Open an Insurance Company in Slovakia
Open an Insurance Company in SlovakiaUpdated on Wednesday 06th May 2020
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Foreign investors interested in exploring the Slovak market have various industries they can set up companies in. Among these, the financial industry is one of the most appealing because of the sub-sectors in which a company can be established, but also to the fact that Slovakia is an EU member state and companies in EU countries can easily operate here through branches and subsidiaries.
The insurance market is one of the most prolific sub-sectors of the financial industry in Slovakia, therefore, the opening of an insurance company here can be quite lucrative.
If you decide to open an insurance company in Slovakia and need assistance, our local law firm can help you. Our Slovak lawyers can handle the entire business registration procedure on your behalf.
Insurance legislation in Slovakia
Those who want to open companies in the insurance sector in Slovakia must first understand the laws applicable in this industry. It is good to know that Slovakia has its own national laws, but it also complies with the EU Directives applied in the insurance sector.
The main law which needs to be respected by those who want to operate in the insurance industry in Slovakia is the Insurance Act which was last amended in 2015.
Our lawyers in Slovakia can offer detailed information on the laws applicable to insurance companies in this country.
Suitable business forms for insurance activities in Slovakia
There are several types of business forms under which an insurance company can operate in Slovakia. These are:
- the joint stock company which is suitable for both local and foreign investors seeking to enter the Slovak market;
- the European Company which is suitable for those seeking to operate at EU level with the headquarters in Slovakia;
- the mutual/cooperative insurance company, however, this business form does not have a correspondent in the Slovak legislation;
- the subsidiary company which implies the registration of a Slovak joint stock company by a foreign insurance business;
- the mutual/cooperative-type insurance company which is usually available at an EU level;
- the branch office is also an option for foreign companies located within or outside the EU.
It should be noted that foreign investors who want to open insurance companies in Slovakia are recommended to use the joint stock company and the European company. Our lawyers in Slovakia can explain the requirements for both types of structures.
Requirements for establishing an insurance company in Slovakia
The first step to open an insurance company in Slovakia is to register one of the two business forms mentioned above with the Trade Register. No matter the selected structure, once incorporated it must obtain its business license with the National Bank of Slovakia.
The license is issued based on the activities to be completed by the company. These can be insurance or reinsurance activities.
The following activities can be completed by an insurance company in Slovakia:
- - life insurance-related activities;
- - non-life insurance-related activities;
- - life and non-life insurance activities;
- - reinsurance-related activities.
No matter the activity the company will complete, the Slovak Insurance Act also provides for such businesses to comply with a solvency capital requirement. Even if no specific amount of money is forwarded by the National Bank, it is important to note that this capital is calculated based on a specific formula. This is why opening an insurance company in Slovakia is subject to particular share capital requirements.
Our law firm in Slovakia can assist with the registration procedure of an insurance company in this country.
Documents to be filed when obtaining an insurance license in Slovakia
The following information must be submitted when applying for a license for an insurance company:
- - the company’s trading name and registered address;
- - the identification number of the insurance company (where such a number has been issued);
- - the list with the shareholders qualifying in the insurance business;
- - information about the activities to be completed by the company;
- - information about the directors and managers of the insurance company.
It is important to know that other documents can be required, this is why we invite you to discuss the documentation requirements for opening an insurance company with our Slovak lawyers.
The insurance market in Slovakia
Those who want to set up Slovak companies in the insurance sector should know that:
- - between 2008 and 2017, the life insurance sector occupied between 49% and 56.2% of the insurance sector;
- - between the same timeframe, the non-life insurance sector represented between 43.8% and 51.0% of the entire sector;
- - the property insurance market was one of the most prolific sub-sectors, occupying 21.9% to 25.4% during the period mentioned above;
- - the motor vehicles insurance sector was also very important, with a market share of 26.5% to 30.7% between 2008 and 2017.
If you want to open an insurance company in Slovakia and need help, please contact us.