What is a Slovak ready-made LLC VAT payer?

A good ready-made company is like a good espresso; it must be of high quality, delivered quickly, and give you a proper boost! Read our article in which we will explain the concept of a Slovak ready-made company registered for VAT, its characteristics, advantages, and when it makes sense to buy a Slovak ready-made company.

What is a Slovak ready-made company with VAT?

A Slovak ready-made company with VAT is a limited liability company (s.r.o. – LLC) that is registered as a value-added tax (VAT) payer. It is a company that was established solely for the purpose of selling it to entrepreneurs who need to carry out their business plans in a short time as VAT payers.

What are the characteristics of a slovak ready-made company registered for VAT?

First and foremost, it should be noted that the term ‘ready-made company’ is not a legally defined concept. It is a commonly used designation for a business entity that is intended for sale. Therefore, the following characteristics may not be entirely precise, but they are based on common practice. Every slovak ready-made LLC – s.r.o. VAT payer should have the following characteristics:

• It is properly registered in the Commercial Register,
• has been assigned a Business Identification Number (IČO),
• has been assigned a Tax Identification Number (DIČ) and a VAT Identification Number (IČ DPH),
• has paid up its registered capital, which is at least EUR 5,000,
• has never conducted any business activity,
• is ready for a quick transfer to the client,
• does not have any liabilities or receivables.

What are the advantages of a Slovak ready-made company registered for VAT?

A Slovak ready-made LLV – s.r.o. VAT payer offers several advantages. Each of these advantages is subjective and depends on the specific needs of the entrepreneur. Below, we will mention the most common benefits:

• Time savings: With a Slovak ready-made company, you can start your business almost immediately after signing the transfer documents. This saves the entrepreneur more than 90 days of time and a significant amount of unnecessary bureaucracy.
• VAT savings: The most common reason is the registration for VAT and the ability to deduct VAT on initial business investments. The entrepreneur can deduct 20% VAT from invoices issued by suppliers who are VAT payers.
• Zero tax security risk: By purchasing an LLC – s.r.o. already registered for VAT, the entrepreneur avoids the risk of the so-called tax security, which can be imposed by the tax office during the registration of the company for VAT. Tax security is an amount that the tax office may or may not impose when registering a company for VAT. The security is held for 12 months without interest in the tax office’s account. After 12 months, the tax office returns it to the entrepreneur.

When is it worthwhile to buy a slovak ready-made LLC registered for VAT?

Slovak companies registered for VAT are not among the cheapest, so it is reasonable to consider its purchase carefully. Any quality advisor will not push you into buying a company, but obtaining a ready-made company should be seen as an investment that must make economic sense. The rule of uniqueness in each situation applies here as well, but from experience, we know that it is most often worthwhile to buy a slovak ready-made company in the following cases:”

• You are part of the supply chain between suppliers and recipients of goods and services who are VAT payers. If you want to be competitive in price competition, you need to be a VAT payer. In such a case, it is advantageous for you to be a VAT payer because you can claim input VAT deduction on the goods and services you purchase, and at the same time, you apply output tax to your deliveries, which your recipients can then deduct.
• You are facing a significant investment in your business, and you can deduct input VAT from your suppliers who are VAT payers. Ideally, the amount of VAT that the state will refund to you is higher than the price of the ready-made company.
• You need to act as a VAT payer within a few days because the situation or your business partners require it. You can act on behalf of the company within a few hours, already from the moment of signing the documents

Conclusion

Slovak ready-made companies registered for VAT have become a standard tool for entrepreneurs today, helping them in their business endeavors. Slovak ready-made companies registered for VAT relieve entrepreneurs of bureaucracy, saving them time and, most importantly, money. However, the purchase of a ready-made company should primarily be an investment that brings you some benefit, whether it’s efficiency, saved VAT, or a better position in the market. Equally important in buying a company is the consulting firm, which, in addition to providing you with a quality ready-made company, will also offer quality and professional service.

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.