How to open a crypto company in Slovakia?

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The main process of launching a crypto-related business in Slovakia is the same as for any other type of company. In order to do that, a Slovakian or foreign entrepreneur has to first register their business with the Obchodný register (aka the Business Register of the Slovak Republic).

There exist various types of business activities that can be carried out by a registered company, including:

  • Mining-related activities
  • Activities related to the production or sale of brand-new or in-use crypto-currencies
  • Activities related to the deployment of crypto-ready ATMs in the country
  • Activities related to the creation and launch of ICOs
  • Activities related to crowd-funding.

Usually, when talking about obtaining a crypto license in Slovakia, people are mainly referring to either registering an IT business or a financial services company. In the latter case, it is required to obtain a license from the Ministry of Finance of the Slovak Republic. If you choose to set up an IT-related business, you are not required to undergo all the hoops that would be required if you opted for a Financial Services license.

What documents are needed for a crypto license in Slovakia?

A typical company application for the registration of a crypto business in this country includes the following:

  • An application form;
  • Articles of Association and other business-related legal documents;
  • Documents proving the fact that you have a registered office (it’s possible to set up a virtual office as well);
  • Documents proving that the business’ founding members and directors have permanent residence;
  • Documents proving that the founding members that the senior staff have enough expertise to operate in the cryptocurrency sector (relevant experience);
  • Documents proving lack of criminal record (e.g. for violation of gambling laws or other financial crimes).

All of the above need to be translated into Slovakian by a Slovakian entrepreneur that was licensed by the Ministry of Justice of the Slovak Republic.

Which companies can help with obtaining a crypto license in Slovakia?

There are many different types of service providers that can assist crypto entrepreneurs with obtaining a crypto license and setting up a company in the fastest and most efficient manner. You can find more information on different types of service providers via Google but the main thing is to make sure that you’re doing your due diligence by checking all the information you can find related to these companies. Even if their official website provides a short yet glowing description of what their business actually does and how they can help with your crypto startup, you need to dig deeper and find verified user testimonies from various crypto entrepreneurs that have used these service providers and had good or bad experiences with them. It’s important to examine both sides of the spectrum in order to extrapolate the best and most suitable option for you and your business.

Conditions for obtaining a crypto license in Slovakia?

Fortunately, there’s a very specific and clear-cut set of criteria you need to comply with in order to be granted a license. There are no citizenship or residency requirements for a crypto license in Slovakia (more on that later), which helps ease the burden on the crypto entrepreneurs but it is still necessary to meet the other requirements and they are as follows:

For a private joint-stock business:

  1. Company name not already in use;
  2. Minimal share capital of 5,000 EUR;
  3. Director living either in Slovakia or any other European Union member state;
  4. At least one stockholder/No more than fifty stockholders;
  5. A business account set up with a local banking institution.

For an LLC:

  1. Proof of permanent residency of both directors and founding members;
  2. Articles of association;
  3. Act of registration or memorandum of association;
  4. Business plan;
  5. No criminal record proof;
  6. Proof of qualification.

Why choose Slovakia to register a crypto company?

Despite many different countries offering more relaxed regulations for cryptocurrency businesses, you have to pick the right place to set up shop for obvious reasons. There are many things that set Slovakia apart in this regard, including:

  • Great economic situation. The country’s economy is flourishing and it’s one of the fastest growing economies in Central and Eastern Europe. Even the average salary in Slovakia is higher than the average salary in most nearby countries.
  • Bratislava is a great city that is easy to get around, has a great infrastructure and many major international companies have set up their headquarters there. The nation’s capital also happens to be the perfect base for startups specializing in digital currencies. It’s also very well connected to other major cities across Europe.
  • Highly educated and skilled workforce. The region that makes up the Slovak Republic is home to some really impressive workers that happen to be quite experienced in dealing with new technologies. From web developers to industry influencers and investors, there are a lot of qualified individuals ready and willing to put their knowledge and skills to the test.
  • Low tax rates. Slovakia’s tax rates are comparatively low.
  • It’s easy to access lucrative European markets, including Swiss, German, French, Danish, and even British markets.
  • High trust. Slovakia is known as a nation of highly educated and skilled people who work hard for their employers. When setting up a new business in a new country, you would normally be put under high scrutiny, which makes your business instantly trustworthy in the eyes of the future investors. This automatically places your business ahead of your competitors.
  • This nation has multiple double taxation treaties with a number of countries. It makes it easier to pay taxes and stay compliant with the rules and regulations.
  • It’s relatively easy to open a corporate bank account. The requirements are straightforward and the procedure will only take a few days if you qualify. It can take even less if you choose to seek out outside assistance.
  • Slovakia is a member of the European Union and uses Euro as its currency. This makes it very easy to set up business operations in and with the nation. The Euro can also be converted to other global currency or crypto effortlessly.

Benefits of Slovakia for obtaining a crypto license?

There are several advantages of setting up a cryptocurrency business in Slovakia, including:

  1. No restriction regarding capital transfers and revenue;
  2. 100% foreign ownership is permitted;
  3. Currency control is lax;
  4. You are not obliged to hire local workers only;
  5. It’s possible to hire a nominal representative instead of relocating.
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