Foreigners from Ukraine doing business in Slovakia – who can and who cannot?
We will describe basic rights and obligations that define the possibilities of doing business in Slovakia for citizens of Ukraine. For the purposes of this Article, doing business means: 1. the establishment of a trade by a citizen of Ukraine in the Slovak Republic; 2. the appointment of a citizen of Ukraine to the position of managing director of a commercial company in the Slovak Republic.
Ukraine citizen in position of shareholder in Slovak company
If a person from Ukraine only wants to establish a business company in Slovakia and to be only a shareholder (not a managing director), he/she does not need any special permits or authorizations to do so. However, it is necessary to distinguish between a shareholder and a managing director. A managing director of a company needs a special permit (which we will discuss below) in order to be entered in the commercial register as a managing director.
When a citizen of Ukraine can / cannot start a business in Slovakia?
In the following cases, an Ukraine citizen cannot do business in Slovakia:
- If Ukraine citizen does not have temporary or permanent residence in Slovakia (temporary refuge status is not sufficient).
- If Ukraine citizen has not obtained a trade license because he/she does not reside in Slovakia or does not meet: (1.) the general conditions for the granting of a trade licence, which are as follows: a) age of 18 years b)good character and full legal capacity. and / or (2.) specific conditions for obtaining a trade license under specific laws (e.g. years of experience in the relevant field).
- A foreigner who has been granted temporary shelter shall be issued with a document of tolerated stay in the territory of the Slovak Republic. During the validity of the tolerated stay, the foreigner may not engage in business.
In the following cases, an Ukraine citizen can do business in Slovakia:
Ukraine citizen can do business in Slovakia If he or she has:
- Temporary residence in Slovakia for the purpose of business; or
- Permanent residence in the Slovakia.
If a foreigner from Ukraine does not have permanent residence in the Slovak republic, in addition to a trade license or other authorization under special regulations, which allows him to carry out business activity, he needs to obtain a temporary residence in the Slovak republic, which allows him to carry out business activity, in order to start a business.
If a foreigner from Ukraine has permanent residence in the Slovak Republic, he or she is considered a Slovak natural person and therefore can set up a trade license or can be appointed as an executive director of Slovak company (LLC etc.).
A foreigner may conduct business (to set up a trade or to be appointed as an executive director in Slovak company) even if he or she has temporary residence:
- for the purpose of study,
- for the purpose of family reunification (this does not apply if the holder of a temporary residence permit for the purpose of family reunification is a dependent unmarried child of the sponsor or his/her spouse, over 18 years of age, who is unable to look after him/herself because of a long-term adverse health condition, or a parent of the sponsor or his/her spouse who is dependent on the sponsor’s care and does not receive adequate family support in the country from which he/she comes),
- for the purpose of research and development,
- on the basis of the recognised status of a Slovene living abroad,
- on the basis of the status of long-term resident in another EU Member State.
What are the general conditions for operating a trade?
- attainment of the age of 18 years,
- legal capacity,
- criminal integrity.
The special conditions for the operation of a bound or craft trade are professional or other competence, demonstrated, for example, by proof of the completion of education and length of experience in the given field.
A foreigner may obtain a trade licence by declaring the trade at the trade office locally competent according to the address of the place of activity of the enterprise or organisational unit of the enterprise of the foreign person. If the foreigner has a permanent residence in Slovakia, the trade licensing office is locally competent according to the place of his/her permanent residence.
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Autor článku: Mgr. Dominik Ondrišeje
Dominik is co-founder of the SetupMART project. Dominik is responsible for corporate services and implementation of modern technologies in our services at SetupMART. Dominik is dedicated to the sale of ready-made companies since 2011. Dominik studied law at the Pan-European School of Law.