Business Reforms in Slovenia
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Getting Credit: Slovenia improved access to credit information by reporting both positive and negative data on consumers and commercial borrowers.
Resolving Insolvency: Slovenia made resolving insolvency easier by introducing a simplified reorganization procedure for small companies and a preventive restructuring procedure for medium-size and large ones, by allowing creditors greater participation in the management of the debtor and by establishing provisions for an increase in share capital through debt-equity swaps.
Dealing with Construction Permits: Slovenia made dealing with construction permits easier by eliminating the requirement to obtain project conditions from the water and sewerage provider.
Labor Market Regulation: Slovenia abolished priority rules for reemployment, changed the notice period and severance pay provisions for redundancy dismissals and increased the minimum wage.
Protecting Minority Investors: Slovenia strengthened investor protections through a new law regulating the approval of related-party transactions.
Paying Taxes: Slovenia made paying taxes easier and less costly for companies by implementing electronic filing and payment of social security contributions and by reducing the corporate income tax rate.
Resolving Insolvency: Slovenia strengthened its insolvency process by requiring that the debtor offer creditors payment of at least 50% of the claims within 4 years; giving greater power to the creditors’ committee in a bankruptcy proceeding; prohibiting insolvency administrators from allowing relatives to render services associated with the bankruptcy proceeding; and establishing fines for members of management that violate certain obligations or prohibitions.
Registering Property: Slovenia made transferring property easier and less costly by introducing online procedures and reducing fees.
Trading across Borders: Slovenia made trading across borders faster by introducing online submission of customs declaration forms.
Resolving Insolvency: Slovenia simplified and streamlined the insolvency process and strengthened professional requirements for insolvency administrators.
Starting a Business: Slovenia made starting a business easier through improvements to its one-stop shop that allowed more online services.
Registering Property: Greater computerization in Slovenia’s land registry reduced delays in property registration by 75%.
Paying Taxes: Slovenia abolished its payroll tax and reduced its corporate income tax rate.
Starting a Business: Slovenia made starting a business easier by speeding up company registration, combining tax registration with company registration through the automated e-Vem system and abolishing the requirement for a company seal.
Starting a Business: Slovenia reduced the time and number of procedures to start a business by introducing a single access point for the process of establishing a limited liability company.
Getting Credit: Slovenia weakened its secured transactions framework by decreasing secured creditors’ rights during reorganization procedures but also improved access to credit information by starting operations at the new private credit bureau (SISBON).
Protecting Minority Investors: Slovenia strengthened investor protections by allowing minority investors to initiate suits against directors on behalf of the company in order to defend their rights as shareholders.
Labor Market Regulation: Slovenia decreased the notice period applicable in cases of redundancy dismissals.
Getting Credit: As a result of the introduction of the euro in Slovenia, its public credit registry increased the minimum threshold for loans included in its database from 0 to €500, reducing access to credit information.
Protecting Minority Investors: Slovenia strengthened investor protections through a new provision requiring that a company’s board of directors obtain prior shareholder approval for transactions representing 25% or more of the company’s assets.
Paying Taxes: Slovenia made paying taxes less costly for companies by reducing the payroll tax rate.
Labor Market Regulation: Slovenia reduced the maximum cumulative duration of fixed-term contracts.