Establishing a sole proprietorship (s.p.) in Slovenia

Establishing a sole proprietorship in Slovenia (s.p.) means registering as a sole proprietor, the simpler of the two most common business forms in Slovenia:

1. Private Entrepreneur / Sole Proprietor / Sole Trader (“samostojni podjetnik – s.p.”) and
2. Limited Liability Company (“družba z omejeno odgovornostjo – d.o.o.”).

Registration of an s.p. in Slovenia / Establishing an s.p. in Slovenia

Registration of an s.p. in Slovenia is free of charge. You choose the registration date yourself: the application can be filed up to one month before it and no later than one day before it.

You can register an s.p. yourself through the SPOT web portal, signing in with an accepted electronic identity (such as a qualified digital certificate), or in person at a SPOT point in Slovenia.

For registration of an s.p. you will need:

• a Valid Identity Document (ID or Passport)
• a Slovenian Tax Number (»davčna številka«)
• a Personal Identification Number (»EMŠO številka«)
• a Permanent or Temporary Address in Slovenia (»stalni ali začasni naslov«)
• a Business Address in Slovenia (»poslovni naslov«)

If you are planning to establish a business in Slovenia and are looking for a Business Address in Slovenia, our virtual office in Ljubljana is your best solution.

IMPORTANT INFORMATION FOR NON-EU NATIONALS

In accordance with The Employment, Self-Employment and Work of Aliens Act any foreigner can register an s.p. without becoming subject to a special status check at the time of registration. Since no special permissions are needed for the registration process itself, it is often believed that foreigners in Slovenia can become self-employed without prior approval or a relevant work permit.

Of course, this is not true. It should be noted that a formal registration of an s.p. does not mean self-employment. The self-employment process can only be concluded by joining the compulsory social insurance system, which in accordance with The Employment, Self-Employment and Work of Aliens requires a work permit.

Therefore, for becoming self-employed, non-EU nationals will also need:

• a Work Permit (»delovno dovoljenje«), for example a Single Residence and Work Permit for self-employment.

This document can be obtained at any Administrative Unit in Slovenia and is required for joining the compulsory social insurance system at The Health Insurance Institute of Slovenia (ZZZS or »Zavod za zdravstveno zavarovanje Slovenije«).

Three steps for becoming self-employed

Three applications are required for successfully becoming self-employed in Slovenia. They can be filled in and submitted through the SPOT web application or at a SPOT point:

1. an application to the Slovenian Business Register (“Vloga za vpis samostojnega podjetnika”)
2. an application to the Tax Administration of the Republic of Slovenia (“Oddaja davčnih podatkov za samostojnega podjetnika”)
3. an application to the compulsory social insurance system (“Prijava v obvezna socialna zavarovanja: M-1”)

We suggest that you submit all three applications at the same time, although the tax data must be submitted to the Tax Administration (FURS) within 8 days after registration.

One day after the registration of an s.p. the applicant will receive a document with the information about their registration application. The registration application can be confirmed or denied. It might also require additional documentation. The document is usually sent through post. However, it can also be sent to the applicant through e-mail (note that this is possible only if a person has acquired a secure electronic mailbox).

The confirmation of the establishment of an s.p. or the registration in the Slovenian Business Register (“Sklep o vpisu v Poslovni register Slovenije”) will look like this:

What is required after establishing an s.p.?

a.) Bank Account

After the sole proprietor receives the document confirming the establishment of the s.p. (“Sklep o vpisu v Poslovni register Slovenije”), they need a transaction account for business payments. There are two options:

• a dedicated business account (type T)
• a single account used for both business and private purposes (not all banks offer this, so ask your bank)

b.) Permits and conditions to perform certain activities

Some business activities require the sole proprietor to acquire special permits and meet certain conditions. You have to make sure that you have all required permits and that you meet all conditions before you start conducting these activities. The list of special conditions is available here.

c.) Safety and health at work

A sole proprietor has to ensure the appropriate health and safety conditions at work by carrying out a risk assessment and documenting it in a safety statement.

If you need more information or our help with establishing an s.p. in Slovenia, you can contact us through the telephone: 00 386 31 857 940 or email: info@mp.si or you can send us inquiry in the form below.

Costs and taxes after registration

Registration costs nothing, but a sole proprietorship in Slovenia starts paying social contributions at once, whatever the turnover. The table summarises the main rules.

To use normirani expenses, the average of your revenue in the previous two years must not exceed 50,000 euros, or 120,000 euros if in both years you were insured as a full-time self-employed person for at least nine months. In other cases the limit is 85,000 euros.

Official source: SPOT – Slovenian business point.

Frequently asked questions

Do I need a work permit before registering as a sole proprietor?
Non-EU nationals need a work permit to join the compulsory social insurance system, but EU/EEA/Swiss citizens can register and become self-employed without one.

Can I register remotely, without visiting Slovenia?
Yes, if you can sign in to the SPOT portal with an accepted electronic identity you can complete the application online; otherwise a personal visit to a SPOT point is required.

Do I need my own office to register an s.p.?
You need a registered business address, but not necessarily your own premises — a virtual office or a coworking membership can serve as your business address, as long as the provider allows you to register the s.p. there.

How much are the minimum social contributions for a sole proprietor in Slovenia?
The minimum is 651.04 euros per month, calculated from the minimum insurance base of 1,521.62 euros. Of that, 370.51 euros goes to pension and disability insurance, 274.45 euros to health insurance and long-term care, and 3.04 euros each to parental protection and employment. The maximum, from the highest base of 8,876.11 euros, is 3,607.57 euros.

When does a sole proprietor have to charge VAT?
An s.p. is exempt from VAT while its annual turnover in Slovenia stays up to 60,000 euros. If it passes 60,000 euros, it becomes a VAT payer on 1 January of the next year. If it passes 66,000 euros during the year, it becomes a VAT payer immediately.

What name can I use for my s.p.?
The business name must contain your first and last name, the abbreviation s.p. and a description of the activity. On letters sent to a single addressee you must also show the name, the seat and the company registration number.

See also:

• s.p. Personal Income Tax Slovenia
• Establishing a company in Slovenia
• Sole Trader or Limited Liability Company
• Corporate taxation in Slovenia
• Obligatory contributions for social security in Slovenia