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Serbian Legislation Related to Foreign Investments

Updated on Saturday 28th December 2019

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Serbian-Legislation-Related-to-Foreign-Investments.jpgSerbia sustains the foreign investments in the country and foreigners interested in placing the activities in the flourishing and appreciated industries through all sorts of encouragements in compliance with the Commercial Code and the Companies Act. It is good to know that both nationals and foreigners have equal rights for investments. International players can benefit from huge business advantages when it comes to foreign direct investments. In order to ease the company formation process in Serbia, we invite you to talk to our specialists in company incorporation in Serbia who can offer complete assistance.
 

Provisions of the Foreign Investment Law in Serbia

 
The Serbian Investment Act was enforced in 2015 to help foreign entrepreneurs understand better the rules and regulations of the business environment. In this sense, it is good to know that the direct investments are seen as concrete assets of a company running in a wide range of industries. The foreign investments in Serbia can be placed by forming a company or buying shares in an already established business. Both ways involve nationals and foreigners interested in investments in Serbia. One should know that such investments are made through legal contracts in respect to the local legislation.
 
If you want to know more about how companies can be registered in Serbia, you may address your inquiries to our company incorporation agents in Serbia.
 

Types of investments in Serbia

 
Nationals and foreigners can place their investments with the help of varied tools, such as:
 
  • securities;
  • convertible foreign currencies;
  • assets;
  • property rights;
  • non-monetary investments.
 
 
Entrepreneurs who want to invest in Serbia are protected by applicable legislation and have the same entitlements as nationals, meaning that they benefit from the same duties and conditions when opening a company or buying shares. From an accounting point of view, foreign companies in Serbia are obliged to keep the records of each financial operation and related matters. One should bear in mind that when opening an investment fund, the tax regime and the exemptions are the same as for the nationals who set up the same investment funds.
 

How do I open a company in Serbia?

 
Because the legislation related to foreign investments in Serbia is permissive, foreign investors can open varied types of companies in this country, among which, the limited liability company or the DOO might be the suitable one. This is the simplest business form that allows international investors to easily register for business in Serbia. The following aspects are a few of the important steps to consider when opening a company in Serbia:
 
  1. The name verification must be made with the Business Registers Agency in Serbia.
  2. RSD 100 or EUR 1 is the minimum share capital for opening a private DOO in Serbia.
  3. A bank account needs to be established for the company’s future financial activities.
  4. One must apply for special licenses and permits and verify the business activities classification in this sense.
  5. The registration for tax purposes and social contributions must be observed at the time the company is registered.
  6. The company seal can be obtained in approximately 3 days. Then, the business can start activities in Serbia.
 
As soon as you decide for opening a DOO in Serbia, we recommend you talk to one of our company formation representatives in Serbia and solicit in-depth assistance and support for all the formalities involved. This is a proper way to start a business in Serbia in a fast and reliable manner, by hiring one of our specialists.
 

Laws governing the business in Serbia

 
Companies in Serbia must follow varied rules and regulations applicable in this country. The Law on Energy, The Law on Customs, the Law on Foreign Exchange Operations, the Law on Public-Private Partnership and Concessions, the Law on Insurance, the Law on Capital Markets and the Law on Procedure of Registration before Business Registers Agency must be observed by both domestic and international investors in Serbia. It is important to have an idea about the business environment and general rules for starting a company in Serbia and skip any possible misunderstandings that might occur. Feel free to talk to one of our company formation agents in Serbia and ask for comprehensive assistance and help.
 

Repatriation of profits - Is it hard to transfer the money?

 
The assets and profits can be easily transferred from Serbia to the country of origin of the company. Once the imposed taxes are paid, the repatriation of profits can be easily made The legislation related to foreign investments in Serbia imposes no particular rules in this matter, however, it puts the accent on taxation and the preparation of profit repatriation in complete security. One of our consultants can give more details on this matter.
 

Serbia, a solid business destination

 
 
Serbia provides suitable business conditions for both local and foreign entrepreneurs interested in expanding or developing their operations in a safe and appreciated environment. The excellent and strategic geographic position of Serbia gives access to numerous investors from abroad as this country is a connection between the Western and the Eastern parts of Europe. The political stability, the great infrastructure by sea, land, and air, the appreciated economic indicators, the appealing tax structure, and the support provided by the authorities in matters of business encouragements make Serbia not only an attractive business destination but also a long-term partner for countries like Germany, Greece, Romania, France, Italy, Austria, Cyprus, Russia, UK, Spain, Poland, and many others. The numbers for 2018 are quite encouraging if we refer to the number of countries interested in investments in Serbia, that surpassed 100. The same positive business track registered this year as sectors like real estate, textiles, plastics, electronic industries have been in the attention of a large number of international investors. An important business project started this year between Serbia and Bosnia & Herzegovina where approximately EUR 250 million were invested in infrastructure and the first highway to connect the two important destinations. Below you can find some interesting facts, numbers, and details about the economy in Serbia:
 
  • Chinese companies are interested in creating more than 1,000 jobs in Serbia in the years to come;
  • incentives of around EUR 10,000 can be granted to international investors creating jobs in Serbia;
  • according to the “2019 Doing Business” report, Serbia ranks 48th out of 190 economies in the world;
  • the total FDI stock for 2018 sustained Serbia’s GPD in approximately 79% rate.

 

If you want to know complete information about the Serbian legislation related to foreign investments, please feel free to contact our team of company formation agents in Serbia at any time.
 
 

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Call us now at +381 62 330 664  to set up an appointment with our company formation specialists in Belgrade, Serbia. Alternatively you can incorporate your company without traveling to Serbia.

As a Law Office Ristic & Partners client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Serbia.

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www.romanianlawoffice.com

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