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9.9.2025

Contribution Capital Fund in Slovakia: How It Works and Why to Use It?

Financing a company doesn't have to be just about share capital or loans. Shareholders have the option to strengthen the company through a contribution capital fund. It is a practical tool that brings stability and flexibility to the company.

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What is a contribution capital fund?

These are the company's own resources provided by shareholders in excess of the share capital.
It is not considered a loan or a contribution to the share capital.
Its main purpose is to strengthen the company's financial health or support a specific project.

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How is a contribution capital fund created?

It can be established at the company's formation, with its creation approved by the founders.
It can also be created during the company's existence, in which case the general meeting decides on it.
Contributions can be monetary or non-monetary (e.g., assets, receivables).
A contribution is considered paid only at the moment it is actually provided to the company.

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What can the fund be used for?

To increase the share capital.
To cover losses of the company.
For distribution among shareholders. However, this is only possible if the articles of association permit it and the distribution is approved by the general meeting.

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Limitations:

If the company is in a crisis (it is bankrupt, threatened with bankruptcy, or the ratio of equity to liabilities falls below 8%), the contribution capital fund cannot be used for distribution among shareholders.
In the case of a distribution, a notice must be published in the Slovak Commercial Bulletin at least 60 days in advance.

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Why is it worth using a contribution capital fund?

It increases the company's credibility with business partners and banks.
It provides a financial reserve without obligations to shareholders.
It allows for a flexible response to business needs.

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The contribution capital fund is an interesting tool for stabilizing and developing a business without unnecessary debt. However, every company has its specifics, and its implementation requires consideration of the legislative, accounting, and tax aspects in Slovakia. If you are considering this step, it is worthwhile to consult with an expert to avoid unnecessary risks and take advantage of all the benefits the fund offers.

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