This article deals with the law of the Slovak Republic and its application by Slovak courts and authorities.
Setting up a limited liability company is one of the most common steps for aspiring entrepreneurs. Even though the whole process seems administratively simple today, it is precisely in the details that mistakes hide, which can later cost you time and money. Let us go through the basic steps and point out what is worth thinking through in advance.
The first step is preparing the founding documents. If one partner establishes the company, we speak of a founding deed, and with several partners of a partnership agreement. It is important to clearly define the business activities, the amount of registered capital, the partners' shares and the way of acting on behalf of the company. It is precisely the unclear definition of relationships between partners that later becomes a source of serious disputes.
Next, it is necessary to arrange trade or other authorisations depending on what you want to do. Entrepreneurs often underestimate the choice of the right business activities and either select too few, or on the contrary activities they do not actually carry out. It is also worth paying attention to the appointment of the managing director and their powers, since the managing director legally represents the company externally.
After filing the application for entry into the commercial register and its successful registration, the company officially comes into existence. However, the process does not end there. People forget about registration with the tax office, the correct setting of the registered seat, protection of the business name, or the obligations connected with keeping accounts. Many entrepreneurs also underestimate the proper conclusion of contracts with employees, suppliers or business partners.
The most common mistake is the effort to save money at the start at any cost. Incorrectly set documents, unclear shares or a wrongly chosen business activity can indeed be corrected later, but this almost always means additional costs and delays. Investing in the correct setup of the company right at the beginning pays off in the long run.
If you are considering setting up an s.r.o. and want to be sure that everything is set up correctly and without unnecessary risks, we will be happy to help you. At Kohút & Partners in Zvolen we offer a consultation for a pre-agreed fixed price and we will answer your question within 24 hours. Get in touch with us and set up your company with the peace of mind that experienced lawyers are behind you.