IOM MIGRATION INFORMATION CENTRE

Basic information

A trade is a systematic activity, pursued independently, on its own, on one's own responsibility, for the purpose of earning profit and under the conditions stipulated by the Trade Licensing Act. Trade business covers almost all business activities aside from activities explicitly set out in the Trade Licensing Act. The law does not define what may be considered as a trade but stipulates what it cannot be.

A sole trader is personally liable, without limit, for all debts run up by his business with all of his assets (including private property).

If you wish to pursue activities that meet the characteristics of a trade, you must apply for a Trade License. A Trade License is an authorisation to conduct activities which fall into the scope of trade business and is valid for the entire territory of the Slovak Republic. One sole trader may pursue several business activities but needs to hold a Trade License for each of them. In addition to obtaining a trade license, you must also obtain a suitable type of residence that will enable you to conduct business in Slovakia.

You may conduct trade as a Slovak entity or a foreign entity depending on the type of granted residence in Slovakia. A Slovak entity is considered to be a person with a permanent residence in the Slovak Republic and a foreign Entity is considered to be a person with a permanent residence or company with a registered office outside the Slovak Republic. A foreigner with a permanent residence in Slovakia is considered a Slovak natural person.

A foreigner residing outside the territory of the Slovak Republic is a foreigner who has not been granted permanent residence in Slovakia. A foreigner residing outside the territory of the Slovak Republic may operate a trade only as a foreign person. It is true that a foreign person may operate a trade under the same conditions and to the same extent as a Slovak natural person or a Slovak legal entity.

FOREIGN ENTITY

A foreign entity may run a business in Slovakia by means of an enterprise of a foreign entity or an organisational unit of a foreign entity.

Doing business as an organisational unit of a foreign entity is possible if you already are an entrepreneur in the same line of business in the country of your permanent residence.

Doing business as an enterprise of a foreign entity is possible, if you are not an entrepreneur in the country of your permanent residence or if you intend to conclude a different line of business to the one conducted in the country of your permanent residence.

STEPS BEFORE STARTING TRADE BUSINESS

Before starting a business, it is necessary to perform several actions (depending on the citizenship and the type of residence in Slovakia), after which the foreigner can start doing business.

A third country national with a permanent residence in Slovakia is considered a Slovak natural person. In order to start a business, he/she needs to obtain a trade license. He/she may start doing business on the day of the trade notification or if such notification indicates a later date for commencement of the trade, then as of this date.

A third country national with a temporary residence allowing to conduct business in Slovakia, in order to start a business, he/she needs to obtain a trade license. He/she may start doing business on the day of the trade notification or if such notification indicates a later date for commencement of the trade, then as of this date.

A third country national without a residence in Slovakia must

• obtain a trade license and
• obtain a temporary residence.

He/she may start doing business on the day of acquiring a temporary residence or if the trade notification indicates a later date for commencement of the trade, then as of this date.

An EU/EEA member state citizen with a registered residence in Slovakia is considered a Slovak natural person. In order to start a business, he/she needs to obtain a trade license. He/she may start doing business on the day of the trade notification or if such notification indicates a later date for commencement of the trade, then as of this date.

UNAUTHORIZED TRADING
If you intend to conduct a trade, you need to notify the Trade Licensing Office and obtain a Trade License. If you perform activity subject to craft, regulated or unregulated trades without holding a trade license, the fine ranges from 1659 EUR for unregulated trades up to 3319 EUR for craft or regulated trades.

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