How to Register a Sole Proprietorship (Živnosť) in Slovakia

In Slovakia, the easiest way to start a business is by registering as a živnosť. The registration process is quick, the costs are low, and this structure allows you to work independently.

Of course, self-employment comes with responsibilities. You’ll need to handle the paperwork, pay regular health and social insurance contributions, and stay compliant with tax rules. While that may sound bureaucratic, Slovakia’s system for sole proprietors is relatively efficient compared to many countries.

The main appeal is flexibility. As a živnosť, you can start small, grow at your own pace, and work with clients both locally and abroad—all without the more complex setup of a company.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Slovakia?

In Slovakia, a sole proprietorship is most closely reflected by the legal concept of a živnosť, which literally means “trade.” You don’t register a “sole proprietorship” as such, but rather a trade license under the Trade Licensing Act. Once registered, you are recognized as a sole trader (živnostník) — the functional equivalent of a sole proprietor in English. The law defines a živnosť as a business activity carried out independently, in your own name, on your own responsibility, and with the aim of making a profit.

How does a Sole Proprietorship (Živnosť) work in Slovakia?

Živnosť vs. limited liability company (s.r.o.) in Slovakia

When deciding how to structure your business in Slovakia, most people weigh the simplicity of a sole proprietorship against the protection of a limited liability company (s.r.o.).

Step-by-step: How to register a sole proprietorship in Slovakia

Step 1: Check your eligibility

You must be at least 18 years old, legally competent, and have a clean criminal record. EU/EEA/OECD citizens can register without a residence permit. Other foreign nationals need a valid residence permit, an apostilled criminal record extract, and a certified translation.

Step 2: Choose your business name

You can operate under your own legal name, or you may choose a trade name when registering your živnosť. The official check for name uniqueness is carried out through the Trade Register of the Slovak Republic, managed by the Ministry of Interior, which lists all active sole traders.

If you also want to see whether a company is already using the name, you can search the Commercial Register (Obchodný register). However, this database covers only companies (such as s.r.o.) and does not replace the trade office’s verification for živnosť registrations.

Step 3: Gather required documents

You'll need:

• Valid passport or national ID
• Criminal record extract (apostilled and translated if foreign)
• Proof of business address (lease agreement or virtual office contract)
• Completed trade declaration form (available for download)

Step 4: Register with the trade licensing office (JKM)

Submit your application in person or electronically. The JKM also arranges your registration for income tax, health insurance, and social insurance.

Step 5: Pay registration fees and contributions

When registering your živnosť, you’ll need to pay around €7 per trade license for unregulated trade. Once registered, you must cover mandatory health insurance contributions, which in 2025 are set at a minimum of €107.25 per month. This figure is calculated as 15% of the minimum assessment base of €715, as published by the Social Insurance Agency. Social insurance contributions only become mandatory in your second year of business if your income in the first year exceeded €8,580. These contributions are also tied to the €715 minimum assessment base, with combined rates totaling 33.15%, which means the minimum monthly payment in 2025 is €237.02.

Step 6: Complete post-registration obligations

After registration, you must issue compliant invoices, maintain accounting records, file tax returns, and register for VAT if turnover exceeds the 2025 thresholds (€50,000 prior year or €62,500 current year).

Financial and tax obligations for Sole Proprietors in Slovakia

You are responsible for:

• VAT (DPH): VAT registration is required if turnover exceeds €50,000 in the previous year or €62,500 in the current year. The standard VAT rate is 20%, with a reduced rate of 10% for selected goods and services, and 0% for exports. VAT returns are usually filed quarterly, but some businesses with higher turnover must file monthly.
• Social insurance (Sociálne poistenie): Contributions are only required from your second year of business, provided your income in the first year exceeded €8,580. In 2025, the minimum monthly contribution is €237.02, calculated from the official minimum assessment base of €715.
• Health insurance (Zdravotné poistenie): Compulsory from the start of business. The minimum monthly payment in 2025 is €107.25, which equals 15% of the €715 minimum assessment base.
• Record-keeping: Sole proprietors must keep proper accounts, including invoices, receipts, and contracts. These documents must be stored for 10 years in case of an audit.
• Tax deductions: In Slovakia, as an alternative to documenting actual business expenses (like rent, transport, or office costs), sole proprietors may opt for a flat-rate expense deduction of 60% of income, with a maximum of €20,000 per year for non-VAT payers. Additionally, individuals benefit from a personal non-taxable allowance—approximately €5,753.79 per year (or about €479.48 per month)—if their tax base does not exceed certain thresholds.

Launch your contracting career and stay compliant with Deel

Registering a sole proprietorship gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a živnosť in Slovakia?
None.

Does a živnosť need to register for VAT?
Yes, if turnover exceeds €50,000 in the prior year or €62,500 in the current year (you have 5 days to register in the second case).

How much are the standard monthly or annual contributions?
Health insurance starts at about €107.25/month. Social insurance is ~€237.02/month from the second year if applicable.

Can a živnosť hire employees?
Yes.

How long does it take to register as a živnosť in Slovakia?
Usually, same day to a few days.

Can foreign nationals register as a živnosť in Slovakia?
Yes. EU/EEA citizens can do so directly. Non-EU nationals require a residence permit.

Does a živnosť need a separate business bank account?
Not required, but recommended.

What happens if I stop working as a živnosť?
You must deregister with the trade office and notify tax and insurance authorities.

Are there incentives for new živnosť?
No nationwide programs, but local schemes may exist.

Can I use Deel as a živnosť to get paid by international clients?
Yes—Deel supports secure global payments.

Does Deel generate compliant invoices for a živnosť?
Yes—Deel invoices comply with Slovak regulations.

Can Deel help me with taxes as a sole proprietor in Slovakia?
Yes—Deel provides tax-ready reports and payment records.

Does Deel offer contracts for freelancers and živnosť?
Yes—contracts are compliant with local law.

Can I access benefits through Deel as a živnosť?
Yes—optional perks like health insurance and retirement plans are available.