Would you like to take advantage of VAT and customs benefits in Serbia? Consider registering your company in a local Free Zone! The opportunity is especially beneficial for manufacturing firms and re-export businesses.
Free Zones in Serbia: why set up your company there
As of 2024, Serbia is home to fifteen free zones, which are secure areas in the Republika Srpska, complete with specialized infrastructure to facilitate diverse business operations.
In 2020, the turnover of Serbia’s Free Zones was EUR 4 billion. According to the Serbian Chamber of Industry, these zones host over 215 international companies with more than 40,000 employees. The export figures in Free Zones have been on an upward trajectory, with the value of manufactured goods in 2020 reaching EUR 2.2 billion and exports totaling EUR 2 billion.
In 2018, the free zone in Pirot received high recognition. The fDi magazine ranked it the best in Europe and third globally.
Below, you will find the full list of Serbian Free Zones:
- Pirot
- Subotica
- Zrenjanin
- Novi Sad
- FAS FZ Kragujevac
- Šabac
- Užice
- Smederevo
- Kruševac
- Svilajnac
- Apatin
- Vranje
- Priboj
- Belgrade
- Šumadija (this is the latest one).
A wide range of commercial and industrial activities are permitted there:
- manufacturing
- goods storage
- goods packaging
- commercial trading
- banking operations
- insurance services.
In Serbia’s Free Zones, company registration is open to both locals and foreigners. Profits earned may be transferred to any country, including Serbia, Nevis, or China, with no need for extra permissions.
Within the Free Zones, commercial revenues are not subject to the standard 20% VAT applicable in Serbia. This exemption extends to the costs of construction materials, electricity, and transportation. Plus, imports of raw materials, equipment, and construction materials into the Free Zones are not subject to customs duties.
Duty exemptions are available for goods that are imported with the intention of re-exporting. However, importing goods from the Free Zones into Serbia incurs duties as though the goods were imported from non-EU states.
The sectors attracting investor attention in Serbia include the automotive, agriculture, textile and apparel, and construction industries.
Serbia: your gateway to EU and global markets with duty-free access
Serbia is a prime location for servicing clients from the European Union, South-Eastern Europe, and the Middle East. The country’s proximity to the EU enhances its appeal as a key transshipment hub for the industry and transporting goods into the European market.
Serbia also boasts duty-free access to an expansive market of over 1.3 billion consumers, which includes the EU and the USA, all thanks to its trade agreements.
The nation offers numerous advantages for those looking to conduct business:
- Remote company formation is possible under a limited power of attorney.
- Remote bank account setup for Serbian companies is available.
- Ownership can be assigned to either individuals or legal entities.
- The banking system is strong and knowledgeable about essential financial and business products.
- Business operation costs are rather low, including maintenance, utilities, and leasing expenses.
- Establishing a business in Serbia may qualify you for the country’s residency.
Company registration in Serbia: key documents and procedures
To set up a company in Serbia, the following documents are required:
For the company owner:
- Individuals must submit a certified copy of their passport and proof of residential address.
- Legal entities are required to provide an original extract from the foreign register detailing the company’s name, registration number, address, and the names of its owners and directors. These documents must be no more than three months old.
Additional requirements include:
- Director’s information (a certified copy of the director’s passport and proof of residence).
- A limited power of attorney for company formation (which will be prepared on your behalf).
- A certified form of specimen signatures for a foreign legal entity (assistance and guidance will be provided).
- A form with certified signatures.
- The company’s authorized capital (a minimum of EUR 1 is required in Serbia).
- The company’s legal address (assistance will be provided in finding one; the first three months are free, followed by a fee starting at EUR 100 per month).
- A description of the company’s activities in Serbia.
Note: All documents must be translated into Serbian, which will cost you EUR 20 per page.
During the registration process, you must use the provided document templates without any alterations. These templates are designed to meet legal requirements, and any changes could lead to service denial. Should this occur, you will have to restart the process, as previously submitted documents aren’t returned.
For a faster bank account setup (included in the service fee), the following additional documents are necessary:
- A limited power of attorney to open an account (a template will be provided).
- A certified passport copy and proof of residential address.
- Documentation pertaining to the company registered in Serbia.
NB: Since the summer of 2019, Serbia has been a participant in the Common Reporting Standard (CRS), meaning it exchanges banking information with other nations.
How to launch a business in a Serbian Free Zone in 2024
To initiate the process of establishing a company in any of Serbian Free Zones, follow these steps:
- Email Serbia Wealth to express your intent to set up a company in a Serbian Free Zone.
- Consult a specialist to determine the specific Free Zone where you plan to conduct business and identify any additional services required.
- Pay for the ordered services as per the provided price list. The cost for company setup in Serbia starts at EUR 4500 if everything is done in person and EUR 5500 for remote registration under the corresponding PoA. Accepted payment methods include bank transfer, card, Bitcoin, WebMoney, Western Union, and MoneyGram.
- To set up a bank account, you must sign all the required documents in person. You may either visit Serbia or have the documents couriered to you for signing.
- Upon company establishment, you will gain access to the account and can commence business operations.
The entire process of company formation, including bank account opening, takes 1 to 2 months following receipt of the complete document set and payment. At this page, you will find more information about company registration and running a business in Serbia.
For any inquiries, you are welcome to contact Serbia Wealth without further delay!
