SMP

TAKE A SEAT

Slovakia

Typical legal form for start-ups

spoločnosť s ručením obmedzeným (s.r.o.)

Brief information

Slovak start-ups usually choose the legal form of the s.r.o. It offers the advantages of a limited shareholder liability and a low minimum share capital of EUR 5,000.

A PE/VC Fund may participate in the Supervisory Board if it is established.

The Management directs the s.r.o. In addition, an optional Supervisory Board may be established to monitor the management.

Other legal form

akciová spolocnost (a.s.) und jednoduchá spoločnosť na akcie (j.s.a.)

Brief information

Occasionally the a.s. and the still new legal form of the j.s.a. is used. Both legal forms offer the possibility of issuing shares and are therefore suitable for investors seeking anonymity. The a.s. has a complex corporate governance and requires a high minimum share capital. The j.s.a. is a mixed form between the a.s. and the s.r.o. with lower minimum share capital and lower corporate governance requirements.

A PE/VC Fund may participate in the Supervisory Board if it is established.

The a.s. must establish a Supervisory Board as a supervisory body in addition to the Management Board and the shareholders' meeting. However, this only takes over monitoring functions. At j.s.a., as at s.r.o., an optional supervisory board can be established.

A PE/VC Fund may participate in the Supervisory Board of the a.s. and of the j.s.a., in the latter, if it is established.

The information in our toolbox provides managers of private equity or venture capital funds with an initial overview of certain framework conditions in the respective country. It does not provide advice on the law of any country, neither does it substitute such advice. Before taking over a board seat in a portfolio company, it is at all times necessary to seek expert advice. Our team is happy to assist you with all questions at any time.

In collaboration with: Kinstellar

Sources: Wegen/Spahlinger/Barth, Gesellschaftsrecht des Auslands 2. EL Januar 2018