Doing Business 2018 Slovenia Economy Pro le of Slovenia Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Slovenia Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Slovenia Income Category High income 37 Population 2,064,845 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 21,660 0 100 75.42 City Covered Ljubljana DB 2018 Distance to Frontier (DTF) 0 100 77.46: Regional Average (OECD high income) 76.27: Czech Republic (Rank: 30) 75.42: Slovenia (Rank: 37) 72.70: Italy (Rank: 46) 72.39: Hungary (Rank: 48) Page 3   68.70: Albania (Rank: 65) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Slovenia Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Slovenia Income Category High income 37 Population 2,064,845 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 21,660 0 100 75.42 City Covered Ljubljana DB 2018 Distance to Frontier (DTF) 0 100 77.46: Regional Average (OECD high income) 76.27: Czech Republic (Rank: 30) 75.42: Slovenia (Rank: 37) 72.70: Italy (Rank: 46) 72.39: Hungary (Rank: 48) 68.70: Albania (Rank: 65) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Slovenia 1 1 10 19 24 28 36 46 58 55 82 Rank 100 105 109 122 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Slovenia 100.00 100 91.48 89.16 83.69 77.05 77.78 80 70.00 67.01 60 52.97 DTF 45.00 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:+10.00 Investors Change:0.00 Borders Change:0.00 Change:-0.28 Change:+0.06 Permits Change:0.00 Change:0.00 Change:+0.04 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:0.00 Change:+10.00 Investors Change:0.00 Borders Change:0.00 Change:-0.28 Change:+0.06 Permits Change:0.00 Change:0.00 Doing Business 2018 Slovenia Change:+0.04 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Slovenia Standardized Company Legal form Druzba z omejeno odgovornostjo (d.o.o.) Paid-in minimum capital requirement EUR 7,500 City Covered Ljubljana OECD high OECD high Indicator Slovenia income income Overall Best Performer Procedure – Men (number) 4 4.9 4.9 1.00 (New Zealand) Time – Men (days) 7 8.5 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 0.0 3.1 3.1 0.00 (United Kingdom) Procedure – Women (number) 4 4.9 4.9 1.00 (New Zealand) Time – Women (days) 7 8.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 0.0 3.1 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 39.6 8.7 8.7 0.00 (113 Economies) Figure – Starting a Business in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 91.49: Albania (Rank: 45) 91.48: Slovenia (Rank: 46) 91.35: Regional Average (OECD high income) 89.42: Italy (Rank: 66) 87.60: Hungary (Rank: 79) 87.44: Czech Republic (Rank: 81) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Slovenia – Procedure, Time and Cost Time Cost 7 1.2 6 1 ost (% of income per capita) 5 0.8 Time (days) 4 0.6 3 0.4 2 Page 6   starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Slovenia Figure – Starting a Business in Slovenia – Procedure, Time and Cost Time Cost 7 1.2 6 1 Cost (% of income per capita) 5 0.8 Time (days) 4 0.6 3 0.4 2 0.2 1 0 0 1 2 3 *4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Deposit capital in a bank account and get a receipt from the bank 1 day no charge Agency : Commercial Bank The minimum founding capital is EUR 7,500. The founding capital or the base capital contribution can be paid in cash or as a non-cash contribution. Non- cash contribution includes movables, real property, rights or any other non- cash assets. Before ling the application for entry, the partner must provide at least one-quarter of the nominal capital, and the total value of all guaranteed contributions must be at least EUR 7,500. The minimum value of a single share is EUR 50. Although the initial share capital contribution must be paid-in in cash or in-kind, at least 1/3 of the initial share capital must be paid in in cash. In order for the entrepreneurs to be able to le the application for registration, they must demonstrate a certi cate on the paid-in founding capital. 2 Register at a VEM entry point or at a Notary Public 5 days no charge Agency : AJPES Founders may establish a LLC at the VEM point under two conditions: (1) all the contributions have to be paid in cash and prior to the registration of the company (2) the articles of association have to be drafted in a special form (only mandatory and most common provisions can be incorporated in this form). Page 7   (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Slovenia Details – Starting a Business in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Deposit capital in a bank account and get a receipt from the bank 1 day no charge Agency : Commercial Bank The minimum founding capital is EUR 7,500. The founding capital or the base capital contribution can be paid in cash or as a non-cash contribution. Non- cash contribution includes movables, real property, rights or any other non- cash assets. Before ling the application for entry, the partner must provide at least one-quarter of the nominal capital, and the total value of all guaranteed contributions must be at least EUR 7,500. The minimum value of a single share is EUR 50. Although the initial share capital contribution must be paid-in in cash or in-kind, at least 1/3 of the initial share capital must be paid in in cash. In order for the entrepreneurs to be able to le the application for registration, they must demonstrate a certi cate on the paid-in founding capital. 2 Register at a VEM entry point or at a Notary Public 5 days no charge Agency : AJPES Founders may establish a LLC at the VEM point under two conditions: (1) all the contributions have to be paid in cash and prior to the registration of the company (2) the articles of association have to be drafted in a special form (only mandatory and most common provisions can be incorporated in this form). If these conditions are not applicable, the company can be registered at the Public Notary. In order to found an LLC, founders have to visit the VEM entry point in person, as an authorized person has to carry out their identi cation. VEM points will allow procedures to be done online - only in case of registration of one-person companies and sole proprietors. • Limited Liability companies can go directly to the VEM, the deed is sent to point VEM or to the registration body through electronic channels, it must be signed by means of a safe electronic signature with quali ed certi cate (the quali ed certi cate is the special digital certi cate for identity check and electronic operation at the VEM point services). • Standard Articles of Association: help the founders to draft the articles of association, verify their signatures where necessary and draft the corresponding preposition for registration of the company at the court register. However it is still the common practice to have the statutes and the article of association prepared and certi ed by the notary. • Publication: Even if this requirement is not mandatory anymore, E-VEM allows for the company information to be available online. • Register with the Statistical O ce of Slovenia: the court register automatically forwards all the required information to AJPES. The Page 8   registration, they must demonstrate a certi cate on the paid-in founding Doing capital. Business 2018 Slovenia 2 Register at a VEM entry point or at a Notary Public 5 days no charge Agency : AJPES Founders may establish a LLC at the VEM point under two conditions: (1) all the contributions have to be paid in cash and prior to the registration of the company (2) the articles of association have to be drafted in a special form (only mandatory and most common provisions can be incorporated in this form). If these conditions are not applicable, the company can be registered at the Public Notary. In order to found an LLC, founders have to visit the VEM entry point in person, as an authorized person has to carry out their identi cation. VEM points will allow procedures to be done online - only in case of registration of one-person companies and sole proprietors. • Limited Liability companies can go directly to the VEM, the deed is sent to point VEM or to the registration body through electronic channels, it must be signed by means of a safe electronic signature with quali ed certi cate (the quali ed certi cate is the special digital certi cate for identity check and electronic operation at the VEM point services). • Standard Articles of Association: help the founders to draft the articles of association, verify their signatures where necessary and draft the corresponding preposition for registration of the company at the court register. However it is still the common practice to have the statutes and the article of association prepared and certi ed by the notary. • Publication: Even if this requirement is not mandatory anymore, E-VEM allows for the company information to be available online. • Register with the Statistical O ce of Slovenia: the court register automatically forwards all the required information to AJPES. The information is then entered in the Business Register and published online. Court register and business register are technically united in one information base and are now both run by AJPES. • Register with the tax administration - the tax information is transmitted through E-VEM and data is entered automatically when it is received from E- VEM. • Register with the Health Institute. The founders have