Ab initio calculations on one, two, and three layers of SnS and SnSe compound semiconductors show that they all have indirect band gap similar to bulk and it varies in the range of ∼0.5–1.6 eV within the generalized gradient approximation due to quantum confinement as well as structural relaxations. In two-dimensional structures, the difference between the direct and the indirect band gap is very low and in the case of a SnS bilayer, this difference is minimum. Further, the band gaps calculated with HSE06 functional are in good agreement with the experimental results available for bulk and single layer. The total and projected densities of states show that the top of the valence band arises from the hybridization of Sn 5s and chalcogen p valence orbitals while the bottom of the conduction band has predominantly Sn 5p character. The effective mass of electrons and holes are found to be small. These features are similar to the recently discovered perovskite materials for photovoltaics with high efficiency and suggest that SnS and SnSe layered materials are also promising for photovoltaics. Further calculations on bulk and layers of GeS and GeSe are reported and the results are compared with those of SnS and SnSe structures. © 2016 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim