Slovakia is a recently developed country that has experienced some of the fastest growth of any European country in recent years. Slovakia’s loose labor laws and high quality work force have made it one of the biggest markets for foreign investment. Corruption and uncertain future growth and an element of risk to any investment, but Slovakia company incorporation is still an increasingly attractive prospect for entrepreneurs.
Advantages of Slovakia company registration
- Slovakia is a newly industrialized country, which has experienced high growth rates from 5 – 11% from 2004 to 2008, with the fastest growth of any EU country during Q4 of 2007. After contracting during the global downturn, Slovakia recovered rapidly to grow by 4% in 2011;
- As coal and steel mining have declined in Slovakia, higher-skill level industries have grown greatly. The automotive, mechanical and chemical engineering, and information technology industries are all expected to expand over the next decade;
- Slovakia has been a top choice for foreign direct investment due to its supply of cheap, highly-skilled laborers and new investment in to research and development to support current industry;
- A Slovakia limited company(SRO) is the most common type of company. Slovakia business setup requires only a single shareholder and one director;
- A Slovakia SRO can be entirely foreign owned and does not require shareholders to be physically present to do business;
- Slovakia business setup is uncomplicated and quick, requiring an average of 14 days to fully complete incorporation;
- A Slovakia SRO requires a minimum share value of only €5,000 (US$6,450);
- Slovakia has favorable tax rates for corporations, with a flat tax rate of 19% on both businesses and individuals and no dividends tax;
- Slovakia is positively ranked as the 46th easiest country to do business in. The International Finance Corporation study listed ease of registering property and getting credit as the main reasons behind the high rank, with Slovakia ranking among the top 15 countries in both categories;
- Opening global corporate bank accounts to assist Slovakia company setup is easy. Healy Consultants works with internationally recognised banks such as Citibank to provide corporate bank account services.
Disadvantages of Slovakia company registration
- The Slovakian economy has not shown signs of returning to its previous Europe-leading growth rates in 2007, with growth expected to decline again for 2012;
- Slovakia was negatively ranked as the 51st freest economy in the Heritage Foundation’s 2012 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment, and labor markets. Moderately-high corruption and relatively low government spending were the main reasons behind Slovakia’s low rank;
- Slovakia is negatively ranked as the 66th least corrupt country in the world, according to the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Slovakia is negatively ranked as the 69th most competitive economy in the world in the Global Competitiveness Report 2012-2013, down from 60th in 2011;
Did you know about Slovakia?
- Slovak is sometimes called “Slavic Esperanto” because it is regarded as the most comprehensible language for the speakers of other Slavic languages;
- The High Tatra mountains are the smallest high mountains of the world, with an area of more than 700 km2 (of which 550 km2 are situated in Slovakia and the rest in Poland). The highest peak of the High Tatra mountains – Gerlachovský štít – lies at an altitude of 2,655 m a.s.l.;
- Slovakia is a car-country. With more than 100 cars pre 1000 people, it is the largest producer of cars if counted per person;
- 90% of Slovaks have completed at least secondary education – the highest score in the EU (along with Poles, Czechs, and Slovenes);
- Slovak women marry the youngest (average 24 years old) within the European Union, along with Lithuanian and Polish women;
- Slovakia, along with Poland, have the biggest households in the EU, with 3.1 persons per household. On the other hand, Slovak women give birth to an average of 1.33 children, one of the lowest rates in Europe;
- Martina Hingis, Tennis champion, former World No. 1, and winner of five Grand Slam singles titles and nine Grand Slam women’s doubles titles, was born in Slovakia to a Slovak father and a Czech mother;
- Slovakia was part of Czechoslovakia until 1939, when Adolf Hitler demanded that it declare independence. It was forced to ally itself with Germany and its government was a puppet regime.