Sale of a non-profit organization

The main advantage is the possibility to collect 2% of the tax already for this year. When establishing a new non-profit organization, you could collect 2% of the tax only one year later.

The name of the non-profit organization can be in the Slovak language as well as in a foreign language. The name must contain an indication of the legal form (non-profit organization or the abbreviation n.o.). The name of the non-profit organization must not be defamatory, offensive or interchangeable with the name of a public authority or with the name of another legal entity that is already active in the territory of the Slovak Republic. You can check the conformity at this link. You have to click on "continue without logging in", enter the desired name in the second field and click "Full text search...". If it doesn't find a match, the name is free.

The registered office of a non-profit organization serves mainly as a correspondence address. You can have your seat in an apartment, house, or any other property. Most clients indicate the address of residence of one of the members as the registered office of the non-profit organization. You are not obliged to carry out activities at the registered office address.

Public benefit activities - A non-profit organization is an ideal choice for carrying out or supporting any public benefit goals. It is the second most frequently established form of non-profit organization in Slovakia after a civil association.

Lower taxes - Taxation of a non-profit organization is significantly different from classic commercial companies, such as joint-stock companies or corporations. If certain conditions are met, a large amount of income can be considered as tax-free income.

2% of the tax - One of the significant options for financing a non-profit organization is the possibility of collecting 2% of the tax paid by natural or legal persons. Take advantage of the opportunity to collect 2% of the tax.

Subsidies - There are many opportunities for non-profit organizations to receive subsidies and grants designed to support their charitable activities and goals.

Entrepreneurship - A non-profit organization is entitled to support its activities and to engage in business. More and more clients are using the benefits of being a non-profit organization.

Yes you can.

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

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

Both legal forms belong to non-profit organizations. The fact that non-profit organizations include the legal form of the same name "non-profit organization providing generally beneficial services" raises questions and ambiguities. Many clients approach us with a request to establish a non-profit organization. However, we always contact clients to consult together whether they are interested in establishing a civic association or a non-profit organization providing generally beneficial services. After clarifying that a civil association is also a form of non-profit organization and explaining the differences between them, many clients ultimately decide to establish a civil association. Compared to 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 make up the bodies (3 people, the board of directors, the director and the auditor). In a civil association, even one person is enough - the chairman. Other persons will be members only. A non-profit organization has one additional obligation compared to a civil association, namely to publish an annual report to the register of financial statements every year. When it comes to taxes, accounting, subsidies, collecting 2% of the tax, collecting donations and the like, they are exactly the same. We discussed the comparison in more detail in this article.

Yes, the price for the sale of a non-profit organization is final and no other fees are added.

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

With our non-profit organizations, you can collect 2% of the tax for the 2023 tax period, which means that the first funds collected from the 2% of the tax will come to your account in 2024.