Sibiz: Business consulting and immigration to Slovenia

Sibiz: Business consulting and immigration to Slovenia SIBIZ Business services Ltd. offer a full range of services in business consulting, project manageme

offer a full range of services in business consulting, project management and business migration for companies and individual clients looking to operate in the Slovenian and EU markets.

Navigating Slovenia’s 2026 Corporate Law Reforms: Multiple-Vote Shares and a 90% Reduction in ESG Reporting BurdensSlove...
20/07/2026

Navigating Slovenia’s 2026 Corporate Law Reforms: Multiple-Vote Shares and a 90% Reduction in ESG Reporting Burdens

Slovenia's business environment is poised for one of the most significant regulatory changes. The Slovenian Ministry of Economy, Labor, and Sports has submitted a draft proposal for the ZGD-10 amendment to the Slovenian Companies Act (ZGD-1) (EVA: 2026-2180-0009).

Driven by the European Commission's focus on global competitiveness and reducing administrative burdens, this landmark reform implements two key EU directives: Directive (EU) 2024/2810 (introducing multiple-vote share structures) and Directive (EU) 2026/470 (reducing mandatory sustainability reporting).

For international founders, company managers and expats looking to relocate or scale a business in Slovenia, these reforms fundamentally rewrite the rules for startup financing and corporate compliance.

1. The Startup Revolution: Introduction of Multiple Vote Shares

Historically, Slovenia has adhered strictly to the "one share, one vote" principle for joint-stock companies. This legal rigidity often forced successful Slovenian start-ups and scale-ups to relocate their corporate headquarters to more flexible jurisdictions (such as the US or Germany) when seeking equity financing. Founders were often faced with a difficult choice: raise capital or retain strategic control.

The draft amendment completely eliminates this "fear of losing control" by legalizing multiple voting shares (delnice z večkratno glasovalno pravico).

Key Features of the Multiple-Vote Share Structure:

✅ The 10:1 Voting Ratio:
In corporate matters decided at a general meeting, a single registered multiple-vote share may carry up to ten times (10:1) the voting power of a standard share.

✅ Access to the Capital Market:
This mechanism is primarily aimed at companies listed on a Multilateral Trading Facility (MTF), allowing them to raise public capital while ensuring that the founders protect their strategic vision. However, Slovenia has taken a liberal approach, allowing all joint stock companies (even non-public ones) to adopt this structure in their statutes.

✅ Strict Minority Protections & Sunset Clauses:

Supermajority Requirements: The adoption of multiple voting structures requires a qualified majority (75%) of the capital represented at the general meeting, as well as the separate approval of each class of shares.

Transfer-Based Sunsets: For listed companies, multiple voting rights automatically expire upon the sale or transfer of those shares to a third party.

Time-Based Sunsets: Multiple voting rights automatically expire ten years after listing, unless extended by the general meeting (for a maximum of another ten years) under strict voting conditions.

One Share, One Vote Carve-outs: For critical protective decisions - such as the appointment of auditors, the initiation of special audits, or suing management - multiple voting shares are limited to only one vote.

In addition, the Slovenian Takeover Act (ZPre-1) will be amended in parallel. Shareholders will be exempted from the obligation to make a takeover bid if they exceed a takeover threshold solely due to the expiration of another shareholder's multiple voting rights.

2. A 90% Cut in ESG & Sustainability Reporting Burdens

The European Union's Corporate Sustainability Reporting Directive (CSRD) previously threatened to overwhelm mid-sized companies with complex reporting requirements under the European Sustainability Reporting Standards (ESRS). Recognizing this immense administrative burden, the EU's "Omnibus I" package rolled back these rules.

The Slovenian draft proposal implements these rollbacks, reducing the number of ESG reporting companies in Slovenia by an estimated 90%.

The New Ultra-Large Thresholds

Mandatory, comprehensive ESG reporting will now be strictly limited to the largest companies. To be legally required to include a sustainability report in its annual filings with the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES), a company or group must meet both of the following criteria:

An average of more than 1,000 employees during the fiscal year.
Annual net revenues in excess of €450 million.

This is a massive sigh of relief for large companies below these thresholds and publicly traded SMEs, which are completely exempt from reporting requirements.

