Economic and political situation to a potential

investor and his partners in a telecommunication industry

in Slovakia

Make a presentationBSBCMM401A

Certificate IV in Business Ivana Majerkova

Slovakia• Slovakia, also known as the Slovak Republic, is a country located in

the Central part of the European continent. Being in the center of the continent, Slovakia is a landlocked country, it is surrounded by other European nations on all sides. On the western side, Slovakia shares its border with Austria and Czech Republic, on the North it is bordered by Poland, on the east Slovakia is surrounded by Ukraine and to the south it shares its borders with Hungary. With more than 49,000 square kilometers area, Slovakia is one of the largest countries in the European Union.

• Bratislava, the capital city of Slovakia, is also the largest city in the country. The country has more than 5 million inhabitants residing in the country. The country is one of the key members of the European Union. Besides it is also a member of the United Nation, WTO, OCED, NATO and other such prestigious International organizations.

Introduction• Population

Total population: 5,447,502

• Age structure0–14 years: 15.7% (male 439,331; female 419,123)15–64 years: 71.7% (male 1,954,798; female 1,966,611)65 years and over: 12.6% (male 258,157; female 432,286 (2010 est)

• Median agetotal: 37.3 years, male: 35.7 years, female: 38.9 years (2010 est)

• Sex ratioat birth: 1.05 male(s)/femaleunder 15 years: 1.05 male(s)/female15–64 years: 0.99 male(s)/female65 years and over: 0.6 male(s)/femaletotal population: 0.945 male(s)/female (2006 est.)

Immigration

Immigration on Slovakia is one from at least in European Union. The biggest number immigrants were in year 2008, when on Slovakia came 8600 immigrants. Most immigrants were from European countries. Outside Europe was smaller. Slovakia has one from most stringent immigration policy like Denmark etc. It is one from reason why Slovakia has one from lowest number immigrants in European Union. Compared Czech Republic has about 400 000 immigrants what is also the biggest number immigrants in central Europe.

Infant mortality rate

• total: 7.26 deaths/1,000 live births• male 8.48 deaths/1,000 live births• female 5.98 deaths/1,000 live births (2006

est.)

Life expectancy at birth

• total population: 74.73 years• male: 70.76 years• female: 78.89 years (2006 est.)

Total fertility rate

• 1.33 children born/woman (2008 est.)• 1.35 children born/woman (2009 est.)• 1.36 children born/woman (2010 est.)

Ethnic groups

• The majority of the 5.4 million inhabitants of Slovakia are Slovak (85.5%). Hungarians are the largest ethnic minority (9.7%) and are concentrated in the southern and eastern regions of Slovakia. Other ethnic groups include Roma (1.7%), Czechs, Rusyns, Ukrainians, Germans, Poles, Serbs and Jews (about 2,300 remain of the estimated population of 120,000).

Life in Slovakia

• Slovakia's citizens perceive their own life situation as well as the overall economic situation of the country rather pessimistic. From all EU member countries is the share of “pessimists” the highest right in Slovakia.

• Similar as in other countries, also in Slovakia - people are more satisfied with their personal situation compared to the economic situation in the country. A worsening of the own personal situation declared 41% of the respondents as to the economic situation of the country 52%, a worsening of the employment situation in Slovakia expect 37%, a worsening of the household's financial situation 48% and of the own job situation 18%.

Slovakia's urgent problems

• In the hierarchy of the most urgent problems Slovakia faces, dominate for a long time already "unemployment" and the "standard of living". It is the "social issues" perceived most sensitively by the majority of the population.

• Generally we may state that the seven most severe problems of Slovakia are identical with those of the 10 new Member Countries. If comparing this group of states with the EU 25, we notice two striking differences – in those countries, the most sensitively perceived problems are immigration and terrorism. The Slovak citizens classified them to lower positions within this urgency charts – both problems were declared just by 1% of the respondents, i.e. on rank 10

Religion in Slovakia

The Slovak constitution guarantees freedom of religion. The majority of Slovak citizens (69%) practice Roman Catholicism; the second-largest group consider themselves atheists (13%). About 6.9% are Protestants, Greek catholic 4.1%, and 0.9% are Orthodox. Reformed Christian Church 2.0%, other 6.4% (2004 survey). There are 5,000 Muslims in Slovakia.

Literacy

• definition: age 8 and over can read and write• total population: 99.6%• male: 99.7%• female: 99.6%

An average wage in Slovakia

• At the beginning of 2010, the average wage in Slovakia was €744 per month. In the capital Bratislava, it is almost a third higher than this. Recently, the government decided to increase the minimum wage of €307 per month based on an administrative decision by the cabinet.

• The average real wage in Slovakia only reached pre-1989 levels in 2008. However, the same does not apply to living standards, which are much improved as people need to work less to buy the same amount of goods and services.

