Are you interested in using VAT and customs advantages in Serbia? Have you thought of registering your business in a local Free Zone? The opportunity presents particular advantage to manufacturing companies and re-export business.
Free zones in Serbia: what is the point of establishing a company there
By 2024, there are fifteen free zones in Serbia, and they are safe territories of the Republika Srpska, with special infrastructure ready to support various business activities.
The Free Zones turnover in Serbia was EUR 4 billion in 2020. The Serbian Chamber of Industry says that in these zones there are more than 215 international companies employing more than 40.000 people. The export Free Zones are also experiencing positive dynamics, as in 2020, the manufactured goods value amounted to EUR 2.2 billion and the export amounted to EUR 2 billion.
In 2018, Pirot free zone was highly recognised. It was ranked best in Europe and third worldwide by the fDi magazine.
The entire list of Serbian Free Zones is provided below:
- Pirot
- Subotica
- Zrenjanin
- Novi Sad
- FAS FZ Kragujevac.
- Šabac
- Užice
- Smederevo
- Kruševac
- Svilajnac
- Apatin
- Vranje
- Priboj
- Belgrade
- Šumadija (the most recent one).
It permits a great variety of commercial and industrial uses there:
- manufacturing
- goods storage
- goods packaging
- commercial trading
- banking operations
- insurance services.
Registration of companies is allowed in Free Zones of Serbia to both citizens and foreigners. The earnings made can be moved to any country such as Serbia, Nevis, or China without seeking any additional approvals.
In the Free Zones, business income is not taxed with a regular 20% VAT rate that is valid in Serbia. This waiver goes to the construction materials, power, and transport costs. In addition,customs duty is not imposed on the imports of raw materials, equipment and construction materials into the Free Zones.
Exemptions on duties can be enjoyed on goods that are imported but with aim of re-exporting them. Notwithstanding, when the goods are imported to Serbia after being produced in the Free Zones, they are charged duties as if they were imported directly form states that are outside the EU.
The industries that have caught the attention of investors in Serbia are the automotive industry, agriculture, textile and apparel industry and the construction industry.
Serbia: your entry point to the EU and world markets with duty free access.
Serbia represents an ideal place to service European Union, South-Eastern Europe, and Middle Eastern clients. The close location of the country to the EU also makes it more attractive as a major transshipment point in the industry and in the transportation of goods into the European market.
Through its trade agreements, Serbia as well enjoys duty-free entry into a large consumer market of over 1.3 billion people that covers the EU and the USA.
The country has a lot to offer to anybody interested in doing business:
- Under a limited power of attorney, formation of company can be done remotely.
- Serbian companies can have their bank accounts set up remotely.
- The ownership may be in the name of individual persons or it may be in the name of legal entities.
- Banking system is robust and well informed on the necessary financial and business products.
- The costs of running the business are quite small, comprising of maintenance costs, utility costs and leasing costs.
- Starting a company in Serbia can grants you the residency of this country.
Registering a company in Serbia: major procedures and requirements
The following documents are needed to establish a company in Serbia:
As a business owner:
- The individuals will be required to provide a certified copy of their passport and residential address.
- Legal persons must submit a notarized copy of the foreign registration listing the name of the company, registration number, address and the name of the owners and directors. Such documents should not be older than three months.
Other requirements are:
- Details of the director (a certified copy of the passport of the director and proof of residence).
- powers of attorney (limited) to form a company (which will be drafted on your behalf).
- A certified copy of specimen signatures of a foreign legal person (help and instructions will be delivered).
- A certified form with signatures.
- Authorized capital of the company (in Serbia there is a requirement of at least EUR 1).
- Legal address of the company (they will help to find one; first three months are free, then it will cost at least EUR 100 per month).
- The activities of the company in Serbia described.
Important: All the documents are to be translated into the Serbian language and this will require you EUR 20 per page.
You should execute the offered document templates without any modifications during the registration process. The templates are set in accordance with the legal needs and altering them might result in denial of service. In the event of this happening, you will be forced to begin the process afresh, because documents that have been submitted are not returned.
In order to have a quicker set up of the bank account (included in the service fee), additional following documents are required:
- A limited power of attorney to open an account (the template will be provided).
- A certified copy of passport and residential address.
- The documentation refers to the company incorporated in Serbia.
NB: Serbia is also a part of the Common Reporting Standard (CRS) since the summer of 2019, which implies that it shares information on banking with other countries.
Starting a business in a Serbian Free Zone in 2024
In order to start the procedure of company set up in any of Serbian Free Zones just follow the steps:
- Write to Email Serbia Wealth stating that you wish to establish a company within a Serbian Free Zone.
- Meet with an expert who will help you identify the particular Free Zone you intend to run business and any other service you may need.
- Make payments of the ordered services according to the price list. The company formation price in Serbia begins at EUR 4500 when doing everything physically and EUR 5500 when doing the remote registration under the respective PoA. The payment methods are bank transfer, card, Bitcoin, WebMoney, Western Union, and MoneyGram.
- All the necessary documents should be signed personally to open a bank account. You can come to Serbia or the documents can be couried to you so that you can sign them.
- You will be provided with the access to the account upon the company establishment, and you will be able to start operating the business.
The Company formation procedure together with opening of bank account is completed within 1 to 2 months after receiving the full set of documents and payment. On this page, you will get additional details on company incorporation and doing business in Serbia.
Feel free to reach Serbia Wealth anytime you have some questions!