Key Simplifications and Protections:

Protected Companies in the Supply Chain: To prevent large companies from pushing their ESG paperwork down the supply chain, the law introduces the concept of a "protected company" (zaščitena družba) - any supplier in a value chain with fewer than 1,000 employees. These companies have the right to refuse ESG data requests that go beyond the simplified, voluntary SME standards. Any contractual clause forcing them to do so is legally void.

Holdings Exemption: Financial holding companies whose subsidiaries operate independently can opt out of consolidated ESG reporting, avoiding massive administrative friction.

Trade Secret Safe Harbor: Companies can legally omit sensitive commercial information (intellectual property, R&D breakthroughs, and defense secrets) if disclosure would cause serious commercial harm.

3. Timeline and Transition: What Businesses Must Do

The transition to this new corporate landscape is structured to ensure stability:

The ESG Reporting Delay: The new, highly limited scope of mandatory ESG reporting will officially apply for fiscal year 2027 (reports filed in 2028).

Immediate Relief for 2026: Public interest entities with more than 500 employees that were already reporting ESG data can legally opt out for fiscal year 2026 if they do not meet the new €450 million revenue and 1,000 employee thresholds.

Voluntary Reporting Encouraged: Exempt companies are encouraged to voluntarily report using simplified standards, which can significantly improve their access to bank capital and green financing.

About Us

At SIBIZ, we are proud to be the best in Slovenia in the fields of business migration, as well as corporate and individual relocation. We specialize in helping business professionals, corporate clients, and individuals navigate the complex landscape of Slovenian regulations and local administrative procedures. Our expert team is here to ensure your transition to Slovenia is smooth, compliant, and highly successful.

For more information:

🌐 www.sibiz.eu

EU Eliminates Customs Duties on US Imports: What Slovenian Businesses Need to KnowA major regulatory change has official...
15/07/2026

EU Eliminates Customs Duties on US Imports: What Slovenian Businesses Need to Know

A major regulatory change has officially gone into effect that will significantly impact transatlantic trade, supply chain logistics, and business operations across Europe.

Effective July 1, 2026, the European Union has eliminated tariffs on the import of the vast majority of products originating in the United States of America.

This historic step, announced by the Slovenian Ministry of Economy, Tourism and Sport (MESP) and highlighted by the Slovenian Chamber of Commerce and Industry (GZS), represents the practical implementation of the trade agreements reached under the Joint Declaration of the European Union and the United States of America of August 21, 2025.

For Slovenian companies currently sourcing materials, equipment or products from the U.S., this policy change presents an unprecedented opportunity to streamline B2B operations and reduce operating costs. Here is a comprehensive breakdown of the new regulatory framework and what it means for your business.

The Legal Framework: Two Key Regulations

The elimination of tariffs is governed by two main legal acts published in the Official Journal of the European Union on June 30, 2026, both of which entered into force on July 1, 2026:

Regulation (EU) 2026/1455 (The Tariff Elimination Regulation): This regulation focuses on the adjustment of customs duties on imports of certain goods originating in the United States and the opening of certain tariff rate quotas.

Regulation (EU) 2026/1461 (The Lobster Regulation): A targeted law establishing a 0% tariff rate specifically for live, frozen and processed lobster products.

Industrial vs. Agricultural Products: What's Covered?

The scope of tariff elimination is broad, but contains specific distinctions, particularly between industrial and agricultural imports:

Industrial goods: The vast majority of U.S.-origin industrial goods listed in Annex I of the Tariff Elimination Regulation are completely eliminated. This is a major win for sectors such as manufacturing, high technology, and automotive parts.

Agricultural Products (Annex II): For agricultural products listed in Annex II, the ad valorem (value-based) component of the tariff is eliminated, while other specific tariff elements may still apply.

Processed agricultural and food products (Annex III): For products listed in Annex III - which includes popular imports such as tree nuts, dairy products and processed fruits - tariffs are either reduced or eliminated within specific tariff rate quotas (TRQs).

Validity and Deadlines

The tariff exemptions under Regulation (EU) 2026/1455 are valid from July 1, 2026 to December 31, 2029.

Retroactive Savings: The "Lobster Regulation"

In a unique legislative move, Regulation (EU) 2026/1461 (the Lobster Regulation) is retroactive to August 1, 2025 and will remain in effect until July 31, 2030.

