Doing Business 2018 Slovak Republic
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Doing Business 2018 Slovak Republic
Page 1
Doing Business 2018 Slovak Republic
Economy Profile of Slovak Republic
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Slovak Republic
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Slovak Republic
Ease of Doing Business in DB 2018 Rank
Region OECD high income
190 1
Slovak Republic
Income Category High income 39
DB 2018 Distance to Frontier (DTF)
Population 5,428,704
0 100
City Covered Bratislava 74.90
DB 2018 Distance to Frontier (DTF)
0 100
77.46: Regional Average (OECD high income)
76.27: Czech Republic (Rank: 30)
74.90: Slovak Republic (Rank: 39)
72.70: Italy (Rank: 46)
72.39: Hungary (Rank: 48)
68.70: Albania (Rank: 65)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Slovak Republic
1
1 7
28
42
49
57 55
55
83 84
82 91 89
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Slovak Republic
100.00
100
90.17
81.97 83.19
79.88
80
65.00 64.27 66.08
59.33
60
DTF
53.33
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Slovak Republic
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â— Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â— Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â— Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â— Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â— Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â— Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â— Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â— Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â— No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â— Official costs only, no bribes
â— No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â— Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Slovak Republic
Starting a Business - Slovak Republic
Standardized Company
Legal form Spolocnost s Rucenim Obmedzenym (s.r.o.)
Paid-in minimum capital requirement EUR 2,500
City Covered Bratislava
Indicator Slovak Republic OECD high Overall Best Performer
income
Procedure – Men (number) 8 4.9 1.00 (New Zealand)
Time – Men (days) 26.5 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 1.1 3.1 0.00 (United Kingdom)
Procedure – Women (number) 8 4.9 1.00 (New Zealand)
Time – Women (days) 26.5 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 1.1 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 17.2 8.7 0.00 (113 Economies)
Figure – Starting a Business in Slovak Republic and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
91.49: Albania (Rank: 45)
91.35: Regional Average (OECD high income)
89.42: Italy (Rank: 66)
87.60: Hungary (Rank: 79)
83.55: Czech Republic (Rank: 81)
81.97: Slovak Republic (Rank: 83)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Slovak Republic
Figure – Starting a Business in Slovak Republic – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1.2
25
Cost (% of income per capita)
1
20
0.8
Time (days)
15
0.6
10
0.4
5
0.2
0 0
1 2 3 4 5 6 *7 *8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Slovak Republic
Details – Starting a Business in Slovak Republic – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Check the uniqueness of the proposed company name Less than one day EUR 3 for research in
Agency : Commercial Register held by the District Court (online procedure) the Commercial
The cost of the certificate is EUR 3. The cost of a certificate issued in electronic form is Register
EUR 0.33. An online check without charge is possible, but the information on the online
website of the Commercial Register (www.orsr.sk) is not legally binding and usable for
legal acts.
2 Notarize articles of association and related documents 1 day see procedure details
Agency : Notary Public
The fee for the verification of a signature at a Notary Public is EUR 1.99 (excluding
VAT), i.e., EUR 9.95 (excluding VAT) for the verification of five signatures. The fee for
the verification of a signature at the Registrar´s Office is EUR 1.50, i.e., EUR 7.50 for the
verification of five signatures. Both options are commonly available and used in practice.
The Registrar's Office of a municipality and the District Authority are authorized to
verify signatures pursuant to Act No. 599/2001 Coll. on the Verification of Documents
and Signatures on Documents by District Offices and Municipalities, as amended. The
fee for the verification of a signature is stipulated in Act No. 145/1995 Coll. on
Administrative Fees, as amended.
3 Pay capital contributions and receive an affidavit from a custodian of funds 1 day no charge
Agency : Bank or Trustee
The minimum shareholder´s contribution is EUR 750. Before registering a company, at
least 30% of each shareholder´s contribution and 50% (EUR 2.500) of the minimum
registered capital must be paid.
The capital contribution is paid to the trustee, which is one of the founding shareholders.
The founding shareholders can decide that a bank will be the trustee. The trustee is
obliged to issue an affidavit concerning the paid in capital contribution in written form.
