Open your holding in Slovakia
A holding company is a kind of business form which owns stocks in other entities without direct intervening in their activities and operations. These entities are called subsidiaries and are entirely controlled by the company’s board of directors.
Our specialists in Slovakia can explain you the whole procedure how to open the holding company in Slovakia and can also provide you with details about the advantages of such business.
The benefits of a holding company in Slovakia
The main advantage of opening a holding company in Slovakia is that profits of the holding companies are not subject to taxation (dividend payments are not taxed). The holding company can have local or foreign shareholders, without any restrictions connected with this matter. The foreign owner does not pay any taxes for his holding company in Slovakia. When talking about financial losses, the holding company and its subsidiaries are 100% covered and no payment will be considered.
In case that a shareholder changes his residency for a year or more, he will still receive the dividends for its subsidiaries. He only needs to pay the residence tax in Slovakia.
As Slovakia is a member state of the European union, holding companies in Slovakia can obtain all the benefits resulting from this membership. But remember that Slovakia has other specific regulations which make this type of business form for foreign investors very advantageous.
The shareholder can be a citizen or company from a non-EU country, e.g. companies operated in offshore jurisdictions can also act as shareholders in holding companies in Slovakia.
The main features of holding companies in Slovakia
A holding company in Slovakia can be registered as a partnership, a cooperative, a limited liability company or as a limited partnership.
Local or foreign investor must at opening the holding company in Slovakia comply with the provisions of the Company Law. The holding company in Slovakia has other features than trading companies which are the following:
– the holding company consists of a parent company and one or multiple subsidiaries,
– the holding company has to have a sufficient number of shares and capital which guarantees it voting rights in the subsidiaries,
– the holding company has the right to control its subsidiaries but it cannot complete day-to-day activities in them,
– the holding company can own various types of assets (real estate, shares, intellectual property rights).
Documents which are needed for holding company registration in Slovakia are information about the shareholder(s), proof of depositing the share capital, proof of the legal address in Slovakia as well as the holding company’s statutory documents.
The documents which you need to prepare in connection with the Companies Register in Slovakia depend on the structure of the holding company. Slovak holding company needs the registration with the tax authorities in Slovakia.
Advantages of opening holding company in Slovakia:
- Tax exemption for dividend income,
- No restriction to the nationality of the Slovak companies’ owners,
- The holding company is protected from the losses of its subsidiaries (no pursuit for remuneration),
- Lower tax rates,
- Managers of the subsidiaries are responsible for their own operations and thus the holding company is not liable for them.
If you want to open a holding company in Slovakia you can contact our company specialists in Slovakia who will provide you with further details about the advantages of opening this type of legal structure and will tell you which requirements you need to respect.
