Consequences of buying a ready-made company in Slovenia

Consequences of buying a ready-made company in Slovenia

When entrepreneurs are deciding on starting a business in Slovenia, they sometimes also consider buying a ready-made company. They think that by buying a company, they avoid additional financial costs and can start the business immediately. But is that in fact true? Do you actually know what the consequences are of buying a ready-made company?

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Data d.o.o. has been offering support to local and foreign entrepreneurs with business in Europe through company registration in Slovenia. We also provide professional accounting services. Also, we have a specialized legal department that supports business owners with every aspect of business Slovenian legislation. We can also help you to obtain the required documents for company registration. You can also follow us on Facebook.

Consequences of buying a ready-made company – taking over debts

When you buy a company, you take over the debts of that company. This means that you buy a company without realizing the previous debt, which only becomes known when you become the owner. The consequences of taking over debts means that you, as the new owner, now have to pay those debts. Thus, paying a few hundred euros for ready made company can lead to unforeseen costs. But by registering a new LTD company in Slovenia, you can be sure that the company has clean history as you start fresh.

As the new owner, you also take on the debt of the share capital, which the previous owner withdrew before selling it to you. The first owner deposited the share capital when he founded the company. But before selling the company, the owners withdraw the share capital. Then, when you buy a company, the consequences are that this debt passes on to you because a company is considered financially incapable without having share capital.

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Consequences of buying a ready-made company – restrictions with employing foreigners

Another problem can arise when buying an existing business. Since you cannot check everything about the company’s previous business actions before buying, it can happen that you are actually buying a company with certain restrictions. Some companies have received fines in the past and may now have certain restrictions for doing business. For example, consequences of these fines can mean they may have restrictions on the employment of foreigners if they have violated the Labor Law regulations in the past. If they have such a restriction, you cannot apply for work and residence permits and therefore you cannot employ workers who do not have EU citizenship. This is another reason why it is good to start your own business, instead of buying an existing one.

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Consequences of buying a ready-made company – unforeseen costs

In practice, you can not check the company, so purchasing an existing company requires caution. You cannot check the company until you become the owner of the company. One such example is that the previous owner was signing contracts, which were not recorded in the business books. Entrepreneurs come to DATA with requests for help from our legal service, when they discover debts that have consequences on not fulfilling the contract which you as the new owner did not know anything about.

If you are buying a company, keep in mind that you have to pay notary fees. Buying a company also has consequences of additional costs in addition the notary. You will also pay the cost of a court interpreter for the translation during the process itself. You also need witnesses who speak Slovenian and are citizens of Slovenia.

Buying a company can ultimately cost you quite a bit more than setting up and registering a new company with an initial capital of 7500€.

If there is still a dilemma regarding the purchase of a company in Slovenia and its consequences or the registration of a company, we suggest that you consult our legal and tax experts.

Are you considering relocating to Slovenia? Are you an EU citizen? Apply for our webinar on obtaining residence permit in Slovenia as EU citizen:

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Avoid these risks and open a new company in Slovenia instead! DATA can offer full support.

Do not miss the unique opportunity to learn about company registration and business immigration to Slovenia. DATA can offer you full support in the consultation and the company registration. Also, you can contact us for more information. Send us an email to You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.

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