The affidavit has to be attached to the application for registering a company. (Sec. 60 of
the Act No. 513/1991 Coll. the Commercial Code).
4 Obtain at the tax authority office a form showing the partners tax arrears 5 days no charge
Agency : Tax Authority Office
According to the Amendments Act no. 246/2012, effective on October 1, 2012, to start up
a limited liability company, it is necessary to obtain at the tax authority office a form
showing the partners tax arrears. If the tax debits of each partner exceed EUR 170, it is
not possible to start up a limited liability company.
5 Apply at the One-stop shop for trade license, register for income tax and 9 days Electronic process:
with the District Court EUR 150 for Court
Agency : One-stop shop Registration, no
The One-stop shop created the Trade Licensing Offices, where it is possible to apply for charge for the
trade licenses, and income tax.
standard trade
license
According to Act No. 455/1991 Coll. Trade Licensing Act, it is possible to apply for
trade licenses at the One-stop shop.
Similarly, according to Act No. 563/2009 Coll Tax Code, it is possible to apply for
income tax registration at the One-stop shop.
As per Act No. 530/2003 Coll. on Commercial Register, paragraph 5b, sub-paragraph 1
of the Slovak Republic, application to the Commercial Register can be registered at One-
stop-shop. Then, the one-stop-shop ensures this application is electronically delivered to
Registry Court. The Registry Court must file new company's entry, or changes to the
Commercial Register within 2 days (Act No. 530/2003 Coll. on Commercial register,
paragraph 8, subparagraph 1). New 2 days term has been introduced as of January 1,
2014 (amending Act. No 547/2011 Coll., article XVI, subparagraph 1). Finally, the
income tax registration takes between 5 and 7 days.
6 Register for VAT 5-15 days No charge
Agency : Tax Authority Office
According to the Sec. 4(1) og the Act No. 222/2004 Coll. on the Value Added Tax as
amended (https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2004/222/20170101), a
company is obliged to register for VAT if the company reaches turnover at least EUR
49,790.In addition, in practice companies usually register for VAT voluntarily, in
conformity with Sec. 4(2) of the same act, as soon after registering into the Company
Register as possible in order to satisfy their business needs.
Page 8Doing Business 2018 Slovak Republic
7 Register with pension, sickness, and disability insurance and 1 day no charge
unemployment insurance at the local social insurance company (Socialna
poistovna)
Agency : Local social insurance company
For social security, the company must register itself as an employer within eight days
following the day it started to employ at least one employee; it must also register all new
employees with the Social Insurance Company before they begin to work. However, in
practice, the Social Insurance Company will not accept an application for the registration
of an employee if the company itself is not yet registered.
As of January 1, 2013, the employer is further obliged to register for social insurance
certain categories of employees working on the basis agreements outside an employment
relationship. The category of social insurance for which these employees must be
registered depends in particular on the type of agreement and salary.
8 Register for Health Insurance 1 day No charge
Agency :
Employers must register with all of the health insurance companies at which their
employees are insured within eight days from the commencement of the employment
relationship (Section 24(k) of Act No. 580/2204 Coll., on Health Insurance). The one-
stop shop only covers the health registration for self-employed cases.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2018 Slovak Republic
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â— Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â— Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â— Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â— Does not include time spent gathering information The warehouse:
â— Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â— Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â— No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â— Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â— Sum of the scores of six component indices: The water and sewerage connections:
â— Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â— Quality control during construction (0-3)
installed or built.
â— Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â— Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2018 Slovak Republic
Dealing with Construction Permits - Slovak Republic
Standardized Company
Estimated value of warehouse EUR 728,246.20
City Covered Bratislava
Indicator Slovak Republic OECD high Overall Best Performer
income
Procedures (number) 14 12.5 7.00 (Denmark)
Time (days) 300 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 0.2 1.6 0.10 (5 Economies)
Building quality control index (0-15) 8.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Slovak Republic and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
75.14: Regional Average (OECD high income)
67.93: Hungary (Rank: 90)
67.26: Italy (Rank: 96)
66.27: Albania (Rank: 106)
59.33: Slovak Republic (Rank: 91)
56.17: Czech Republic (Rank: 127)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Slovak Republic – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
300 0.09
0.08
Cost (% of income per capita)
250
0.07
200 0.06
Time (days)
0.05
150
0.04
100 0.03
0.02
50
0.01
0 0
1 *2 *3 *4 *5 *6 7 8 *9 10 * 11 12 13 14
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2018 Slovak Republic
Figure – Dealing with Construction Permits in Slovak Republic and comparator economies – Measure of Quality
15
13.0 13.0
11.0 11.4
Index score
10
8.0 8.0
5
0
Slovak Republic Albania Czech Republic Hungary Italy OECD high income
Details – Dealing with Construction Permits in Slovak Republic – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a clearance for the investment project 30 days no charge
Agency : Municipality
BuildCo must obtain a clearance from the Municipality. This clearance is rooted in the
legal mandate to review all new investment plans and to ensure that the city's zoning
plans allow for construction in the given location. This clearance confirms the suitability
of the planned construction in the proposed location.
2 Obtain a clearance from the Environmental Office at the Municipality 30 days no charge
Agency : Municipality
BuildCo submits a request for a statement to the local environmental agency, which acts
as a single point of contact for obtaining clearances from four agencies: water (resource)
protection, environmental protection, waste management, and regulation of emissions.
The joint clearance from the environmental office defines conditions for limiting the
negative impacts of construction on the environment. Any suggestions or changes
proposed in this clearance must be included in the project documentation prior to
applying for a building permit. Additionally, adherence to the environmental standards is
reviewed during the final inspection.
3 Obtain a fire safety clearance 30 days no charge
Agency : Regional Headquarters of the Fire Department
BuildCo’s project documentation must comply with current fire safety standards and
relevant laws. This process is regulated by Act No. 314/2001 Coll. on Fire Protection
Article 27a. A request for a review of the documentation is submitted to the local Fire
Department. The Fire Department provides a statement approving the project
documentation or proposing changes. The conditions in the statement must be complied
with and are reviewed again in the next stage. The Fire Department is invited to the
inspection of the building after construction and reviews whether the original conditions
had been adhered to during construction.
4 Obtain a health and sanitation clearance 30 days EUR 50
Agency : Public Health Office
After reviewing the project documentation, the Public Health Office provides a binding
agreement with technical conditions that must be complied with during and after the
construction. Along with the Fire Department clearance, the approval from the Public
Health Office is critical in order to obtain a building permit.
5 Obtain consent from water and sewage provider and request water and 26 days EUR 18
sewage connection
Agency : Bratislava Water Company, Plc. (Bratislavská vodárenská spoločnosť,
a.s.)
To apply for the construction permit, the builder needs a statement from utility providers
on the possible impact of the construction activity on existing utility networks and on
future supply of the utilities and agrees on the terms under which the facilities would be
granted. The terms are specified by the utility providers.
During construction, the utility providers are requested to also inspect the site at the
stages specified in the terms.
6 Obtain a certificate of ownership of the land and a cadastral map 1 day EUR 16
Agency : Real Estate Registry
The certificate of ownership must be recent (at most 3 months old).
Page 12Doing Business 2018 Slovak Republic
7 Request and obtain a location permit from the Municipality 90 days EUR 100
Agency : Municipality
Design plans and documentation submitted to the Municipality must show dimensions,
basic layout and an architectural concept of the building, description of impact that the
building will have on the environment, information on the intended use of the building
(e.g., production, storage), and information on the intended utility connections (water,
sewage, electricity etc.).
State and municipal authorities and companies involved include the public health
department, fire department, labor inspection, environment department and water
company. These organizations provide clearances and approvals.
The location permit determines the requirements for the utility connections (water,
sewerage, roads, and so forth).
The agencies may conduct on-site inspections. Generally, these are conducted only when
the documentation does not provide sufficient information for the agencies to issue the
required clearances and approvals.
The location permit is valid for two years (unless a longer period is stipulated by the
municipal authority) during which the builder must apply for a construction permit.