Social guarantees

• The Slovak state spends 17% of GDP on social protection (including health care), which is half the EU average. More than 84% of Slovakia's social budget is funded by social contributions, not via taxes as is the case in Western countries. The majority of the funding is assigned to old-age pensioners.

• To address the negative demographic trend and an ageing population - and boost the sustainability of the social system - the previous government added a second, private pillar to the social insurance system. This individual saving scheme, which complements the pay-as-you-go system, was meant to be compulsory for the younger population.

• The current government strongly opposed the system and said it would put savers' money at risk. It ceased to make participation obligatory and has been trying to persuade savers using individual accounts to return fully to the state system.

Current inflation Slovakia• Current inflation Slovakia - the inflation is based upon the Slovak

consumer price index. The index is a measure of the average price which consumers spend on a market-based "basket" of goods and services. Inflation based upon the consumer price index (CPI) is the main inflation indicator in most countries. Current harmonised inflation Slovakia (HICP Slovakia) – the harmonised inflation is based upon the Slovak harmonised consumer price index. The index is a measure of the average price which consumers spend on a for European countries market-based "basket" of goods and services and is published by Eurostat to compare inflation in European countries.

• CPI inflation Slovakia may 2011: 3.92 % • HICP inflation Slovakia may 2011: 4.13 %

Poverty

• As job creation stagnates and existing jobs are lost, more people in Slovakia are in material need and thus represent a drain on the public purse. In 2007, 11% of the population qualified as living in poverty, with earnings of less than €198 per month. Those identified as living in material need (under €185) receive a subsidy that varies according to the individual’s situation (whether they have children, etc). This ranges from €60 to €168 a month.

TAX SYSTEM IN SLOVAKIA

BASIC INFORMATION• Tax period: calendar year

Income tax (private individuals and legal entities): 19%Value-added tax (VAT): 19%Reduced-rate VAT: 10% (levied on medication, selected medical devices, books)Special terms apply to excise tax on beer, wine, alcohol, tobacco and tobacco products, and mineral oils.Local taxes (paid directly to municipal authorities) are within the competence of municipal assemblies and are therefore different in every village and town. Local taxes include: real estate tax; dog tax; taxes for using public spaces; accommodation tax; vending machines tax; non-gambling slot machines tax; taxes to drive into and/or park a motor vehicle in the historical centre of a ity; nuclear devices tax; local payments for communal waste and small quantities of construction waste; and motor vehicle tax.

LEGISLATION SLOVAKIA

Constitutional law • Act of the National Council of the Slovak Republi

c on the organization of the Constitutional Court of the Slovak Republic, on the proceedings before the Constitutional Court and the status of its Judges

• Act on freedom of religious faith and on the position of churches and religious societies

• Constitution of Slovakia • Constitution of the Slovak Republic

Human Rights • Antidiscrimination Act

LEGISLATION SLOVAKIA

Electoral law • Act No 331/2003 on European Parliamentary

Elections• Act on Elections to the Bodies of Self-govern

ment Regions and on Amendment to the Code of Civil Procedure (2001)

• Act on Elections to the National Council (2004)

• Act on limitation of expenditures of the political parties on advertising before elections to the National Council of the Slovak Republic (1994)

• Presidential Election Law of the Republic of Slovakia (1999)

LEGISLATION SLOVAKIAAdministrative / Public Law • 466 ACT of 26 June 2002 on Auditors and Slovak Chamber of Auditors • Act No 129/1998 On Prohibition of Chemical Weapons• Act No 131/2002 on Higher EducationAct No 198/1994• Act of the National Council of the Slovak Republic on Military Intelligence• Act No 61 / 2000 on adult education and cultural activities• Act No. 103/2007 Tripartite Act• Act No. 11/2004 Coll. on Defence Standardisation

, Codification and State Verification of the Quality of Products and Services Intended for DefenceAct No. 110/2004 Coll. on the Activity of the Security Council of the Slovak Republic at the Time of Peace

• Act on the use of languages of national minorities Constitutional Act No. 227/2002 Coll. on State Security at the Time of War, State of War, State of Emergency, and State of Crisis

LEGISLATION SLOVAKIA

Administrative / Public Law • Act No. 124/1992 Coll. on Military Police• Act No. 131/2002 of Law Code on Higher Education as amen

ded• Act No. 172/2004 Coll. on the Transfer of Real Estates Owne

d by the Slovak Republic to Municipalities or Higher Territorial Units

• Act No. 319/2002 Coll. on Defence of the Slovak Republic• Act No. 321/2002 Coll. on the Armed Forces of the Slovak Re

public• Act No. 328/2002 Coll. on Social Security for Policemen and

Soldiers and on Change and Amendment of Some Acts • Act No. 346/2005 Coll. on State Service of Professional Soldi

ers of Armed Forces of the Slovak Republic and on Change and Amendment of Some Acts