to obtain a written permission of the owner of the real estate where the company will operate (address of the company). The signature of the owner has to be certi ed. 3 Register employees with the Pension and Disability Insurance Institute Less than one day no charge of Slovenia (ZPIZ) (online procedure) Agency : Pension and Disability Insurance Institute of Slovenia (ZPIS) Employees must be registered with the relevant social security agencies prior to commencement of work under their employment contracts.This is done electronically via VEM, using e-signature veri ed by the digital Page 9   certi cate. estate where the company will operate (address of the company). The Doing signature Business the owner of 2018 has to be certi ed. Slovenia 3 Register employees with the Pension and Disability Insurance Institute Less than one day no charge of Slovenia (ZPIZ) (online procedure) Agency : Pension and Disability Insurance Institute of Slovenia (ZPIS) Employees must be registered with the relevant social security agencies prior to commencement of work under their employment contracts.This is done electronically via VEM, using e-signature veri ed by the digital certi cate. 4 Register for VAT Less than one day no charge Agency : Financial Administration of the Republic of Slovenia (FURS) (online procedure) If the company is expecting to have annual turnover exceeding EUR 50,000, it needs to immediately after the incorporation register for VAT with the Financial Administration of the Republic of Slovenia - FURS (Finančna uprava Republike Slovenije). A complete form can be led with the Financial Administration of Republic of Slovenia electronically via website http://edavki.durs.si or via e-VEM online service (http://evem.gov.si/info/poslujem/davki/davek-na-dodano-vrednost-ddv/). This procedure can also be done in person at a VEM entry point. The company lls out a DDV-P2 form for obtaining a VAT registration number. The company must enclose to the DDV-P2 form any contracts or pre-contractual arrangements, business plans, invoices for the purpose of performing business activities etc. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information Page 10   The warehouse: Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Slovenia Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Slovenia Standardized Warehouse Estimated value of warehouse EUR 947,815.00 City Covered Ljubljana OECD high OECD high Indicator Slovenia income income Overall Best Performer Procedures (number) 14 12.5 12.5 7.00 (Denmark) Time (days) 239.5 154.6 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 2.9 1.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 12.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.14: Regional Average (OECD high income) 67.93: Hungary (Rank: 90) 67.26: Italy (Rank: 96) 67.01: Slovenia (Rank: 100) 66.27: Albania (Rank: 106) 62.77: Czech Republic (Rank: 127) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Slovenia – Procedure, Time and Cost Time Cost 1.6 1.4 200 Cost (% of warehouse value) 1.2 150 1 Time (days) 0.8 100 0.6 0.4 50 0.2 0 0 1 2 *3 4 5 *6 *7 8 9 10 * 11 12 13 14 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Slovenia Figure – Dealing with Construction Permits in Slovenia – Procedure, Time and Cost Time Cost 1.6 1.4 200 Cost (% of warehouse value) 1.2 150 1 Time (days) 0.8 100 0.6 0.4 50 0.2 0 0 1 2 *3 4 5 *6 *7 8 9 10 * 11 12 13 14 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Slovenia and comparator economies – Measure of Quality 13.5 13.0 13.0 13 12.5 Index score 12.0 12.0 12 11.4 11.5 11.0 11 10.5 10 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Dealing with Construction Permits in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the location information 0.5 days EUR 18 Agency : City of Ljubljana Before preparation of the project documentation, either the investor or the project manager acquires location information. The location information includes data on plot conditions, as determined by the municipal Spatial Acts (zoning laws), and data on the intended use of the area. A copy of the cadastral plan of the plot should be attached to the application for the location information. According to the Spatial Planning Act amended in 2008, the applicant is not Page 13   obliged to obtain the location information any more. Also, according to the Slovenia Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovenia Details – Dealing with Construction Permits in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the location information 0.5 days EUR 18 Agency : City of Ljubljana Before preparation of the project documentation, either the investor or the project manager acquires location information. The location information includes data on plot conditions, as determined by the municipal Spatial Acts (zoning laws), and data on the intended use of the area. A copy of the cadastral plan of the plot should be attached to the application for the location information. According to the Spatial Planning Act amended in 2008, the applicant is not obliged to obtain the location information any more. Also, according to the Construction Act amended in 2008, the location information is no longer a part of the project documentation for building permit. All data included in the location information must be obtained ex o cio by the local administration that issues the building permit. However, in practice obtaining the location information is still done by most applicants to provide an additional guarantee. Furthermore, the location information provides a clear list of project approvals that must be obtained in the process of obtaining the building permit for the area in question. Location documents can be obtained online on http://www.gu.gov.si/en. This has allowed anybody to obtain land maps and geodetic data directly online. 2 Obtain geotechnical study of the land plot 14 days EUR 1,500 Agency : Private licensed company The geotechnical study is a part of the application for obtaining a construction permit. 3 Obtain topographic survey of the land plot 14 days EUR 500 Agency : Private licensed company The topographic survey is a required part of the application for obtaining a construction permit. 4 Obtain project approval from water and sewage provider 30 days no charge Agency : JP Vodovod-Kanalizacija d.o.o The government of Slovenia amended its Construction Act in July 2012. The amended law eliminated the requirement for obtaining project conditions from the water and sewage provider company before completing the project design. An investor may now directly obtain the project approval from the water and sewage provider without obtaining the project conditions. The water and sewage provider must issue its approval (or disapproval) to the project solutions in 30 days from submitting the application. If the agency's approval (disapproval) is not issued within the 30 days, it is deemed that the agency has given its approval (i.e. the investor may start with the building permit obtaining procedure without attaching the project approval to the application). 5 Apply for and obtain a building permit from the Administration Unit 60 days EUR 782 Ljubljana Page 14   Agency : Administration Unit Ljubljana building permit obtaining procedure without attaching the project approval Doing to the application). Business 2018 Slovenia 5 Apply for and obtain a building permit from the Administration Unit 60 days EUR 782 Ljubljana Agency : Administration Unit Ljubljana According to the amended Construction Act, the required documents that must be submitted along with the application for the building permit are the project design (at least two copies), the certi cate of the right to build (i.e. except for the land registry as a proof of ownership of the land) and previously obtained approvals to the project solutions. The project design must be prepared by the licensed architect. The project design includes data on location of the building, schemes, architectural plan, plan of building structures, plan on electrical installations, etc. The Administrative Unit issues the building permit if the following conditions are ful lled: • Project design is completed in accordance with the applicable spatial plans • Project design is prepared by a licensed architect • All required approvals have been obtained • Project design is prepared in accordance with the valid legislation • Contributions prescribed by law have been paid (i.e. administrative tax for the application for the building permit, public utilities charge, compensation for degradation of the environment) The building permit is no longer valid if the investor fails to commence construction of the building in three years (two years in the case of the less complex constructions) from the date the building permit became nal. According to the law, the administrative unit shall issue a building permit in 2 months (60 days) from the day the application (including all obligatory attachments) was submitted. This can take longer in practice but the legal time limit of 60 days is generally met. 6 Hire an external supervising engineer to conduct supervision on 1 day EUR 14,217 construction Agency : Private Supervising Engineer According to the Constructions Act (O cial Gazette of the Republic of Slovenia, No. 110/2002, as amended, ZGO-1), the investor needs to ensure independent supervision of construction. The supervisor may not be involved in the construction of the building which it supervises. 