CANADIAN
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ENTITIES IN SR


BUSINESS ENTITIES IN SLOVAKIA

The main regulation of business law in Slovakia is the Business Code Act. No 513/1991 Zb. as amended. Entities of business law under this Code are enterpreneurs, the state and its bodies, local territory entities and other subjects. This Code recognizes these types of business corporations:

a) „spoločnosť s ručením obmedzeným“ is a limited liability company, whose registered capital is made up of contributions agreed in advance by its members. The company itself is wholly liable for any breach of its obligations from all of its assets, but each member´s liability for the company´s obligations is limited to the unpaid part of their contributions as recorded in the Business register. Abbreviation is s.r.o. or spol. s r.o..

b) „akciová spoločnosť“ is a joint stock company, whose registered share capital is divided into a certain number of shares of a specific nominal value. The company itself is wholly liable for any breach of its obligations from all of its assets, but each member has no liability for the company´s obligations. However, a member must pay up the nominal value of his shaers in full. Akciová spoločnosť may be found either by calling for stock subscription or by founders, who pay off the whole registered capital. Abbreviation is a.s. or akc.spol.

c) „verejná obchodná spoločnosť“ is a partnership, where at least two persons together carry on a business activity under a common commercial name, and each partner personally bears joint and several liability for the obligations of the partnership from all of their assets, which means they have unlimited liability. Abbreviation is ver. obch. spol. or v.o.s.

d) „komanditná spoločnosť“ is an entity in which one or more partners are liable for the partnership´s obligations up to the amount of the unpaid parts of their contributions as recorded in the Business register /limited partners/ and one or more partners are personally liable for the partnerhip´s obligations from all of their assets /general partners/, therefore general partners have unlimited liability. Abbreviation is kom. spol. or k.s..

e) „družstvo“ is an entity, whose associates must consist of at least five members, two or more of them must be legal entities. This entity is liable for any breach of its obligations from all of its assets, but its members are not liable for the entity´s obligations. Its purpose is carrying on a business or satisfying its members´economic, social or other needs.

Other types of business subjects, which are regulated by specific acts are sole traders and subjects carrying on business under specific regulations. Sole trading is a continuing activity, which is executed independently, under own name, with full responsibility, for the purpose of achieving profit and under conditions of Sole Trading Act No. 455/1991 Zb. as amended. Sole trading may be executed by a natural person or a corporate entity.

Foreign persons or entities are entitled to operate business in the territory of Slovak republic under equal conditions. A foreign person or entity may take part in incorporating a slovak business corporation, may incorporate a slovak business corporation itself, may become a sole owner of a business corporation, or may be a shareholder in already existing slovak business corporation.