Doing Business 2016: Slovak Republic Summary
Core Content
The Doing Business 2016 report evaluates the regulatory environment for small to medium-sized businesses across 189 economies, focusing on 11 key areas such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and labor market regulation. It provides a distance to frontier (DTF) score and an ease of doing business (EoDB) ranking to assess regulatory quality and efficiency.
Key Indicators and Rankings
Overall Performance
- DB2016 Rank: 29
- DB2015 Rank: 29*
- Change in Rank: 0
- DB2016 DTF Score: 75.62
- DB2015 DTF Score: 74.74
- Change in DTF: 0.88
Note: DB2015 ranking is a comparable ranking that accounts for data revisions and changes in methodology.
11 Key Indicators
| Indicator |
Slovak Republic DB2016 |
Slovak Republic DB2015 |
Albania DB2016 |
Czech Republic DB2016 |
Hungary DB2016 |
Italy DB2016 |
Serbia DB2016 |
Slovenia DB2016 |
Best Performer DB2016 |
| Starting a Business (Rank) |
68 |
71 |
58 |
93 |
55 |
50 |
65 |
18 |
New Zealand (1) |
| Starting a Business (DTF) |
88.54 |
87.02 |
90.09 |
85.23 |
90.56 |
91.13 |
88.94 |
94.53 |
New Zealand (99.96) |
| Procedures (number) |
6.0 |
7.0 |
6.0 |
8.0 |
4.0 |
5.0 |
6.0 |
2.0 |
5 Economies (7.00) |
| Time (days) |
11.5 |
11.5 |
5.5 |
15.0 |
5.0 |
5.5 |
12.0 |
6.0 |
Singapore (26.00) |
| Cost (% of income per capita) |
1.5 |
1.5 |
10.4 |
6.7 |
7.3 |
13.8 |
6.6 |
0.0 |
Japan (0.00) |
| Dealing with Construction Permits (Rank) |
84 |
78 |
189 |
127 |
88 |
86 |
139 |
71 |
Singapore (1) |
| Dealing with Construction Permits (DTF) |
69.48 |
69.48 |
0 |
62.73 |
69.06 |
69.31 |
61.47 |
71.11 |
Singapore (92.97) |
| Procedures (number) |
10.0 |
10.0 |
no practice |
21.0 |
23.0 |
10.0 |
18.0 |
12.0 |
14 Economies (3.00) |
| Time (days) |
286.0 |
286.0 |
nopractice |
247.0 |
179.0 |
227.5 |
272.0 |
224.5 |
Korea, Rep. (18.00) |
| Cost (% of warehouse value) |
0.1 |
0.1 |
491.4 |
27.6 |
98.4 |
209.4 |
428.6 |
113.2 |
Japan (0.00) |
| Registering Property (Rank) |
5 |
5 |
107 |
37 |
29 |
24 |
73 |
36 |
New Zealand (1) |
| Registering Property (DTF) |
90.99 |
90.99 |
58.47 |
76.4 |
80.2 |
81.67 |
66.95 |
76.63 |
New Zealand (94.46) |
| Procedures (number) |
3.0 |
3.0 |
6.0 |
4.0 |
4.0 |
4.0 |
6.0 |
5.0 |
4 Economies (1.00) |
| Time (days) |
16.5 |
16.5 |
22.0 |
31.0 |
16.5 |
16.0 |
54.0 |
49.5 |
3 Economies (1.00) |
| Cost (% of property value) |
0.0 |
0.0 |
10.2 |
4.0 |
5.0 |
4.4 |
2.8 |
2.0 |
Saudi Arabia (0.00) |
| Getting Credit (Rank) |
42 |
36 |
42 |
28 |
19 |
97 |
59 |
126 |
New Zealand (1) |
| Getting Credit (DTF) |
65 |
65 |
65 |
70 |
75 |
45 |
60 |
35 |
New Zealand (100) |
| Strength of legal rights index (0-12) |
7.0 |
7.0 |
7.0 |
7.0 |
10.0 |
2.0 |
5.0 |
3.0 |
3 Economies (12.00) |
| Depth of credit information index (0-8) |
6.0 |
6.0 |
6.0 |
7.0 |
5.0 |
7.0 |
7.0 |
4.0 |
26 Economies (8.00) |
| Credit registry coverage (% of adults) |
3.2 |
2.8 |
27.1 |
6.7 |
0.0 |
27.3 |
0.0 |
3.1 |
Portugal (100.00) |
| Credit bureau coverage (% of adults) |
67.3 |
65.7 |
0.0 |
78.7 |
88.6 |
100.0 |
100.0 |
100.0 |
22 Economies (100.00) |
| Protecting Minority Investors (Rank) |
88 |
87 |
8 |
57 |
81 |
36 |
