Brief overview of the characteristics of a Slovak LLC (spoločnosť s ručením obmedzeným, abbreviation: spol. s r.o. or s.r.o.).
The most frequent company type in Slovakia is a limited liability company. It is largely popular especially because it is easy to form and requires only a small contribution. Our article will give you a brief overview of the characteristics of a Slovak LLC (spoločnosť s ručením obmedzeným, abbreviation: spol. s r.o. or s.r.o.).
An LLC is a capital company with a registered capital of at least € 5,000. The minimum contribution of every shareholder is € 750. The company can be formed by one or more persons. Generally, their nationality is not important. Of course, an LLC can also be formed by legal entities.
However, it should be noted that a one-man company cannot be a single shareholder in another LLC. A natural person, as single shareholder, can have a share in three LLCs at most. These limitations are rooted in Slovak history and serve as protection from fraud.
Once a company is formed and founded, it is liable for its obligations with the total of its assets. The shareholders are only liable up to the amount of their unpaid contributions.
Slovak corporate law and German corporate law are quite similar. Nevertheless, we recommend looking into the issue of liability, especially the liability of managing directors, before founding a Slovak LLC. As German lawyers in Slovakia we are ready to provide legal consulting and point out possible differences. We can also draft a tailor-made memorandum of association or deed of foundation for your business. Of course, all documents will be prepared bilingually.