This means that companies that imported live, frozen or processed U.S. lobsters in the past year may be eligible for retroactive duty refunds. If your company is involved in the seafood supply chain, the hospitality industry, or the wholesale distribution of premium foods in Slovenia, evaluating these historical customs declarations could result in significant financial recoveries.

Safeguards and Market Protection

To protect European industry, the European Commission has built robust safeguards into the new trade framework:

The Reciprocity Clause: The European Commission has the legal authority to suspend these preferential tariffs if the United States fails to meet its reciprocal commitments outlined in the Joint Statement of August 21, 2025, or otherwise undermines the trade relationship.

The General Safeguard Clause: If a sudden surge of U.S. imports threatens to cause economic injury to EU-based industries, the EU reserves the right to reimpose all or part of the standard tariffs.

Practical Checklist for Slovenian Importers

While the elimination of tariffs is highly beneficial, compliance remains critical. Companies must carefully navigate several practical details to take advantage of the 0% rates:

Verify Rules of Origin: To qualify for duty-free treatment, goods must be shown to originate in the United States. Ensure that your suppliers provide compliant documentation.

Evaluate tariff quotas: If you import agricultural products, check if they are subject to Annex III quotas to ensure your shipments arrive before the quotas are filled.

Review Past Import Declarations: If you imported lobster products after August 1, 2025, consult with a customs expert to claim retroactive duty refunds.

About Us

At SIBIZ, we pride ourselves on being the best in Slovenia for business migration, corporate relocation and individual relocation.

We specialize in helping business professionals, corporate clients and individuals navigate the complex landscape of Slovenian regulations and local administrative procedures.

Our team of experts is here to ensure that your transition to Slovenia is smooth, compliant, and highly successful.

For more information:

www.sibiz.eu

Copilot said:Slovenian Tax Office (FURS) announces summer tax holidays for 2026: What businesses and expats need to know...
15/07/2026

Copilot said:

Slovenian Tax Office (FURS) announces summer tax holidays for 2026: What businesses and expats need to know

Slovenia's national tax authority is bringing back a much-anticipated administrative relief measure this summer.

The Slovenian Tax Office (FURS) has officially announced a three-week tax holiday from July 27 to August 14, 2026.

The initiative, which mirrors a successful pilot program from 2021, was introduced by the new head of the Slovenian Tax Office (FURS), Janko Preac.

The primary goal of the measure is to provide taxpayers, corporate accountants and tax advisors with a quieter summer period to rest without the constant pressure of active tax administration inquiries and paperwork deadlines.

However, while the holiday offers a temporary break from active audits, SIBIZ urges all corporate clients, expats and foreign business owners to understand that your financial, filing and payment obligations will not take a holiday.

✅ What does the tax holiday actually mean?

During this three-week window, the Slovenian Tax Office (FURS) will generally refrain from sending official requests for documentation or asking for additional explanations in ongoing tax assessment and audit procedures.

According to officials, the measure is intended to allow all business stakeholders, especially external accountants and tax advisors, to enjoy a well-deserved summer break without having to worry about sudden, tight deadlines for tax-related administrative tasks.

✅ What services will continue to operate normally?

In order to ensure that businesses do not experience any operational bottlenecks, the Slovenian Tax Administration (FURS) has assured the public that all essential and critical services will remain fully accessible.

The following procedures and operations will continue without interruption:

• VAT and excise duty refunds (critical to business cash flow): It is critical that VAT and excise duty refund claims are processed promptly. The IRS recognizes that delays in these refunds can cause financial harm or disproportionate consequences to business customers.

• Property and wealth taxes: Processes related to the assessment of real estate transfer tax, motor vehicle tax, and estate and gift tax will continue as normal.

• Customs Operations: All customs procedures and logistics-related clearances will continue as normal, ensuring that international supply chains and trade are not disrupted.

• Payment Deferrals: Decisions and processing of requests for tax deferrals or installment payments will continue without delay.

• Urgent audits: In cases where there is an imminent risk of the statute of limitations running out, or where the public interest must be protected, the tax authority will continue its priority procedures.

✅ What Is Operating on a Restricted Basis?

For standard audits and general inquiries, cooperation with taxpayers will only occur in cases where meetings or submissions have been scheduled in advance or where communication can be easily coordinated in advance by phone or email.