7 Hire a geodesist company to conduct marking out before construction 1 day EUR 960 and after construction Agency : Authorized Geodesist Company BuildCo would be using the services of a licensed geodesist company or specialist before the construction and after the new building is completed. Before construction, BuildCo must ensure that the construction is marked out according to the building permit. A written notice stating the date and the place of marking out shall be sent to the municipal administration at least 8 days before commencement of the works. The associated cost depends on the size of the construction and on the number of corners. This procedure is a prerequisite for the Technical Examination by the Administration Unit Ljubljana. After construction, the company needs to undertake a new study and prepare a geodetic plan of the new state of the plot. Page 15   8 File the report of the construction site with the Labor Inspection Agency 1 day no charge independent supervision of construction. The supervisor may not be Doing involved Businessin the construction 2018 of the building which it supervises. Slovenia 7 Hire a geodesist company to conduct marking out before construction 1 day EUR 960 and after construction Agency : Authorized Geodesist Company BuildCo would be using the services of a licensed geodesist company or specialist before the construction and after the new building is completed. Before construction, BuildCo must ensure that the construction is marked out according to the building permit. A written notice stating the date and the place of marking out shall be sent to the municipal administration at least 8 days before commencement of the works. The associated cost depends on the size of the construction and on the number of corners. This procedure is a prerequisite for the Technical Examination by the Administration Unit Ljubljana. After construction, the company needs to undertake a new study and prepare a geodetic plan of the new state of the plot. 8 File the report of the construction site with the Labor Inspection Agency 1 day no charge Agency : Labor Inspection Agency According to the regulations on labor safety at construction sites, BuildCo must prepare a report on the site and send it to the Labor Inspection Agency at least 15 days before starting construction work. 9 Request license for use and receive technical examination by the 45 days EUR 272 Administration Unit Ljubljana Agency : Administration Unit Ljubljana The cost for technical examination depends on the value of the construction, namely 0.05% from the construction value with the maximum fee of EUR 271.83. For the construction worth EUR 2 million, the fee would be EUR 271.83. 10 Obtain the license for use 12 days EUR 19 Agency : Administration Unit Ljubljana The application for a license to use must be led in 8 days from the conclusion of construction works. The application shall state that the building was constructed in accordance with the building permit (the date and the number of the building permit must be also stated). The required documents that must be submitted along with the application for license for use are: • Project design of executed works (prepared by licensed architect) • Geodetic plan of the new state of the plot with the completed construction (prepared by the authorized geodetic company) • Certi cate of reliability of the construction, signed by the responsible site manager, if appointed, and by the responsible project leader and the responsible supervisor • Project plan regarding the maintenance and operation of the building, stating the minimal time limits for regular examinations and the scope of maintenance work • Other documents, if required by special regulation If the Administrative Unit establishes that the application has all the necessary documentation, it appoints the Commission for Technical Examination of the building and determines the date of the examination. If the Commission for Technical Examination establishes that the building was constructed in accordance with the issued building permit, the Page 16   Administrative Unit issues the license for use. 271.83. For the construction worth EUR 2 million, the fee would be EUR Doing 271.83. Business 2018 Slovenia 10 Obtain the license for use 12 days EUR 19 Agency : Administration Unit Ljubljana The application for a license to use must be led in 8 days from the conclusion of construction works. The application shall state that the building was constructed in accordance with the building permit (the date and the number of the building permit must be also stated). The required documents that must be submitted along with the application for license for use are: • Project design of executed works (prepared by licensed architect) • Geodetic plan of the new state of the plot with the completed construction (prepared by the authorized geodetic company) • Certi cate of reliability of the construction, signed by the responsible site manager, if appointed, and by the responsible project leader and the responsible supervisor • Project plan regarding the maintenance and operation of the building, stating the minimal time limits for regular examinations and the scope of maintenance work • Other documents, if required by special regulation If the Administrative Unit establishes that the application has all the necessary documentation, it appoints the Commission for Technical Examination of the building and determines the date of the examination. If the Commission for Technical Examination establishes that the building was constructed in accordance with the issued building permit, the Administrative Unit issues the license for use. The costs of the license for use are EUR 3.88 for the application and EUR 15.49 for the decision on issuance of the license for use. According to the law the Administrative Unit shall issue the license for use in 2 months from the day of submitting the application. Apply for water and sewerage connection 1 day EUR 9,000 11 Agency : JP Vodovod-Kanalizacija d.o.o Once the building permit is obtained, the investor may apply for water and sewage connection from the Vodovod-Kanalizacija d.o.o. (hereinafter: the "utility"). The required documents are: • The building permit • Proof of ownership of the land • Plan of the plot showing the position of the building on the plot • Project of grid connection to the water and sewage network The connection approval must be issued free of any charge and within 30 days from the day the application was submitted. After the connection approval is obtained from the utility, the building ( tting) of the grid connection (external works) may start. The grid connection to the water network is usually made by the utility. The utility examines the documentation to prepare an estimate of costs and the time needed. Afterwards, it prepares an o er for making a grid connection to the client. However, another company may be engaged to do the external works as well. The cost for connection to the water and sewage network is EUR 9,000.00. 12 Receive an inspection for water and sewage connection 1 day EUR 60 Agency : JP Vodovod-Kanalizacija d.o.o Page 17   After the grid connection is built, the utility examines the connection as well. The cost for connection to the water and sewage network is EUR Doing 9,000.00. Business 2018 Slovenia 12 Receive an inspection for water and sewage connection 1 day EUR 60 Agency : JP Vodovod-Kanalizacija d.o.o After the grid connection is built, the utility examines the connection (inspection at the site). The costs of such inspection amount to EUR 30.00 for each grid connection. 13 Obtain water and sewage connection 30 days no charge Agency : JP Vodovod-Kanalizacija d.o.o If connection is in accordance with requirements stated in the connection approval, the building is connected to the network. 14 Register warehouse with the Land Registry and the Regional Surveying 45 days EUR 19 and Mapping Authority Agency : Land Registry; Regional Surveying and Mapping Authority According to the Real Estate Recording Act, the investor must le the application for registering the building with the Land Registry within 30 days from conclusion of all construction works or within 30 days from the start of the use of the building. In each case, the application shall be led before the investor noti es its registered seat in the building (i.e. at the address of the building). If the application for registering the building is not led in 30 days from beginning of use or conclusion of all construction works, the authority invites the investor to le the application in three months or else a ne will be imposed upon him if the application is not led on time. The Construction Act de nes a legal time limit of 15 days to register the building after the decision on issuance of the license for use becomes nal. The geodetic analysis on the building (project of the building) prepared by the authorized geodetic company in the earlier stage must be submitted, along with the application form. An administrative tax of EUR 19.37 must be paid. After the building is registered, the documents are then transferred to the Regional Surveying and Mapping Authority. It takes an additional 2-3 months to register the building with this authority. