Well, you have decided to start or expand your business in Slovenia. The first question that arises in this regard is what is the cost of opening a company in Slovenia? Another question is how much the maintenance of the company will cost per month? We will answer both these questions in this article.
I. Registering a Company
The best way to legally register your business in Slovenia is to open an LLC-type (d.o.o. – družba z omejeno odgovornostjo) company.
The minimum authorised share capital for starting a company is EUR 7,500.
II. Monthly Expenses
1. Wage + Social Security Contributions
As of October 2020, the minimum wage in Slovenia is EUR 940.58 before taxes (gross wage) under full time bases (40 hours per week).
Salary deductions are paid by both the employer and the employee. With a minimum gross wage of EUR 940.58 that an employee receives, the minimum expenses of an employer make EUR 1,094.27. After deducting taxes from the minimum wage, the final EUR 674.39 (net wage) will go to the employee’s account. The rest is transferred to the social insurance funds and to pay personal income tax.
|Contribution||Employer’s Rate, %||Employee’s Rate, %|
|Compulsory health insurance||6.56||6.36|
|Pension and disability insurance||8.85||15.5|
|Pregnancy and childbirth insurance||0.10||0.10|
|Insurance against work accidents and occupational diseases||0.53||–|
The income tax rate in Slovenia is progressive, that is, the amount of tax depends on the amount of wages. The minimum income tax rate is 16%, the maximum – 50%.
To obtain a residence permit in Slovenia, an employee, including the company’s CEO, must be employed full time.
2. Accounting Services
Each accounting company offers its own packages and rates. On average, we are talking about the amount of EUR 100-150 per month with at least one employed employee. The exact amount depends on the activity of your company and the selected service package.
The fee for preparation and submission of the company’s annual report to the tax office is usually calculated separately and costs an average of EUR 200.
3. Legal Address
If you do not have your own premises to register the legal address of the company in Slovenia, then add EUR 30-60 per month to your expenses.
4. Virtual Office
The Virtual Office service is necessary because all incoming correspondence related to your company will be sent to your legal address. If you do not respond to requests from government agencies in time, you risk receiving a fine and creating problems for yourself at the very beginning of your business journey.
The Virtual Office service involves the receipt and forwarding of incoming correspondence of your company to your address. It costs an average of EUR 30 per month.
5. Company Account
Various banks in Slovenia offer maintenance of the company’s current account for EUR 4-22 per month. This amount does not include fees for transfers, cash deposits and similar services.
6. Income Tax
The corporate income tax in Slovenia is fixed at a rate of 19%.
Income withdrawn to the account of the individual founder is taxed at a rate of 25%.
Average Expenditures for Running a Company Excluding Income Tax
|Wage for 1 employee||EUR 1,095|
|Accounting services||EUR 120|
|Legal address||EUR 30|
|Virtual office||EUR 30|
|Bank services||EUR 15|
This is the approximate amount required to maintain a company with one full time employee. An article about the expenses required for accommodation and household expenses can be read here.
© AG Skupina d.o.o.