<h2>Introduction: Forms of Business in Slovakia for Foreigners</h2>
<p>Before starting a business in Slovakia, it is important to understand <b>what form you will work in.</b> This affects taxes, obligations, accounting, as well as your personal responsibility for the company's obligations.</p>
<p>There are several forms of entrepreneurship in Slovakia, but for most people—especially foreigners—the two most common are:<br/>
<b> 🔹 Sole Proprietor</b> <i>(Slovak: živnostník)</i><br/>
<b> 🔹 Limited Liability Company (LLC)</b> <i>(Slovak: s.r.o.)</i></p>
<p>Each form has its own features: the level of bureaucracy, registration cost, reporting requirements, and tax burden. Choosing the right one from the beginning can <b>save you thousands of euros and avoid problems with the migration service or tax authorities.</b></p>
<p>In this article, we will review the main forms of business in Slovakia, their pros and cons, and help you decide what is best for your situation.</p>

<h2>Sole Proprietor in Slovakia (živnostník): Pros and Features</h2>
<p>A Sole Proprietor (živnostník) is the simplest and most accessible form of business in Slovakia. It is ideal for <b>freelancers, consultants, IT professionals, craftsmen, and small businesses without employees.</b></p>
<p>Registration is quick and inexpensive—<b>you can open a sole proprietorship online in just a couple of days,</b> with minimal investment. There are no requirements for capital, no mandatory accountant, you can use fixed expenses, file a declaration once a year, and handle taxes and contributions yourself.</p>
<p>However, as a sole proprietor, you have <b>personal responsibility for the business's debts and obligations</b>—meaning you are personally liable. On the plus side, if the business is no longer relevant, <b>you can close or suspend your sole proprietorship in just one day.</b></p>
<p>If your income is around 33,000 € per year and you work alone, <b>this is the best starting option.</b></p>

<h2>LLC (s.r.o.) in Slovakia: Structure, Taxes, Responsibility</h2>
<p>An LLC is a full-fledged <b>legal entity,</b> separate from its physical founders. It is the second most popular form of business in Slovakia. This option is relevant if you plan to grow, attract partners, or work with corporate clients.</p>
<p>The number of founders can be one or more, with the ability to distribute shares flexibly, appoint directors, and change the management structure. LLCs are more favorably perceived by large clients, which is an advantage for reputation and contracts.</p>
<p><b>Responsibility is limited to the capital contribution,</b> meaning that in case of debts or disputes, the personal assets of the founders are not at risk (unlike with a sole proprietorship).</p>
<p>Accounting is mandatory: you must maintain double-entry bookkeeping <i>(Slovak: podvojné účtovníctvo)</i>, file reports and declarations, and monitor cash flow.</p>
<p>There are also advantages in terms of insurance: <b>no contributions to social insurance.</b> This reduces the burden compared to a sole proprietorship.</p>
<p style="margin-bottom: 5px;">The tax system is progressive:</p>
 <ul style="margin-top: 7px;">
<li><b>10%</b>&nbsp;— for annual income <samp>up to 100,000 €</samp></li>
<li><b>21%</b>&nbsp;— if the income is <samp>over 100,000 €</samp> but <samp>up to 5 million €</samp></li>
<li><b>24%</b>&nbsp;— if the income exceeds <samp>5 million €</samp></li>
</ul>

<h2>Other Forms of Business in Slovakia: Joint Stock Company, Nonprofit Organizations, etc.</h2>
<p>Besides sole proprietorships and LLCs, Slovakia also has other organizational forms, but these are less common and used for more specific cases.</p>
<p><b>🔹 Joint Stock Company</b> <i>(Slovak: a.s.)</i>&nbsp;— a complex and costly form primarily for <b>large businesses.</b> It requires significant capital (at least <samp>25,000 €</samp>), a complex corporate structure, official publications, and full financial transparency.</p>
<p><b>🔹 Nonprofit Organizations, Civil Associations</b> <i>(Slovak: občianske združenie)</i>&nbsp;— used for <b>social, educational, cultural, and charitable projects.</b> They are not intended for conducting commercial activities but can receive funding and grants.</p>
<p>For 99% of entrepreneurs, especially foreigners, <b>these forms are irrelevant.</b> In practice, the choice boils down to deciding between <b>sole proprietorship and LLC.</b></p>