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Slovenia – Measure of Quality Answer Score Building quality control index (0-15) 12.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Page 18   Quality control before construction index (0-1) 0.0 Takes place simultaneously with previous procedure. Doing Business 2018 Slovenia Details – Dealing with Construction Permits in Slovenia – Measure of Quality Answer Score Building quality control index (0-15) 12.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Inspections by external engineer or rm; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection; Yes, external engineer submits report for nal inspection. Page 19   Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 control after QualityBusiness Doing 2018construction Sloveniaindex (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection; Yes, external engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a Page 20   registered certi cation Doing Business 2018 Slovenia exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) Page 21   panel or switchboard and the meter base. Tools to monitor power outages (0–1) certi cation exam. Doing Business 2018 Slovenia Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 22   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Slovenia Standardized Connection Price of electricity (US cents per kWh) 13.8 Name of utility Elektro Ljubljana, d.d. City Covered Ljubljana OECD high OECD high Indicator Slovenia income income Overall Best Performer Procedures (number) 5 4.7 4.7 2 (United Arab Emirates) Time (days) 38 79.1 79.1 10 (United Arab Emirates) Cost (% of income per capita) 107.1 63.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 8 7.4 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.33: Czech Republic (Rank: 15) 89.16: Slovenia (Rank: 19) 85.27: Italy (Rank: 28) 84.44: Regional Average (OECD high income) 63.26: Hungary (Rank: 110) 48.31: Albania (Rank: 157) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Slovenia – Procedure, Time and Cost Time Cost 120 35 100 Cost (% of income per capita) 30 25 80 Time (days) 20 60 15 40 10 20 5 Page 23   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Slovenia Figure – Getting Electricity in Slovenia – Procedure, Time and Cost Time Cost 120 35 100 Cost (% of income per capita) 30 25 80 Time (days) 20 60 15 40 10 20 5 0 0 1 *2 3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Slovenia and comparator economies – Measure of Quality 9 8 8 8 7.4 7 7 7 6 Index score 5 4 3 2 1 0 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Getting Electricity in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to utility and await estimate 25 calendar days EUR 0 Agency : Elektro Ljubljana An application can be submitted in person, by mail and by e-mail. The following approvals and contracts are needed in the process of connecting a new customer to the power grid: • approval of warehouse project (Statement that the warehouse matches requirements of the power connection conditions), • connection approval (Detailed technical speci cation; metering, rights and obligations of utility and investor-owner), • connection contract. Page 24   The customer has to send applications for each of those approvals and Slovenia Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovenia Details – Getting Electricity in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to utility and await estimate 25 calendar days EUR 0 Agency : Elektro Ljubljana An application can be submitted in person, by mail and by e-mail. The following approvals and contracts are needed in the process of connecting a new customer to the power grid: • approval of warehouse project (Statement that the warehouse matches requirements of the power connection conditions), • connection approval (Detailed technical speci cation; metering, rights and obligations of utility and investor-owner), • connection contract. The customer has to send applications for each of those approvals and contract at the same time to the utility and to the same department. In addition, the customer has to request the technical conditions from the utility. The technical conditions are needed to get information about the location, the point of ''hook up'', the nearest substation, and the distance. This information is necessary to design the connection. Documents to be attached to apply for those approvals and the technical conditions are: Location, electrical power needed, project documents and ownership documents. The documents do not need to be notarized. There are no extra costs associated. The customer gets the approvals by mail or can come and pick them up. There is no external inspection. If the external connection work is done by a private electrical contractor, an inspection by the utility is done during the connection works. The customer can apply for the internal inspection at this point by submitting an extra form. 2 Conclude supply agreement 1 calendar day EUR 0 Agency : Elektro Ljubljana The customer has to submit a separate application for the supply contract. The utility then sends an o er back and the customer signs the contract. The contract for the new connection and the supply contract must be signed before the physical connection works start. The separation of these two functions is regulated in the EC Directive (2003/54/EC and 96/92/EC). 3 Receive external works and meter installation by utility 10 calendar days EUR 19,105.3 Agency : Elektro Ljubljana Transformers usually have enough capacity to accommodate an additional load of 140kVA inside and around the motorway ring (the area where warehouses usually locate). Therefore, no extra transformer needs to be built for the new customer and the warehouse is connected via simple hook- up to the next utility distribution transformer (usually 200 meters distance). Either the utility or an outside company is in charge of the external works including designing the details of the external connection works. Both are possible (works carried out by the utility or by an electrical contractor), however it is more common to have the utility carrying out the connection works. The material is provided by the utility or the electrical contractor that would carry out the connection works. The meter gets installed at the same time as when the connection is done. It is installed either by the authorized electrical contractor or the utility that carries out the connection works. 4 Receive internal inspection by registered company 8 calendar days EUR 1,200 Page 25   Agency : Registered company time as when the connection is done. It is installed either by the authorized Doing electrical Business 2018 or contractor the utility that carries out the connection works. Slovenia 4 Receive internal inspection by registered company 8 calendar days EUR 1,200 Agency : Registered company An outside company that is registered for supervision con rms with a statement that the internal wiring is done according to regulations and standards. The utility is also authorized to inspect the internal wiring. The customer has to request the internal inspection with the application for connection to the network. Someone from the customer’s party has to be present. 5 Apply for nal connection by utility 3 calendar days EUR 0 Agency : Elektro Ljubljana After all documents are obtained, the connection is made and the meter is installed, the customer has to apply for a nal hook up to the power grid. Takes place simultaneously with previous procedure. Details – Getting Electricity in Slovenia – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.5 System average interruption frequency index (SAIFI) 0.2 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online Di erent web sites (NRA's, supplier's, SO's, etc) http://www.agen- rs.si/primerjalnik Page 26   Takes place simultaneously with previous procedure. Doing Business 2018 Slovenia Details – Getting Electricity in Slovenia – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.5 System average interruption frequency index (SAIFI) 0.2 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online Di erent web sites (NRA's, supplier's, SO's, etc) http://www.agen- rs.si/primerjalnik Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 27   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Slovenia Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value EUR 947,815.00 City Covered Ljubljana Page 28   OECD high OECD high Doing Business 2018 Slovenia Standard Property Transfer Property value EUR 947,815.00 City Covered Ljubljana OECD high OECD high Indicator Slovenia income income Overall Best Performer Procedures (number) 5 4.6 4.6 1.00 (4 Economies) Time (days) 49.5 22.3 22.3 1.00 (3 Economies) Cost (% of property value) 2.0 4.2 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 23.5 22.7 22.7 29.00 (Singapore) Figure – Registering Property in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 81.70: Italy (Rank: 23) 80.09: Hungary (Rank: 29) 79.68: Czech Republic (Rank: 32) 77.05: Slovenia (Rank: 36) 76.81: Regional Average (OECD high income) 59.28: Albania (Rank: 103) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Slovenia – Procedure, Time and Cost Time Cost 2.5 40 2 Cost (% of property value) 30 Time (days) 1.5 20 1 10 0.5 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 29   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Slovenia Figure – Registering Property in Slovenia – Procedure, Time and Cost Time Cost 2.5 40 2 Cost (% of property value) 30 Time (days) 1.5 20 1 10 0.5 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Slovenia and comparator economies – Measure of Quality 30 26.0 26.5 25.0 25 23.5 22.7 20 Index score 15.5 15 10 5 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Registering Property in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a land registry extract from the Land Registry Less than a day no cost - obtained Agency : Land Registry (online procedure) online. A land registry extract shall be obtained by the seller from the Land Registry as proof of ownership. Information regarding potential encumbrances on the property are a vital part thereof. Most real estate information is available online, therefore it is obtained immediately in the form of a .pdf le. In rare instances, however, relevant information has to be physically sought out, thereby taking a bit longer as well as being associated with additional (administrative) costs. 