• Act No. 48 of 13 December 2001 on Stay of Aliens an on Modifications and Amendment of Some Acts

LEGISLATION SLOVAKIAAdministrative / Public Law • Act No. 480 of 20th June 2002 on Asylum and Amendment of Some Acts• Act No. 569/2005 Coll. on Alternative Service at the Time of War and State of War • Act No. 570/2005 Coll. on National Service and on Change and Amendment of Some A

cts• Act No. 71/1967 Coll. on Administrative Procedures as amended• Act on Asylum and Amendment of Some Acts (2002)• Act on Museums and Galleries and on the protection of Objects of Museum Value • Act on Public Procurement• Act on Theatrical Activities• Act on art funds • Act on libraries• Act on on the protection of monuments and historic sites• Act on registration of churches and religious societies• Act on the state language of the Slovak Republic

LEGISLATION SLOVAKIA

Administrative / Public Law • Act No. 172/2004 Coll. on the Transfer of Real Estates

Owned by the Slovak Republic to Municipalities or Higher Territorial Units

• Act No. 319/2002 Coll. on Defence of the Slovak Republic

• Act No. 321/2002 Coll. on the Armed Forces of the Slovak Republic

• Act No. 328/2002 Coll. on Social Security for Policemen and Soldiers and on Change and Amendment of Some Acts

• Act No. 346/2005 Coll. on State Service of Professional Soldiers of Armed Forces of the Slovak Republic and on Change and Amendment of Some Acts

• Act No. 48 of 13 December 2001 on Stay of Aliens an on Modifications and Amendment of Some Acts

• Law on Citizenship (1993)• Law on Public Defender of Rights

LEGISLATION SLOVAKIA

Criminal Law • Act 139 Of 2 April 1998 On Narcotic, Psychotropic Subst

ances And Preperations

• Act On The Treatment Of Precursors Of Narcotic Drugs And Psychotropic Substances And Amending The Act No. 455/1991 Of The Collection On Small Businesses (Trade Act), As Amended

Code of Criminal Procedure

Civil Law • The Act No. 215/1995 on Geodesy and Cartography as a

mended by the Act No. 423/2003 Coll.• The Cadastre Act 1995

LEGISLATION SLOVAKIA

Commercial Law • Act No 565/2001 Investment Incentives Act• Act No. 264 of 7 September 1999 on technical requirements f

or products and on conformity assessment• Act No. 276/2001 Coll. on Regulation in Network Industries a

nd on Amendments and Additions to Some Acts• Act No. 9 of 2007 on Consumer Protection• Act on Product Liability 1999• The Trades Licencing Act • The Trades Licencing Act

LEGISLATION SLOVAKIA

Labor Law • Act No 124/2006 Coll. on Occupational Safety a

nd Health Protection and on the Amendment of Certain Acts as amended by Act No 309/2007 Coll. and Act No 140/2008

• Act No. 43/2004 Coll. on old-age pension saving

• Act No. 5/2004 Coll on employment services • Labour Code - Act No. 348 of the year 2007• Labour Code - Act No. 348 of the year 2007• The Act on Illegal Work and Illegal Employment

LEGISLATION SLOVAKIAHealth law • Act 217/2003 on conditions relating to the placing of biocidal

products on the market • Act 355/2007 Coll. on Protection, Support and Development

of Public Health and on• Amendments and Supplements to Certain Acts• Act 460 / 2007 on the Slovak Red Cross Society and on the Pr

otection of the Emblem and Name of the Red Cross Society and on the Amendments of Certain Laws

• Act No 163/2001 on chemical substances and chemical preparations

• Act No. 576/2004 Coll. On healthcare, healthcare-related service

LEGISLATION SLOVAKIA

Company law • Act No. 136/2001 on Protection of Competition • Act No. 465 of June 20, 2002 on Block Exemption

s from the Ban of Agreements Restricting Competition and on Amendment of Some Acts

• Act No. 541/2005 Coll. on the Transformation of Certain State Enterprises into Joint-Stock Companies

• Law concerning the Right of Association (1990)• Law on Foundations (1996)• Law on Non-Investment Funds and on Changing

and Amending the Law no. 207/1996 Coll. (1997)• Law on Non-profit Organisations

Providing Generally Beneficial Services (2002)

LEGISLATION SLOVAKIA

Mining Law • Act no. 44/1988 Coll. on protection and

utilisation of mineral resources

Insurance Law • Act No 340/2005 Coll. on Insurance Mediation a

nd Reinsurance Mediation• Act No 8/2008 Coll. on Insurance• Act No. 340/2005 Coll. on Insurance Mediation

and Reinsurance Mediation and on the Amendment and Supplementation of Certain Acts

