Open a SPV Company in Slovakia

The Slovak Special Purpose Vehicle/Entity (SPV/SPE) is an enterprise that has as a shareholder another business, often referred to as a parent company. There are several reasons to open an SPV in Slovakia, and often, such forms are employed in the financial industry.

Below, our company formation agents in Slovakia present the main requirements to set up such an enterprise here. You can rely on us for support in creating an SPV.

The main characteristics of SPVs in Slovakia

At the EU level, as also in Slovakia, Special Purpose Entities are created by parent companies for several reasons, among which:

• to ensure enhanced asset protection and management;
• to reduce financial risks;
• to ease investments.

These can also be considered the main features of Slovak SPV, which also provide for their use. Specifically, a SPE can be used for:

• securitization;
• finance various projects;
• holding investments.

In most cases, multinational companies set up SPVs in Slovakia to benefit from tax and other types of advantages.

If you decide to open a company in Slovakia as an SPE, our local agents can guide you through the incorporation process.

How to register a SPV in Slovakia

The Special Purpose Vehicle must be registered as any other domestic company in Slovakia. For this purpose, the most employed legal entity is the private limited liability company (SRO). Its setup implies:

• securing a legal address;
• appointing a director;
• drafting the usual incorporation paperwork.

The company will be entered in the Companies Register’s records and obtain a Certificate of Registration.

Our Slovak company formation agents can handle the entire setup procedure.

Uses of SPEs in Slovakia

Foreign companies can create SPVs in Slovakia for various purposes, among which:

• reduce the risks associated with the creation of new projects, as the assets of the parent company will be separate from those of the SPV;
• securitization of loans, which is often the case with financial institutions, such as banks, and which enables them to separate the loans from other obligations;
• transfer of assets, which is often the case with holding companies, that can create subsidiaries in Slovakia to keep various assets in them;
• sale of property, which can help reduce the tax burden on the company, especially if it is not a domestic one.

You can obtain more information on Slovak SPVs from our company registration advisors.

The main activities an SPV can undertake in Slovakia

Those who decide to open an SPE in Slovakia must know that the activities such an enterprise can undertake are limited. To be more precise, they can acquire assets and finance projects. Considering that such activities may prove risky and lead to financial losses incurred by the parent company, the SPV will allow it to protect its assets from these risks.

SPVs are also useful tools for the Slovak economy, as they can contribute to foreign direct investments.

When not created by financial companies, the SPV can also be launched as a startup by many investors who pool money together in an innovative venture.

No matter the reason you want to create an SPV, our company registration consultants in Slovakia can help you.

Foreign Direct Investments in Slovakia

Considering SPVs can contribute to the foreign investments in a country, when it comes to Slovakia, the latest data was gathered in a report by the United Nations, and it contains information for 2023, as follows:

• FDI inflow was USD 180 million, while the total FDI stock stood at USD 60.5 billion;
• at the end of the year, most FDIs came from the Netherlands (23.5%), the Czech Republic (14.4%), and Austria (13.4%);
• manufacturing, industrial operations, and financial and insurance services are the top 3 most prolific industries in Slovakia.

If you decide to open an SPV in Slovakia, you can contact our local specialists.