Thanks to its location, Slovenia is a good place to launch or simply test a market, prior to your extension in the markets from the south-east of Europe. Moreover, for those who intend to invest in Slovenia, the country is still offering the opportunity to take part in the last privatization move, after the massive reconstruction brought by the collapse of the communist regime.
There are a lot of attractive investment industries in Slovenia
. The Slovenian economy is a fast growing one. This is good news for investors who want to open a company in Slovenia
. Businessmen can expect a wide market, skilled workers, technological availability, and business protection. They can also expect a big return of investment since the cost of operating a business in Slovenia
is very reasonable, as well as the corporate taxes imposed which is at 19%. Clearly, company formation in Slovenia
is a wise business decision.
Since 2004, Slovenia has been one of the top countries in the European Union in terms of economy. A big part of this is due to attractive investment opportunities in Slovenia.
Carmakers in Slovenia make sure that they make not only quality cars, but cars that make driving so much easier and technologically advanced. They also made sure that the cars are competitive in the market. For 2016, the automotive industry was estimated to have gained an estimated 3.7 billion euros in revenue. If you would like to invest in Slovenia by opening a company in the automotive industry our company formation experts can help you.
Slovenia gives importance to educating and training its workers in the field of electronics and the electrical field. Recently, around 2,100 undergraduate students are enrolled in electronics related courses and some 2,900 secondary school students are taking up electrical engineering in Slovenia. The profit in this industry is estimated to be 4.1 billion euros for 2016. If you open a Slovenian company in this industry, you can be assured of skilled workers in electronics and electrical work. If you want to invest in Slovenia in this industry, our incorporation agents are at your disposal.
The Slovenian educated workforce
One of the top reasons for investing in Slovenia
is its workforce
. In the past few years, the local authorities have increased their focus on education and training of employees, especially when it comes to computer literacy and preparation for high-tech sectors, among which information technology, life sciences and pharmaceuticals, that add value to the economy. So, it is easy to say that Slovenia has one of the most skilled and cheapest work forces at EU level.
Employees in Slovenian companies have earned a reputation of inspiration in innovative sectors which have led to a fast development of the human capital many foreign investors enjoy now. According to Eurostat, Slovenia has met two important education goals established at EU level:
- 43.4% of the employees aged 30 to 34 have completed their tertiary education forms;
- 5% of employees with ages between 18 and 24 have left schools earlier, thus decreasing the number of unqualified workers.
It is worth noting that not only young persons living in Slovenia
have knowledge of a foreign language, but 70% of the population has command of at least two foreign languages, among these, English, German, French and Italian are the most popular.
If you are foreign investor looking to expand here, our company formation specialists in Slovenia can help you set up a business.
High quality infrastructure and trading facilities
Among the reasons for investing in Slovenia
, the infrastructure and the trading facilities
should be on top. This is because in the past years, the country’s government has invested in the development of inland and maritime transportation routes. At the moment, its transportation system is made of more than 39,000 km of roads with 700 km of motorways and a 2,000 km railway transportation network which is reported to a 20.273 km2 surface.
The maritime sector is also quite developed, with the port of Koper acting as the largest logistics hub in the country. It connects Slovenia to Central and Southern Europe.
From a trading point of view, Slovenia is one of the most important gateways to regional markets on the continent, as it connects Southern Europe to the northern side.
In terms of exports, Slovenia had a market worth 30,454 million euros at the level of 2018, as it follows:
- Germany was its main trading partner with total exports valued at more than 6,6 million euros;
- Italy came on the second position with exports worth a little over 5 million euros;
- Austria and Croatia were the largest exporters for Slovenian companies with more than 3 million euros;
- local companies also exported 2 million worth goods to France in 2018.
In Southern Europe, the total value of exports leaving Slovenia in 2018 was 2,219 million euros, while country importing most from Slovenia was Bosnia and Herzegovina (1,062 million euros).
Slovenia’s business environment
In order to attract foreign direct investments
, the Slovenian government has started the modernization of various authorities back in the 2000’s . Currently, the central authorities focus on providing some of the best conditions for doing business through fast and simple company registration procedures
, streamlined investment promotion
and investment incentives
Also, Slovenia offers access to a more than half a million customers market not only in Europe but also in Asia. Slovenia is now home to large companies in various industries, among which logistics and automotive.
