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Company Formation Serbia



Why is Serbia an Attractive Country for Foreign Investors?

Updated on Thursday 08th February 2018

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Why-is-Serbia-an-Attractive-Country-for-Foreign-Investors.jpgAccording to the World Investment Reports for 2016 and 2017, Serbia is mentioned as the only country from the South-Eastern part of Europe where foreign direct investments and companies from abroad found the proper place for development and stability. Also, the World Bank Report revealed that Serbia improved the business climate in the past few years and worked on the conditions related to a fast incorporation and a favorable tax regime for foreign investors. Considering the confidence and the stability of the economy, Serbia welcomes investors worldwide to operate in the country’s main industries. Our Serbian company formation agents are at your disposal with assistance and information about how you can set up your company.

The manufacturing sector in Serbia is strong and consistent

Boosting the business-friendly incorporation procedures in Serbia represented the proper starting point to attract foreign investments. The manufacturing sector made no exception, as the authorities sustain this important sector and the multitude of projects involved. Equipment, machinery, food & beverages, tobacco, textiles, petroleum products, wood, and plastics are part of the flourishing manufacturing sector in which most FDIs directed from abroad. This is the reason why the employment in this field increased by 50% for the last two years.

Competitive tax rates in Serbia

Because most entrepreneurs from overseas consider the tax regime in the chosen country for business, the Serbian government focused on creating a welcoming structure in this sense. For instance, the corporate profit tax is set at 15%, the tax on dividends, royalties, capital gains and interests is a rate of 20%, the VAT has the same rate but lower in certain fields, and the withholding tax is set at 20%. Compared to other European countries, Serbia offers low taxes in the business field.

Free zones in Serbia

To simplify the direction of the business and to benefit from all kinds of tax exemptions, Serbia created the free zones and related industrial parks. Novi Sad, Pirot, Zrenjanin, Vranje, Belgrade or Krusevac are only a few of Serbia’s free zones with well-developed infrastructures and the possibility of benefiting from 0% VAT for import and export goods from and in these areas, if 50% of the goods are made with domestic components. Multinational companies interesting in operating with low labor costs among many others can choose the free trade zones in Serbia.
As for the company formation process in Serbia, this can be done within a few days if all the documentation complies with the rules of Companies Act in Serbia and if you ask our specialists in company incorporation for support.

Serbia has an excellent geographic position

In many cases, Serbia is seen as a gateway to Europe, due to its strategic geolocation which sustains businesses from abroad. In this sense, Serbia is the link between the Eastern and the Western part of the old continent. The well-developed infrastructure allows foreigners have great connections with Russia, Germany, Austria, Benelux, UK, France, Spain, Italy and many more. The air, water, and land transportation sustain a good way of doing business in Serbia.
As for the political stability of Serbia, foreigners do appreciate a relaxing climate and a government that sustains the foreign investments by offering varied incentives, a proper administration, and a trustworthy fiscal background.
If you are a foreigner willing to expand the activities in Serbia through varied investments, please feel free to contact our team of company formation consultants for extra information and support in company formation in Serbia.


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