The coronavirus outbreak affected almost all countries and economies in the world. If you plan to start a business in Europe and are considering Slovenia as the destination for company registration or perhaps even already have a company in Slovenia, you might be fearing how the coronavirus outbreak will affect your business. But fear not – the Slovenian government starting implementing new state measures already in the initial stages. The country wants to take care of the economy and support all entrepreneurs who started their business in Slovenia.
Data d.o.o. has been supporting entrepreneurs in Slovenia for nearly 30 years. We will continue to do so even during the coronavirus outbreak and its consequences. We have a special department that can support you in applying for the support that the Slovenian government will offer to companies who were affected by the coronavirus outbreak. Additionally, we also have a special legal department that can guide you through all the new governmental regulations and offer support in preparing the decrees for your staff should they have to work from home. Data d.o.o. also has specialized accountants who make sure to handle your company’s accounting even during this time so that you can focus solely on developing your business.
Outbreak of coronavirus – how does it affect the Slovenian small and medium companies?
There are more than 136.000 small and medium companies in Slovenia that will feel the affect of the coronavirus. Those companies employ 70% of the active employees and generate 64% of the added value. At the same time, these companies ensure half of the export which is a very important part of the Slovenian economy.
Coronavirus outbreak – Slovenia is offering almost 1 billion EURO to support Slovenian companies
As the outbreak will most likely also affect the investment activity in Slovenia, this could also affect the demand for labor force. In order to contain these economic consequences, the Ministry of Economy and Development of Slovenia announced almost 1 billion EURO worth of state measures to help the economy.
Short-term and strategic measures to contain the damage which the coronavirus outbreak might bring on
The government wants to make sure that the position of the companies does not worsen due to the coronavirus outbreak. Because of it, it will enforce short-term and strategic measures to contain and minimize the damage, maintain jobs and establish conditions for companies to continue with their business.
Ensuring liquidity
The first measure is ensuring liquidity. It is a two-part measure:
- firstly, for small and big companies the Slovenian investment bank (SID) will provide 200 million EURO. At the same time, the possibilities of support from commercial banks will be checked. For this purpose, 600 million EURO are reserved.
- the second part of the measure concerns micro, small and medium companies. Through Slovenian Enterprise Fund (SPS), 115 million EURO of grants will become available for them, starting March 20th
The Ministry of Economy also have an additional 6 million EURO at their disposal. Along with the Ministry of Finance they can also count on an additional 20 million EURO after releasing the reserves.
Tax relief
One of the foreseen measures to contain the coronavirus outbreak’s influence on economy is also tax relief. This will enable the companies to prolong their tax obligations for 24 months or make payments in monthly installments.
Work from home
At the same time, there is also the proposition for some measures relating to working from home. When it is not possible to work from home, an interventive law is in the making that will relate to the co-financing for those who will be put on waiting. The decision-makers are also evaluating the additional measures for those employees, who will not have work during this time. Regardless, the 19th Article of the Law on Infectious Diseases dictates: “If a person who is quarantined but healthy and is unable to work is put on waiting, the state co-finances 40%.”
Incentive for tourism
To help tourism during the coronavirus outbreak, Slovenia will increase promotion on the local market. It will also adjust the digital campaign of Slovenia according to the current situation.
Other measures
The other measures are mostly connected to support companies in the field of internationalization (like virtual fairs). In support, it foresees to finance salaries up to 40% to those, who experience at least 30% decline in orders. Those companies will have access to roughly 52 million EURO. The authorities have all-in-all contributed around 1 billion EURO to strengthen the Slovenian economy and also started to prepare an interventive law, which should be valid until the end of September 2020.
Even in this time, we wanted to emphasize that Slovenia will take care of its economy with special measures in order to promote business in Slovenia and in the region. All of us at Data d.o.o. will be happy to support you with your business. For more information on company registration in Slovenia, EU, you can write to our email data@data.si. You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.
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