If a company representative or individual cannot be reached during this holiday period, further communication and official requests will simply resume after August 14, 2026.

⚠️ Critical Warning: Deadlines and Interest Do Not Pause!

It is absolutely necessary for business people and foreign founders in Slovenia to be aware that essential tax obligations are not suspended.

The Slovenian Tax Office (FURS) has issued a strict warning on the following points:

1️⃣ Filing Deadlines Remain Active: You must continue to file all regular tax returns, VAT returns, and excise duty returns within the statutory deadlines.

2️⃣ Payment Deadlines Stand: All tax liabilities must be paid on time.

3️⃣ Late Interest Accumulates: The "tax holiday" does not stop the accumulation of late interest. All late payments during this period will continue to be subject to the normal interest penalties.

4️⃣ Legal appeals: The time limits for filing appeals or legal objections to existing tax rulings are not suspended and must be respected.

✅ Strategic Advice for Expats and Corporate Clients

If you run a business or are relocating to Slovenia, this three-week tax holiday is the perfect window to proactively review your internal financial processes.

By working with a professional advisory team, you can use this quiet period to review your corporate compliance, organize your accounting archives, and prepare for the post-holiday period without the stress of active government inquiries.

✅ About Us

At SIBIZ, we pride ourselves on being the best in Slovenia for business migration, corporate and individual relocation, and comprehensive accounting services.

We specialize in helping business professionals, corporate clients and individuals navigate the complex landscape of Slovenian regulations and local administrative procedures.

Our team of experts is here to ensure that your transition to Slovenia is smooth, compliant, and highly successful.

📞 For more information:

www.sibiz.eu

☀️ Working in the Heat: Slovenian Workplace Regulations, Temperature Limits and Employer ObligationsAs summer temperatur...
01/07/2026

☀️ Working in the Heat: Slovenian Workplace Regulations, Temperature Limits and Employer Obligations
As summer temperatures rise, maintaining a safe, healthy and productive working environment is an important legal responsibility for companies operating in Slovenia.
Both indoor and outdoor working conditions are strictly regulated by the Slovenian Occupational Health and Safety Act (ZVZD-1) and specific regulations on requirements for ensuring safety and health at work.
As temperatures rise, employers must take proactive, legally compliant measures, while employees should understand their rights and the mechanisms available to protect their health.
Below is a comprehensive and straightforward guide to the temperature limits, mandatory employer actions, relative humidity metrics and safety guidelines applicable under Slovenian law.

1️⃣ Indoor Workplaces: The 28°C Threshold and Technical Limits
Under normal circumstances, the air temperature in indoor work environments should not exceed 28°C.
However, this rule is accompanied by specific technical parameters regarding hot zones, floor coverings and relative humidity.
Maximum Temperature Standards
1. General Limit
The indoor air temperature during working hours must meet the biological needs of employees, taking into account the type of work and physical strain, and must not exceed 28°C.
2. Exception for Hot Workplaces (Vroči Delovni Prostori)
In industrial environments where temperatures naturally exceed 28°C due to machinery or production equipment (such as furnaces or production ovens), the employer must ensure that the temperature in adjacent auxiliary rooms, corridors and stairwells connected to these hot zones does not exceed 20°C.
3. Cold Storage Exception
Cold storage and freezer rooms are exempt from heat exposure limits because they are subject to specific health and safety standards for work in cold conditions.
Mandatory HVAC Relative Humidity Controls
When indoor workspaces are conditioned or ventilated using HVAC systems, the relative humidity of the supply air must be strictly controlled to prevent respiratory and thermoregulatory discomfort.
The law requires that the relative humidity of the supply air must not exceed:
✅ 80% when the indoor air temperature is 20°C or lower
✅ 73% when the indoor air temperature is 22°C or lower
✅ 65% when the indoor air temperature is 24°C or lower
✅ 60% when the indoor air temperature is 26°C or lower
✅ 55% when the indoor air temperature is 28°C or lower
✅ Minimum Limit: Relative humidity must never fall below 30%
Floor Temperature Regulations
To prevent physical strain on workers who stand for long periods:
✅ Floor temperature shall not exceed 29°C in indoor work areas
✅ Floor temperature shall not exceed 27°C in rooms where employees stand or are active for more than 2 hours per day