Should you need assistance in business registration in Slovenia, our specialists can help you.
Easiness of doing business in Slovenia
It is quite easy to start a business in Slovenia
, as the legislation here favors foreign investments and overs non-resident entrepreneurs the possibility of setting up companies under the same regime applicable to local ones.
The Company Law provides for the same conditions related to the incorporation procedure in terms of legal forms and requirements. The only difference in terms of documents when it comes to opening a Slovenian company as a foreign investor is that the personal documents that need to be filed with the Trade Register need to be translated. This is also available when it comes to overseas companies seeking to expand their operations in this country.
If we are to describe the company formation procedure in Slovenia, these are the main steps and their duration:
- the opening of the company bank account and deposit of the share capital takes one day to complete,
- the registration of the business with the Companies House is completed in 5 days,
- the shareholders must also be registered with the Register of Beneficial Owners which takes 2 days to complete.
It should be noted that the registration of the company with the Trade Register in Slovenia also implies obtaining the tax number, and where the owner wants to VAT registration can also be completed.
From a foreign investment point of view, it is worth noting that Slovenia
offers one of the fastest procedures related to the creation of the company’s bank account and deposit of share capital.
When it comes to the most suitable type of legal entity that can be employed by a foreign entrepreneur, the private limited liability which requires a minimum share capital of 7,500 euros is the most accessible. Also, at least one-third of the capital must be paid in cash, while the rest can take the form of other assets. Not all the share capital is to be paid in-full at the time of the incorporation, as there is also the possibility of depositing at least one quarter of it.
Apart from the fact that for most European businesspersons this is a well-known entity, it is also the simplest to incorporate.
No matter the type of company
you are interested in creating in Slovenia, our agents are at your service for guidance and help in preparing all the necessary documents. Moreover, it is possible to complete part of the registration process remotely, so we kindly invite you to discuss with our specialists.
What the challenges of doing business in Slovenia?
Slovenia has evolved very much in just a few years and has overcome many obstacles. Moreover, foreign investor protection has been improved significantly in this time which is why the most important challenge to set up a company remains getting information on environmental regulations which are becoming more and more strict, just like in the rest of the European Union.
Apart from these, foreign investors must also pay attention to the tax and accounting regulations
, however, these are easy aspects to handle when requesting the services of local accountants.
Those interested in acquiring properties in Slovenia must also complete several operations among which:
- a verification of the property with the Land Register,
- a verification with the tax authorities,
- the payment of the real estate transfer tax and VAT,
- registration of the new property title with the Land Registry.
However, with a power of attorney, these procedures can be completed quite easy.
For those interested in acquiring residency in Slovenia through a Golden Visa program, there is rumor that the government is considering creating such a scheme at the proposal of the Strategic Council.
Even so, those who want to do business or relocate to Slovenia
, must know that the country is also a member of the Schengen area which is why it is quite simple to enter and leave the country no matter if you come from Europe or the United States, for example.
Lesser-known facts about Slovenia
Slovenia is a small country in the heart of Europe, however, this is one of the things everybody knows. Among those less known to those who do not have strong connections to the country are:
- in 2016, Slovenia was nominated the 10th best country in Europe by 70,000 people,
- it is home to Europe’s cheapest ski resort – Kranjska Gora,
- Lake Bled is one of the most beautiful lakes in the world,
- it is one of the friendliest countries in the world in terms of protection of the environment.
If you decide to start a business here, tourism
could be one of the best ideas and our specialists are at your service for guidance and customized assistance in its registration.
Incentives for foreign investors in Slovenia
Apart from the excellent infrastructure and facilities created to cater to the needs of foreign investors
is also a country where many financial incentives
are available for those who want to open companies
. Among these, the following are worth noted:
a tax relief for investments which consists in the reduction of the corporate income tax based of up to 63% of the tax profit on research and development investments in the first year;
corporate tax reliefs are also available for 70% of investments made in start-up companies;
employment corporate tax rebates of up to 70% are also offered to companies hiring disadvantaged employees for at least 12 months;
Slovenia also offers a 16.1% refund of the social security contributions on employers’ side for certain categories of employees.