• Act No. 381/2001 Coll. of Acts of September 4, 2001 on compulsory contractual insurance against civil liability in respect of the use of motor vehicles and on amendments to other related laws

LEGISLATION SLOVAKIA

Tax law • Act No. 104/2004 Coll. on the Excise Duty on Wine• Act No. 105/2004 Coll. on the Excise Duty on Spirit and on amend

ment of Act No. 467/2002 Coll. on the production and distribution of spirit into the market as amended by Act No. 211/2003 Coll.,

• Act No. 106/2004 Coll. on the Excise Duty on Tobacco products• Act No. 107/2004 Coll. on the Excise Duty on Beer• Act No. 217/2006 Coll. by which Act No. 104/2004 Coll. on the exci

se duty on wine is amended and on amendment and supplement of other acts

• Act No. 222/2004 Coll om Value Added Tax• Act No. 222/2004 Coll. on Value Added Tax• Act No. 533/2005 Coll. by which Act No. 106/2004 Coll. on the exci

se duty on tobacco products is amended and supplemented• Act No. 556/2004 Coll. by which Act No. 105/2004 Coll. on the exci

se duty on spirit is amended and supplemented

LEGISLATION SLOVAKIA

Tax law • Act No. 610/2005 Coll. amending and supplementing Act of the

National council of the Slovak Republic No. 145/1995 Coll. on administrative fees

• Act No. 629/2004 Coll. by which Act No. 104/2004 Coll. on the excise duty on wine is amended and supplemented in the wording of Act No. 556/2004 Coll.

• Act No. 630/2004 Coll. by which Act No. 107/2004 Coll. on the excise duty on beer is amended and supplemented in the wording of Act No. 556/2004 Coll.

• Act No. 631/2004 Coll. by which Act No. 106/2004 Coll. on the excise duty on tobacco products is amended and supplemented in the wording of Act No. 556/2004 Coll.

• Act No. 632/2004 Coll. by which Act No. 105/2004 Coll. on the excise duty on spirit is amended and supplemented

• Act No. 667/2004 Coll. by which Act No. 98/2004 Coll. on the excise duty on mineral oil is amended and supplemented

• Act No. 98/2004 Coll. on the Excise Duty on Mineral Oil• Act. No. 278/2006 Coll. by which Act No. 105/2004 Coll. on the e

xcise duty on spirit is amended and supplemented • Amendments to Act No. 106/2004 on the Excise Duty on Tobacco

Products 2009• Income Tax Act 2003

LEGISLATION SLOVAKIABanking law • Act No 186/2009 Coll, on Financial Intermediation and Financial

Counselling and on amendments and supplements to certain laws• Act No 43/2004 Coll. on Retirement Pension Saving• Act No 483/2001 Coll. on Banks,• Act No 510/2002 Coll. on the Payment System• Act No 594/2003 Coll. on Collective Investment• Act No 650/2004 Coll. on Supplementary Pension Saving• Act No 659/2007 Coll. on the Introduction of the Euro in the Slovak Rep

ublic• Act No 747/2004 Coll. on Supervision of the Financial Market• Act No. 530 dated 26 November 1990 on Bonds

LEGISLATION SLOVAKIA

Banking law • Act No. 566/2001 Coll. on Securities and Investment Ser

vices• Act no. 431/2002 Coll. on Accounting as amended by Ac

t no. 562/2003 Coll. and Act no. 561/2004 Coll. • Deposit Protection Act No 118/1996• Deposit Protection Act No 118/1996• Foreign Exchange Act No 202/1995• General Act on the Euro and Implementing Regulations• Home Savings Act No 310/1992 • National Bank of Slovakia Act No 566/1992• Stock Exchange Act No 429/2002

LEGISLATION SLOVAKIACommunications and Media Law • Act 147/2001 on Advertising• Act No. 147/2001 Coll. on Advertising and Change and Amendment of So

me Laws• Act No. 211/2000 Coll. on free access to information and on amendment

s and supplements to certain acts (Freedom of Information Act)

• Act No. 241 of 30th May 2001On Protection of Classified Materials and on Amendment of Certain Laws

• Act No. 308/2000 Coll. on broadcasting and retransmission • Act No. 428 of 3th July 2002 on personal data protection • Act No. 428 of 3th July 2002 on personal data protection • Act No. 507/2001 Coll. on Postal Services as amended • Act No. 610/2003 Coll. on Electronic Communications• Act No. 610/2003 Coll. on Electronic Communications• Act on Broadcasting and Retransmission