2 Seller presents a tax declaration to the Tax Authority, and the land tax is 16 days no cost Page 30   assessed Slovenia Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovenia Details – Registering Property in Slovenia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a land registry extract from the Land Registry Less than a day no cost - obtained Agency : Land Registry (online procedure) online. A land registry extract shall be obtained by the seller from the Land Registry as proof of ownership. Information regarding potential encumbrances on the property are a vital part thereof. Most real estate information is available online, therefore it is obtained immediately in the form of a .pdf le. In rare instances, however, relevant information has to be physically sought out, thereby taking a bit longer as well as being associated with additional (administrative) costs. 2 Seller presents a tax declaration to the Tax Authority, and the land tax is 16 days no cost assessed Agency : Financial Administration of the Republic of Slovenia (FURS) http://www.fu.gov.si/en/ The seller is principally required to make a land tax declaration to the competent department of the Tax Administration of the Republic of Slovenia within 15 days after the day the purchase agreement was concluded. The Tax Administration is required to assess the land tax within 30 days after the tax declaration was made. The documentation shall include: Filled-in tax declaration Proof of ownership (e.g. land registry extract obtained in Procedure 1) Basis for the transfer of real estate (e.g. contract) For companies acting as buyer – copy of the court registry entry. 3 Payment and procedure of the real estate transfer tax or VAT tax at the 1 day 2% of property price Financial Administration O ce (transfer tax) Agency : Financial Administration of the Republic of Slovenia (FURS) http://www.fu.gov.si/en/ Real property transaction tax is 2% of property price. The VAT does not have to be paid if the transaction of real estate is taxed by Real Estate Transfer Tax. VAT is obligatory only for new real estate. The Real Estate Transfer Tax Procedure is as follows: The taxpayer has to insert the tax declaration within 15 days at the Tax Authority, after the deed of sale is signed. The Tax Authority has to assess the real estate transfer tax within 30 days after receiving the declaration. When the real estate transfer tax is assessed on the basis of the selling price, the tax must be paid at the competent Financial Administration O ce within 30 days after the receipt of the decision on tax assessment. On 11.12.2015, the National Gazette of Republic Slovenia, no. 96/15 published Act Amending the Implementation of the Republic of Slovenia Budget for 2016 and 2017, according to which, the VAT rate for the transfer of property (obligatory for new real estate) is charged and paid the same as on the basis of Implementation of the Republic of Slovenia's Budget for 2014 and 2015, at the general rate of 22% of the tax base, except the transfer of apartments, residential and other buildings for permanent living and other parts of buildings as part of social policy, renovation and repair, which is 9,5%. Page 31   Procedure 1) Basis for the transfer of real estate (e.g. contract) For Businessacting Doing companies 2018 as buyer – copy of the court registry entry. Slovenia 3 Payment and procedure of the real estate transfer tax or VAT tax at the 1 day 2% of property price Financial Administration O ce (transfer tax) Agency : Financial Administration of the Republic of Slovenia (FURS) http://www.fu.gov.si/en/ Real property transaction tax is 2% of property price. The VAT does not have to be paid if the transaction of real estate is taxed by Real Estate Transfer Tax. VAT is obligatory only for new real estate. The Real Estate Transfer Tax Procedure is as follows: The taxpayer has to insert the tax declaration within 15 days at the Tax Authority, after the deed of sale is signed. The Tax Authority has to assess the real estate transfer tax within 30 days after receiving the declaration. When the real estate transfer tax is assessed on the basis of the selling price, the tax must be paid at the competent Financial Administration O ce within 30 days after the receipt of the decision on tax assessment. On 11.12.2015, the National Gazette of Republic Slovenia, no. 96/15 published Act Amending the Implementation of the Republic of Slovenia Budget for 2016 and 2017, according to which, the VAT rate for the transfer of property (obligatory for new real estate) is charged and paid the same as on the basis of Implementation of the Republic of Slovenia's Budget for 2014 and 2015, at the general rate of 22% of the tax base, except the transfer of apartments, residential and other buildings for permanent living and other parts of buildings as part of social policy, renovation and repair, which is 9,5%. 4 Certi cation of signatures and submit proposal to Land Registry 1 day Notary fees for the Agency : Notary land registry case are (in Euros) If the third party wishes to enter his/her right in the land register, the following the fee signature on the contract will have to be veri ed in front of the Notary.The schedule: Agency/ Authority in charge of certi cation of signature is the Notary Public, For a contract value While the proposal to Land Registry can be submitted by the Notary or Land under EUR 4,590, the Registry. fee is EUR 5 (+ VAT) From EUR 4,590, the fee is EUR 14 (+ VAT) From EUR 20,655, the fee is EUR 23 (+ VAT) From EUR 68,850, the fee is EUR 46 (+ VAT) From EUR 150,000, the fee is EUR 56 (+ VAT) From EUR 200,000, the fee is EUR 66 (+ VAT) From EUR 250,000, the fee is EUR 76 (+ VAT) From EUR 300,000, the fee is EUR 86 (+ VAT) From EUR 350,000, Page 32   the fee is EUR 96 (+ Doing Business 2018 Slovenia 4 Certi cation of signatures and submit proposal to Land Registry 1 day Notary fees for the Agency : Notary land registry case are (in Euros) If the third party wishes to enter his/her right in the land register, the following the fee signature on the contract will have to be veri ed in front of the Notary.The schedule: Agency/ Authority in charge of certi cation of signature is the Notary Public, For a contract value While the proposal to Land Registry can be submitted by the Notary or Land under EUR 4,590, the Registry. fee is EUR 5 (+ VAT) From EUR 4,590, the fee is EUR 14 (+ VAT) From EUR 20,655, the fee is EUR 23 (+ VAT) From EUR 68,850, the fee is EUR 46 (+ VAT) From EUR 150,000, the fee is EUR 56 (+ VAT) From EUR 200,000, the fee is EUR 66 (+ VAT) From EUR 250,000, the fee is EUR 76 (+ VAT) From EUR 300,000, the fee is EUR 86 (+ VAT) From EUR 350,000, the fee is EUR 96 (+ VAT) From EUR 400,000, the fee is EUR 100 (+ VAT) 5 Entry of the proposal by the Land Registry 1 day (obtain seal) + EUR 37 + EUR 9,5 VAT Agency : Land Registry (Local court) 30 days (entry in (notary fee for register) inscription in The land registry court (Local court) initiates the registration process for the registry) + entry of title in the land register, on the basis of the land registry proposal. Registration court The amendments to the Land Registry Act adopted on 27 March 2009 and fees according to implemented on 1 May 2011 have enacted the mandatory submission of Page 33   the fee is EUR 100 (+ Doing Business 2018 Slovenia VAT) 5 Entry of the proposal by the Land Registry 1 day (obtain seal) + EUR 37 + EUR 9,5 VAT Agency : Land Registry (Local court) 30 days (entry in (notary fee for register) inscription in The land registry court (Local court) initiates the registration process for the registry) + entry of title in the land register, on the basis of the land registry proposal. Registration court The amendments to the Land Registry Act adopted on 27 March 2009 and fees according to implemented on 1 May 2011 have enacted the mandatory submission of sliding scale (EUR proposal with appendixes in electronic form to the courts. The land registry procedure is completely computerized. The submissions should be entered 250 for property via a notary public or attorneys and real-estate agencies acting on behalf of between 750,000 the applicant. However, the amended Land Register Act still provides some EUR and 1,000,000 exceptions that registrations may also be