Business activity of foreign nationals

What it means

The business activity of foreign nationals covers the conditions under which a person without Slovak citizenship may do business in Slovakia. Citizens of the EU, EEA and Switzerland do business on the same terms as Slovaks: they can obtain a trade licence or set up a company and merely register their residence.

Third-country nationals need, in addition to a trade licence or a stake in a company, temporary residence for the purpose of business. The application includes a business plan, proof of funds for the business and for living, proof of accommodation and a clean criminal record.

Residence for business must be distinguished from residence for employment, which is governed by the single permit or the EU Blue Card. A foreigner with residence for work cannot automatically run a business alongside it, and vice versa, so the right purpose must be chosen from the outset.

How it works in practice

For a third-country national, the most common route is to set up an s. r. o. in which they are member and managing director, and then apply for residence. The process takes months, so allow time for translations, document legalisation and any additional requests from the foreign police.

A trade can be notified at the district office's single point of contact. Craft and regulated trades require proof of qualifications, and foreign diplomas and experience may need recognition. Tax and contribution registration work exactly as for domestic entrepreneurs.

When residence is renewed, the authorities check whether the foreigner really does business: whether there is income, taxes and contributions are paid and there are no debts to the state. A company that exists only on paper without activity is grounds for refusal, so proper books and complete filings matter.

What to watch out for

A third-country director or member who stays in Slovakia without valid residence breaches the rules on foreigners' residence even if the company runs properly. Performing the role remotely from abroad is possible, but tax residence and the company's place of management must be considered.

Sham self-employment, where the foreigner in fact works for a single client like an employee, creates a risk of illegal employment for both sides. Inspections focus precisely on such cases, and fines for the client can be high.