A company in Slovakia or Poland - What should you choose?

Establishing a company in Slovakia or Poland – What should you choose?

Many Polish entrepreneurs willingly go to the neighboring Slovakia from the south. More and more people are also deciding to move or start their operations in this country. What motivates them to make such decisions? Is it easier to set up a company and run a business in Slovakia than in Poland? Let’s look at the several benefits that Slovakia offers to people who want to run their own business and want to know what they gain by setting up companies in Slovakia.

Fees accompanying the establishment of a company in Slovakia

First of all, as an advantage, people who operate in Slovakia indicate lower taxes and premiums. The basic VAT is made in Slovakia is only 20%, so slightly less than in Poland. The CIT rate, on the other hand, is 21% – this is the case in any case (in Poland these rates depend on the circumstances). Additionally, it is worth remembering that taxes in this small country do not apply to transport. Running a business in Slovakia is therefore profitable for those who have, for example, their own trucks. There is also no excise duty on vehicles. You can also deduct the entire VAT on personal cars in the company. The transport industry in Slovakia can therefore only gain. It also translates into profitability and increased import and export from Slovakia in terms of forwarding and land transport.

In Slovakia, the costs of contributions that employers must pay for their employees are slightly higher than in Poland (see table). The minimum wage is slightly lower (520 EUR, in Poland 523), and for employed persons, for example, shorter vacation leave (25 days). You can also hire an employee for a specified period of up to two years and extend it twice. All this encourages to operate in Slovakia, and in addition, lower costs allow the employment of more employees.

Slight formalities when establishing a company in Slovakia

Slovakia is also characterized by much less extensive bureaucracy from Poland. Instead of having to visit many facilities, all you have to do is apply to the registration office. You can also settle the matter by e-mail – using an electronic signature – or by post, and the entire registration fee for the company is 5 euros. The whole procedure takes less than a month and you can start working in the company. Compared to Polish offices, this is in fact a decisive simplification which may encourage the company to operate in Slovakia. Establishing and managing a company seems to be much easier there.

An additional advantage offered to all entrepreneurs in Slovakia is the lack of licenses required in other countries (in case of some branches of the economy monopolized by the state) or licenses (in the case of closed occupations). This means that the formalities are simplified to a minimum not only in terms of necessary visits in offices, but also at the level of permits that must be obtained in order to be able to think about running your own business at all. The obligation of licensed business activity was abolished there in June 2010. This can be felt in the case of activities that require a license (for example a taxi driver) or a concession, because they belong to the industry in which the state has a monopoly (including production and sale of fuel, activities related to mineral extraction, protection of persons and property) or air transport). Of course, it should be remembered that appropriate education and qualifications as well as professional experience in Slovakia are also necessary for us in the course of our activity, and that in order to sell, for example, alcoholic products, we still need permits, but we still miss part of the formalities. Such easy access makes people who in Poland would have to travel through a really long and difficult route, in Slovakia they can start their own business without much of a problem.