submitted directly by the EUR) applicant. Simultaneously, the amendments have transferred the responsibility for depositing original documents (e.g. contracts) that were -Court Fees - For attached to the submissions from the courts to the notary, whereby the property between notary's con rmation of authenticity renders the evidence value of the 750,000 EUR and electronic version equal to that of the original. The amendments enable free 1,000,000 EUR the access via a web-portal to the contents of the land register, including fee is 250 EUR. Court pending notations, and to land register extracts, neither of which were free fees, reflecting the of cost prior to the reform. The proposal is sent to a central unit of the court Act Amending the which automatically assigns it to the least burdened local court. Once the Judicial Fees Act - proposal is led with the competent land registry court, the registration ZST-1C (Official process is initiated ex o cio and the priority of entry is ensured by way of a Gazette of the land registry seal. The seal in the land registry that safeguards the priority Republic of Slovenia, order is obtained immediately. The priority order takes e ect of the day on No. 30/16 of 25 April which the proposal has been led. 2016). The buyer can theoretically dispose of the property as soon as the purchase -Notary fee for agreement is signed and the (direct or indirect) possession of the property is preparation of land obtained by the buyer. The possibility to dispose with the property at this register proposal is stage would depend on the other party to the new contract. 37 EUR (Notary Fees including latest The buyer whose title is not yet entered into the land register but has already obtained the possession of the property enjoys the position of a Dopolnitev Notarske proprietary possessor in good faith - the presumed owner. The latter has, tarife - Official among others, the right to claim the return of a property in the event of its Gazette of the dispossession from a proprietary possessor in good faith who has the Republic of Slovenia, property with a weaker legal title. No. 15/14 of 28 In any case the buyer has a possibility to claim the return of the purchase February 2014) price but has no claims under the law of property until the title is entered into the land register. Since May 1st, 2011 the proposal has to be lled in an electronic form. The Land registration fee had also changed and fees are not in points anymore. The documentation shall include: -Land registry proposal -Document including the registration clause with certi ed signature of the seller (obtained in Procedure 5) -Con rmation of the payment of the tax or taxes (obtained in Procedure 3) -Purchase contract (if not same as document including the registration clause) Takes place simultaneously with previous procedure. Details – Registering Property in Slovenia – Measure of Quality Page 34   Answer Score Takes place simultaneously with previous procedure. Doing Business 2018 Slovenia Details – Registering Property in Slovenia – Measure of Quality Answer Score Quality of the land administration index (0-30) 23.5 Reliability of infrastructure index (0-8) 6.0 What is the institution in charge of immovable property registration? Land Registry (Department within the Local Court of Ljubljana) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: The Surveying and Mapping Authority of the Republic of Slovenia (Geodetska uprava Republike Slovenije, GURS) In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 3.5 Who is able to obtain information on land ownership at the agency in charge of Freely accessible 1.0 immovable property registration in the largest business city? by anyone Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: See Art. 33 - 40 Land Register Act (Zakon o zemljiški knjigi). http://www.pisrs. si/Pis.web/pregle dPredpisa? id=ZAKO3603 Page 35   Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made Doing publicly available–and Business if so, how? 2018 Slovenia Link for online access: See Art. 33 - 40 Land Register Act (Zakon o zemljiški knjigi). http://www.pisrs. si/Pis.web/pregle dPredpisa? id=ZAKO3603 Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: The applicable fee schedule for property transactions can be found in the Court Fees Act ((Zakon o sodnih taksah (ZST-1)), available online at: http://www.pisrs. si/Pis.web/pregle dPredpisa? id=ZAKO4729 Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 10812.0 Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available No cost 0.5 —and if so, how? Link for online access: http://www.e- prostor.gov.si/ Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 Page 36   occurred at the cadastral or mapping agency? Link for Doing online access: Business 2018 Slovenia Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 8.0 Are all privately held land plots in the economy formally registered at the immovable Yes 2.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? Yes 2.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 6.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Local court property worth 50 times gross national income (GNI) per capita and located in the Ljubljana largest business city, what court would be in charge of the case in the rst instance? (Okrajno sodišče v Ljubljani), http://www.sodis ce.si/okralj/ How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? Yes 0.5 Number of land disputes in the largest business city in 2015: 87 (3.59%) Equal access to property rights index (-2–0) 0.0 Page 37   Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Number Doing disputes Slovenia of land 2018 Business in the largest business city in 2015: 87 (3.59%) Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 38   OECD high OECD high Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Slovenia Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. OECD high OECD high Indicator Slovenia income income Overall Best Performer Strength of legal rights index (0-12) 3 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 6 6.6 6.6 8.00 (34 Economies) Page 39   Credit registry coverage (% of adults) 100.0 18.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Slovenia OECD high OECD high Indicator Slovenia income income Overall Best Performer Strength of legal rights index (0-12) 3 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 6 6.6 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 100.0 18.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 63.7 63.7 100.00 (23 Economies) Figure – Getting Credit in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: Hungary (Rank: 29) 70.00: Albania (Rank: 42) 70.00: Czech Republic (Rank: 42) 63.03: Regional Average (OECD high income) 45.00: Italy (Rank: 105) 45.00: Slovenia (Rank: 105) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Slovenia and comparator economies 12 10 10 8 8 Index score 7 6.0 6 4 3 2 2 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Legal Rights in Slovenia Strength of legal rights index (0-12) 3 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 40   Slovenia Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovenia Details – Legal Rights in Slovenia Strength of legal rights index (0-12) 3 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring No a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Slovenia and comparator economies 8 7 7 6.6 6 6 6 5 Index score 4 2 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Credit Information in Slovenia Page 41   0 Slovenia Doing Business 2018 Albania Slovenia Czech Republic Hungary Italy OECD high income Details – Credit Information in Slovenia Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No Yes 1 Are both positive and negative credit data distributed? No Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No Yes 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No Yes 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? No Yes 1 Can banks and financial institutions access borrowers’ credit information online (for example, No Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 6 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 1,478,820 Number of firms 0 90,591 Total 0 1,569,411 Percentage of adult population 0.0 100.