The Slovak labour market and business environment are becoming increasingly open to people from abroad. In practice, there is therefore a growing number of companies dealing with the employment of foreign nationals, as well as situations where a limited liability company (s.r.o.) has a foreign shareholder or managing director. Although these roles may even be held by the same person, from a legal perspective it is essential to distinguish strictly between three different positions: shareholder, managing director and employee. Each of them is subject to a different legal regime.
Employing Third-Country Nationals Is Not Merely a Matter of Signing an Employment Contract
In the case of third-country nationals, concluding a standard employment contract under the Slovak Labour Code is not sufficient. Before an employment relationship is established, it is necessary to verify the legal basis on which the individual concerned is entitled to work in Slovakia.
The principal legal framework is set out in Act No. 5/2004 Coll. on Employment Services, in conjunction with Act No. 404/2011 Coll. on the Residence of Foreign Nationals. Depending on the circumstances, a confirmation of the possibility of filling a vacant position, a work permit or the relevant type of residence permit may be required. At the same time, Section 23a of the Employment Services Act provides for certain categories of persons for whom neither a work permit nor confirmation of the possibility of filling a vacant position is required.
Significant legislative changes were introduced with effect from 15 July 2026 by Act No. 128/2026 Coll., which amended both the Act on the Residence of Foreign Nationals and the Employment Services Act and is linked to the EU framework governing the single permit for residence and employment.
Particular attention should also be paid to the employment of a foreign national under an agreement outside an employment relationship. It cannot automatically be assumed that, where a standard employment relationship is permitted, the same foreign national may also be engaged under an agreement to perform work or an agreement on work activity. Under a number of residence and employment regimes, the law expressly requires the work to be carried out within an employment relationship. The precise legal status of the foreign national should therefore be verified before any agreement is signed.
An Employer’s Obligations Do Not End Once the Foreign National Starts Work
The employer’s obligations continue after the employee has commenced work. The employer has various reporting obligations towards the competent labour office, including obligations relating to the commencement or termination of employment, a foreign national’s failure to take up employment, and changes to relevant information. Since 15 July 2026, several notifications may also be submitted through new electronic services.
Once an employment relationship has been lawfully established, Slovak employment law and the Labour Code apply. Foreign employees are therefore subject to the rules governing remuneration, working time, annual leave, termination of employment, occupational health and safety (OHS), as well as the principle of equal treatment. At the same time, the employer processes information contained in passports and residence documents, meaning that personal data protection and GDPR obligations must also be observed.
Failure to comply with the relevant rules may amount to illegal employment under Act No. 82/2005 Coll. Consequently, an inspection carried out by the labour office or the Labour Inspectorate may examine not only the employment contract itself, but also whether the foreign national is legally entitled to reside and work in the Slovak Republic.
Establishing an s.r.o. as a Foreign National: Being from a Third Country Is Not, in Itself, an Obstacle
Another frequently raised issue is the establishment of an s.r.o. by a third-country national. Section 24 of the Slovak Commercial Code expressly allows a foreign person to participate in the establishment of a Slovak legal entity, become its shareholder or, subject to the statutory conditions, establish the company as its sole shareholder. Foreign nationality in itself is therefore not an obstacle to the establishment of a company.
When considering how to establish an s.r.o., particular attention must be paid to the company’s business name, registered office, objects of business, the identities of its shareholders and managing directors, the amount of their contributions, and the relevant founding document. Where there is more than one founder, the company is established by a memorandum of association; where there is a single founder, a founding deedis executed.
The minimum registered capital of an s.r.o. is EUR 5,000, while the contribution of each shareholder must amount to at least EUR 750. Once the statutory requirements have been fulfilled, the company must be registered in the Commercial Register, and it comes into existence upon such registration.
Since 17 August 2026, a new Act No. 29/2026 Coll. on the Commercial Register has been in force. Accordingly, when preparing corporate documentation, it is no longer appropriate to rely on the former Act No. 530/2003 Coll. The new legislation regulates company registration, the information entered in the Commercial Register, the ultimate beneficial owner, as well as specific verification requirements concerning founders, shareholders and statutory bodies.
A Shareholder Is Not the Same as a Managing Director
This distinction is the source of many practical misunderstandings. A third-country national may be a shareholder in an s.r.o. and hold an ownership interest in the company, but this does not automatically give that person the right to work personally in Slovakia or to perform the role of managing director there.
Since August 2026, when a foreign natural person is being registered in a position authorising that person to act on behalf of a company, the Commercial Register also verifies whether that person holds a valid residence permit in the Slovak Republic. An exception applies to nationals of EU Member States and OECD member countries. In the case of a company managing director from a third country, the individual’s country of nationality may therefore be decisive.
If a foreign person wishes to carry on business as a natural person, this constitutes a separate legal issue. A trade licence for foreign nationals is governed by the Slovak Trade Licensing Act and residence legislation. This should not be confused with a situation where the objects of business and the relevant trade authorisation are held by the s.r.o. itself.
One Person, Three Legal Regimes
A foreign investor may therefore simultaneously be a shareholder, a managing director and an employee of their own company. This is precisely where the legal structure becomes most sensitive: the Commercial Code and the Commercial Register govern the individual’s corporate position, the Act on the Residence of Foreign Nationals governs their right to reside in Slovakia and carry out a particular activity there, while the Employment Services Act together with the Labour Code governs any employment relationship they may have.
For companies with foreign shareholders, proper establishment of an s.r.o. therefore does not begin with an electronic form, but with correctly determining what the foreign national will actually be doing in Slovakia. The distinction between owning a company, managing it and performing work for it may ultimately determine whether the business structure operates smoothly from a legal perspective or becomes problematic in terms of residence rights, Commercial Register requirements or illegal employment.