8 Request and obtain the construction permit from the Municipality 80 days EUR 600
Agency : Municipality
An application for the construction permit must be accompanied with detailed design
plans of the building, consents and statements of authorities commenting on specific
aspects of the construction process and operation of the building (e.g., water and sewage
provider), documents showing ownership title of the builder to the land or other title
allowing to build on third party´s land (e.g., lease), and minutes of meetings with other
parties to the construction proceeding if they took place prior to submitting the petition.
The construction office schedules a public hearing where all parties concerned (e.g.,
owners of neighboring land) may raise their objections. An on-site inspection is also
performed.
The permit is valid for 2 years during which the construction must commence, unless a
longer period is stipulated by the municipal authorities.
9 Receive on-site inspection before construction 1 day no charge
Agency : Construction Authority
The Construction Authority sets up an inspection date, and all interested parties and
authorities are invited. This procedure is not mandatory but is commonly done in
practice.
10 Obtain water and sewage connection 7 days EUR 332
Agency : Bratislava Water Company, Plc. (Bratislavská vodárenská spoločnosť,
a.s.)
If the technical conditions on the construction site of the building are met, the utility
provider must connect the building to the utility system, based on terms and conditions
specified in the contract drafted by the provider.
Request occupancy permit 1 day EUR 400
11 Agency : Municipality
The building can be used only after issuance of the occupancy permit. The builder may
file the request for the proceedings in advance, indicating the contemplated final
completion date, so that the authority is able to start the proceedings without undue delay
after the completion of construction. The authority notifies the involved parties of the
hearing and of the on-site inspection 10 days in advance.
12 Receive final inspection from the Municipality 1 day no charge
Agency : Municipality
An final inspection and a hearing involving the parties concerned are always carried out
before the occupancy permit is granted.
13 Obtain an occupancy permit from the Municipality 29 days no charge
Agency : Municipality
The construction office examines whether the building was erected in compliance with
the documentation approved by the construction office in the construction proceedings
and whether the terms determined in the land-use decision and the construction permit
have been complied with. The occupancy permit will be granted after the verification and
the inspection are successfully completed.
14 Register the building with the Real Estate Registry 60 days no charge
Agency : Real Estate Registry
The application may be submitted in person or by post. The land register will record the
ownership title to the building which was assigned a registration number based on the
geometric plan. Both documents shall be annexed to the application.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2018 Slovak Republic
Details – Dealing with Construction Permits in Slovak Republic – Measure of Quality
Answer Score
Building quality control index (0-15) 8.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 0.0
Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0
compliance with existing building regulations? (0-1) no need to verify
plans
compliance; Civil
servant reviews
plans.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 0.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 14Doing Business 2018 Slovak Republic
What are the qualification requirements for the professional who supervises the construction Minimum number 0.0
on the ground? (0-2) of years of
experience;
Passing a
certification
exam.
Page 15Doing Business 2018 Slovak Republic
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â— Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â— Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â— Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â— Is at least 1 calendar day
The warehouse:
â— Each procedure starts on a separate day
â— Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â— Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â— Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â— Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â— Duration and frequency of power outages (0–3)
The water and sewerage connections:
â— Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â— Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â— Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â— Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 16Doing Business 2018 Slovak Republic
Getting Electricity - Slovak Republic
Standardized Company
Price of electricity (US cents per kWh) 12.9
Name of utility Západoslovenska distribucna, a.s.