LEGISLATION SLOVAKIACommunications and Media Law • Act on Protection of Personal Data (2002 as amended 2005)• Act on Required Copies of Periodicals, Non-Periodicals and Audiovisual Copie

s• Act on Slovak Television• Act on Slovak radio• Act on the Audiovisual Fund and the amendment of certain acts• Act on the Conditions of Registration, Public Distribution and Preservation of

Audiovisual Works, Multimedia Works and Sound Recordings of• Artistic Performances including Amendments and Supplements to some othe

r Laws (Audiovisual Law)• Act on the News Agency of the Slovak Republic and on amendment to certai

n acts• Freedom of Information Act

LEGISLATION SLOVAKIA

Intellectual Property Law • Act No 517/2007 Coll. on Utility Mode

ls and on Amendment of Some Acts• Act No 55/1997 Coll. on Trademarks a

s amended by the Act No. 577/2001 Coll. and by the Act No. 14/2004 Coll.

• Act No 618/2003 Coll. on copyright and rights related to copyright (Copyright Act)

• Act No. 146/2000 Coll. on Protection of Topographies of Semiconductor Products

• Act No. 344/2004 Coll. on Patent Representatives

• Act No. 435/2001 Coll. on patents, supplementary protection certificates and on amendment of other acts (The Patent Act) amended by the Act No. 402/2002 Coll. (consolidation)

LEGISLATION SLOVAKIA

Intellectual Property Law • Act No. 444/2002 Coll. on Designs as amended• Act No. 469/2003 Coll. on designations of origin for pr

oducts and geographical indications for product and on amendment of some acts

• Act No. 618/2003 Coll. on copyright’s act • Copyright Act• Decree No. 117/1997 Coll. implementing the Act No. 5

5/1997 Coll. on Trademarks• Decree No. 350/1991 Coll. on Remuneration of Patent

Agents• Law No. 527/1990 Coll. on Inventions, Industrial Desig

ns and rationalisation Proposals

• Law on the Protection Rights of New Varieties and Animal Breeds

LEGISLATION SLOVAKIAEnvironmental Law • Act 287 / 1994 on the Preservation of Nature and Landscape

Act No. 163/2001 Coll. on Chemical Substances and Chemical PreparationsAct No. 238/1991 of the Coll. on WasteREGULATION 1993 on the specification of areas requiring special protection of the atmosphere and on the operation of smog warning and control systems

Energy law • Act No 542/2004 Atomic Act

Act No. 656/2004 Coll on Energy and consequential amendmentsAct No. 656/2004 Coll on Energy and consequential amendmentsAtomic Act 1998

Construction law • Act No 90/1998 on Construction Products

Act No. 50/1976 Coll. on territorial planning and building order (Building Act)Act on Authorised Architects and Authorised Civil Engineers as amended

Telecommunications Regulatory Authority

• Telecommunications Regulatory Authority of the Slovak Republic (TU SR) is the national regulatory authority and pricing authority in the sector of electronic communications. The Office is presided by a Chairman - Mr. Ladislav Mikuš, who is a statutory body and is elected and recalled by the National Council upon a proposal of the Government. The Chairman, in time of his absence, is deputised by the Vice-Chairman of the Office - Mr. Juraj Michňa. Besides that, the Vice-Chairman fulfils tasks assigned by the Chairman. The Vice-Chairman is appointed and recalled by the Government.

State administration authorities• According to the law:

State administration authorities in the area of electronic communications are as follows:

1. Ministry of Transport, Posts and Telecommunications of the Slovak Republic,

2. Telecommunications Regulatory Authority of the Slovak Republic.

State administration authoritiesThe Authority is the national regulatory authority and pricing authority in the

area of electronic communications which, pursuant to this Act• Performs regulation, • Provides for international relations in the field of electronic communications at

the level of regulatory authorities, • Co-operates with the Ministry in elaboration of the proposal of the national

frequency spectrum table and administers the frequency spectrum, • Protects the interests of end users with regard to quality and prices of services, • Fulfils obligations supporting competition, development of common market of

the European Union, interests of all persons of the European Union member states in the territory of the Slovak Republic, access to networks, interoperability of networks and services and protects freedom of carrier selection applying technical standards,

• Issues generally binding legal regulations within the limits of this Act,

State administration authorities• Publishes the Bulletin of the Telecommunications Office of the Slovak Republic

(hereinafter as “Bulletin“), • Provides for its information obligations toward the National Council of the Slovak

Republic (hereinafter as “the National Council) and the European Commission, • Sets payments, • Leads out-of court dispute resolution, • Provides information to end users related services, performs users researches,

publishes them and uses them in its activities, • Fulfils tasks related to limitation of proprietary rights to real estates in respect of

using of real estates for the purposes of service provisioning and tasks related to limitation of proprietary rights to movable assets by limitation or ban on using transmitting telecommunications facilities and lines in times of war or belligerency,

• Executes supervision and imposes sanctions, • Executes other activities.

