Expand into Europe via Slovakia

An Expert's View about Business Environment in Slovakia

Posted on: 2 Sep 2014

Why Slovakia is the perfect platform for business expansion into Europe

Success Connect s.r.o. Into EUROPE via SLOVAKIA Countless business opportunities and great potential for business growth About us - Who we are • Success Connect s.r.o. is a Slovakia based consultancy and service provider specialising in comprehensive business expansion services and working with international companies to assist them when entering Slovakia and other Eastern European market. • In today’s fast paced and rapidly globalised markets, we recognise the importance of businesses expanding in to new markets in order to: •  Increase profits and achieve faster growth  Lower operational and production costs  Diversify operational locations  Enter new markets and reach new customers  Keep ahead of your competitors • Our team of experts is ready to guide you through every step of the process ensuring smooth and straightforward transition of business activities or set up of a new company in Slovakia in order access the Emerging European markets. • Find out more about us and how you can benefit from working with us on www.successconnect.net 2 About us - What we do • Whether you wish to launch a brand new business in Slovakia or wider Europe or considering to relocate only a particular business activity or operation - Success Connect provides unique, tailor-made solution based on your individual circumstances and requirements. • We strive to assist companies in achieving a competitive business edge by encouraging them to explore and take advantage of the vast opportunities and potential Emerging Europe has to offer. • In-depth knowledge of the local market and close cooperation with a number of local specialists enable us to bring you the highest level of expertise across all fields. • Our team understand that every company is completely unique with specific needs. This is reflected in our personal and highly flexible approach. 3 Services • Success Connect offers wide range of consultancy and services covering all aspects of the expansion process into the Eastern and Central European markets. • BASIC services: all services necessary to meet legal requirements in order to establish business entity in the chosen country, including: Legal advice, preparation of legal documentation, company set up, registration and representation with tax authorities, assistance with all bank related requirements, consulting and assistance in area of registration processes with all necessary authorities in order to comply with the local legislation, virtual office or business office set up. • ADDITIONAL services can be hand picked by the client and added to the basic package, covering diverse areas including: Market research, business property, recruitment, translation services, audit, accounting, secretarial services, Exclusive Rights - extension of your brand name, additional tax and legal consulting, investment incentives and many others. 4 Customer reach potential CZECH REPUBLIC POLAND Capital Prague Capital Warsaw 10.17 mil population = MARKET SIZE 38.42 mil population = MARKET SIZE 324 km 677 km SLOVAKIA Capital Bratislava 5.48 mil population = MARKET SIZE 62 km 196 km AUSTRIA HUNGARY Capital Vienna Capital Budapest 8.21 mil population = MARKET SIZE 9.95 mil population = MARKET SIZE 5 Why Slovakia? • Favorable geographic location with a great export and distribution potential - Central European hub • Close proximity and unlimited access to other CEE countries markets • Official currency EURO as one of few countries in the Central and Eastern European region • Highest labour productivity in the CEE region (Fastest GDP growth in the Eurozone (2012)) • Low labour costs and availability of highly skilled workforce with high level of language skills • Vast availability of cheaply priced industrial land, premises and offices to buy or rent • Investor business-friendly environment (best conditions for doing business in the CEE region) - The World Bank, 2009 – 2012 • Steadily growing infrastructure - reducing lead times and logistics costs • High innovation potential for Research and Development projects 6 Basic information about Slovakia • Official Name Slovak Republic • Geographic area 49,035km2 • Population 5.4 million • Capital Bratislava • Member of EU, Euro Area, Schengen Area, OECD, WTO, NATO • Currency Euro (from January 2009) • Type of government Parliamentary system 7 Slovakia’s strong record in attracting FDI • Foreign Direct Investment (FDI) into Slovakia reflects the country’s attractiveness to foreign investors. • Due to a favorable relationship between labour cost and productivity Slovakia has a strong record of attracting FDI. • FDI into Slovakia has been one of the fastest expanding amongst all countries in the Euro zone over the past five years. • FDI in Slovakia grew from €123 million in 2010 to €518 million in 2011 (Reuters, 2012) • Many foreign investors choose to invest in Slovakia with an aim to export to the CEE countries as well as to Western Europe. • In order to accommodate the FDI increase in the past years numerous logistic centers have been built throughout the country. These have become crucial links for most foreign investors to be able to ensure smooth and speedy supply and distributions services. 8 HIGH labour productivity and LOW labour cost • Productivity of Slovak labour force compared to labour cost is the highest in CEE region. • Slovak workers are often described as top-quality, efficient and productive labour force with an outstanding work attitude. • Export-focused economy offers workforce with a high level of education and language skills. • Average monthly salary in Slovakia is significantly lower compared to Western Europe and still slightly lower than Czech Republic, Poland and Hungary. • The average gross salary in Slovakia in 2011 was EUR 786 per month excluding obligatory social security contribution. The minimum monthly wage in 2011 was EUR 317 which increased to EUR 327,20 in 2012. (The Statistical Office of the Slovak Republic, www.statistics.sk, 2012) 9 Macroeconomic figures ‘Forbes upgrades Slovakia in “Best countries for business” from 45 in 2007 to 36 in 2008 and 33 in 2011‘ Macroeconomic 2007 2008 2009 2010 2011 figures Inflation (HICP) 1.9% 3.9% 0.9% 0.7% 3.9% Real GDP Growth 10.4% 6.4% -4.7% 4% 3.3% Registered 8.4% 7.7% 11.4% 12.48% 13.16% unemployment Nominal wage inflation 7.4% 8.1% 3.0% 3.2% 2.8% Export in EUR billion 47.3 49.5 39.7 48.27 56.5 Source: The Statistical Office of Slovak Republic, National Bank of Slovakia, ING Bank, Central Office of Labour, Social Affairs and Family 10 Contact us Registered Office Address: Success Connect s.r.o Karpatske Nametie 10 Bratislava 831 06 Slovak Republic Email: info@successconnect.net Web: www.successconnect.net Twitter @Successconnect2 11
Posted: 02 September 2014

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