Doing Business 2014: Slovak Republic Summary
Core Content
The Doing Business 2014 report evaluates the ease of doing business in the Slovak Republic by analyzing 11 key areas in the business life cycle. It provides a ranking and comparative data across 189 economies, helping policymakers understand the regulatory environment and identify potential reforms.
Main Points
Ease of Doing Business Index
- Rank (DB2014): 49
- Rank (DB2013): 43 (adjusted for data corrections and new economies)
- Change in Rank: -6
- Distance to Frontier (DTF): 69.48
- Change in DTF: -0.22
The Slovak Republic has slightly worsened its ranking compared to the previous year but remains among the top-performing economies in the Eastern Europe and Central Asia region.
Key Indicators and Comparisons
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Starting a Business (Rank) |
108 |
80 |
76 |
146 |
59 |
90 |
45 |
38 |
New Zealand (1) |
| Procedures (number) |
7 |
6 |
5 |
9 |
4 |
6 |
6 |
2 |
10 Economies (3) |
| Time (days) |
18.5 |
13.5 |
4.5 |
19.5 |
5.0 |
6.0 |
11.5 |
6.0 |
New Zealand (0.5) |
| Cost (% of income per capita) |
1.5 |
1.8 |
21.1 |
8.2 |
8.6 |
14.2 |
7.2 |
0.0 |
Slovenia (0.0) |
| Paid-in Min. Capital (% of income per capita) |
19.3 |
21.3 |
0.0 |
29.5 |
9.4 |
9.8 |
0.0 |
44.1 |
112 Economies (0.0) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Getting Electricity (Rank) |
65 |
66 |
158 |
146 |
112 |
89 |
85 |
32 |
Iceland (1) |
| Procedures (number) |
5 |
5 |
6 |
6 |
5 |
5 |
4 |
5 |
10 Economies (3) |
| Time (days) |
158 |
158 |
177 |
279 |
252 |
124 |
131 |
38 |
Germany (17) |
| Cost (% of income per capita) |
10.6 |
11.3 |
543.3 |
179.0 |
116.4 |
215.9 |
505.6 |
120.3 |
Japan (0.0) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Registering Property (Rank) |
11 |
9 |
119 |
37 |
45 |
34 |
44 |
83 |
Georgia (1) |
| Procedures (number) |
3 |
3 |
6 |
3 |
4 |
4 |
6 |
5 |
4 Economies (1) |
| Time (days) |
16.5 |
16.5 |
33.0 |
24.0 |
16.5 |
16.0 |
11.0 |
109.5 |
New Zealand (1.0) |
| Cost (% of property value) |
0.0 |
0.0 |
11.1 |
4.0 |
5.0 |
4.4 |
2.8 |
2.0 |
5 Economies (0.0) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Getting Credit (Rank) |
42 |
40 |
13 |
55 |
55 |
109 |
42 |
109 |
Malaysia (1) |
| Strength of Legal Rights (0-10) |
8 |
8 |
9 |
6 |
7 |
3 |
7 |
4 |
New Zealand (9.7) |
| Depth of Credit Information (0-6) |
4 |
4 |
5 |
5 |
4 |
5 |
5 |
4 |
31 Economies (6) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Paying Taxes (Rank) |
102 |
100 |
146 |
122 |
124 |
138 |
161 |
54 |
United Arab Emirates (1) |
| Payments (number per year) |
20 |
20 |
42 |
8 |
12 |
15 |
66 |
11 |
Hong Kong SAR, China (3) |
| Time (hours per year) |
207 |
207 |
357 |
413 |
277 |
269 |
279 |
260 |
United Arab Emirates (12) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Trading Across Borders (Rank) |
108 |
111 |
85 |
68 |
70 |
56 |
98 |
48 |
Singapore (1) |
| Documents to Export (number) |
7 |
7 |
7 |
4 |
6 |
3 |
6 |
5 |
Ireland (2) |
| Time to Export (days) |
17 |
17 |
19 |
17 |
17 |
19 |
12 |
16 |
5 Economies (6) |
| Cost to Export (US$ per container) |
1,500 |
1,560 |
745 |
1,215 |
885 |
1,195 |
1,455 |
745 |
Malaysia (450) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Enforcing Contracts (Rank) |
65 |
65 |
124 |
75 |
15 |
103 |
116 |
52 |
Luxembourg (1) |
| Time (days) |
545 |
545 |
525 |
611 |
395 |
1,185 |
635 |
1,270 |
Singapore (150) |
| Cost (% of claim) |
30.0 |
30.0 |
35.7 |
33.0 |
15.0 |
23.1 |
34.0 |
12.7 |
Bhutan (0.1) |
| Indicator |
Slovak Republic DB2014 |
Slovak Republic DB2013 |
Albania DB2014 |
Czech Republic DB2014 |
Hungary DB2014 |
Italy DB2014 |
Serbia DB2014 |
Slovenia DB2014 |
Best Performer |
| Resolving Insolvency (Rank) |
38 |
38 |
62 |
29 |
70 |
33 |
103 |
41 |
Japan (1) |
| Time (years) |
4.0 |
4.0 |
2.0 |
2.1 |
2.0 |
1.8 |
2.0 |
2.0 |
Ireland (0.4) |
| Cost (% of estate) |
18 |
18 |
10 |
17 |
15 |
22 |
20 |
4 |
Norway (1) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
1 |
1 |
0 |
1 |
0 |
1 |
0 |
0 |
- |
| Recovery Rate (cents on the dollar) |
54.1 |
53.6 |
40.7 |
65.0 |
38.3 |
62.7 |
29.0 |
50.1 |
Japan (92.8) |
Main Viewpoints
- The ease of doing business index ranks the Slovak Republic 49th globally.
- The distance to frontier (DTF) has slightly decreased, indicating a small regression in regulatory performance.
- The starting a business process involves 7 procedures, taking 18.5 days and costing 1.5% of income per capita, with a paid-in minimum capital requirement of 19.3% of income per capita.
- The getting electricity process requires 5 procedures, taking 158 days and costing 10.6% of income per capita.
- Registering property involves 3 procedures, taking 16.5 days and costing 0.0% of property value.
- Getting credit involves a legal rights index of 8 and a depth of credit information index of 4, with a ranking of 42.
- Paying taxes involves 20 payments annually, taking 207 hours and ranking 102.
- Trading across borders involves 7 documents to export, taking 17 days and costing $1,500 per container.
- Enforcing contracts involves 32 procedures, taking 545 days and costing 30.0% of claim.
- Resolving insolvency involves 4 years on average, with a cost of 18% of the estate and a recovery rate of 54.1 cents on the dollar.
Key Information
- The report compares the Slovak Republic with other economies, including comparator economies and regional averages.
- The distance to frontier (DTF) is a key metric that measures how far an economy is from the best performance on each indicator.
- The methodology assumes that all information is readily available, no bribes are paid, and the business is a limited liability company, located in the largest business city, and is 100% domestically owned.
- The standardized company is used as a benchmark, and the procedures are based on the legal and bureaucratic steps required to start and operate a business in the Slovak Republic.
- The report highlights that reforms have been made in some years, such as the 2013 reform that streamlined the process for trading licenses, income tax registration, and health insurance registration, while the 2014 reform made starting a business more difficult by adding a new procedure for establishing a limited liability company.
Conclusion
The Doing Business 2014 report provides a comprehensive overview of the regulatory environment in the Slovak Republic. It shows that while the country has a relatively strong business environment, there are areas where it can improve, particularly in reducing the number of procedures and the time and cost required to start a business. The report also highlights the importance of continuous regulatory reform and the use of technology to streamline processes and enhance competitiveness.