[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
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whilst bearer shares are issued in book-entry form only; mandatorily include a General Meeting, a Board of Directors, and a Supervisory Board; • A General Meeting consists of all • Corporate bodies company shareholders and takes place at least once a year. It is positioned as the supreme body holding powers, e.g., in personal matters (electing, remunerating corporate body members) as well as deciding on the distribution of profits and amending the Articles of Association. b) Formation The foundation act is either a Foundation Deed or Foundation Agreement in the case the company is established without a call to subscribe shares or the minutes from the constituent General Meeting where the registered capital is subscribed by more shareholders on the basis of a call. All of these documents must include Articles of Association (By-laws) containing mandatory information and must be prepared in the form of a notarial record. c) Costs of Formation Typically, the estimated total public fees (signature certification and Commercial Register fee) for the formation of an a.s. amount to approximately €900 (€600 in the case of electronic filing). The attorney ’s fees for services rendered in the process of establishing and incorporating an a.s. may vary significantly depending on the number of shareholders, method of establishing,
etc. d) Minimum Registered Capital The minimum registered capital required for an a.s. is €25,000. At least 30% of its subscribed registered capital must be paid up by the time of the submission of the proposal for registration to the Commercial Register. e) Limited Liability The shareholders of the entity are not personally liable for the company's debts. Note : Persons acting on behalf of the company before the company's incorporation in the Commercial Register are liable for the obligations which arise therefrom – these obligations can be assumed by the company within 3 months from its incorporation, and then it is bound by such acts from when it began. 3. Other types of entities There are three other types of business companies: a Limited partnership company (k.s.), an Unlimited partnership company (v.o.s.), and a Simple joint-stock company (j.s.a.) However, these forms are not very often used as vehicles in real property transactions. A specific form of entity, a “flat owners’ cooperative” is not unusual in Slovakia. However, it is more a residue from past cooperative ownership of blocks of flats. Only rarely is it used as an investment vehicle for developing blocks of flats today.
This overview is for information purposes only.
Under no account can it be considered as either a legal opinion or advice on how to proceed in particular cases or on how to assess them. If you need any further information on the issues covered by this overview,
ILN Real Estate Group – Buying and Selling Real Estate Series
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