2️⃣ Mandatory Employer Actions for Indoor Thermal Relief
Even if high temperatures are temporary or occur only occasionally because of extreme outdoor weather, employers remain legally responsible for providing acceptable thermal comfort.
Risk Assessment Framework
Every protective measure—whether temporary or permanent—must be formally integrated into the company’s mandatory Safety Statement with Risk Assessment (Izjava o varnosti z oceno tveganja).
These measures must be designed and implemented in coordination with the company's designated occupational health specialist (izvajalec medicine dela).
Possible Organizational and Technical Measures
Employers should implement a combination of the following:
✅ Time Management

Rearranging work schedules
Starting work earlier in the morning
Reducing daily work hours
Providing more frequent and longer breaks

✅ Work Intensity

Reducing physically demanding activities during peak heat hours

✅ Hydration

Providing free, easily accessible refreshing non-alcoholic beverages
Chilled water or electrolyte drinks

✅ Extreme Measures

Temporary suspension of work processes where severe heat hazards cannot be mitigated

✅ Long-Term Infrastructure

Additional ventilation systems
Local cooling systems
Solar shading films
Mechanical blinds

3️⃣ Outdoor Workspaces: The 30°C Rule
During the summer months, outdoor workers—especially in construction, agriculture, forestry and logistics—may face severe thermal stress.
Mandatory Requirements at 30°C
When temperatures measured by the national meteorological network exceed 30°C, outdoor work may continue only if employers comply with the following obligations:
✅ Mandatory Breaks
Workers must receive at least a 15-minute break every 2–3 hours
✅ Hydration
Employers must provide free, refreshing non-alcoholic beverages
✅ Rest Areas
Employers must provide shaded or sheltered rest areas that protect workers from direct sunlight and adverse weather conditions
✅ Sun Protection
Appropriate protective equipment must be provided, including:

Sunscreen
Headwear
UV-filtered eyewear

Construction Industry Nuance
Although the collective agreement for the Slovenian construction industry allows normal outdoor work up to 45°C, this does not override occupational safety obligations.
Once temperatures exceed 30°C, employers must still provide the legally required breaks and refreshments.

4️⃣ Employee Rights: What To Do If The Workplace Is Too Hot
Employees have clear legal avenues for addressing excessive workplace temperatures.
Step 1: Internal Reporting
Workers, trade unions or workers’ representatives should first report unsuitable conditions directly to the employer or safety officer and request corrective measures.
Step 2: The Right To Refuse Work
According to Slovenian occupational health and safety legislation, employees may refuse work when they face an immediate and direct danger to their life or health because the employer has failed to implement required safety measures.
Important Clarification
The Slovenian Labour Inspectorate (Inšpektorat RS za delo) considers that occasional or temporary indoor temperatures exceeding 28°C do not automatically constitute an immediate threat to life or health.
Exceptions may apply to vulnerable individuals, including:

Employees with chronic cardiovascular diseases
Employees with respiratory illnesses

Each case must therefore be evaluated individually.
Step 3: Report To The Labour Inspectorate
If an employer consistently fails to address excessive temperatures or implement appropriate thermal comfort measures, employees may submit a confidential complaint to the Labour Inspectorate of the Republic of Slovenia.
The Inspectorate has authority to:
✅ Order corrective measures
✅ Conduct inspections
✅ Impose fines

5️⃣ Practical Safety Tips From The Slovenian Labour Inspectorate
To reduce the risk of heat exhaustion and heat stroke:
✅ The AC “Minus 7” Rule
Indoor temperatures should not be more than 7°C lower than outdoor temperatures.
Sudden temperature changes may cause thermal shock and affect cardiovascular health.
✅ Stay Hydrated
Drink up to 3 litres of non-alcoholic fluids daily.
Prefer:

Water
Unsweetened herbal teas

Ensure electrolyte replacement where necessary.
✅ Avoid Dehydrating Agents
Avoid:

Alcohol
Highly caffeinated beverages
Excessively salty foods
Strong spices

✅ Dress Appropriately
Wear:

Light-coloured clothing
Loose-fitting garments
Breathable fabrics

✅ Take Frequent Cool Breaks
Rest regularly in cooler rooms that are not excessively cold.
✅ Strategic Planning
Schedule physically demanding work during the early morning hours.
✅ The Buddy System
During extreme heat conditions, employees should work in pairs and monitor one another for signs of heat exhaustion or heat stroke.

