[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
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instruments the shareholders wish to put in place, such as a Shareholder Agreement, etc. d) Minimum Registered Capital The minimum registered capital required for an s.r.o. is €5,000. In the light of Slovakia’s corporate law, it is recommendable to set up a company with capital reflecting the amount of liabilities assumed by the company to mitigate the risk that the company could be considered “in crisis” or even insolvent. Nevertheless, at least 30% of each shareholder’s monetary contribution and a half of the total registered capital must be paid-up before the company's registration in the Commercial Register. In the case of a sole shareholder, the registered capital must be paid-up entirely. e) Limited Liability The shareholders of the entity are not personally liable for the company's debts. The shareholders however provide a guarantee for the company’s debts up to the extent of their unpaid contribution in the registered capital. 2. Slovak Joint-Stock Company (in Slovak: " akciová spoločnosť ”, abbreviation: “ a.s. ”) a) Legal Entity •
s.r.o. and additional costs arise in connection with keeping the register of shareholders; Hence, the rules for an a.s. are generally less flexible compared to the rules for forming a limited liability company; A company can be founded by one founding shareholder – a legal entity; otherwise, there must be two or more individuals or legal entities; An a.s. may have the form of a private a.s. or, where its shares (or some of them) have been listed on the stock exchange in any EEA member state, a public a.s.; Registered shares may be issued as certified or book- entry securities, whilst bearer shares are issued in book-entry form only;
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Corporate mandatorily
bodies
include a General Meeting, a Board of Directors, and a Supervisory Board; A General Meeting consists of all 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
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It is a legal entity in which the shareholders are not liable for the debts of the company during its existence; It is more complicated to form and operate than an
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ILN Real Estate Group – Buying and Selling Real Estate Series
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