Temporary residence for the purpose of running a business

A temporary residence permit for the purpose of running a business  is one of the mostly filed residence permit applications. A foreigner may run any and all legal forms of business in the Slovak Republic stipulated in its legal system. The general information below describes the two mostly used forms of businesses foreigners intend to run in the Slovak Republic after being granted temporary residence:

  • Sole trader/proprietor (self-employed person)
  • Limited liability company (and other forms of business companies as the case may be)

Self-employed person – (sole trader/proprietor)

Foreigners interested to run a business in Slovakia as self-employed persons (sole trader/proprietor) need to go through the below process to obtain a trade licence and being granted temporary residence:

  1. a) To register the trade with the Licencing Unit (Odbor živnostenského podnikania) within the respective District Office (Okresný úrad)
    b) To be granted a temporary residence permit for the purpose of running a business (self-employed person)
    c) Duties of foreigners after arriving to Slovakia

 

Ad a) To register the trade with Licencing Unit (Odbor živnostenského podnikania) within the respective District Office (Okresný úrad)

A specific template form shall be filled in to register the trade, specifying individual proposed business activities. Activities related to the trade registration may also be made through the law firm MADEJ & PARTNERS.

The below documents need to be submitted to the respective authority alongside the form:

  • Consent of the property owner where the trader plans to locate his/her business or rent contract for such a property
  • A criminal record extract from foreigner´s home country (not older than 3 months). The extract needs to bear an apostille and shall be translated to the Slovak language
  • A passport
  • A certificate of professional qualification, if required for the given trade

The Licencing Unit within the respective District Office shall issue the trade licence certificate usually within 7 workdays. Foreigners from non-EU countries may only start running their business after being granted a temporary residence permit.

 

Ad b) Temporary residence permit for the purpose of running a business (sole trader/proprietor)

To start performing activities as a self-employed person (sole trader/proprietor) after being issued the Trade Licence Certificate, a foreigner needs to apply for a temporary residence permit for the purpose of running a business.

If a foreigner is applying for a temporary residence permit for the purpose of running a business in Slovakia for the first time, the application shall usually be filed at the Slovak embassy in his/her home country.

A specific form shall be filled out in the Slovak language and submitted personally. The below documents need to be attached to the application:

  • A valid passport
  • Two colour photos (3 x 3.5 cm in size)
  • A Trade Licence Certificate (obtained as per a) above)
  • A Criminal Record Extract from the foreigner´s home country as well as from countries where he/she stayed longer than 90 days during 6 successive months, in the last 3 years
  • Accommodation in Slovakia for 6 months, e.g.
    • An affidavit declaring that the foreigner owns property in Slovakia, or
    • A notarised rent contract proving the foreigner has rented property, including the respective title deed
    • A notarised affidavit from the property owner that he/she will provide accommodation to the foreigner, including the respective title deed
    • A statement from an accommodation facility (hotel, lodging house) confirming that accommodation will be provided to the foreigner there
  • A document proving the foreigner has sufficient funds to cover his/her stay amounting to at least the subsistence level i.e EUR 273.99 per each month of his/her stay, which is to be proved by a personal account statement opened with a Slovak bank in the name of the foreigner. If the foreigner´s personal account is opened with a foreign bank, then the bank statement for the last three months shall be submitted. If his/her stay would exceed one year, financial resources shall at least amount to twelve times the subsistence level (EUR 3,287.88)
  • A document proving the foreigner has sufficient funds to cover his/her business amounting to at least twenty times the subsistence level i.e EUR 5,479.80 that is to be proved by business account statement different than the personal one to cover his/her stay. If the account is opened with a foreign bank, the foreigner shall submit bank account statements for the last three months to prove possession of financial resources for a business.

It results from the above that there are statements from two bank accounts to be attached to the residence permit application (both opened in the foreigner´s name); a personal account bearing a balance of at least EUR 3,287.88and a business account with a balance of at least EUR 5,479.80. These amounts are specifically valid from July 1, 2023 until June 30, 2024, providing the applicant is one adult person. These amounts change each year depending on the subsistence amount.

A foreigner shall file his/her residence permit application at the Slovak embassy personally. Similarly, the accounts need to be opened personally in Slovakia. Other activities related to a residence permit application may also be made by the law firm MADEJ & PARTNERS

A Foreign Police unit shall issue the decision on granting temporary residence within 90 days depending on the nature of each individual case.

