A representative office
, also named a liaison office
, in Slovakia
represents an organization established by a generally foreign company to undertake marketing and other non-transactional activities on the local markets, when a branch office or a subsidiary is not opened. If you are interested in opening a representative office in Slovakia
, our Slovak lawyers
can assist you in this endeavor.
Differences between a representative office and a branch in Slovakia
In international trade dealings, a foreign company which intends to start its activities in this country should get permission to open a representative office or a branch in Slovakia. A representative office is accredited only for certain types of activities in Slovakia, such as:
• representing the parent company or group of businesses;
• promoting import and export to or from the country;
• promoting a financial or technical association between the representative office in Slovakia and the parent entity;
• facilitating communication between the companies in Slovakia and the parent company.
A branch office, on the other hand, can conduct much more activities. Acting on behalf of the original business, it is founded by it and therefore the foreign entity is responsible for all the debts and liabilities of its branch in Slovakia. Furthermore, a branch office can undertake activities such as actual operations, buying and selling goods and generally performing most of the activities of a registered entity. Our law firm in Slovakia
can offer more details on this matter.
Taxation of a representative office in Slovakia
From the taxation point of view, a representative office in Slovakia
is not considered to be a permanent formation of the parent company, consequently is not subject to taxes
. Therefore, the representative office does not have to maintain books, make its financial statements public and file for VAT returns. It does, though, have to keep ordinary accounts in order to register the expenses which are paid by the parent company.