How To Open a Business in Slovenia

We Open Our Own Business
In Slovenia

There is a desire to develop your business in Europe?Β Which country to choose?Β Where does the whole process begin?Β Answers Daria Golob Koritnik, a lawyer, head of the department of entrepreneurship of the company ”Β DATAΒ ” in Slovenia.
Starting a business in Slovenia

Almost every businessman at least once thought about moving his business to Europe or starting a new business in Europe.Β In this article, I would like to describe the opportunities for your business in Slovenia, which is a member of the European Union, the Schengen Agreement, and also a member of NATO, a country with a stable and developing economy, with a favorable economic and geographical position (neighboring countries Italy, Austria, Croatia, Hungary, the country has a coast, also thermal springs and mountains), a safe country. By opening a company in Slovenia, you can easily work across Europe.

Forms of companies in Slovenia

Before starting a business, an entrepreneur must, first of all, decide for himself in what form his business will exist. In Slovenia, there are such forms of business as:

  • individual entrepreneur (sp),
  • limited liability company (doo),
  • unlimited company (dno),
  • joint-stock company (dd),
  • limited partnership (kd),
  • limited liability partnership (kdd),
  • partnership company (dvojna druΕΎba),
  • private affair (sebum dopolnilno Delo),
  • social company (social podjetje).

Third-country nationals can register in Slovenia at least initially several types of companies:

  • Limited Liability Company (LLC);
  • Subsidiary company;
  • Branch (representative office).

I would like to consider in more detail each type of company.

Limited liability Company

LLC – the number of founders should not exceed fifty people, before registration, it is necessary to issue a tax number and a certificate of no criminal record, then upon direct registration, it is mandatory that all the founders and directors of the future Slovenian company are present, it is possible that the company has one founder and one director in one person, also you must have an account with a Slovenian bank where you will deposit the authorized capital in the minimum amount of 7,500 euros, this capital can subsequently be spent on any company needs, such as paying taxes, salaries, buying the necessary equipment or materials.

Subsidiary Company

When opening a subsidiary, you will also need to issue a tax number in Slovenia for the parent company and for the director, a certificate of no criminal record from Slovenia, you must have the director or directors of the parent company, as well as the future director or directors of the Slovenian company, you need to open an account in a Slovenian bank and pay to this account is a registered capital of a minimum of 7,500 euros.

Branch (representative office)

Branch – tax registration is also required.Β Certificates of the absence of a criminal record, upon registration, the presence of the directors of the parent company and the future branch is required, the authorized capital is not needed, but in any case, it is necessary to open an account with a Slovenian bank, documents are needed on the parent company, for example, such as an extract from the register of the parent company, company balance sheet for the last year, etc.

After a year of stay in Slovenia, you can open an individual business in Slovenia, however, it is worth considering that individual entrepreneurs in Slovenia are liable for all their personal property in the event of bankruptcy or payment of debts when, as joint-stock companies in Slovenia and limited liability companies, they are liable only for the property of the company, not your personal.

Full registration of a company in Slovenia takes quite a little time, a minimum period of 5 working days.Β After the registration of the company, it is necessary to provide accounting support for the company and the presence of a legal address in Slovenia.

Also, by registering a company in Slovenia, you have the right to acquire real estate.Β The Slovenian real estate market is extremely diverse, you can buy real estate on the seacoast for recreation, near ski resorts, or near thermal springs.

Obtaining a residence permit and permanent residence in Slovenia

Also, opportunities are opened for you to obtain a residence permit (temporary residence permit), then permanent residence (permanent residence), and a civil servant in Slovenia. You will also have the opportunity to transfer all members of your entire family, that is, your spouse and minor children, through the family reunification process to Slovenia.

It seems to me that for every person, including a businessman, the environment matters, especially with regard to the family, in Slovenia one of the most favorable environmental situations, a huge number of forests, mountains, lakes, and all this you will find in ten minutes of leaving the capital – Ljubljana.Β What is also important, in Slovenia the health care system works on the same conditions for both Slovenian citizens and foreign citizens living or working in Slovenia.

Legislation and Taxation

Slovenian law is extremely loyal to new companies, so there is no clearly defined profit margin or a prerequisite for profit.Β Also, unlike other countries, you do not have to hire a Slovenian citizen in your company.

Another plus is that you can not worry about double taxation in Slovenia, as Slovenia and several other European countries have an agreement on avoiding double taxation.Β The list of these countries includes Austria, Belgium, Bulgaria, Czech Republic, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Sweden, Great Britain.

When starting a business, it is worth considering what activities require a license or permit, the so-called regulated activities.Β To regulated activities.Β For example, these include activities such as insurance, tourism, construction, etc., if you plan to provide hairdressing, cosmetology, physiotherapist, etc. You will need to get permission to get started.

Also, based on the new legislation, in Slovenia, all the processes associated with registration, registration in the health insurance system, any changes in the device of your company are made in one place, which is called VEM točka (the point is “all in one place”).

Slovenia also has a fairly loyal tax system: income tax 17% (one of the lowest in Europe), VAT (value-added tax) 22%, VAT on drinks, food, hairdressing, etc. 9.5%, income tax is taxed at a progressive rate starting at 16%.

In Slovenia, it is possible to obtain loans with a reduced interest rate, as well as obtaining various grants, a frequently encountered condition is the employment of a Slovene, a certain age and a certain residence permit, it may sound a little strange, but in Slovenia, like in many countries, they take care of the employment of their citizens.

Thus, Slovenia is a rather promising and favorable country for doing business, and every year more and more foreign businessmen open their own business in Slovenia.

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