Entrepreneurship” is one of the four ways to engage in business in Slovakia. The specific conditions and performance of entrepreneurial business are regulated by Act No. 455/1991 Coll. on Trade Licensing (Trade Licensing Act), as amended by later regulations (hereinafter referred to as the “Trade Licensing Act”).
Any domestic or foreign natural person or legal entity that meets the conditions for conducting trade specified in the Trade Licensing Act can operate a trade. A domestic person is considered to be a natural person with residence or a legal entity with registered office in the territory of the Slovak Republic, while a foreign person is considered to be a natural person with residence or a legal entity with registered office outside the territory of the Slovak Republic.
Types of Trades The Trade Licensing Act distinguishes three types of trades based on different requirements for the professional competence that an entrepreneur must demonstrate when declaring a trade:
a) Free trades (no requirement for professional competence to operate free trades), b) Craft trades (requirement for professional competence obtained through apprenticeship in the field to operate craft trades), c) Bound trades (requirement for professional competence obtained differently, as specified in Annex No. 2 to the Trade Licensing Act, to operate bound trades).
Certain activities listed in Section 3 of the Trade Licensing Act, such as the activities of lawyers, veterinary doctors, medical doctors, experts, interpreters, architects, surveyors, cartographers, banking, operation of gambling, agriculture and forestry, inland water transport, regular bus transport, road motor transport (domestic irregular bus transport, domestic freight road transport, domestic taxi services), vehicle technical and emission inspections, and other activities, are not considered trades.
Operating a Trade An individual who meets the general conditions for operating a trade, namely being 18 years old, having legal capacity, and being of good character, can operate a trade. In addition to the general conditions, entrepreneurs operating craft or bound trades must also meet special conditions for operating a trade, such as professional or other qualifications specified in the Trade Licensing Act or a special legal regulation, which are listed for bound trades in Annex No. 2 to the Trade Licensing Act.
If the entrepreneur does not personally meet the special conditions for operating a trade, they can appoint a responsible representative through whom they ensure the professional performance of the activity during the operation of the trade.
Meeting the professional competence requirement for selected regulated trades, which are listed in Annexes No. 1 and 2 of the Trade Licensing Act and also included in one of the three lists marked I to III, is possible through alternative means, such as the recognition of professional experience or qualifications. Recognition can be requested from the Ministry of the Interior of the Slovak Republic, Department of Trade Licensing.
An entrepreneur interested in operating trades listed in Annex No. 4 of the Trade Licensing Act (plumbing and heating; installation and repair of cooling equipment; assembly, reconstruction, and maintenance of reserved technical equipment; men’s, women’s, and children’s hairdressing; cosmetic services; pedicure; tourist guide services; massage services) must ensure that these activities are carried out by individuals (employees) who meet the requirements of special professional competence. Special professional competence refers to a combination of theoretical knowledge, practical skills, and mastery of technical or technological procedures.
Declaration of a Trade Anyone wishing to operate a trade must declare it to the locally competent district office, Department of Trade Licensing, acting as a single contact point (hereinafter referred to as “SCP”) according to the place of residence of the natural person or the registered office of the legal entity. Residence in the Slovak Republic means permanent residence in the Slovak Republic or permanent residence in the Slovak Republic based on a permit under Act No. 404/2011 Coll. on the Stay of Aliens and on the Amendment and Supplementation of Certain Acts, as amended.
Forms for declaring a trade:
- Form for declaring a trade/application for issuing a certificate of trade authorization – natural person
- Form for declaring a trade/application for issuing a certificate of trade authorization – legal entity
The entrepreneur must attach all necessary attachments to the trade declaration, such as a document proving professional competence, consent of the responsible representative to appointment if the entrepreneur does not meet the condition of professional competence, or an extract from the criminal records register if the trade is declared by an entrepreneur who is not a citizen of the Slovak Republic (for citizens of the Slovak Republic, the SCP automatically obtains a criminal records extract when declaring a trade).
The district office, Department of Trade Licensing, issues a certificate of trade authorization within three working days from the day the declaration is complete.
The SCP, along with declaring a trade, registers the natural person with the health insurance company and the tax office. For a legal entity, using the SCP’s services for registration with the tax office or the commercial register is voluntary.
Trade declaration can also be submitted electronically through the electronic services of the Central Public Administration Portal.
The SCP allows applying for the establishment of an authorization for business for selected professions operating based on special regulations, also electronically through the electronic services of the Central Public Administration Portal.
Administrative Fees.
Issuing a certificate of trade authorization:
- For each free trade: €5
- For each craft or bound trade: €15 When declaring a trade electronically through the electronic services of the Central Public Administration Portal:
- Declaration of each free trade: Free of charge
- Declaration of each craft or bound trade: €7.5 All administrative fees in the field of trade licensing can be found on the website of the Ministry of the Interior.
Notification of Changes in Trade Authorization.
If changes occur during business that affect the conditions under which the entrepreneur’s trade authorization was granted, the entrepreneur is obliged to report these changes to the locally competent SCP within 15 days of their occurrence. The obligation to report changes applies to changes such as a change of surname, change of business premises, change of responsible representative, etc.
More information about reporting changes can be found on the website of the Ministry of the Interior.
Suspension of Trade Operation.
Suspension of trade operation must be reported to the locally competent SCP using the form “Notification of Suspension of Trade Operation.”
The entrepreneur can report the suspension of trade operation to the trade office for a specified period, stating the start and end dates of the requested suspension. The effects of the suspension of trade authorization occur on the day following the day of delivery of the notification of suspension of trade operation to the trade office, or if a later date is specified in the notification, on that date.
After the suspension of trade operation, the entrepreneur regains trade authorization upon expiration of the suspension period or on the date specified in the notification of change of the suspension period.
During the suspension of trade operation, the entrepreneur does not lose the right to trade; they just cannot carry out the trade during the suspension period (engaging in trade during this period would constitute unauthorized business). The entrepreneur can resume operating the trade after the expiration of the suspension period.
Termination of Trade Authorization.
Trade authorization terminates for several reasons: a) Announcement of the termination of business, b) Expiry of time if trade authorization was issued for a specific period, c) Decision of the trade office to cancel trade authorization, d) Death of a natural person (trader), if heirs or the estate administrator do not continue the trade, e) Expiry of the authorized temporary stay or permanent residence of the entrepreneur or its cancellation, f) Dissolution of a legal entity, g) Or as specified by a special law.
More information about trade licensing can be found on the website of the Ministry of the Interior of the Slovak Republic, Department of Trade Licensing.