City Covered Bratislava
Indicator Slovak Republic OECD high Overall Best Performer
income
Procedures (number) 5 4.7 2 (United Arab Emirates)
Time (days) 89 79.1 10 (United Arab Emirates)
Cost (% of income per capita) 244.5 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff index (0-8) 8 7.4 8.00 (28 Economies)
Figure – Getting Electricity in Slovak Republic and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
95.35: Czech Republic (Rank: 15)
85.27: Italy (Rank: 28)
84.44: Regional Average (OECD high income)
83.19: Slovak Republic (Rank: 57)
63.26: Hungary (Rank: 110)
48.31: Albania (Rank: 157)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 17Doing Business 2018 Slovak Republic
Figure – Getting Electricity in Slovak Republic – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
250
80
Cost (% of income per capita)
70 200
60
Time (days)
150
50
40
100
30
20
50
10
0 0
1 2 3 *4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Slovak Republic and comparator economies – Measure of Quality
8 8
8 7.4
7 7
7
6
Index score
5
4
3
2
1
0
0
Slovak Republic Albania Czech Republic Hungary Italy OECD high income
Page 18Doing Business 2018 Slovak Republic
Details – Getting Electricity in Slovak Republic – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Apply for connection, receive connection agreement, and pay connection 24 calendar days EUR 7,606.2
fee
Agency : Západoslovenska distribucna, a.s.
TThe first step is submitting an application to connect on the distribution company’s
website, by email, or by mail. Documents attached to the application should also include
technical drawings of the area. Zapadoslovenska distribucna (ZSDIS) responds to this
application with technical conditions for connection and a connection agreement. In a
case like the one described by Doing Business, the enterpreneur would be connecting to
medium voltage and ZSDIS would bring the medium voltage cable to his/her property,
where the enterpreneur would install his private substation. The enterpreneur can choose
to let ZSDIS execute the external connection works. However, common practice is that
the enterpreneur agrees with ZSDIS to prepare the project design and obtain the building
permit for the external connection while obtaining building permit for the warehouse
from the Building Office. This practice benefits the enterpreneur, because it shortens the
connection time. Once the enterpreneur and ZSDIS agree on this approach, the
enterpreneur signs the connection contract and sends it back to ZSDIS. At this point, the
enterpreneur also pays the connection fee.
2 Await approval of project documentation by Západoslovenská distribučná 30 calendar days EUR 0
Agency : Západoslovenska distribucna, a.s.
Based on the technical conditions received from ZSDIS and the mutually agreed
approach between the entrepreneur and ZSDIS, the entrepreneur’s electrical contractor
prepares the project design for the external connection and the new private substation.
The electrical contractor subsequently submits this project design for approval to the
distribution company.
3 Await completion of external works by Západoslovenská distribučná 30 calendar days EUR 0
Agency : Západoslovenska distribucna, a.s.
Once the entrepreneur obtains the building permit for the external connection, s/he hands
over the documents to ZSDIS to build the external connection. During this period, ZSDIS
schedules the possible outage on the local network, prepares to build the external
connection, and obtains any remaining permits such as the excavation permit (permit for
a special use of the road).
The material is available more than 50% of the time.
Any licensed electrician can work on the internal wiring. A technical expert who is hired
by the warehouse owner, inspects the electricity wiring in the building, prepares a report
and the report is then submitted to the Office for inspection of the safety. The Office for
inspection of the safety issues its statement on the status of the electricity wiring in the
building and this statement is then submitted by the warehouse owner to the Building
Office during the proceedings to obtain the occupancy permit. The technical expert is
liable that the internal wiring is in compliance with applicable rules and regulations.
4 Install private substation 20 calendar days EUR 28,000
Agency : Electrical contractor
At this point, the entrepreneur and his electrical contractor install the private substation
while ZSDIS is working on the external connection. The entrepreneur and ZSDIS
coordinate their actions. After the installation, the entrepreneur’s electrical contractor
submits the completion report of the substation and other technical documents to ZSDIS
which confirms that the entrepreneur satisfied the technical conditions for a connection as
outlined at the beginning of the process.
5 Sign supply contract and await meter installation 5 calendar days EUR 0
Agency : Západoslovenska distribucna, a.s.
The entrepreneur signs a joint supply contract with his chosen electricity supplier. By
signing the joint supply contract, the entrepreneur satisfies all technical and commercial
conditions for the connection. Subsequently, the electricity supplier requests an
installation of a meter from ZSDIS on behalf of the entrepreneur.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2018 Slovak Republic
Details – Getting Electricity in Slovak Republic – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.8
System average interruption frequency index (SAIFI) 0.5
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.zsdis.sk/s
k/O-
spolocnosti/Informac
ny-servis/Cenniky
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2018 Slovak Republic
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â— Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â— Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â— Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â— Does not include time spent gathering information
- Is fully owned by the seller.
â— Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â— Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â— No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â— Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â— Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â— Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â— Transparency of information index (0–6)
â— Geographic coverage index (0–8)
â— Land dispute resolution index (0–8)
â— Equal access to property rights index (-2–0)
Page 21Doing Business 2018 Slovak Republic
Registering Property - Slovak Republic
Standardized Company
Property value EUR 728,246.20
City Covered Bratislava
Indicator Slovak Republic OECD high Overall Best Performer
income
Procedures (number) 3 4.6 1.00 (4 Economies)
Time (days) 16.5 22.3 1.00 (3 Economies)
Cost (% of property value) 0.0 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 25.5 22.7 29.00 (Singapore)
Figure – Registering Property in Slovak Republic and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
90.17: Slovak Republic (Rank: 7)
81.70: Italy (Rank: 23)
80.09: Hungary (Rank: 29)
79.74: Czech Republic (Rank: 32)
76.81: Regional Average (OECD high income)
59.28: Albania (Rank: 103)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Slovak Republic – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.045
16
0.04
14 Cost (% of income per capita)
0.035
12
0.03
Time (days)
10
0.025
8
0.02
6
0.015
4
0.01
2 0.005
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2018 Slovak Republic
Figure – Registering Property in Slovak Republic and comparator economies – Measure of Quality
30
25.5 26.0 26.5
25.0
25 22.7
Index score
20
15.5
15
10
5
0
Slovak Republic Albania Czech Republic Hungary Italy OECD high income
Details – Registering Property in Slovak Republic – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Each party obtains extracts from the commercial register held by the Less than a day Commercial Register
respective court (online procedure) of the Slovak
Agency : Respective District Courts Republic:
Parties obtain the Extract from the Commercial Register of the Slovak Republic held by - paper form - 13€ (2
the respective District Court, for each party. Extract for legal purposes can by in paper
extracts at 6.50€
form or in electronic form signed with certified electronic signature. Extracts from
each)
commercial register for legal purposes can be obtained either from the District Courts or
- electronic form -
from a notary. There are circa 330 notary offices in Slovak Republic. A notary is attached
to the Central Portal of Public Administration with certified electronic signature. After 0.66€ (two extracts at
identifying of a notary and entering the requirement, the system generates the required 0.33€ each)
extract from commercial register. The notary prints the extract on paper and certifies it.
This extract is also usable for legal purposes Since July 2010 all notaries are connected Notaries:
on-line with Commercial Register of the Slovak Republic. - paper form 1 page -
1.33€ per 1 page +
fee for the operation
of the information
- 2 page extract -
2.66€.
(This does not
include 20%VAT.)
Post: 9€ (2 extracts at
4,50€ each)
2 Confirm the signature authenticity of the seller before applying for 1 day 6 € (4 signatures at
registration 1,50 € at registrar´s
Agency : Notary or Registrar´s office office;
In order to file an Application for registration of the transfer (the Proposal for Entry into 7,96 € (4 signatures
the Cadastre) it is necessary to submit:
at 1,99 € each) at
- 1 piece of Application and 2 copies of the contract for the transfer to the respective
notary office
district District Office Cadastral Department. Assuming there will be only one executive
3.75€ at the
manager acting on behalf of each party (company), a notary or Registrar´s Office have to
verify 2 signatures (signatures of the person acting on behalf of the seller). integrated service
points.
Verification:
- the notary fee is 2.87€ per signature
- or at the Registrar´s Office for a fee of 1.50 € per signature.
There are three possibilities for drawing up the contract in Slovakia. The contract for a
property with the value of 702,701.00€ can be drawn up:
- by clients themselves (no costs i.e. 0.00€)
- by a notary (the fee for a notary is 992.00 € (excl. 20% VAT))
- by a lawyer (the fee for a lawyer is 1827.57 € (excl. 20% VAT
The District Office Cadastral Department does not require that the contract to be drawn
up either by a notary or by a lawyer. The contract is still valid if drawn by the parties
themselves.
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