Act of the Telecommunications Regulatory Authority of the Slovak Republic

• Act on Electronic Communications entered into force on January 2004.

• National Policy on Electronic Communications • Act No. 610 of 3 December 2003 on Electronic Communi

cations as amended by Act No. 716/2004 Coll., Act No. 69/2005 Coll. and Act No. 117/2006 Coll. enter into force on 1 April 2006, apart from provisions of Section 32, Subsection 22 and 23, which shall enter into force on 1 January 2007.

• Act No. 654/2007 of 19 December 2007, amending the Act No 610/2003 Coll. on Electronic Communications and on Amendments to Certain Acts, as amended

Measures of the Telecommunications Regulatory Authority of the Slovak Republic

• Measure of the Telecommunications Office of the Slovak Republic No. O-1/2004 of April 14, 2004, laying down particulars on certificates of special professional qualification to operate selected radio devices, on establishing an examining commission, and on the content, scope, and procedure of an examination

• Measure of the Telecommunications Office of the Slovak Republic No. O-2/2004 of April 19, 2004, laying down the tariffs for the right to use frequencies

• Measure of the Telecommunications Office of the Slovak Republic No. O-3/2004 of April 19, 2004, laying down tariffs for the use of numbers

• Measure of the Telecommunications Office of the Slovak Republic No. O-4/2004 of April 22, 2004 laying down particulars on providing public payphones and services for users with health disabilities

• Measure of the Telecommunications Office of the Slovak Republic No. O-5/2004 of April 22, 2004, laying down particulars on quality indicators and target values, including particulars of the form, extent, content, and form of disclosure of information

• Measure of the Telecommunications Office of the Slovak Republic of July 14, 2004, No. O-6/2004 laying down particulars on terms of conditional access to digital television and digital radio

Enterprise

Starting a business• According to section 21, subsection (4) of the Commercial Code „ a foreign

person’s authorization to carry on a business activity on the territory of the Slovak Republic takes effect on the day as of which that person, or that person’s organizational component, is recorded in the Commercial Register. Such foreign person is authorized to engage in the range of business activites specified in its entry in the Commercial Register. The application for this is filed by the foreign person concerned.

• According to section 21, subsection (5) of the Commercial Code „the provision of subsection (4) shall not apply to individuals (natural persons) who have a permanent residential address in a member state of the European Union or in some other state of the European Economic Area, if such individuals carry on business activity on the territory of the Slovak Republic.

Telephone

• Fixed lines• Mobile cellular

Fixed lines

• As in most post-communist Central European countries, the fixed line market in Slovakia was liberalised only recently. Slovak Telecom Inc. (former Slovenské Telekomunikácie, a.s.) was privatised on July 18, 2000. The 51% package of shares was purchased by the German Deutche Telecom AG for 1 bln. EUR (more than 44 bln. SKK at that time). The outstanding 49% of the shares are still owned by the Slovak government through the Department of Transport, Construction and Regional Development of the Slovak Republic (34%) and the National Property Fund (15%). As part of the privatisation contract, Deutsche Telecom agreed to provide full digitalisation of the fixed line network by the end of December 2004. Slovak Telecom was rebranded to T-Com in the year 2003. The legal regulation for liberalisation of the Slovak fixed line market was passed in 2002 and became valid by 1 January 2003, finally allowing competition in the sector of fixed lines.

• Currently, there are more than 100 companies licenced to provide public telephone service in the form of fixed lines,although many of these do not offer commercial service to the wider public. The most notable country-wide providers are T-Com, Orange, Dial Telecom, SWAN and UPC. Several regional providers also operate in the market. Many of these offer triple-play services consisting of a fixed line service, broadband internet access and access to television programmes. The number of triple-play customers has doubled since the service was introduced and currently peaks at 78,049 subscribers.

Mobile cellular• Mobile communication in Slovakia became first available in the

early 90's with the first NMT network operator being EuroTel Bratislava, a.s., a subsidiary of the then state owned Slovenské Telekomunikácie a.s. EuroTel introduced the first GSM service to public in 1997. EuroTel was privatised together with its mother company and was rebranded to T-Mobile on May 3, 2005. It is now fully integrated in the international T-Mobile brand. The second GSM network operator started its operation on January the 15th 1997 under the name GlobTel a.s. It was acquired by France Telecom and rebranded to Orange Slovakia on March 27, 2002. Telefonica O2, the third mobile operator in Slovakia, entered the market in February 2007 under the O2 brand. Recently virtual providers became active in the Slovak market, the most notable of them being Tesco Mobile (associated with Tesco Stores) and FunFón (a virtual operator associated with a popular FM radio station).

