Establishmet of a non-profit organization

The name of a non-profit organization can be in Slovak as well as in a foreign language. The name of a non-profit organization may not be derogatory, offensive or interchangeable with the name of a public authority or the name of another legal entity that already operates in the territory of the Slovak Republic. You can check the compliance in this link. You need to click on "continue without logging in", enter the desired name in the second field and click on "Full-text search ...". If no match is found, the name is free.

The seat of the organization serves mainly as a correspondence address. You can have your seat in an apartment, house, or any other real estate. Most clients state the address of residence of one of the members as the seat of the organization. You are not obliged to operate at the registered office address.

A non-profit organization can be established by a natural person or a legal entity. One person can also be the founder. However, you will need at least 5 natural persons (3 people on the board + director + auditor) to set up the bodies properly. A non-profit organization can also be established by a foreigner (a person residing outside the territory of the Slovak Republic) or several foreigners.

Public benefit activities - A non-profit organization is an ideal choice for carrying out or supporting any public benefit goals. After the civic association, it is the second most frequently established form of non-profit organization in Slovakia.

Lower taxes - Taxation of a non-profit organization differs significantly from traditional business companies, such as stocks or eseročky. Under certain conditions, a large amount of income can be considered as tax-exempt income; this, of course, does not apply to a non-profit organization that carries out a purely business activity.

2% of the tax - One of the important ways of financing a non-profit organization is the possibility to collect 2% of the paid tax of natural or legal persons. Take advantage of the opportunity to collect 2% of the tax yourself.

Subsidies - There are a large number of opportunities for non-profit organizations to draw subsidies and grants designed to support their generally beneficial activities and goals.

Entrepreneurship - A non-profit organization is entitled to support business in its activities. More and more clients are taking advantage of the opportunity to do business for a non-profit organization.

The non-profit organization is obliged to publish an annual report in the register of financial statements every year. The annual report is filed by the non-profit organization in the public part of the register of financial statements by 15 July at the latest. What other obligations it will have (accounting, levy, tax ...) depends on the nature of the activities it will perform.

It is very fast with us, we usually send the founding documents to clients within 48 hours after receiving payment. The district office in the seat of the region performs registrations within approximately 20-30 days from the submission of the proposal.

Yes, it is mandatory to keep simple accounts. If a non-profit organization runs a business (has a trade license issued) or its income exceeds € 200,000 per year, it is required to keep double-entry bookkeeping.

If you are interested in collecting 2% of the tax, you can collect it with an existing association a year earlier than when setting up a new association. If you need to function and carry out activities through the association as soon as possible, then by purchasing a ready-made civic association, you can already on the day of signing the documents - immediately then. You become the owner (chairman, member) at the moment of signing the documents. When establishing a new association, it takes about 30-60 days for the ministry to register the association. The Ministry does not comply with the legal deadline for registration of the association of 15 days, respectively due to the large amount of the agenda.

Both legal forms belong to non-profit organizations. Confusion and ambiguity is caused in particular by the fact that non-profit organizations include the legal form of the same name "non-profit organization providing services of general interest". Many clients approach us with a request to establish a non-profit organization. However, we always contact our clients to consult together whether they are interested in founding a civic association or a non-profit organization providing services of general interest. After clarifying that a civic association is also a form of non-profit organization and explaining the differences between them, many clients eventually decide to establish a civic association. Unlike a non-profit organization, a civic association is a legal form with a simpler structure and functioning. In a non-profit organization, you will need at least 5 people to join the bodies (3 people, board of directors, director and auditor). One person is enough in the civic association - the chairman. Other people will only be members. The non-profit organization has one additional obligation compared to the civic association, namely the annual publication of the annual report in the register of financial statements. As for taxes, accounting, subsidies, collecting 2% of the tax, obtaining gifts and the like, they are in exactly the same situation. We have discussed this comparison in more detail in this article.

No, the non-profit organization is not obliged to have a bank account, it is voluntary. However, if you plan to collect 2% of the tax from the non-profit organization, you will need a bank account.

In order for a non-profit organization to receive 2% of the tax, it must register with a notary in the list of recipients of 2% of the tax. Registration takes place every year only between 1 September and 15 December. The main condition for a non-profit organization to register to receive 2% of the tax this year is that it was established last year or earlier (2021, 2020, 2019 ...). This means that if we now set up a non-profit organization for you, you will not be able to register as a recipient of 2% of the tax until 2023 and the first 2% funds will come to your account in 2024 (for the tax period 2023). If you would like to collect 2% of the tax as soon as possible, we have our non-profit organizations available for sale, to which you can collect 2% of the tax a year earlier than when setting up a new non-profit organization. Our non-profit organizations did not carry out any activity, are without any obligations and were established only for the purpose of resale. We contractually guarantee the indebtedness of our non-profit organizations. We can transfer such a non-profit organization to you, and of course the change of name, registered office, activities and officials to yours is also required. Learn more about this service in this link.