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Setting up a branch of a foreign enterprise
If you are a foreign individual, foreign legal entity or foreign company (such as a US LLC or an English Ltd) and you wish to do business in Slovakia or open a bank account there, one option is to establish a branch in Slovakia, which is entered in the Slovak Commercial Register.
Price for setting up a branch of a foreign enterprise
The price and court fees for this service are the same as for setting up an s.r.o.
If you have any questions or would like us to set up a branch for you, please get in touch using the contact form.
Operating in Slovakia Through a Branch
For a foreign entrepreneur or company, a branch registered in the Slovak Business Register can be a practical way to establish a presence in Slovakia without setting up a separate company. It allows you to carry out business locally, deal with Slovak customers and authorities and, in many cases, open a Slovak bank account in the branch’s name.
Who Can Set Up a Branch
A branch can be established by a foreign individual entrepreneur or by a foreign company, such as an English Ltd or an American LLC. The branch is part of the foreign business rather than a separate legal entity, so the founder remains responsible for its obligations. This is one of the main differences compared with a Slovak s.r.o.
Benefits of a Branch
- A registered presence in Slovakia with an entry in the Business Register
- No requirement for separate share capital, as the branch is not a company
- The ability to trade under the name of the foreign business
- A local address for official correspondence
- Easier dealings with Slovak banks, customers and suppliers
Obligations
Like a company, a branch must meet certain obligations in Slovakia. It will typically need a registered address, a head of branch, appropriate trade licences and registration with the tax authorities. It must also keep accounting records for its Slovak activities. Depending on its turnover and activities, it may need to register for VAT.
Tax Considerations
A branch may be treated as a permanent establishment for tax purposes, which generally means that profits attributable to it are taxed in Slovakia. The founder’s home country will also have rules on how these profits are treated, so the overall position should be reviewed with both countries in mind.
Documents From Abroad
Foreign documents, such as extracts from the founder’s home register, usually need to be legalised and translated into Slovak.
If you are a foreign business looking to operate in Slovakia, contact eTuls. We can help you decide whether a branch or a company is more suitable and handle the registration from start to finish.