s.r.o. (spoločnosť s ručením obmedzeným) is a limited liability company, the most common company type in Slovakia and the main alternative to a živnosť (sole-trader licence) for doing business.
The main advantage is limited liability: you are responsible for the company's debts with the company's property, not your own personal property. The company can be founded by one or more people, it has a share capital (by law, traditionally from €5,000), and it must be registered in the Commercial Register (Obchodný register).
What you should know
- The company is managed by a konateľ (managing director).
- Double-entry bookkeeping (podvojné účtovníctvo) is required, so you will almost always need an accountant.
- The company pays corporate income tax.
You can establish an s.r.o. through a notary or online; often, this is entrusted to a specialized firm or lawyer to avoid mistakes in the documents. Compared to a živnosť, there is more administration here, but also more trust from partners.