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 42   transactions; Available legal remedies (damages, Percentage of adult population 0.0 100.0 Doing Business 2018 Slovenia Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. OECD high OECD high Indicator Slovenia income income Overall Best Performer Extent of conflict of interest regulation index (0- 7.3 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6.7 6.4 6.4 Page 43   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Slovenia OECD high OECD high Indicator Slovenia income income Overall Best Performer Extent of conflict of interest regulation index (0- 7.3 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6.7 6.4 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.67: Albania (Rank: 20) 70.00: Slovenia (Rank: 24) 63.93: Regional Average (OECD high income) 58.33: Czech Republic (Rank: 62) 58.33: Italy (Rank: 62) 50.00: Hungary (Rank: 108) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Slovenia and comparator economies – Measure of Quality Slovenia 6 9 5 6 8 8 Albania 8 7 9 6 6 7 Czech Republic 5 6 2 7 6 9 Hungary 7 4 2 5 6 6 Italy 8 4 7 4 6 6 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Slovenia – Measure of Quality Answer Score Page 44   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Slovenia Details – Protecting Minority Investors in Slovenia – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 7.3 Extent of disclosure index (0-10) 5 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 9 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 8 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 45   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Slovenia Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 6.7 Extent of shareholder rights index (0-10) 8 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 6 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Page 46   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Slovenia Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 6 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 47   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Slovenia Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. OECD high OECD high Indicator Slovenia income income Overall Best Performer Payments (number per year) 10 10.9 10.9 3 (Hong Kong SAR, China) Page 48   return, but within the tax assessment period. Doing Business 2018 Slovenia OECD high OECD high Indicator Slovenia income income Overall Best Performer Payments (number per year) 10 10.9 10.9 3 (Hong Kong SAR, China) Time (hours per year) 245 160.7 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 31.0 40.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 59.94 83.45 83.45 99.38 (Estonia) Figure – Paying Taxes in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.07: Regional Average (OECD high income) 79.26: Czech Republic (Rank: 53) 77.78: Slovenia (Rank: 58) 71.49: Hungary (Rank: 93) 68.29: Italy (Rank: 112) 63.94: Albania (Rank: 125) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Slovenia and comparator economies – Measure of Quality 100 90.75 90 83.45 80 70 63.94 59.94 Index score 57.61 60 52.39 50 40 30 20 10 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Paying Taxes in Slovenia Tax or mandatory Payments Notes on Time Statutory Total tax and contribution Notes contribution (number) Payments (hours) tax rate Tax base rate (% of profit) on TTR Social security 1 online 90 16.1% gross salaries 18.16 Page 49   contributions Doing Business 2018 Slovenia Figure – Paying Taxes in Slovenia and comparator economies – Measure of Quality 100 90.75 90 83.45 80 70 63.94 59.94 Index score 57.61 60 52.39 50 40 30 20 10 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Paying Taxes in Slovenia Tax or mandatory Payments Notes on Time Statutory Total tax and contribution Notes contribution (number) Payments (hours) tax rate Tax base rate (% of profit) on TTR Social security 1 online 90 16.1% gross salaries 18.16 contributions Corporate income 1 online 86 17% taxable profit 12.68 tax Tax on insurance 1 online 8.5% insurance 0.08 premium Property tax (local 4 various type and value of 0.06 duties) rates construction Road tax 1 various type and weight 0.04 rates of vehicle Employee paid - 0 jointly 22.1% gross salaries 0.00 withheld Labor tax Fuel tax 1 included in fuel 0.00 small price amount Value added tax 1 online 69 22% value added 0.00 not (VAT) included Totals 10 245 31.0 Details – Paying Taxes in Slovenia – Tax by Type Taxes by type Answer Profit tax (% of profit) 12.7 Labor tax and contributions (% of profit) 18.2 Other taxes (% of profit) 0.2 Page 50   Totals 10 245 31.0 Doing Business 2018 Slovenia Details – Paying Taxes in Slovenia – Tax by Type Taxes by type Answer Profit tax (% of profit) 12.7 Labor tax and contributions (% of profit) 18.2 Other taxes (% of profit) 0.2 Details – Paying Taxes in Slovenia – Measure of Quality Answer Score Post ling index (0-100) 59.94 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 0% - 24% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 3.0 94 Time to obtain a VAT refund (weeks) 5.2 96.2 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 25% - 49% Time to comply with a corporate income tax audit (hours) 29.0 49.54 Time to complete a corporate income tax audit (weeks) 53.0 0 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 51   Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Slovenia Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 52   of agriculture or industry, national security agencies and any other Doing Business 2018 Slovenia government authorities. OECD high OECD high Indicator Slovenia income income Overall Best Performer Time to export: Border compliance (hours) 0 12.7 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 0 149.9 149.9 0.00 (19 Economies) Time to export: Documentary compliance 1 2.4 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 0 35.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 0 8.7 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 0 111.6 111.6 0.00 (27 Economies) Time to import: Documentary compliance 1 3.5 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 0 25.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 96.29: Albania (Rank: 24) 93.92: Regional Average (OECD high income) 100.00: Czech Republic (Rank: 1) 100.00: Hungary (Rank: 1) 100.00: Italy (Rank: 1) 100.00: Slovenia (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Slovenia – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 53   Doing Business 2018 Slovenia Figure – Trading across Borders in Slovenia – Time and Cost Time Cost 1.2 1.2 1 1 1 1 0.8 0.8 Time (hours) Cost (USD) 0.6 0.6 0.4 0.4 0.2 0.2 0 0 0 0 0 0 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Slovenia Characteristics Export Import Product HS 87 : Vehicles other than railway or tramway rolling-stock, and HS 8708: Parts and accessories of parts and accessories thereof motor vehicles Trade partner France France Border Slovenia- Austria border crossing Slovenia- Austria border crossing Distance (km) 100 100 Domestic transport 3 3 time (hours) Domestic transport 119 119 cost (USD) Details – Trading across Borders in Slovenia – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Slovenia – Trade Documents Export Import Page 54   cost (USD) Doing Business 2018 Slovenia Details – Trading across Borders in Slovenia – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 0.0 0.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 0.0 0.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.0 0.0 Details – Trading across Borders in Slovenia – Trade Documents Export Import CMR Waybill CMR Waybill Commercial Invoice Commercial invoice Packing list Packing list Intrastat Intrastat Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Page 55   Intrastat Intrastat Doing Business 2018 Slovenia Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value EUR 36,991.00 Court name Ljubljana District Court, Commercial Lawsuits Department City Covered Ljubljana OECD high OECD high Indicator Slovenia income income Overall Best Performer Time (days) 1160 577.8 577.8 164.00 (Singapore) Cost (% of claim value) 12.7 21.5 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 10.5 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.75: Hungary (Rank: 13) 66.76: Regional Average (OECD high income) 58.21: Czech Republic (Rank: 91) Page 56   of judicial processes Quality Business Doing index (0-18) 2018 Slovenia 10.5 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.75: Hungary (Rank: 13) 66.76: Regional Average (OECD high income) 58.21: Czech Republic (Rank: 91) 54.79: Italy (Rank: 108) 53.66: Albania (Rank: 120) 52.97: Slovenia (Rank: 122) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Slovenia – Time and Cost Time Cost 1400 40 34.9 33.8 1200 1120 1160 35 Cost (% of claim value) 30 1000 23.1 Time (days) 25 800 21.5 611 605 577.8 20 600 525 15.0 12.7 15 400 10 200 5 0 0 Albania Czech Republic Hungary Italy OECD high income Slovenia Figure – Enforcing Contracts in Slovenia and comparator economies – Measure of Quality Slovenia 2.5 2 1.5 4.5 Albania 1.5 1.5 1 2 Czech Republic 2 3 3 1.5 Hungary 3 4 2.5 4.5 Italy 3 4 3 3 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 Page 57   16 0 0 Albania Czech Republic Hungary Italy OECD high income Slovenia Doing Business 2018 Slovenia Figure – Enforcing Contracts in Slovenia and comparator economies – Measure of Quality Slovenia 2.5 2 1.5 4.5 Albania 1.5 1.5 1 2 Czech Republic 2 3 3 1.5 Hungary 3 4 2.5 4.5 Italy 3 4 3 3 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Slovenia Indicator Time (days) 1160 Filing and service 30 Trial and judgment 800 Enforcement of judgment 330 Cost (% of claim value) 12.7 Attorney fees 7.6 Court fees 3.5 Enforcement fees 1.6 Quality of judicial processes index (0-18) 10.5 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 2.0 Court automation (0-4) 1.5 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Slovenia – Measure of Quality Page 58   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Slovenia Details – Enforcing Contracts in Slovenia – Measure of Quality Answer Score Quality of judicial processes index (0-18) 10.5 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 2.0 1. Time standards 1.