Key figures of the mobile cellular sector

• Total number of active mobile subscribers: 5,707,534

• Density of mobile subscribers: 105.12 per 100 inhabitants

• Coverage of land – GSM: 95.9%• Coverage of population - GSM: 99.6%

T-Mobile

• T-Mobile International AG is a Bonn, Germany based holding company for Deutsche Telekom AG's various mobile communications subsidiaries outside Germany. Subsidiaries of T-Mobile International operate GSM and UMTS-based cellular networks in Europe, the United States, Puerto Rico and the U.S. Virgin Islands. T-Mobile International has financial stakes in mobile operators in both Central and Eastern Europe.

T-Mobile

• The T-Mobile brand is present in ten European countries -- Austria, Croatia, Czech Republic, Hungary, Macedonia, Montenegro, the Netherlands, Poland, Slovakia and the United Kingdom -- as well as the United States, Puerto Rico, and the U.S. Virgin Islands.

• The T-Mobile brand has not been used in Germany since 2010 and may disappear from the United States, Puerto Rico and the U.S. Virgin Islands if AT&T Inc.'s proposed purchase is approved by the FCC.

• Globally, T-Mobile International subsidiaries have a combined total of approximately 150 million subscribers, making T-Mobile International the world's tenth largest mobile phone service provider by subscribers and the third largest multinational after the United Kingdom's Vodafone and Spain's Telefónica.

Orange Slovensko• Orange Slovensko is a member of the global communications group Orange. The

Orange Group operates in 19 countries of the world and currently serves almost 172 million customers. Orange owns majority shares in France, the United Kingdom, Belgium, the Netherlands, Switzerland, Romania, Denmark, Slovakia, Ivory Coast, Dominican Republic, Cameroon, Botswana, Madagascar, Moldova and Spain (previously Amena). It holds minority shares in Portugal, Austria, Thailand, Egypt, Poland and Lebanon. Orange SA is a wholly owned subsidiary of the French telecommunications giant France Telecom.

• Since 27 March 2002, the operator has been providing services under the Orange brand name and from this date company's business name is Orange Slovensko, a.s.

• The company operates a countrywide network covering 99% of the population and 2,830,000 active customers and is by far the most successful telecommunications company in Slovakia.

• Orange SA, whose majority owner is France Telecom, now owns a 100% stake in Orange Slovensko.

Orange Slovensko

• Orange Slovensko is a mobile operator company, however now also offering fibre connections, operating in Slovakia since 15 January 1997 (previously named Globtel), when it became the first mobile operator in Slovakia to operate the GSM digital mobile network at the 900 MHz frequency. On 15 November 1999, the company launched the commercial operation of the mobile network in the 1800 MHz frequency band. It is also the first company to cover more than 66% of the country with 3G HSDPA high-speed internet with the maximum speed of 14.4 Mbit/s, planning the HSPA+ upgrade to the maximum of 28.8-42.2 Mbit/s by 2012. The operator plans to commercially operate LTE network by the end of 2012.

O2 (Slovakia)

• Telefónica Slovakia (stylised as Telefónica Slovakia) is a provider of mobile service O2 in Slovakia. Telefónica started in Slovakia with commercial services on 2 February 2007 with about 600.000 preregistered users, and ~400,000 Slovaks actively using the O2 service. The operator has 781,000 active SIM cards (3 month activity) to date 30 September 2010. The company is subsidiary of Telefonica O2 Czech Republic, part of the Spanish group Telefonica Europe.

Telephone system

• International: – country code - +421– There are three international exchanges, one in Bratislava and two in

Banska Bystrica

• Emergency calls: – 122- EU standard integrated emergency service (one nation-wide

callcentre directly connected to police, EMS, firefighters, Mountain Rescue Service and others)

– 158 - direct callcentre - Police– 155 - direct callcentre - EMS (features doctors available for consultations

online)– 150 - direct callcentre - Firefighters– 18300 - direct callcentre - Mountain Rescue Service

Radio and Television

• Radio broadcast stations:• AM 15, FM 78, shortwave 2 (1998) Radios:

3.12 million (1997) ТV• Television broadcast stations:• 6 national broadcasting, 7 regional, 67 local

(2004) Televisions: 2.62 million (1997)

Internet

• Slovakia currently has a large number of full-area ISP's that offer wired broadband internet connections. Most notable of them include T-Com, T-Mobile, Orange Slovensko and UPC. They offer a range of connections, from ADSL / ADSL2+ to "Fibernet". ADSL or ADSL2+ is available in almost every town in Slovakia.