 

Ad c) Duties of foreigners after arriving to Slovakia

After being granted a temporary residence permit, foreigners shall in particular:

  • Enter the territory of the Slovak Republic not later than 180 days after being granted a temporary residence permit (unless he/she is legally staying in Slovakia already due to a different reason)
  • Report the commencement date of his/her residence stay with the Foreign Police not later than 3 workdays from the arrival to Slovakia
  • Conclude health care insurance contract not later than 3 workdays from collecting his/her residence permit and prove to have health care coverage when his/her residence is checked
  • Submit a health care insurance certificate to the respective police unit not later than 30 workdays from collecting his/her residence permit
  • Submit a medical report not older than 30 days to the respective police unit not later than 30 workdays from collecting his/her residence permit, proving he/she doesn’t suffer from any disease that would be deemed a public health danger
  • Stay in Slovakia longer than half of the period of time he/she was granted temporary residence in a calendar year; this shall not apply if a third-country foreigner would apply for mobility in another member state

 

Limited Liability Company (s.r.o.) – executive officer

Temporary residence for the purposes of running a business may be granted to a foreigner acting already, or in future, on behalf of a business company (limited liability company, in most cases).

A third-country foreigner may become the executive officer of a business company with its seat registered in the Slovak Republic only subject to being granted a temporary residence permit.

A temporary residence permit for the purpose of running a business shall only be granted in relation to a statutory body of a business company (the executive officer in the case of a limited liability company). That means that a foreigner who is a Partner to a business company without being its executive officer (a statutory body) at the same time, cannot apply for temporary residence in Slovakia for the purpose of running a business.

A third-country foreigner who wants to establish a limited liability company (s.r.o.) in Slovakia and, at the same time, wishes to become its executive officer, shall be obliged to follow the below procedure:

  1. a) To formulate Articles of Association on establishing the limited liability company and other corporate documents
    b) To file an application for temporary residence for the purpose of running a business and being granted a temporary residence permit
    c) To report business activities with the Licencing Unit     (Odbor živnostenského podnikania) within the respective District Office (Okresný úrad)
    d) To file a motion to incorporate the company in the Companies Register in Slovakia     (Obchodný register / OR SR)
    e) Duties of foreigner after arriving to Slovakia

 

Ad a) Memorandum of association on establishing the limited liability company and other corporate documents

A memorandum of association is the principal document establishing a limited liability company. It may be established by one or more persons, though not more than 50 Partners are allowed.

Despite the fact that no limitation exists for the number of executive officers in a limited liability company, we advise the least possible number of foreigners to be appointed as executive officers. Foreigners appointed as executive officer by a memorandum of association may then apply for a temporary residence permit for the purpose of running a business (see B, above).

The key terms to be stipulated in the memorandum of association establishing a limited liability company are in particular:

  • The business name of the company
  • The registered seat of the company (address at the territory of the Slovak Republic is a precondition)
  • Business activities
  • Partners
  • Equity (not less than EUR 5,000)
  • The contribution of each partner (not less than EUR 750 per partner. The sum of contributions of individual partners shall equal the defined amount of equity)
  • Executive officers
  • The method for executive officers to act on behalf of the limited liability company (i.e. whether executive officers may act independently on behalf of a company (if there are more executive officers specified for a limited liability company), whether the consent of all executive officers is required to act on behalf of the company)

The law firm MADEJ & PARTNERS offers assistance to foreigners with drafting a memorandum of association as well as within other phases related to residence permits and limited liability company establishment.

 

Ad b) – Application for temporary residence for the purposes of running a business and being granted a temporary residence permit

After the Memorandum of Association and other documents are formulated and signed, the appointed executive officer shall apply for a temporary residence permit for the purpose of running a business. The third-country foreigner shall, unless exempted, submit the application with the Slovak embassy in his/her home country.