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 1.5 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 59   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Slovenia 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 0.5 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public Yes order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 60   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Slovenia Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) OECD high OECD high Indicator Slovenia income income Overall Best Performer Recovery rate (cents on the dollar) 88.7 71.2 71.2 93.1 (Norway) Time (years) 0.8 1.7 1.7 0.4 (Ireland) Page 61   Cost (% of estate) 4.0 9.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Slovenia OECD high OECD high Indicator Slovenia income income Overall Best Performer Recovery rate (cents on the dollar) 88.7 71.2 71.2 93.1 (Norway) Time (years) 0.8 1.7 1.7 0.4 (Ireland) Cost (% of estate) 4.0 9.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 11.5 12.1 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Slovenia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.69: Slovenia (Rank: 10) 76.97: Italy (Rank: 24) 76.69: Czech Republic (Rank: 25) 76.12: Regional Average (OECD high income) 66.13: Albania (Rank: 41) 54.75: Hungary (Rank: 62) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Slovenia – Time and Cost Time Cost 2.5 25 22.0 2.1 2.0 2.0 2 1.8 20 17.0 1.7 Cost (% of estate) Time (years) 14.5 1.5 15 10.0 1 9.1 10 0.8 0.5 4.0 5 0 0 Albania Czech Republic Hungary Italy OECD high income Slovenia Figure – Resolving Insolvency in Slovenia and comparator economies – Measure of Quality Slovenia 6 2.5 1 2 Page 62   0 0 Albania Czech Republic Hungary Italy OECD high income Slovenia Doing Business 2018 Slovenia Figure – Resolving Insolvency in Slovenia and comparator economies – Measure of Quality Slovenia 6 2.5 1 2 Albania 6 3 2 3 Czech Republic 5.5 2.5 2 3 Hungary 5 2.5 2 0.5 Italy 5.5 3 2 3 OECD high income 5.4 2.8 2.3 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Slovenia and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 100 88.7 90 80 71.2 67.0 64.6 70 60 50 41.6 43.7 40 30 20 10 0 Slovenia Albania Czech Republic Hungary Italy OECD high income Details – Resolving Insolvency in Slovenia Indicator Answer Explanation Proceeding reorganization Mirage management will file the petition for initiation of compulsory settlement procedure, containing the proposal for restructuring based on article 221h of ZFPPIPP) which contains special provision on compulsory settlement procedure of medium-sized companies. Outcome going concern Mirage will continue operating if the majority of creditors would agree on the proposed compulsory settlement and provided that the bank's secured claim is appropriately restructured and that the compulsory settlement is confirmed by the Court. Time (in years) 0.8 The debtor's management must initiate compulsory settlement proceedings within 3 months after the debtor became insolvent. It will take approximately 6 months for the compulsory settlement proceedings. As part of the compulsory settlement proceedings, the creditors will have to lodge their claims within one month following the publication of the Page 63   notice of initiation of such proceedings (Article 59(1) of ZFPPIPP). If the plan provides for the Slovenia Albania Czech Republic Hungary Italy OECD high income Doing Business 2018 Slovenia Details – Resolving Insolvency in Slovenia Indicator Answer Explanation Proceeding reorganization Mirage management will file the petition for initiation of compulsory settlement procedure, containing the proposal for restructuring based on article 221h of ZFPPIPP) which contains special provision on compulsory settlement procedure of medium-sized companies. Outcome going concern Mirage will continue operating if the majority of creditors would agree on the proposed compulsory settlement and provided that the bank's secured claim is appropriately restructured and that the compulsory settlement is confirmed by the Court. Time (in years) 0.8 The debtor's management must initiate compulsory settlement proceedings within 3 months after the debtor became insolvent. It will take approximately 6 months for the compulsory settlement proceedings. As part of the compulsory settlement proceedings, the creditors will have to lodge their claims within one month following the publication of the notice of initiation of such proceedings (Article 59(1) of ZFPPIPP). If the plan provides for the change in share capital of the debtor with the purpose of executing financial restructuring, the general meeting of the insolvent debtor shall adopt the resolution on the change in share capital within three months following the initiation of Compulsory Settlement proceedings (Article 192(2) of ZFPPIPP). After the publication of the call to creditors to vote on adoption of compulsory settlement, the creditors can submit their votes within one month (Article 202 of the ZFPPIPP). Cost (% of 4.0 Major expenses will include remuneration of the administrator 1.3%, attorney's fees 1.3%, estate) Court fees 0.5%, filing fees and fees of other professionals involved in the insolvency procedure, such as financial advisors, accountants, appraisers and auditors 1.3%. Recovery rate (cents on the 88.7 dollar) Details – Resolving Insolvency in Slovenia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Page 64   Management of debtor's assets index (0-6) 6.0 dollar) Doing Business 2018 Slovenia Details – Resolving Insolvency in Slovenia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 6.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 2.0 Which creditors vote on the proposed reorganization plan? (c) Other 1.0 Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Page 65   plan, does each class vote separately and are creditors in the same class treated equally? Doing Business 2018 Slovenia Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Page 66   Job quality the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Slovenia Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Slovenia Answer Hiring Page 67   Fixed-term contracts prohibited for permanent tasks? Yes days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Slovenia Details – Labor Market Regulation in Slovenia Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 24.0 Maximum length of xed-term contracts, including renewals (months) 24.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 919.8 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 6.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 75.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 30.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 20.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 24.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 68   Third-party Doing approval Business 2018 if nine workers are dismissed? Slovenia No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 5.1 Notice period for redundancy dismissal for a worker with 10 years of tenure 6.6 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 5.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.9 Severance pay for redundancy dismissal for a worker with 5 years of tenure 4.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 10.8 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 5.3 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 105.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 9.0 Business Reforms in Slovenia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Slovenia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Getting Credit: Slovenia improved access to credit information by reporting both positive and negative data on consumers and commercial borrowers. DB2015 Resolving Insolvency: Slovenia made resolving insolvency easier by introducing a simpli ed 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. Page 69   Minimum contribution period for unemployment protection (months)? 9.0 Doing Business 2018 Slovenia Business Reforms in Slovenia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Slovenia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Getting Credit: Slovenia improved access to credit information by reporting both positive and negative data on consumers and commercial borrowers. DB2015 Resolving Insolvency: Slovenia made resolving insolvency easier by introducing a simpli ed 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. DB2014 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. DB2013 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 ling 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 o er 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 nes for members of management that violate certain obligations or prohibitions. DB2012 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 simpli ed and streamlined the insolvency process and strengthened professional requirements for insolvency administrators. DB2011 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. DB2010 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. Page 70   Doing Business 2018 DB2010 Slovenia 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. DB2009 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. DB2008 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 xed-term contracts. Page 71   Paying Taxes: Slovenia made paying taxes less costly for companies by reducing the payroll tax rate. Labor DoingMarket 2018 Slovenia Regulation: Business reduced the maximum cumulative duration of xed-term contracts. Slovenia Page 72