Country Trading Profiles Slovakia

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Spolocnost rucenim obmedzenym is a Private Limited Company EUR 5,000. In case there is only one member, the whole capital must be paid. Otherwise, 30% of the capital must be paid.	1 to 50 partners No liability
Public limited company EUR 25,000 (10% must be released at the constitution)	No minimum. Liability is limited to the amount of capital contributed.
Verejna obchodna spolocnost is a general partnership No minimum capital.	Minimum 2 partners Liability is unlimited
Komanditna spolocnost is a limited partnership The deposit of the partner with limited liability must be at least USD 250.	At least one unlimited partner and one limited partner. Liability is limited for some partners and unlimited for others.

Business setup procedures

Setting up a company	Slovakia	Eastern Europe & Central Asia
Procedures (number)	6.0	6.3
Time (days)	16.0	16.3

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Slovakia.
Business Register
The competent organization: The trade register (in English).

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	3,411	-50	526
FDI stock (millions USD)	45,933.1	52,641.0	50,678.3
Performance Index*, ranking on 141 economies	74	137	-
Potential Index**, ranking on 141 economies	47	-	-
Number of Greenfield investments***	85	57	-
FDI inwards (in % of GFCF****)	14.5	5.5	-
FDI stock (in % of GDP)	48.5	57.1	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Slovakia

Strong points: The country's main advantages are:
- A strategic geographical position: the country is situated in the center of Europe;
- A workforce that is inexpensive and well qualified;
- its advantageous tax system, with a single tax rate of 19%;
- The existence of several financial aids favoring foreign investment and can range from 20 to 50% of investment costs, depending of the projects;
- A large growth potential;
- The adoption of the Euro since January 1st, 2009, which has made disappear the risks of foreign exchange;
- A low cost of living in relation to the rest of Europe.
Weak points: The main weak points of the country are:
- Important technical and administrative barriers: requirement of import licenses especially for raw materials, energy and some agricultural products;
- High energy costs: Slovakia must import 90% of its energy needs.
- Deficient infrastructures. Although, governmental reforms have been set up, the infrastructures are not yet well developed and the country has no access to the sea.
- The small size of its domestic market with a population that has a low purchasing power.
Government measures to motivate or restrict FDI: The Slovak government encourages foreign investment, since it is one of the main driving forces of the economy. It has also established financial incentives such as tax credits and subsidiary systems. These aids are granted depending on the type of project, geographical location and the sector of activity.
The country's low tax rate is one of the key elements that attracts FDI. Slovakia also benefits from European financial aids and many investors can benefit of the large renovation and modernization projects of the country.

Procedures relative to foreign investment

Freedom of establishment: Foreign investors have freedom of establishment.
Acquisition of holdings: A majority holding interest in stock of a local company is legal in Slovakia.
Obligation to declare: Several authorizations are necessary to set up a factory (planning license, building permit, occupation license). An authorization is also needed to carry out commercial activity. It has to be obtained from the competent local authorities.
Requests for specific authorizations: There are special authorizations in the sectors of electricity, telecommunications, banking services and insurance.

Finding assistance for further information

Investment aid agency: Slovak Investment and Trade Development Agency (in English)
Other useful resources: "Invest in Slovakia" a SARIO document (in English)
The Slovak Ministry of the Economy on investment (in English)
National agency for the development of SMEs, NADSME (in English)

COUNTRY TRADING PROFILES