An s.r.o. comes into existence on the day it is entered in the commercial register, and the first obligations start from that date in both Slovakia and the Czech Republic. The biggest practical difference concerns income tax: in Slovakia the tax office registers the company automatically, while in the Czech Republic you must file a registration yourself within 15 days. Beyond that, you need to arrange a business bank account, decide about VAT and handle employer duties once you hire your first employee.
When does an s.r.o. come into existence?
The founding deed or memorandum of association, payment of the share capital and the filing of the application all precede the company. The company itself, however, legally comes into existence only on the day it is entered in the commercial register. In both countries this date is decisive: deadlines run from it and so does the first accounting period.
From that day you have a company that exists but is not yet fully “set up” towards the authorities. Some registrations happen without you, others you have to track yourself. If you are the sole owner, it helps to know the specifics covered in our article on the single-member s.r.o. in Slovakia and Czechia.
Do you register for income tax yourself?
This is where the two countries differ most. In Slovakia, income-tax registration is automatic: since 2023 the tax office registers a newly incorporated company on its own initiative, usually within 30 days, and assigns a tax identification number (DIČ). You file no application.
In the Czech Republic, the initiative is on you. A new company must file an income-tax registration with the locally competent tax office within 15 days of incorporation, electronically via its data box. Missing the deadline can lead to a penalty of up to CZK 500,000. The tax office then issues the registration and assigns the tax number within 30 days.
What about the electronic mailbox?
Both countries rely on a mandatory electronic mailbox for official delivery. In Slovakia, every s.r.o. has an electronic mailbox on slovensko.sk that the state activates for delivery automatically and free of charge. In the Czech Republic, a company entered in the commercial register receives a data box (datová schránka) automatically and free of charge from the Ministry of the Interior.
In both cases, official decisions delivered to the mailbox have the same legal effect as registered post, so it must be checked regularly. The mailbox also serves as the main channel for electronic filings with the tax authorities.
Does the company need a business bank account?
Neither Slovak nor Czech law strictly orders a separate company account, yet in practice a business bank account is indispensable. It separates company money from the director’s private funds, which matters for bookkeeping and for any tax inspection. Mixing private and company payments on one account is a common mistake among new entrepreneurs.
In Slovakia, once you become a VAT payer you must also notify the tax authority of the bank accounts you use for business; refunds are then paid only to a notified account. Set the account up at the very start in either country.
When do you deal with VAT registration?
VAT registration can be voluntary or mandatory, and the thresholds differ. In Slovakia, the obligation arises when turnover for the calendar year reaches EUR 50,000, in which case you become a payer from 1 January of the following year; exceeding EUR 62,500 in the same year makes you a payer immediately.
In the Czech Republic, turnover above CZK 2,000,000 for the calendar year makes you a payer from 1 January of the following year, while exceeding CZK 2,536,500 makes you a payer at once, from the second day after the limit is crossed. Whether to register voluntarily depends on the numbers of your specific business.
What happens when you hire your first employee?
As long as the company employs no one, it has no employer duties towards the social-security and health-insurance systems. That changes with the first hire. In Slovakia, you must register as an employer with the Social Insurance Agency within eight days of taking on staff, while the employee must be registered before they start work — at the latest the day before their insurance begins; health insurers are notified within eight days.
In the Czech Republic, you register as an employer with the Czech Social Security Administration (ČSSZ) within eight days of hiring the first employee, and the same eight-day deadline applies to the employee’s health insurer. These deadlines are short and missing them is typically penalised.
What accounting duties apply?
In both countries an s.r.o. keeps double-entry bookkeeping; single-entry is not an option. From incorporation you therefore need a working system for recording documents, ideally with an accountant. For the first accounting period you then prepare financial statements and file them — in Slovakia into the register of financial statements, in the Czech Republic into the collection of deeds of the commercial register.
Recurring duties follow: corporate income-tax returns and meeting the deadlines towards the insurers if you employ staff. If you have not yet finalised the share capital, see our guide on paying up the share capital of an s.r.o.
Have you just founded an s.r.o. in Slovakia or Czechia and want to be sure you miss no registration or deadline? We will help you set the company up correctly from day one.
FAQ
Do you have to register a new s.r.o. for income tax yourself?
It depends on the country. In Slovakia the tax office registers the company automatically, usually within 30 days of incorporation, and assigns the tax number. In the Czech Republic you must file the registration yourself within 15 days of incorporation, electronically, or face a penalty.
Does the electronic mailbox come automatically?
Yes. A Slovak s.r.o. gets an electronic mailbox on slovensko.sk and a Czech s.r.o. gets a data box, both automatically and free of charge. Delivery into them has official legal effect equal to registered post, so they must be checked regularly.
When does an s.r.o. become a VAT payer?
In Slovakia, turnover above EUR 50,000 makes you a payer from the next year, and above EUR 62,500 immediately. In the Czech Republic, turnover above CZK 2,000,000 makes you a payer from the next year, and above CZK 2,536,500 immediately.