About SIBIZ
At SIBIZ, we pride ourselves on being the best in Slovenia for business migration, corporate relocation and individual relocation.
We specialize in helping business professionals, corporate clients and individuals navigate the complex landscape of Slovenian regulations and local administrative procedures.
Our team of experts is here to ensure that your transition to Slovenia is smooth, compliant and highly successful.
🌐 For more information: www.sibiz.eu

EU Streamlines Worker Posting: The New Era of Digital Declarations and Enhanced Workplace SafetyIn a decisive step towar...
01/07/2026

EU Streamlines Worker Posting: The New Era of Digital Declarations and Enhanced Workplace Safety

In a decisive step towards a more integrated and competitive single market, the Council of the EU and the European Parliament have reached a provisional agreement on a landmark regulation that will fundamentally change the way cross-border services operate.

Signed as part of the ambitious "One Europe, One Market" roadmap, this new framework focuses on two critical pillars: the full digitalization of the administrative process for posted workers and the introduction of stricter protection measures against exposure to hazardous chemicals in the workplace.

For international companies, logistics providers, and corporate employers operating in or relocating to Slovenia, these updates represent a major operational shift.

Here's what you need to know about the upcoming regulations, their expected timelines, and the practical implications for your company's compliance.

The End of Red Tape: Standardized Digital Declarations

A posted worker is defined as an employee who is sent by his or her employer to perform a service in another EU member state on a temporary basis.

Historically, navigating the different and often fragmented national portals across 27 member states has been one of the top ten most restrictive barriers to cross-border business mobility within the European Union.

To remove these barriers, the new EU regulation introduces a single, fully digital process for submitting posting declarations:

• A multilingual public interface: The European Commission will set up a central online portal where companies can submit their e-declarations.

• Voluntary but exclusive adoption: Member States may choose to adopt this centralized EU interface over their existing national portals. However, once a Member State opts in, it must use this interface exclusively and is legally prohibited from requiring additional national declarations or redundant paperwork.

• Significant cost and time savings: The European Labour Authority (ELA) estimates that the use of a single digital form will reduce the time needed to complete posting declarations by 73%. In addition, even with partial participation by Member States, administrative costs for service providers are expected to fall by 58%. If all 27 Member States adopt the system, the administrative burden will fall by 81%.

• Integration of document upload: The provisional agreement introduces a new feature allowing service providers to upload all supporting documents directly to the public interface, replacing fragmented national procedures.

Practical Impact on the Slovenian Business Landscape

Currently, companies in Slovenia registering employees for cross-border work must coordinate with several local authorities.

Typically, this starts with obtaining an A1 form from the Slovenian Health Insurance Institute (ZZZS), which is often managed through the national Slovenian Business Point (SPOT) portal.

The move to a single EU-wide digital portal will significantly ease the burden on Slovenian logistics, manufacturing and construction companies that frequently post workers to neighbouring Austria, Italy or Germany.

By centralizing communication between national enforcement authorities and service providers, compliance checks will be faster and less prone to bureaucratic delays.

Enhanced Worker Protection: Strict Limits on Hazardous Chemicals

In parallel with the digitization initiative, the tentative agreement introduces rigorous safety measures to protect workers from high-risk substances.

The new rules set strict workplace exposure limits for:

• Cobalt

• Polycyclic aromatic hydrocarbons (PAHs)

• 1,4-dioxane

The European Commission estimates that these exposure limits will prevent around 1,700 cases of lung cancer and 19,000 other occupational diseases over the next 40 years.

Beyond the human impact, these preventive measures are expected to save up to €1.16 billion in healthcare costs across the EU, representing a vital long-term investment in the well-being of the workforce.

Timeline and Next Steps

The provisional agreements must now be formally approved and adopted by both the EU Council and the European Parliament before they can enter into force.

As part of the "One Europe, One Market" action plan, the digital declaration system is expected to be fully implemented by the end of 2027, making proactive compliance planning essential for forward-thinking business leaders.

About Us

At SIBIZ, we pride ourselves on being the best in Slovenia in the areas of business migration, corporate relocation and individual relocation.

We specialize in helping business professionals, corporate clients and individuals navigate the complex landscape of Slovenian regulations and local administrative procedures.

