Are you considering jurisdictions where you could start a company? Take a look at Serbia, a European country with an advantageous geographical location that is rapidly developing. Its GDP is steadily growing and has reached pre-pandemic levels, and the country’s pro-business legal framework attracts a lot of major American, Asian, and European investors. Free zones are specially created for foreign entrepreneurs who wish to establish a company in Serbia on beneficial conditions and take advantage of lower taxes and the absence of customs duties.
Welcome to our portal called International Wealth if you want to learn more about Serbian business and banking, company and family relocation, investments, taxation, lifestyle, and so on. We have a local office in Belgrade, and our experts on-site work with different Serbian institutions daily and provide up-to-the-minute information on the state of affairs. You can book a session with our specialist to discuss the prospects of your business in Serbia (or any other matters related to the country) and make sure that it is a suitable jurisdiction for your needs. We can help you open a company online at an affordable fee.
Serbian Free Economic Zones
Fifteen free economic zones in Serbia are fenced and have special infrastructure inside to help entrepreneurs engage in business more efficiently, including manufacturing and providing services.
These are popular places as the annual turnover reaches several billion euros: there are over two hundred foreign companies that carry out their activities here, giving jobs to about 40,000 employees.
Let’s especially note the free zone of Pirot, recognized as the best in Europe and took third place in the world ranking in 2018.
Activities for FEZ Companies
There are no limitations for companies wishing to operate in free economic zones, and typical activities include:
- Storage of goods
- Wrapping of goods
- Banking activities
If you doubt that your activity will be welcome in Serbian FEZs, please contact our expert by clicking on the above link to clarify.
Opting For a FEZ: Possible Benefits
FEZs are open to both local and non-resident entrepreneurs, and the income received from business activities can be withdrawn to any country without any taxes payable or permits required.
The income from commercial companies in FEZ is not subject to VAT (the standard VAT rate in Serbia is 20%), and the cost of electricity, transportation, and construction materials is also VAT-exempt. You can also import raw equipment and construction materials without paying customs duties.
If you import and then re-export products, you will be exempt from duties, too. However, if you want to import products from FEZs to Serbia, you will pay regular duties as if you imported them abroad.
Investors are especially interested in agriculture, construction, the automotive industry, and textile/clothing.
Serbian FEZs will be an ideal solution if your customers are based in the Middle East, South Eastern Europe, or the EU. You can use the country as a transshipment base to transport goods or manufacture products for European consumers.
Let’s look at some other benefits that Serbia can provide:
- You can open a company online by simply providing a power of attorney
- If you start a local company, the Serbian banking sector is open to you (by the way, it’s excellent, and we highly recommend Serbian banks): you can easily set up a corporate account online.
- Under Serbian laws, your company may be owned by an individual or a legal entity.
- The monthly costs of company maintenance (including rent and utilities) are pretty affordable (starting from 200 euros)
- IT companies can get an additional bonus starting from 2022: they pay lower taxes for employees, and the income tax is as low as 3%
- If you establish a company in Serbia, you can get a local residence permit. This is the first step toward Serbian citizenship that will take some time. The country is on the verge of joining the EU, so you have a viable opportunity to receive an EU passport in several years!
Interested? You can talk to us using the above link if something needs clarification.
If you want to register a company in the Serbian free economic zone, you will have to submit the following documents:
- Details about the company owner (individuals will need to submit a passport copy and a proof of address of residence (utility bill/bank statement); legal entities will have to submit an original extract from the register that contains its name, registration number, address, owners, and directors. The documents should be 3 months at maximum).
- Details about the company director if they differ from the owner (a passport copy and proof of address of residence (utility bill/bank statement no older than 3 months)).
- A limited power of attorney will give us the right to register a company for you (we can prepare the document if you need to).
- Certified sample signatures for a non-resident company (we can recommend how to prepare this document).
- The company’s authorized capital (no limit is set in Serbia: you can start your activities with 1 euro).
- The company’s legal address. We can help you get it: you will not pay anything in the first three months, and then it will cost 100 euros a month or more.
- Description of the business activities you are going to engage in.
All the documents must be translated into Serbian, costing about 20 euros a page.
If you also want us to open a corporate account for you with a Serbian bank (it is included in the price of our package), there are some additional documents you will need to provide:
- A limited power of attorney that will give us the right to set up an account
- A certified passport copy and proof of address of residence
- Documents related to the company incorporated in Serbia
We highly recommend obtaining a Serbian residence permit due to the following important reasons:
- It is becoming harder and harder every year to open an account for a non-resident company as the checks are getting more stringent. However, it will be a lot easier if you are a resident.
- The range of services provided to residents is naturally wider.
If you have any questions about Serbia, do not hesitate to follow the above link to discover more or book a free session with an expert!