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

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