Being a sole trader or sole proprietor with normalized expenses is a very popular option of doing business in Slovenia. Normalized expenses mean that the sole trader pays only 4% of income tax. Even as a foreigner you can become a sole trader, under certain conditions.
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Data d.o.o. has been offering support to foreign citizens with their business in Europe. In addition to company registration services, we also provide professional accounting services. Additionally, we also have specialized legal advisors that support business owners with every aspect of business Slovenian legislation. Also, you can follow us on Facebook.
Who can set up a sole proprietorship? Can anyone be the founder?
It is possible to register as a sole proprietor free of charge at our VEM point. However, there are some limitations with the registration.
The founder himself must not be sentenced to imprisonment for a crime against the economy, employment and social security, legal transactions, property, environment, space and natural resources, and cannot entered in the criminal records of the Ministry of Justice (MP).
The establishment of a sole proprietorship is also temporarily not possible for those entrepreneurs who have established an LTD company in the last three months or acquired a share in an LTD, which is not older than three years.
Can foreigners register a sole proprietorship?
Foreigners can also register a sole proprietorship. However, the procedures differ depending on whether they come from an EU Member State or not.
Citizens of EU Member States have free access to the labor market and do not need to obtain a work permit. Thus, citizens of EU, EEA or Swiss Confederation Member States, or foreigners from third countries who have free access to the Slovenian labor market in accordance with the legislation of the Republic of Slovenia, can register and perform activity as self-employed (sole proprietorship) under the same conditions as Slovenian citizens. At least until the end of this year, British citizens also fall under this category.
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Third-country nationals need a work permit to be self-employed in the sole proprietorship
Foreigners from third countries, i.e. non-EU countries, need a work permit to work in Slovenia. Also, for work as a self-employed person or work through one’s own sole proprietorship they need to arrange a work permit before they can start work.
Formal registration of the sole proprietorship (s.p.) does not yet mean employment through s.p. You can only become self-employed with enrolling to Slovenian social security. This condition is part of the Employment, Self-Employment and Work of Foreigners Act.
Thus, the foreigner who establishes the s.p. may become self-employed only after one year of uninterrupted legal residence in the Republic of Slovenia. After this period, the foreigner can therefore register s.p. and apply for a single self-employment permit from the competent administrative unit. In such a case, the prior consent of the Employment Service of Slovenia is not required in the procedure.
Can foreigners also open sole proprietorship under normalized expenses?
It is recommended that if a foreigner decides to become a sole proprietor under normalized expenses, that they make an indicative short-term plan of the costs of performing their activity. For this, they can turn to experienced consultants of our company DATA, who will acquaint them with the details of each registered activity. Based on this, our accountants will assess which type of bookkeeping and consequently the type of taxation corresponds to each activity.
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Sole proprietors under normalized expenses are finally taxed in Slovenia
All activities, except retail with a low sales margin, are initially most profitable if you perform them under normalized expenses. This also applies to foreigners! Specific service activities, specialist expertise and performing deficient professions – all these are activities which foreigners can do under normalized expenses. It is also very important information for all foreigners that the normalized expenses also mean that they are taxed definitively. Taxation does not affect the tax return either in their home country or in Slovenia.
Sole traders, do you have questions about VAT, tax cash registers, etc?
Of course, foreigners can become sole traders under normalized expenses. Our accountants only recommend that they leave the bureaucracy to the appropriate professionals so that they can focus only on their business. You can find those professionals in abundance at DATA d.o.o.
What do you need for the registration?
When registering, future sole traders must have a valid personal document, a Slovenian tax number and an EMŠO number (personal identification number). If the new entrepreneurs are not the owners of the business premises (house or apartment) where the s.p. will be located, then they must bring with them a certified statement of the owner of the business address. Or better yet, bring the owner of the business premises with them to the registration at our VEM point!
Are you planning to start your business in Slovenia? Contact DATA for full support!
Do not miss the unique opportunity to learn about business immigration and support of company DATA with business in Slovenia! Contact us to for more information. Send us an email to firstname.lastname@example.org. You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.