SLOVAKIA Law and Practice Contributed by: Lukáš Michálik, Peter Makýš and Šimon Hora, Ments s.r.o.
2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company 2.1 Establishing a New Company The establishment of start-ups within the Slovak jurisdiction is relatively common. There are vari- ous reasons for this. The Slovak Republic has a relatively good-quality higher-education system and, specifically, the Slovak University of Tech- nology in Bratislava has a very good reputation in the region, and its graduates have a very high rate of employment in high-quality international technology companies. Start-ups in Slovakia are often founded by graduates of this technical university. Also, a large number of young people from Slovakia study at prestigious foreign uni- versities. They then often return to Slovakia and set up various innovative companies, or work for innovative companies as employees. Most often, a start-up is founded in the form of a limited liability company because these are easy to set up relatively quick and cheap to incorpo- rate. The incorporation process of a new limited liability company can take one to three weeks, depending how fast it takes to include them in the commercial register. The minimum registered capital requirement is EUR5,000. Start-ups can also be set up in the form of joint- stock companies, but this is much less common on account of their higher administrative and legal complexity, more complex internal struc- ture and the higher costs involved. The minimum registered capital requirements for a joint stock company in Slovakia are EUR25,000.
political developments surrounding the last elec- tion. With a shift in the political climate, some prominent business leaders made decisions to relocate their primary operations or divest assets. This has resulted in a series of significant transactions, as these entrepreneurs either sold their stakes or reorganised ownership structures to accommodate their moves abroad. While these high-profile exits have captured attention, they have also opened up opportunities for both domestic and foreign buyers to acquire estab- lished businesses with solid market positioning in Slovakia. At the same time, the Slovak market is beginning to anticipate the end of the conflict in Ukraine, with businesses and investors positioning them- selves for a post-war environment that could bring substantial new opportunities. Slovakia, as a neighbouring country, is strategically placed to play a pivotal role in the reconstruction of Ukraine, a prospect that has already stirred inter- est from international investors. Expectations of capital inflow for rebuilding efforts have triggered increased preparatory activity, with some Slo- vak companies exploring potential partnerships and market growth that could align with the future redevelopment of Ukraine. This evolving dynamic holds the promise of an expanded mar- ket and potential for robust cross-border coop- eration, positioning Slovakia as a gateway for investments and supply chains that will support Ukraine’s recovery.
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