the turnover of €50,000 was exceeded. Or:
• Exceeding turnover of €62,500 – if as a domestic taxable person you were not yet obliged to submit an application for registration for tax due to exceeding turnover of €50,000, and subsequently by one supply of goods or services you exceed turnover of €50,000 and simultaneously €62,500. Then you are obliged to submit an application for registration for tax to the tax office within five working days from the day on which the turnover of €62,500 was exceeded. The tax office registers you, assigns you an identification number and issues a decision on registration for tax no later than ten days from the date of delivery of the application for registration for tax, while the identification number for tax becomes valid by the supply of goods or services by which the turnover of €62,500 was exceeded.

Voluntary registration is worthwhile if you plan to purchase services or goods from VAT payers, or trade abroad.

Advantage: you can deduct VAT from purchases.
Disadvantage: you must submit monthly tax returns.

Registration is carried out electronically via the portal www.financnasprava.sk.

 

3. Opening a business bank account in a Slovak bank – is it mandatory by law?

Opening a bank account is for most new entrepreneurs one of the first steps after establishing a limited liability company (LLC). Many ask: “Is a bank account mandatory by law?” The answer is: it depends on the situation.

 

Obligation to have a bank account under law

No law explicitly imposes the obligation to have a bank account for an LLC. However, in practice the account becomes necessary, because it is required by other legal regulations, financial authorities and banks in various situations. The Accounting Act (No. 431/2002 Coll.) states that a legal entity must keep double‑entry bookkeeping, in which all financial operations are evidenced by documents – including bank statements. The Act on Limitation of Cash Payments stipulates that payments between entrepreneurs over €15,000 (one‑time) must be made cashless. This means that without a bank account you could not legally carry out larger payments.

 

Obligation to have a bank account when establishing an LLC in Slovakia

When establishing a company the following applies:

Before registering the LLC in the Commercial Register it is no longer mandatory to deposit the registered capital into a special bank account, because the amendment to the Commercial Code from 2016 abolished this obligation. The registered capital (e.g. €5,000) can therefore also be deposited in cash to the hands of the deposit administrator, who issues a written statement about it. However, after registering the company in the Commercial Register it is advisable to open an account as soon as possible, because:

• the company needs an account for payment of taxes, levies, invoices and wages,
• a bank account is often a condition for registration at the tax office for VAT,
• in accounting it is practically impossible to keep all transactions only in cash.

Therefore, it can be said that although the law does not explicitly require an account, its practical necessity is absolute.

 

When does the account become de facto mandatory

a) VAT registration

If you want to register as a VAT payer, the tax office requires the bank account number held in the company’s name. This account is subsequently published in the list of VAT payers on the website of the Financial Administration SR.

b) Employing workers

If you pay wages cashless, you must have an account from which wages and levies are paid. Health and social insurance companies communicate and prescribe levies only cashless.

c) Accounting and tax records

Bank statements are a basic accounting document. Without them you could not prove the origin or use of money – which is a problem during a tax audit.

d) Business partners and credibility

A company without a corporate account appears unreliable. Most partners or suppliers expect to pay to a corporate account, not a personal one.

 

4. Setting up an electronic mailbox and communication with the Slovak state

Every legal entity has an electronic mailbox set up on the portal www.slovensko.sk, which serves for official communication with the state.

Important:
From the moment of activation the e‑mailbox is mandatory to use. Letters from the tax office, courts, social insurance and other institutions arrive in the mailbox. To log in you need an ID card with a chip (eID) and a card reader.

 

5. Registration of employer in the Social and Health Insurance in Slovakia

If you will employ employees, you must register as an employer:

• in the Social Insurance Agency,
• and in the health insurance companies of your employees.

Deadlines:
Registration within 8 days of concluding the employment contract. Register each employee and deregister after termination of employment.

 

6. Notification of company’s registered office and marking of premises

According to the Commercial Code the company is obliged to have its registered office marked.

What must be stated on the marking of the registered office:

• company name,
• legal form (e.g. “s. r. o.”),

If the company uses a virtual office, the marking is provided by the office operator. If you operate a physical premises (e.g. shop or office), it must also be marked with the company name and opening hours.

 

7. Securing accounting after establishing an LLC in Slovakia

After registering the company in the Commercial Register, the obligation to keep accounting arises from the first day of its existence. Regardless of whether you have a “dormant” company, i.e. without income, or actively do business – you must keep accounting and store accounting documents.

Obligation to keep accounting under law

According to § 35 to § 37 Title IV of Act No. 513/1991 Coll. Commercial Code as amended (hereinafter “Commercial Code”) and also Act No. 431/2002 Coll. on Accounting as amended (hereinafter “Accounting Act”), every legal entity – i.e. also a limited liability company – is obliged to keep double‑entry bookkeeping.

This means you must:

• record all accounting operations (income, expenses, invoices, wages, taxes),
• store accounting documents and invoices for at least 10 years,
• prepare financial statements and submit them to the Financial Administration SR and the Register Court once a year.

Even if the company does not do business (so‑called “dormant LLC”), it must file a zero tax return and keep at least basic accounting records.

 

Options for keeping accounting – internal vs. external

After establishing the company you have two options for securing accounting:

 

a) Internal accounting (by yourself)

You keep accounting yourself – for example using accounting software (Oberon, Pohoda, Money S3, iKROS, etc.). Suitable for smaller companies with basic economic knowledge. You must know accounting principles, be able to prepare financial statements and communicate with the tax office. Advantage: you save on fees. Disadvantage: high risk of errors, which can lead to fines.

 

b) External accounting (professional accounting firm)

The most common and safest solution. Accounting is kept by a professional who is responsible for the correctness of accounting records and tax returns. Prices range approximately from €50 to €200 per month, depending on the number of documents and scope of services. Advantage: no worries about legislation, connection with the tax office and insurance companies. Disadvantage: monthly fee, which however pays off especially in the beginning.

 

FAQ – Most common questions after establishing an LLC in Slovakia

1. When can I start doing business after registration in the Commercial Register?
   Immediately after registration and assignment of IČO you can perform business activity.
2. Do I have to have a corporate bank account?
   Yes, an LLC must have its own account separate from a personal one.
3. How do I find out if I am registered at the tax office?
   Registered companies are listed in the system of the Financial Administration. Verification is possible at financnasprava.sk.
4. When must I register the company as a VAT payer?
   After exceeding turnover of €62,500 in 12 consecutive months.
5. Do I have to set up an electronic mailbox?
   Yes, all legal entities must have it mandatorily activated.