Can a foreign citizen become a sole proprietor in Slovenia?
»Can I become a sole proprietor in Slovenia if I am a foreigner?« is one of the most frequently asked questions from our clients, who are foreigners from non-EU countries.
If you are a citizen of a non-EU country and have had at least one year of registered residence in Slovenia, you can become a sole proprietor in Slovenia.
A sole proprietor or LTD company?
If you do not have residency in Slovenia and plan to do business in Slovenia you can open a private company limited by shares (LTD). If you already have a company in your homeland or in another country, you can open a subsidiary (also LTD) or a branch office.
You can open a branch office if you plan to perform the same business activities as the parent company and you do not need any founding capital in order to register the branch office.
A branch office is not a legal entity but it conducts business in Slovenia under the same conditions as a LTD – this means that you can issue invoices and employ workers in the branch office. The parent company from your homeland is liable for the business conduct of the branch office. You also have to include the business conduct of the branch in your financial reports of the parent company.
The most common form of legal entities in Slovenia, which foreigners register, is the LTD company. The LTD can have one or more founders and one or more directors. The founding capital is 7.500 EUR and you can use it later on for business expenses or investment.
The differences between an s. p. (a sole proprietor) and LTD (private company limited by shares) are listed below:
| a sole proprietor | LTD | |
| Personal liability | YES (you are liable with all your assets) | NO (you are liable with the founding capital in accordance to the capital of the company) |
| Founding capital | Not necessary | 7.500 EUR (can be deposited in cash, assets or combined) |
| Taxation of profit | 16 %, 27 %, 41 %, 50 % (taxation scale) | Tax on profit of legal entities – 19 % |
| Types of bookkeeping | Deductible expenses (80%)
Single-entry bookkeeping Double-entry bookkeeping |
Deductible expenses (80%)
Double-entry bookkeeping |
Work and residence permit based on becoming a sole proprietor or employed in LTD company
Bear in mind that if you want to be employed in your new company, you have to obtain work and residence permit.
Based on this permit you can freely work and reside in Slovenia. As well as conduct business with other EU member countries (in accordance with their regulations, of course). With opening LTD you do not obtain the right to work in Slovenia.
We can offer you complete support in the process of opening a company in Slovenia and employment. We can offer consultation on the conditions of performing a certain business activity, obtain all necessary documents to register a company. You can register the company at our »One-Stop Shop« free of charge. We also offer our accounting services and legal services from the field of migration, labor and economic law. We can also offer our help with obtaining all necessary permits or licenses.
Contact us to get more info about a sole proprietor or LTD company!
If you want to become a sole proprietor or open LTD company, contact us! Write us an e-mail to the address data@data.si. Give us a call on the telephone number, +386 1 6006 270, Viber/WhatsApp: +386 40 530 718.
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