There is a form to be filled out in the Slovak language to apply for a temporary residence permit. The below documents need to be attached to the application form:

  • A valid passport
  • Two colour photos (3 x 3,5 cm in size)
  • A memorandum of association (as per a) above)
  • A criminal record extract from the foreigner´s home country as well as from countries where he/she stayed longer than 90 days during 6 successive months in the last 3 years
  • Accommodation in Slovakia for 6 months, e.g.
    • An affidavit declaring that the foreigner owns property in Slovakia, or
    • A notarised rent contract proving the foreigner has rented property, including the respective title deed
    • A notarised affidavit from the property owner that he/she will provide accommodation to the foreigner, including the respective title deed
    • A statement from an accommodation facility (hotel, lodging house) confirming that accommodation will be provided to the foreigner there
  • Document proving the foreigner has sufficient funds to cover his/her stay amounting to at least the level of subsistence i.e EUR 273.99 per month of his/her stay, which is to be proved by a personal account statement opened with a Slovak bank in the name of the foreigner. If the foreigner´s personal account is opened with a foreign bank, then bank statements for the last three months shall be submitted. If his/her stay would exceed one year, financial resources shall at least amount to twelve times the subsistence level (EUR 3,287.88)
  • Document proving the foreigner has sufficient funds to cover his/her business amounting to at least one hundred times the level of subsistence i.e EUR 27,399 that is to be proved by a business account statement, different than the personal account, to cover his/her stay. If the account is opened with a foreign bank, the foreigner shall submit bank account statements for the last three months to prove financial resources for the business.

The principal difference in running a business as a legal entity (e.g. limited liability company) and that as a self-employed person lies in the volume of funds required to cover the business activity. A third-country foreigner interested in being granted a residence permit as an executive officer in a limited liability company needs to prove to have the balance of at least EUR 27,399 on his/her business account while only EUR 5,479.80 is required to run a business as sole trader

For both types of business, however, it is required to prove to have funds also on a personal account, to cover one’s stay in Slovakia; EUR 3,287.88 is required as a minimum amount both for an executive officer and a sole trader

The police shall issue the decision on granting temporary residence within 90 days since the proceedings commencement date depending on how demanding each individual case is. The time the respective embassy would require to deliver the application filed therein to the respective Foreign Police Unit shall be added to this period of time.

 

Ad c)  Reporting business activities with the Licencing Unit (Odbor živnostenského podnikania) within the respective District Office (Okresný úrad)

Once all the above specified steps are met, an application shall be filed with the respective Licencing Unit to issue a trade licence certificate to the company, based upon which it will be authorised to run the business activities it reported to the Licencing Unit.

A special form shall be filled in and the below documents need to be attached to it:

  • A memorandum of association
  • A residence permit of the company executive officer in Slovakia
  • A criminal record extract from the home country of the foreigner (not older than 3 months)
  • A passport
  • A professional qualification certificate, if required for the given trade

The Licencing Unit shall issue the trade licence certificate usually within 7 workdays. The company, however, may only start running the business after it is incorporated in the Slovak Companies Register (OR SR).

 

Ad d) Motion to incorporate a company in the Companies Register in Slovakia (Obchodný register / OR SR)

Filing a motion to incorporate a company in the Slovak Companies Register is the last step within the company establishment; it shall be officially established as of the date it was incorporated in the Slovak Companies Register  (Obchodný register / OR SR). The date of its incorporation (registration) shall be deemed the date when the company may officially commence its business activities in Slovakia.

The process of incorporation takes approximately 7 workdays and all related activities may be made through the law firm MADEJ & PARTNERS.

The below shall be attached to the motion to incorporate a company in the Slovak Companies Register:

  • A memorandum of association
  • A trade licence certificate obtained as per c) above
  • A signature specimen of the executive officer
  • A declaration of partners that he/she is not the sole partner in more than 3 limited liability companies (providing the company is established by one person only)
  • A declaration of the deposit administrating authority that the equity was paid in full
  • Consent of the property owner to establish the company seat therein
  • The residence permit of the executive officer in Slovakia

 

Ad e) Duties of a foreigner after arriving to Slovakia

After being granted a temporary residence permit, foreigners shall in particular:

  • Enter the territory of the Slovak Republic not later than 180 days of being granted a temporary residence permit (unless he/she is legally staying in Slovakia already due to a different reason)
  • Report the commencement date of his/her residence stay with the Foreign Police not later than 3 workdays from arriving to Slovakia
  • Conclude a health care insurance contract not later than 3 workdays since collecting his/her residence permit and prove to have health care coverage when his/her residence is checked
  • Submit a health care insurance certificate to the respective police unit not later than 30 workdays from collecting his/her residence permit
  • Submit a medical report not older than 30 days to the respective police unit not later than within 30 workdays since collecting his/her residence permit, proving he/she doesn’t suffer from any disease that would be deemed a public health danger
  • Stay in Slovakia longer than half of the period of time he/she was granted temporary residence in a calendar year; this shall not apply if a third-country foreigner would apply for mobility in another member state