Key figures of the internet sector

• Internet country code (TLD): .sk• Number of host computers: 962,778• Number of host computers: 962,778• Number of Internet subscribers: 2,539,672• Density of Internet subscribers: 46,77 per 100

inhabitants• Internet Service Providers (ISPs): 864

Invest in Slovakia

Facts:• Foreign investors investing in Slovakia can greatly benefit from the Strategic

geographic location of the country. Since the country is located at the center of the European continent, investors can have easy access to other important business centers in the European Union and expand their business operations.

• Slovakia has plenty of highly qualified and technically skilled laborers. Foreign investors investing in different sectors in the country can get the man power at very cheap rates.

• Slovakia has the unique distinction of being the country which has a very low cost of living as compared to other countries in the European Union.

• Slovakia has promise for tremendous growth in the prospective years.• Since 1st January, 2009 when Slovakia joined the ranks of other member countries

of the European Union to accept Euro as its currency, the risk of loss in business due to difference in the currency exchange rates is negligible. Euro is a strong and globally accepted currency. This is greatly beneficial for foreign investors investing in the country.

Invest in Slovakia• Strong Points (main advantages) are:

- A strategic geographical position: the country is situated in the center of Europe;- A workforce that is inexpensive and well qualified;- its advantageous tax system, with a single tax rate of 19%;- The existence of several financial aids favoring foreign investment and can range from 20 to 50% of investment costs, depending of the projects;- A large growth potential;- The adoption of the Euro since January 1st, 2009, which has made disappear the risks of foreign exchange;- A low cost of living in relation to the rest of Europe.

Invest in Slovakia

• Weak Points (weak points) are:- Important technical and administrative barriers: requirement of import licenses especially for raw materials, energy and some agricultural products;- High energy costs: Slovakia must import 90% of its energy needs.- Deficient infrastructures. Although, governmental reforms have been set up, the infrastructures are not yet well developed and the country has no access to the sea.- The small size of its domestic market with a population that has a low purchasing power.

Invest in Slovakia

• Government Measures to Motivate or Restrict FDI The Slovak government encourages foreign investment, since it is one of the main driving forces of the economy. It has also established financial incentives such as tax credits and subsidiary systems. These aids are granted depending on the type of project, geographical location and the sector of activity. The country's low tax rate is one of the key elements that attracts FDI. Slovakia also benefits from European financial aids and many investors can benefit of the large renovation and modernization projects of the country.

FDI in Figures

• Foreign direct investment (FDI) has increased considerably over the last few years. In 2008, it represented almost USD 3.5 billion. With the privatization of the banking, energy and telecommunications sectors, the flows of foreign direct investment (FDI) have largely increased. Many foreign investors were able to incorporate themselves into the companies previously associated to the public sector. This is the case of large firms such as PSA and Hyundai who are installed directly in the country.

• According to a recent study done by the German-Slovak Chamber of Commerce and Industry, Slovakia appears as a very attractive country to foreign investors.

Starting a business

There are four types of companies that can be established in the Slovak Republic:

• Spoločnosť s ručením obmedzeným (Limited Liability Company), official abbreviation: (s.r.o. or spol. s r.o.)

• Akciová spoločnosť, (Joint Stock Company) official abbreviation: (a.s. or akc. spol.)

• Verejná obchodná spoločnosť (General Commercial Partnership) official abbreviation: (v.o.s. or ver.obch. spol.)

• Komanditná spoločnosť (Limited Partnership) official abbreviation: (k.s. or kom. spol.)

Limited Liability Company

• The most common type is the Limited Liability Company.

• A limited liability company (hereinafter the “SRO”) may be established by one or more founders (up to 50), either legal or natural persons, irrespective of their nationality. A limited liability company having one partner (shareholder) may not be the sole shareholder of another limited liability company. This rule applies also to foreign entities.

Starting a business• The minimum registered capital in the SRO is EUR 5,000 and minimal

contribution of a partner (shareholder) is at least EUR 750.• The registered capital must be paid up within the time period set out by

the Foundation Deed, however at the latest within five years from the date of incorporation. If the company is founded by a single founder, 100% of the registered capital must be paid before the incorporation. It can be contributed in kind or in cash.

• The contribution to the registered capital is not required to be tied in the company’s bank account during the whole existence of the company but may be used for activities of the company.

• The limited liability companies are obliged to have a reserve fund in the amount of 10% of its registered capital. It is not necessary to do so immediately at the time of company establishing, but in the year in which a company records its first profit.

Reference

• http://en.wikipedia.org/wiki/Demographics_of_Slovakia

• http://en.wikipedia.org/wiki/Telecommunications_in_Slovakia

• http://spectator.sme.sk/articles/view/34518/16/tax_system_in_slovakia.html

• http://www.teleoff.gov.sk/index.php?ID=248• http://www.egypt-import-export.com/en/cou

ntry-profiles/slovakia/investing2

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