PROS & CONS OF LIMITED LIABILITY COMPANY AND MAKING BUSINESS AS A SOLE TRADER IN SLOVAKIA

Here we try to clarify the pros & cons of limited liability company and making business as a sole trader in Slovakia.

PROS OF A  LIMITED LIABILITY COMPANY- BUSINESS  IN SLOVAKIA

–  shareholder in a limited liability company assumes the liabilities up to  unpaid value of  the share;

– the business is set up by act of memorandum signed by all shareholders and all the rights are moderated as agreed in written and the profit shall be divided  based upon the paid up shares;

– in case you want to terminate your buisness – your  limited liability company can be sold or cancelled via  liquidation process, and all the contracts can be transferred to another legal entity;

CONS OF A LIMITED LIABILITY COMPANY- BUSINESS IN SLOVAKIA

– more paper work when setting up a company than  openning license for soletrader;

– higher administrative fees ( registration costs) as for sole trader;

– obligation to pay up the basic capital to the bank account;

– 22% of taxes of the income of the legal entity of the income for the previous year,

– tax license following the first year of business, shall be paid annualy for the tax year in the value aprox490 EUR, and 960 EUR in case of a legal entity who is a VAT payer;

– decisions shall be approved by the shareholders;

PROS OF A SOLE TRADER- BUSINESS IN SLOVAKIA

– simple to open a trade license;

– no minimum financial amount shall be paid;

– 19% of taxes shall be paid of the income from the previous year when your income is less than 35.022,31 EUR, no tax license;

– can act indpendently, no shareholders can act against the ideas;

CONS OF A SOLE TRADER – BUSINESS IN SLOVAKIA

– in case of a good income and after one year of making business the sole trader is obliged

to pay high contributions to health insurance company and social insurance company;

– contract set as sole trader is not possible to transfer after terminating the license, the license is not possible to transfer,

– for the contractual obligations and business- a sole trader provides guarantee with all his property,

– 25% income tax when your turn over exceeds 35.022,31 EUR

Contact us for further questions that regards BUSINESS IN SLOVAKIA.