81 |
7 |
Singapore (1) |
| Protecting Minority Investors (DTF) |
53.33 |
53.33 |
73.33 |
58.33 |
55 |
63.33 |
55 |
75 |
Singapore (83.33) |
| Strength of minority investor protection index (0-10) |
5.3 |
5.3 |
7.3 |
5.8 |
5.5 |
6.3 |
5.5 |
7.5 |
4 Economies (8.30) |
| Extent of conflict of interest regulation index (0-10) |
4.7 |
4.7 |
7.7 |
5.3 |
4.0 |
6.0 |
5.0 |
7.3 |
Singapore (9.30) |
| Extent of shareholder governance index (0-10) |
6.0 |
6.0 |
7.0 |
6.3 |
7.0 |
6.7 |
6.0 |
7.7 |
4 Economies (8.00) |
| Paying Taxes (Rank) |
73 |
109 |
142 |
122 |
95 |
137 |
143 |
35 |
United Arab Emirates (1) |
| Paying Taxes (DTF) |
76.79 |
69.62 |
62.01 |
67.09 |
73.06 |
62.98 |
61.87 |
83.74 |
United Arab Emirates (99.44) |
| Payments (number per year) |
10.0 |
21.0 |
34.0 |
8.0 |
11.0 |
14.0 |
42.0 |
10.0 |
Hong Kong SAR, China (3.00) |
| Time (hours per year) |
188.0 |
207.0 |
357.0 |
405.0 |
277.0 |
269.0 |
244.3 |
245.0 |
Luxembourg (55.00) |
| Total tax rate (% of profit) |
51.2 |
51.3 |
36.5 |
50.4 |
48.4 |
64.8 |
39.7 |
31.0 |
Ireland (25.90) |
| Trading Across Borders (Rank) |
1 |
1 |
37 |
1 |
1 |
1 |
23 |
1 |
Denmark (1) |
| Trading Across Borders (DTF) |
100 |
100 |
91.61 |
100 |
100 |
100 |
95.08 |
100 |
Denmark (100) |
| Time to export: Border compliance (hours) |
0 |
0 |
18 |
0 |
0 |
0 |
4 |
0 |
15 Economies (0.00) |
| Cost to export: Border compliance (USD) |
0 |
0 |
181 |
0 |
0 |
0 |
47 |
0 |
18 Economies (0.00) |
| Time to export: Documentary compliance (hours) |
1 |
1 |
6 |
1 |
1 |
1 |
2 |
1 |
Jordan (0.00) |
| Cost to export: Documentary compliance (USD) |
0 |
0 |
57 |
0 |
0 |
0 |
66 |
0 |
20 Economies (0.00) |
| Time to import: Border compliance (hours) |
0 |
0 |
9 |
0 |
0 |
0 |
3 |
0 |
19 Economies (0.00) |
| Cost to import: Border compliance (USD) |
0 |
0 |
101 |
0 |
0 |
0 |
52 |
0 |
28 Economies (0.00) |
| Time to import: Documentary compliance (hours) |
1 |
1 |
8 |
1 |
1 |
1 |
3 |
1 |
21 Economies (1.00) |
| Cost to import: Documentary compliance (USD) |
0 |
0 |
56 |
0 |
0 |
0 |
71 |
0 |
30 Economies (0.00) |
| Enforcing Contracts (Rank) |
63 |
63 |
96 |
72 |
23 |
111 |
73 |
117 |
Singapore (1) |
| Enforcing Contracts (DTF) |
61.69 |
61.69 |
57.37 |
60.36 |
72.08 |
54.79 |
60.26 |
53.9 |
Singapore (84.91) |
| Time (days) |
705.0 |
705.0 |
525.0 |
611.0 |
395.0 |
1,120.0 |
635.0 |
1,160.0 |
Singapore (150.00) |
| Cost (% of claim) |
30.0 |
30.0 |
34.9 |
33.0 |
15.0 |
23.1 |
34.0 |
12.7 |
Iceland (9.00) |
| Quality of judicial processes index (0-18) |
12.0 |
12.0 |
8.0 |
10.5 |
10.0 |
13.0 |
11.0 |
11.0 |
3 Economies (15.50) |
| Resolving Insolvency (Rank) |
33 |
30 |
42 |
22 |
65 |
23 |
50 |
12 |
Finland (1) |
| Resolving Insolvency (DTF) |
70.04 |
69.93 |
63.42 |
77.73 |
50.58 |
76.14 |
58.52 |
83.39 |
Finland (93.81) |
| Recovery rate (cents on the dollar) |
54.7 |
54.4 |
42.3 |
66.0 |
41.7 |
63.1 |
30.3 |
88.2 |
Japan (92.90) |
| Time (years) |
4.0 |
4.0 |
2.0 |
2.1 |
2.0 |
1.8 |
2.0 |
0.8 |
Ireland (0.40) |
| Cost (% of estate) |
18.0 |
18.0 |
10.0 |
17.0 |
14.5 |
22.0 |
20.0 |
4.0 |
Norway (1.00) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
1 |
1 |
0 |
1 |
0 |
1 |
0 |
1 |
- |
