A limited company is the most reliable and respected of the company forms because the entrepreneur's personal finances and the company's finances are separated from each other, and in it the entrepreneur pays themself a salary, which is earned income. Especially for growth, it is good to establish a limited company, because of its tax advantages and it also makes trading abroad easier. A limited company can be founded by one or more natural persons or legal entities, but when founding alone, it should be noted that according to the law, the board of directors needs at least one deputy member.
Establishing a limited company in plain language:
A limited company is established by submitting a start-up notification to YTJ. The start-up notification can be made either online or on a paper form.
The conditions for reporting online are:
- the share capital is zero euros
- the subscription price of the shares is zero euros
- the standard articles of association are sufficient for the company
If the conditions of the notification are not met, it can be done using a paper form, in which case the following information must be provided:
- The limited company's business name, industry, fiscal year, domicile and any subsidiary names and their industries.
- Names and personal IDs of shareholders, possible CEO, and board members.
- Names and IDs of potential auditors, procurators or persons entitled to represent.
After the start-up notification, the limited company is registered in the trade register of PRH. The processing of the establishment declaration made online costs 240€ and the paper form costs 380€.
Considerations when setting up a limited company:
- The founder of the limited company must not be bankrupt or insolvent, and at least one of the founders must be domiciled in the European Economic Area.
- If a limited company is founded for the purpose of licensed business operations, the permits must be obtained before starting operations.
- From 2019, the minimum requirement for a limited company's share capital was removed, and zero euros can be entered in the trade register if there is no share capital at all. Here, it should be noted that if there is share capital, the declaration of establishment of the sub-company cannot be made online, but only on paper.