By registering your business in one of Serbia’s Free Economic Zones (FEZs), which are designated areas with special economic regulations, you can take advantage of significant VAT and customs savings! This opportunity is especially beneficial for manufacturing enterprises and businesses involved in the re-export of goods.
Explore Serbia’s Free Economic Zones for Business Expansion
Serbia boasts fifteen meticulously designed Free Economic Zones strategically positioned throughout the Republika Srpska. These zones are delineated by physical fencing and offer specialized infrastructure tailored to facilitate diverse business operations, ranging from manufacturing to servicing.
The Serbian Chamber of Industry reports a thriving ecosystem comprising over 215 international companies within these zones, including manufacturing giants, logistics companies, and service providers, employing a workforce exceeding 40,000 individuals. The export growth from FEZs has been consistent in recent years, with manufactured product values totaling about 2.2 billion euros.
Diverse Business Activities in Serbian Free Economic Zones
The Serbian FEZs offer a broad spectrum of opportunities for commercial and industrial endeavors within their territories. Here are the types of activities permitted in the FEZs:
- Production. Establish manufacturing facilities for various industries, leveraging the specialized infrastructure and favorable business environment.
- Storage of goods. Utilize designated spaces within the FEZs for the storage of raw materials, finished products, or inventory, ensuring efficient logistics management.
- Wrapping of goods. Engage in packaging and labeling activities to prepare products for distribution and sale, benefiting from streamlined processes and cost-effective solutions.
- Trade. Conduct trading activities, including import and export operations, taking advantage of the FEZs’ strategic location and logistical support.
- Banking activities. Establish banking facilities or engage in financial services within the FEZs, leveraging the conducive regulatory environment and access to international markets.
- Insurance. Offer a wide range of insurance services, including life, health, property, and liability insurance, or operate insurance companies within the FEZs. This sector, with its supportive business ecosystem and potential for growth, presents a lucrative opportunity for businesses.
With the flexibility to undertake a wide range of commercial and industrial activities, the Serbian FEZs provide an ideal platform for businesses seeking to expand their operations and capitalize on diverse opportunities.
Advantages of Opening Companies in Serbian Free Economic Zones
Opening a company in the Serbian FEZs presents numerous benefits for residents and foreign citizens.
Tax Benefits
- VAT exemption. Income generated within FEZ territories is exempt from Serbia’s standard 20% VAT rate, reducing operational costs and enhancing profitability.
- Customs duty exemption. Importing raw materials, equipment, and construction materials into FEZs is exempt from customs duties, minimizing expenses for businesses.
International Business Facilitation
- Global accessibility. Income earned in FEZs can be repatriated to any country without additional permits or taxes, following standard international financial regulations.
- Serbia’s strategic location, nestled between the EU, South-Eastern Europe, and the Middle East, positions it as an ideal base for servicing customers in these regions and for transshipment activities.
Industry-Specific Opportunities
- Automotive, agriculture, textiles, and construction. These industries are particularly desirable for investment within Serbian FEZs, offering specialized infrastructure and support for growth. For instance, the automotive sector benefits from the presence of major manufacturers and a skilled workforce, while the agriculture sector enjoys favorable conditions for crop cultivation and livestock farming.
Trade Advantages
- Duty-free access. Serbia offers duty-free access to over 1.3 billion customers in the EU, USA, and other regions under trade agreements, facilitating trade and market access for businesses.
Business-friendly Environment
- Establishing a company in Serbia’s FEZs is straightforward and can be done remotely with a limited power of attorney.
- Efficient banking system. Serbia boasts a reliable banking system that is familiar with international financial and business practices, facilitating seamless transactions and financial management.
- Low operational costs. FEZs offer competitive fees for business maintenance, utilities, and rent. For instance, the average monthly rent for a 1,000 square meter industrial space in the Free Zone of Pirot is 1000 euros, significantly lower than the average market rate.
- Residency opportunities. Establishing a business in Serbia provides the possibility of obtaining resident status, offering additional benefits and opportunities for individuals.
Required Documents for Registering a Company in the Serbian Free Zone
Gather the following essential documents to initiate the process of registering a company in Serbia’s Free Economic Zones.
Company Owner Information
- Individual owners. A certified copy of your passport and proof of residential address are required.
- Legal entities. The original extract from the foreign register contains company details such as name, registration number, address, and names of owners and directors (documents not older than three months).
Director Information
- Certified copy of the director’s passport and proof of residence.
Legal Documentation
- Limited power of attorney for company opening (provided by our service).
- Certified form of specimen signatures for foreign legal entities (provided and guided by us).
- Form with certified signatures.
Company Capital and Address
- Authorized capital of the company (minimum amount of 1 euro in Serbia).
- Legal address of the company (assistance provided by us; first three months free, followed by a fee starting from 100 euros per month).
- Description of the company’s intended activities in Serbia.
Additional Requirements for Bank Account Opening
- Limited power of attorney for account opening.
- A certified copy of your passport and proof of residential address are required.
- Documents related to the company registered in Serbia.
Important Considerations
- Translation. All documents must be translated into Serbian (cost: 20 euros per page).
- Document templates. Alterations to provided document templates may lead to rejection during the registration process. Modifications could necessitate restarting the process from the beginning.
- Bank account opening. Meeting stringent requirements for corporate accounts is essential. Preparation of comprehensive documentation and preliminary review by banks through the Pre-approval service is recommended.
- Banking conditions. Non-resident companies may face limitations in banking services. Obtaining resident status in Serbia, either through company establishment or property purchase, can facilitate smoother banking operations.
Navigating the registration process with thorough preparation and adherence to regulatory requirements ensures a successful company establishment in the Serbian Free Economic Zones.
Seizing Opportunities in Serbian Free Zones
Establishing a company in Serbia’s Free Economic Zones offers significant tax benefits, streamlined operations, and global trade advantages. With VAT exemptions, customs duty benefits, and access to critical markets, businesses in Serbian FEZs thrive across industries. Our expert support ensures a smooth registration process, unlocking the full potential of your venture in Serbia’s vibrant business landscape. Please follow the above link to talk to a professional for free or get more practical information.
