E conomic - PowerPoint Presentation

Slide1

Economic and political situation to a potential investor and his partners in a telecommunication industry in Slovakia

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SlovakiaSlovakia, 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.Slide3

IntroductionPopulation Total population: 5,447,502Age structure 0–14 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 age

total: 37.3 years,

male: 35.7 years, female: 38.9 years (2010

est

)

Sex ratio

at birth:

1.05 male(s)/female

under 15 years:

1.05 male(s)/female

15–64 years:

0.99 male(s)/female

65 years and over:

0.6 male(s)/female

total population:

0.945 male(s)/female (2006 est.)Slide4

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.Slide5

Infant mortality ratetotal: 7.26 deaths/1,000 live birthsmale 8.48 deaths/1,000 live birthsfemale

5.98 deaths/1,000 live births (2006 est.)Slide6

Life expectancy at birthtotal population: 74.73 yearsmale: 70.76 yearsfemale: 78.89 years (2006 est.)Slide7

Total fertility rate1.33 children born/woman (2008 est.)1.35 children born/woman (2009 est.)1.36 children born/woman (2010 est.)Slide8

Ethnic groupsThe 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

p

opulation

of 120,000).Slide9

Life in SlovakiaSlovakia'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%.Slide10

Slovakia's urgent problemsIn 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.

I

f 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 10Slide11

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.Slide12

Literacydefinition: age 8 and over can read and writetotal population: 99.6%male:

99.7%

female:

99.6%Slide13

An average wage in SlovakiaAt 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.Slide14

Social guaranteesThe 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.Slide15

Current inflation SlovakiaCurrent 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 %Slide16

PovertyAs 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.Slide17

TAX SYSTEM IN SLOVAKIABASIC INFORMATIONTax period: calendar yearIncome 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.Slide18

LEGISLATION SLOVAKIAConstitutional law Act of the National Council of the Slovak Republic 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 ActSlide19

LEGISLATION SLOVAKIAElectoral law Act No 331/2003 on European Parliamentary ElectionsAct on Elections to the Bodies of Self-government 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)Slide20

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 WeaponsAct No 131/2002 on Higher

Education

Act

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

Defence

Act 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 Slide21

LEGISLATION SLOVAKIAAdministrative / Public Law Act No. 124/1992 Coll. on Military PoliceAct No. 131/2002 of Law Code on Higher Education as amendedAct 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 ActsSlide22

LEGISLATION SLOVAKIAAdministrative / Public Law Act No. 480 of 20th June 2002 on Asylum and Amendment of Some ActsAct 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 Acts

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 RepublicSlide23

LEGISLATION SLOVAKIAAdministrative / Public Law Act No. 172/2004 Coll. on the Transfer of Real Estates Owned by the Slovak Republic to Municipalities or Higher Territorial UnitsAct 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 RightsSlide24

LEGISLATION SLOVAKIACriminal Law Act 139 Of 2 April 1998 On Narcotic, Psychotropic Substances And PreperationsAct 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 amended by the Act No. 423/2003 Coll.

The Cadastre Act 1995Slide25

LEGISLATION SLOVAKIACommercial Law Act No 565/2001 Investment Incentives ActAct No. 264 of 7 September 1999 on technical requirements for products and on conformity assessmentAct No. 276/2001 Coll. on Regulation in Network Industries and 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 Slide26

LEGISLATION SLOVAKIALabor Law Act No 124/2006 Coll. on Occupational Safety and 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 Slide27

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 Protection 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 serviceSlide28

LEGISLATION SLOVAKIACompany law Act No. 136/2001 on Protection of Competition Act No. 465 of June 20, 2002 on Block Exemptions from the Ban of Agreements Restricting Competition and on Amendment of Some ActsAct 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)Slide29

LEGISLATION SLOVAKIAMining Law Act no. 44/1988 Coll. on protection and utilisation of mineral resources

Insurance Law

Act No 340/2005 Coll. on Insurance Mediation and 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 lawsSlide30

LEGISLATION SLOVAKIATax law Act No. 104/2004 Coll. on the Excise Duty on WineAct No. 105/2004 Coll. on the Excise Duty on Spirit and on amendment 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 excise 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 excise duty on tobacco products is amended and supplemented

Act No. 556/2004 Coll. by which Act No. 105/2004 Coll. on the excise duty on spirit is amended and supplemented Slide31

LEGISLATION SLOVAKIATax law Act No. 610/2005 Coll. amending and supplementing Act of the National council of the Slovak Republic No. 145/1995 Coll. on administrative feesAct 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 excise duty on spirit is amended and supplemented

