Slovenia is a beautiful little country with the highest GDP among newly joined EU-members, just waiting to be discovered by foreign investors.
Strategically bordering Italy and Croatia, Slovenia is the link between the Adriatic Sea and mainland EU.
The Slovenian land contains abundant reserves of mercury, zinc, silver, lead, and hydropower. Adding the country’s state-of-art transportation, freight system, and cheap labor into the mix tells us just how easy and profitable exporting these natural riches could be.
With its favorable climate, both geographical and business, investing in Slovenia is both attractive and easy. Moreover, the land has abundant availability of skilled labor, quality infrastructure to handle cargo traffic, and a competitive ICT industry that’s ripe to attract foreign investment.
Additionally, the spur of productivity growth brought about by the country’s natural and manmade advantages will further integrate Slovenia into the global markets.
With favorable tax incentives, a strategic location, proximity to lucrative markets, minimal legal requirements, and a simple process, Slovenia is the destination of choice for many foreign investors.
Forms Of Companies In Slovenia
- D.O.O. “Družba z omejeno odgovornostjo” — private limited liability company
- D.D. – “Delniška družba” —public limited company
- D.N.O. – “Družba z neomejeno odgovornostjo” —unlimited company
- K.D. – “Komanditna družba” —limited partnership
- “Samostojni podjetnik” —sole proprietorship
What is the difference between D.O.O. and D.D. companies in Slovenia?
In Slovenia, the most common types of companies started by foreign investors are D.O.O. and D.D.
For the D.O.O., the amount of their subscribed shares is the limit of each member’s liability. The minimum share investment is 7500 EUR.
The D.D. has at least 1 shareholder, and the minimum share deposit is 25 000 EUR in cash or real estate.
Fundamentals Of A Limited Liability Company
Corporate Tax in Slovenia
VAT in Slovenia
Fundamentals of limited liability companies in Slovenia
|Limited liability company||d.o.o.|
|Minimum Share capital||7500 EUR|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local Director required||No|
|Other requirements||All partners need to obtain a tax number|
|Bank signatory must travel||Yes, all shareholders and directors must travel|
|Timescale for company formation||4 weeks|
|Timescale for bank account opening||7 day|
|Timescale for obtaining VAT number||14 days|
|Statutory audit requirements||No|
|Shelf companies available||No|
How can I set up my company in Slovenia?
Establishing a business outside your jurisdiction can be intimidating, but CompyCo is dedicated to making the process easier for you.
These are the steps:
Non-residents of Slovenia must obtain a tax number and certificate of good conduct in Slovenia before setting up a business. This includes all natural people’s shareholders and representatives of the company. Additionally, a copy of the passport, proof of address, and a tax certificate from the country where they are residents will also be required.
Once the Slovenian tax numbers have been obtained, we will reserve the name of the company.
We will prepare the documents for company registration once all shareholders and directors are present in Slovenia. Once all the documents are signed, and the identities are confirmed, a bank account can be opened on the same day.
Proof of payment of the share capital needs to be submitted for company registration, after which we’ll submit the documents to the Court Register.
The following information has to be submitted to the Slovenia Registry of Companies:
- A verified company name (unique according to the AJPES business register)
- Information about the company’s representatives
- Your legal address in Slovenia
- Information about trading activities.
For those foreign investors that are looking to break into European markets, Slovenia offers a viable opportunity. The country offers a strategic position in the heart of Europe, along with excellent transport and ITC infrastructure, making it the perfect country to tap into.
CompyCo is committed to providing cost-effective, custom solutions that are tailor-made to all your business’s needs. We have helped several business owners set up in Slovenia over the past few years and offer you the chance to benefit from our network of experts too.
Our professionals in the banking, taxation, incorporation, and HR sectors can help you make the best decisions for your business so you can enjoy the maximum benefits at minimal costs. From assisting you in selecting a company form that suits your business activities to obtaining licensing and hiring employees, we offer full-service solutions to ensure that you have all the time, freedom, and expert advice to focus on your business’s operations while we handle the logistics.
Bank Account Opening
Slovenia has around 2 million national and international banks that offer a full range of banking services and financial products. However, for a business owner setting up outside your jurisdiction, it’s essential to meet certain requirements for registering your company.
Opening a bank account in the country where you’re setting up your company will lead to long-term efficiency and convenience for you.
Every bank has its own set of requirements that may vary depending on the type of business activity you’ll engage in to your country of residence. However, certain requirements are usually common among all banks. Foreigners will need to provide the following set of documents for a bank account:
- An identity card or a valid passport
- A tax identification number issued by the Slovenian authorities
- The tax identification number in the country in which the foreign applicant is a resident
Investors can also set up a temporary bank account in Slovenia, but you’ll have to consult our experts in the country to find out more about that before you go ahead.
Need more information about opening a bank account? Find out more here.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration:
- In Slovenia, the tax year corresponds to the calendar year.
- Financial statements that include a profit and loss account, and an annex and a balance sheet must be submitted to the Company register every year.
- All Slovenian companies must maintain books of total payments received and expenses incurred, details of debit and credit, and total sales and purchases.
- There’s a flat income tax rate of 19% on all net income for tax residents in Slovenia.
- The standard VAT rate in Slovenia is 22%.
- The reduced rate of 9.5% applies to some types of goods, while certain goods are exempt from VAT.
- All invoices issued by Slovenian traders must contain specific VAT information, including the VAT number of the supplier, the VAT rate applied, and the amount of money collected as VAT.
- Companies are issued VAT numbers with the format of the country code SL, followed by a 9-digit number ending with a letter.
How can you employ staff in Slovenia?
Setting up a country on foreign soil is hard, especially if you don’t speak the local language that most of your workers will speak. Additionally, employment regulations and laws vary from country to country. As such, hiring the right people to do the job can be challenging.
To ensure that your business doesn’t come to a halt, CompyCo will take care of all your employee registrations. Our professionals in Slovenia are equipped to handle the recruitment needs of your business expertly.
From helping you register your company to employ Slovenian employees to offering a range of other HR services, we help you take care of several aspects of employment so you can focus solely on your business.
We offer unique and tailor-made employment solutions for your business that include writing employment agreements, directly employing professionals, and recruiting new talent. We also provide payroll services and ensure that your business doesn’t violate any local regulations.
Have any questions? Take a look at our HR services page for more information about our International HR services!