[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
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upon receipt of the decision of the local municipality containing the calculation of the tax (within 15 days of the decision becoming final). We strongly advise that tax advisors participate to ensure that these aspects are dealt with comprehensively, e.g. in view of differing VAT regimes applicable to buildings and lands. XI. Acquisitions Real property can be acquired by way of an asset or a share deal. In the case of a share deal, the legal entities used for these purposes are mostly organized as limited liability companies or joint stock companies. 1. Limited Liability Company (in Slovak: " spoločnosť s ručením obmedzeným ”, abbreviation: “ s.r.o. ”) The most widely used legal form owing to its high flexibility, low capital requirement and relatively few obligations. a) Legal Entity • A legal entity acts autonomously, represented by executive director(s); • Independently subject to taxation; • The particular rights and obligations of an s.r.o. exist autonomously from those of the shareholders and the executive directors;
Commercial Register. The Foundation Deed (the Memorandum of Association, see below) may state that the executive directors constitute a collective body. The internal restriction of the executive directors' powers is not effective against a third party, even if published. Under Slovak law, a violation of these duties by an executive director will not (alone) affect the validity of a contract with a third party, but the s.r.o. may hold the executive director in question liable for damages. The foundation act is a Memorandum of Association or Foundation Deed in the case of a sole shareholder. It must be notarized; • Setting up an s.r.o. is not complicated and can be accomplished easily; • A supervisory board is not an obligatory company body. c) Costs of Formation Typically, the estimated total public fees (signature certification & Commercial Register fee) for the formation of an s.r.o. amount to few hundred euros. The attorney’s fees for services rendered in the process of establishing and incorporating an s.r.o. vary depending on the number of shareholders, business authorizations sought and b) Formation •
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The company's statutory body is one or more executive directors. The executive directors act in all matters on behalf of the company in the way of acting that is registered in the
ILN Real Estate Group – Buying and Selling Real Estate Series
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