| Strength of insolvency framework index (0-16) |
13.0 |
13.0 |
13.0 |
13.5 |
9.0 |
13.5 |
13.5 |
11.5 |
4 Economies (15.00) |
Main Points
- Ease of Doing Business (EoDB): The Slovak Republic ranked 29th in the EoDB ranking in 2016, maintaining its position from 2015.
- Distance to Frontier (DTF): The DTF score increased slightly to 75.62 from 74.74 in 2015, indicating a small improvement in regulatory quality and efficiency.
- Key Areas:
- Starting a Business: The Slovak Republic ranked 68th with a DTF score of 88.54. It is significantly behind New Zealand (rank 1, DTF 99.96), but ahead of many other economies.
- Dealing with Construction Permits: Ranked 84th with a DTF score of 69.48. It is much worse than Singapore (rank 1, DTF 92.97).
- Getting Electricity: Ranked 48th with a DTF score of 80.3. It is significantly behind Korea, Rep. (rank 1, DTF 99.88).
- Registering Property: Ranked 5th with a DTF score of 90.99. It is close to the frontier, but still behind New Zealand (rank 1, DTF 94.46).
- Getting Credit: Ranked 42nd with a DTF score of 65. It is far behind New Zealand (rank 1, DTF 100).
- Protecting Minority Investors: Ranked 88th with a DTF score of 53.33. It is far from the frontier, which is held by Singapore (DTF 83.33).
- Paying Taxes: Ranked 73rd with a DTF score of 76.79. It is significantly behind the United Arab Emirates (rank 1, DTF 99.44).
- Trading Across Borders: Ranked 1st with a DTF score of 100. It is among the best performers in this area.
- Enforcing Contracts: Ranked 63rd with a DTF score of 61.69. It is far behind Singapore (DTF 84.91).
- Resolving Insolvency: Ranked 33rd with a DTF score of 70.04. It is significantly behind Finland (DTF 93.81).
Key Methodology Changes in 2016
- Starting a Business: Includes an index of the quality of building regulation and its implementation.
- Getting Electricity: Now includes a measure of the price of electricity consumption and an index of the reliability of electricity supply and transparency of tariffs.
- Registering Property: Includes an index of the quality of the land administration system.
- Enforcing Contracts: Includes an index of the quality and efficiency of judicial processes.
- Labor Market Regulation: Expanded to include more areas capturing aspects of job quality.
- Trading Across Borders: Updated to reflect the economy's comparative advantage for exports and the most significant import partner.
Summary
The Slovak Republic has a relatively good regulatory environment for business, particularly in the trading across borders area where it ranked first. However, it faces challenges in other areas such as getting credit, protecting minority investors, and enforcing contracts, where it is far from the best performers. The distance to frontier score indicates that the country is relatively close to the best practices in some areas, but has room for improvement in others. The DTF score and EoDB ranking are useful tools for identifying areas of regulatory reform and comparing performance with other economies. The report also highlights the importance of understanding the methodology and data sources to interpret the results accurately.
