[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
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Articles of Association.
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.
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 based on a call. All 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 & Commercial Register fee) for the formation of an a.s. amount to few hundred euros (notary fees depend on the amount of the share capital of the company to be established and the number of founders). 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.
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, please contact Mr. Marián Lauko (lauko@peterkapartners.sk). PETERKA & PARTNERS is a full-service law firm operating in Central and Eastern Europe providing one-stop access to an integrated regional service. The firm provides legal services to multinational companies active in the region, as well as leading local groups, providing them with complex legal solutions with exceptional commercial value .
ILN Real Estate Group – Buying and Selling Real Estate Series
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