<h2>What to Choose: Sole Proprietor or LLC in Slovakia—Comparison and Recommendations</h2>
<p>The choice between sole proprietorship and LLC depends on <b>income, business model, number of partners, tax burden, and level of risk.</b></p>
<p>If your annual income is <b><samp>up to 33,000 €</samp></b>, you work alone, and you want minimal reporting—<b>a sole proprietorship is the most advantageous and simple option.</b> Registration is cheap, taxes and contributions are low (especially in the first year), accounting is simplified, and everything can be done online.</p>
<p>If you aim for <b>growth, building a team, attracting investments,</b> work with corporate clients, and need a more "solid" status—it's better to choose an <b>LLC from the start.</b> This is a legal entity where responsibility is limited, and you can structure it flexibly, but reporting is more complicated.</p>
<p>In general, if you are unsure which to choose—<b>starting with a sole proprietorship is better.</b> You can always close it and open an LLC when the business matures.</p>
<div class="blog-services"><p><b>⚠️ Special Attention to Entrepreneurs from Third Countries with Business-Related Residence Permits in Slovakia.</b></p></div>
<p style="margin-bottom: 5px;">A foreigner with a residence permit for business purposes can register both a sole proprietorship and an LLC simultaneously. It is much more convenient to <b>link the residence permit to the sole proprietorship.</b> Why is this wise:</p>
<ul style="margin-top: 7px;">
<li><b>Easier residence permit renewal</b> — you just need to show minimum income from the sole proprietorship, and the migration service doesn’t require high profits or complicated reporting.</li>
<li><b>Use regular state medical insurance</b>, instead of commercial insurance for directors.</li>
<li><b>Less bureaucracy and formal risks.</b></li>
</ul>

<h2>Sole Proprietorship or LLC Registration for Entrepreneurs from Third Countries: Requirements and Documents</h2>
<p>For citizens of third countries (outside the EU, EEA, and OECD), opening a business in Slovakia is possible, but <b>requires a residence permit for business purposes.</b></p>
<div class="blog-services"><p>⚠️ If you don’t yet have a residence permit, you must first obtain <b>a sole proprietorship license or company documents,</b> and based on these, submit a residence permit application. However, you cannot engage in business activities <b>until you obtain the residence permit.</b></p></div>

<h2>How We Help with Business Registration in Slovakia—Solutions from Oki-Doki.sk</h2>
<p>We assist entrepreneurs from the EU and third countries at every stage of starting and running a business in Slovakia:</p>
<div class="blog-services">
<h3>✅&nbsp;Sole Proprietorship Registration&nbsp;— <samp>from 105 €</samp></h3>
<p>We prepare the application, translate the criminal record certificate, submit it to authorities, and provide a business address.<br/>
<a href="/en/sluzby/zalozenie-zivnosti" target="_blank">👉&nbsp;Learn more about Sole Proprietorship Registration</a></p>
</div>
<div class="blog-services">
<h3>✅&nbsp;LLC Registration&nbsp;— <samp>from 350 €</samp></h3>
<p>Turnkey service: from founding documents to publication in the registry.<br/>
<a href="/en/sluzby/zalozenie-zivnosti" target="_blank">👉&nbsp;Learn more about LLC Registration</a></p>
</div>
<div class="blog-services">
<h3>✅&nbsp;Accounting Services&nbsp;— <samp>from 30 €/month</samp></h3>
<p>Tax declaration submission, VAT registration under §7a, contribution calculations, quarterly reports.<br/>
<a href="/en/sluzby/zalozenie-zivnosti" target="_blank">👉&nbsp;Learn more about Accounting Services</a></p>
</div>
<div class="blog-services">
<h3>✅&nbsp;Assistance with Residence Permit Registration and Renewal</h3>
<p>Consultations, application submission, booking at the migration police, document package verification.<br/>
<a href="/en/sluzby/zalozenie-zivnosti" target="_blank">👉&nbsp;Learn more about Residence Permit Services</a></p>
</div>


Sole proprietorship or LLC in Slovakia: what to choose? Tax comparison, liability, startup costs, accounting, pros and cons.

Types of Business Entities in Slovakia: Sole Proprietorship, LLC and Others