Our team of experts is here to ensure that your transition to Slovenia is smooth, compliant, and highly successful.

For more information: www.sibiz.eu

The Death of the SME "Cliff-Edge": How the EU’s New "Small Mid-Cap" Category Slashes Red Tape for Growing BusinessesFor ...
22/06/2026

The Death of the SME "Cliff-Edge": How the EU’s New "Small Mid-Cap" Category Slashes Red Tape for Growing Businesses

For any high-growth company, crossing the line from small and medium-sized enterprise (SME) to large corporation is a major milestone. In the European Union, however, this transition has historically been accompanied by a steep bureaucratic cliff. The moment a company outgrows its SME status, it is suddenly subject to the same extensive reporting, compliance and auditing standards as multinational conglomerates.

To address this issue and boost EU competitiveness, negotiators from the European Parliament and the Council of the EU have formally reached a provisional trilogue agreement on the landmark SME Omnibus legislative package.

This agreement introduces a brand new company classification: Small Mid-Caps (SMCs). Designed specifically for high-growth companies, this new category ensures that as companies expand in Slovenia and the wider European market, they will continue to enjoy a business-friendly environment with significantly reduced administrative burdens.

What is a "Small Mid-Cap" (SMC)? Understanding the New Thresholds

According to the preliminary agreement, Small Mid-Caps (SMCs) are defined as companies that have outgrown the traditional SME definition but do not yet have the massive compliance infrastructure of large corporate giants.

The co-legislators have agreed to set the SMC thresholds at:

✅ Employment: Fewer than 1,000 employees (an increase from the European Commission's original proposal of 750).

✅ Financial metrics: Annual turnover of up to €200 million (up from €150 million) OR annual balance sheet total of up to €172 million (up from €129 million).

These adjusted, higher thresholds represent a massive victory for Europe's mid-sized businesses. By taking into account structural changes and inflation, the EU is giving scaling companies the "breathing space" they need to grow without being prematurely crushed by regulatory burdens.

Key Compliance and Regulatory Relief for SMCs
1. GDPR Administrative Relief

Currently, the EU General Data Protection Regulation (GDPR) exempts companies with fewer than 250 employees from keeping exhaustive records of data processing activities, provided their processing activities are not high risk. Under the new agreement, this record-keeping exemption will be extended to small and mid-sized companies (SMCs), provided that their data processing risks remain manageable. It is estimated that this will save SMCs significant hours of administrative paperwork.

2. Cheaper access to capital markets & IPOs

To encourage mid-sized companies to seek public financing, the EU is introducing a simplified EU Growth Issuance Prospectus for SMCs. Preparing a standard prospectus for an initial public offering (IPO) or capital increase is notoriously costly. This simplified alternative will significantly reduce the cost of corporate actions and capital market listings, saving companies up to €20,000 per issue.

3. Supply chain and regulatory exemptions

Under the new rules, SMCs will be protected from some of the complex due diligence and traceability obligations typically associated with global supply chains (such as those required by the EU Batteries Regulation). In addition, SMCs will receive priority access to dedicated European trade defense help desks to assist them in navigating complex trade disputes, anti-dumping actions, and subsidies.

The Slovenian Context: Preparing for Implementation

Slovenia recently updated its own Slovenian Companies Act (ZGD-1M) in late 2024 to adjust company size classifications for inflation and reduce reporting requirements. Once this new EU directive is formally adopted, these Small Mid-Cap (SMC) rules will eventually be incorporated into local Slovenian legislation.

For high-growth companies operating in Slovenia - especially foreign-owned businesses, logistics companies and expanding regional players - this framework will prevent sudden compliance bottlenecks. This means that using portals such as the Slovenian Business Point (SPOT) or reporting to the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES) will remain streamlined even as your headcount and revenues grow.

By bridging the gap between small businesses and large corporations, the EU is making it easier than ever to grow a sustainable business in Slovenia.

About us

At SIBIZ, we pride ourselves on being the best in Slovenia for business migration, corporate relocation and individual relocation. We specialize in helping business professionals, corporate clients and individuals navigate the complex landscape of Slovenian regulations and local administrative procedures. Our team of experts is here to ensure that your transition to Slovenia is smooth, compliant, and highly successful.

For more information: www.sibiz.eu

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