Compliance

What it means

Compliance is running the company in line with the rules that apply to it: statute, contractual terms, sector regulation and its own internal rules. In a small company it is not a department but a set of procedures and named responsibilities.

The usual scope for a Slovak s. r. o.: accounting and tax deadlines, payroll and contributions, data protection, AML where it applies, register filings and the mandatory publication of the accounts.

Compliance is not the same as governance. Governance sets who decides in the company and who oversees whom; compliance checks that the rules are kept while they do. It differs from an audit in timing: an audit looks back at a closed period, whereas compliance runs continuously and is meant to prevent a problem rather than find it after the event.

How it works in practice

Workable compliance rests on a calendar of obligations and clear ownership: who prepares, who checks, who files. Written procedures (SOPs) and internal control turn good intentions into a repeatable process.

Part of the load moves to the accounting firm under a mandate contract and a power of attorney - the contract should name exactly which filings and by which dates.

When a client’s business changes - a first employee, a first sale into the EU, a contract with the state - we run a short review of what new obligations have arrived. Public sector work may require entry in the register of public sector partners, while a first employee brings payroll reporting, insurer registrations and health and safety.

What to watch out for

Responsibility for a filing stays with the managing director even when an external provider does the work. The penalty lands on the company, not on the accountant, which is why deadlines and document handover are agreed in writing.

Compliance is often handled once, at incorporation, and then left to go stale. The company changes: a new member joins, the registered office or the director changes. A change not filed with the commercial register in time can be fined by the registry court, and an outdated entry also complicates banking, contracts and partner checks.