Invest in Slovakia: Types of business companies in Slovakia (advantages & disadvantages)

Practical information from Investment Advisory Guide

This article was published in Investment Advisory Guide - Your key to understanding the Slovak business environment.

What are the advantages and disadvantages of a general commercial partnership? For which type of business is a limited liability company most suitable? When conducting business in Slovakia, there are several types of companies to choose from. Read below to find your best fit.

Detailed breakdown:

General commercial partnership

Founder of the company
• at least two individual or legal entities

Registered capital / Shareholder´s contribution
• registered capital or shareholder’s contribution is not required

Statutory body
• each shareholder is entitled to act within the extent agreed between shareholders

Advantages
• not necessary to pay shareholder’s contributions or form registered capital
• simple management structure
• option to establish GCP through two legal entities, which effectively modifies the extent of liability otherwise present in the case of a shareholder - individual entity

Disadvantages
• the shareholders bear joint and several liability for the partnership’s debts with their entire property
• cannot carry out non-business activities
• minimum number of two partners - possible risk of winding up the company after the death or liquidation of one of the shareholders
• prohibition of competitive conduct for shareholders in the scope of their business

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

Top stories

News digest: Nationwide testing gained contours

The Defence Ministry reveals details on upcoming testing, removal of the STU rector was far from normal. Take a look at our latest news digest.

President Zuzana Čaputová meeting with scientists and experts on epidemiology, infectology and medicine.

Senate voted STU rector down. Police called to the uni as well

The session of the Academic Senate proposed that Rector Fikar be dismissed.

Miroslav Fikar

Dozens of people die of COVID every day. A drop not expected for at least two weeks

People who would otherwise survive may die of other serious diagnoses due to the epidemic.

Illustrative stock photo

Slovakia orders a curfew and embarks on its COVID experiment

High turnout in testing in four northern districts, decision awaited on extending the project to the nation. Prison for a prominent prosecutor and parliament's speaker injured.

Waiting for the results of COVID tests during the pilot phase of the nationwide testing in the town of Nižná in Orava, northern Slovakia.