Red tape remains heavy in Slovakia. (source: TASR)
Slovakia has claimed the unenviable title of the most bureaucratic country in the Bureaucracy Index 2024, which measures red tape across the Visegrad Four nations—Czech Republic, Hungary, Poland, and Slovakia—along with Georgia and Ukraine. Topping the ranking for administrative burdens, Slovakia was followed by Hungary and Georgia, while Poland and Ukraine emerged as the most business-friendly.
The Bureaucracy Index aims to provide a detailed assessment and quantification of the bureaucratic burden faced by small and medium-sized enterprises (SMEs). The overall results are based on the cumulative time required to establish and operate a small hotel and an industrial enterprise in each country.
(source: INESS)
The index is compiled by INESS in cooperation with the Czech Liberal Studies Institute, the Georgian New Economic School, the Hungarian Free Market Foundation, the Polish Civic Development Forum, and the Ukrainian Institute for Economic Research and Policy Consulting.
How long does it take to set up a company?
In 2024, Poland had the shortest bureaucratic process for setting up a model industrial enterprise, requiring only 19 hours. In contrast, Ukraine had the most time-consuming process, taking 64 hours – a situation further complicated by the ongoing war.
Slovakia ranked second-worst in terms of bureaucratic hurdles for starting a business, with entrepreneurs facing 46 hours of administrative work. Georgia also exceeded 40 hours, while the Czech Republic and Hungary required 39 and 37 hours, respectively.
(source: INESS)
(source: INESS)
The “operation of an enterprise” category measures the annual administrative workload for already established small firms. Slovakia ranked highest in bureaucratic costs, with 272 hours (equivalent to 34 working days) required for running a small industrial enterprise. Hungary followed closely behind. By contrast, Ukraine and Poland had the lowest bureaucratic burdens, with 192 and 148 hours, respectively.
(source: INESS)
Operating a hotel was generally no more bureaucratically demanding than running an industrial enterprise. Slovakia again recorded the highest bureaucratic cost in this ranking, with 264 hours, only one hour more than Hungary. In four of the six analysed countries, including Slovakia, employment administration accounted for the majority of bureaucratic costs. However, in the Czech Republic and Poland, the primary sources of bureaucracy were routine operations related to tax administration, waste management, and certification requirements.
(source: INESS)
Impact of legal changes
A key sub-category of the index measures the cost of adapting to legal changes. The ranking assessed the number and significance of regulatory changes affecting businesses.
Ukraine recorded the highest number of legal amendments, followed by Slovakia at a considerable distance.
In contrast, Georgia and the Czech Republic had the most stable legislative environments.