Amendments to Act No. 106/2004 on the Excise Duty on Tobacco Products 2009

Income Tax Act 2003Slide32

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 Republic

Act No 747/2004 Coll. on Supervision of the Financial Market

Act No. 530 dated 26 November 1990 on Bonds Slide33

LEGISLATION SLOVAKIABanking law Act No. 566/2001 Coll. on Securities and Investment ServicesAct no. 431/2002 Coll. on Accounting as amended by Act 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 429/2002Slide34

LEGISLATION SLOVAKIACommunications and Media Law Act 147/2001 on AdvertisingAct No. 147/2001 Coll. on Advertising and Change and Amendment of Some LawsAct No. 211/2000 Coll. on free access to information and on amendments 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 Slide35

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 CopiesAct 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 other Laws (Audiovisual Law)

Act on the News Agency of the Slovak Republic and on amendment to certain acts

Freedom of Information ActSlide36

LEGISLATION SLOVAKIAIntellectual Property Law Act No 517/2007 Coll. on Utility Models and on Amendment of Some ActsAct No 55/1997 Coll. on Trademarks as 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) Slide37

LEGISLATION SLOVAKIAIntellectual Property Law Act No. 444/2002 Coll. on Designs as amendedAct No. 469/2003 Coll. on designations of origin for products and geographical indications for product and on amendment of some actsAct No. 618/2003 Coll. on copyright’s act

Copyright Act

Decree No. 117/1997 Coll. implementing the Act No. 55/1997 Coll. on Trademarks

Decree No. 350/1991 Coll. on Remuneration of Patent Agents

Law No. 527/1990 Coll. on Inventions, Industrial Designs and

rationalisation

Proposals

Law on the Protection Rights of New Varieties and Animal BreedsSlide38

LEGISLATION SLOVAKIAEnvironmental Law Act 287 / 1994 on the Preservation of Nature and LandscapeAct No. 163/2001 Coll. on Chemical Substances and Chemical Preparations

Act No. 238/1991 of the Coll. on Waste

REGULATION 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 amendments

Act No. 656/2004

Coll

on Energy and consequential amendments

Atomic 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 Slide39

Telecommunications  Regulatory AuthorityTelecommunications  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.Slide40

State administration authoritiesAccording 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.Slide41

State administration authoritiesThe Authority is the national regulatory authority and pricing authority in the area of electronic communications which, pursuant to this ActPerforms 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, Slide42

State administration authoritiesPublishes 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. Slide43

Act of the Telecommunications Regulatory Authority of the Slovak RepublicAct on Electronic Communications entered into force on January 2004. National Policy on Electronic Communications Act No. 610 of 3 December 2003 on Electronic Communications 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 Slide44

Measures of the Telecommunications Regulatory Authority of the Slovak RepublicMeasure 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 radioSlide45

EnterpriseStarting a businessAccording 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. Slide46

TelephoneFixed linesMobile cellularSlide47

Fixed linesAs 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.Slide48

Mobile cellularMobile 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).Slide49

Key figures of the mobile cellular sectorTotal number of active mobile subscribers: 5,707,534Density of mobile subscribers: 105.12 per 100 inhabitantsCoverage of land – GSM: 95.9%Coverage of population - GSM

: 99.6%Slide50

T-MobileT-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.Slide51

T-MobileThe 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

.Slide52

Orange SlovenskoOrange 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

.Slide53

Orange SlovenskoOrange 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.Slide54

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

.Slide55

Telephone systemInternational: country code - +421There 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 ServiceSlide56

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)Slide57

InternetSlovakia 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.Slide58

Key figures of the internet sectorInternet country code (TLD): .skNumber of host computers: 962,778Number of host computers: 962,778Number of Internet subscribers: 2,539,672Density of Internet subscribers: 46,77 per 100 inhabitantsInternet Service Providers (ISPs): 864Slide59

Invest in SlovakiaFacts: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.Slide60

Invest in SlovakiaStrong 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. Slide61

Invest in SlovakiaWeak 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. Slide62

Invest in SlovakiaGovernment 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.Slide63

FDI in FiguresForeign 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.Slide64

Starting a businessThere 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

.)Slide65

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

.Slide66

Starting a businessThe 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.Slide67

Referencehttp://en.wikipedia.org/wiki/Demographics_of_Slovakiahttp://en.wikipedia.org/wiki/Telecommunications_in_Slovakiahttp://spectator.sme.sk/articles/view/34518/16/tax_system_in_slovakia.htmlhttp://www.teleoff.gov.sk/index.php?ID=248

http://www.egypt-import-export.com/en/country-profiles/slovakia/investing2Slide68

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