Business in Serbia for foreigners in 2022
Attracting foreign investments is one of the priority tasks for the Serbian authorities. The investment climate has recently improved significantly due to economic stability, effective reforms, and fiscal discipline. Advantages of business registration in Serbia in 2022 include favorable geographic location, a qualified workforce, and free trade agreements with the EU and other key markets.
What you should know about investments in Serbia
The Investment Law extends national treatment to foreign businesspeople and prohibits discrimination against them. The law also:
- Allows repatriation of dividends and profits;
- Protects against expropriation (alienation);
- Cancels customs duties on equipment that is imported as a capital contribution;
- Allows foreign businesspeople to qualify for state benefits.
The Development Agency of Serbia (RAS) is responsible for attracting investments and provides a wide range of services. They include support for direct investments, export promotion, and coordination of investment projects. Also, the government supports dialogue with businesses through the Chamber of Commerce of Serbia, the Foreign Investors Council, and the Serbian Association of Managers.
Advantages of Serbia for foreign business
The Serbian government successfully cooperates with foreign businesses. Since 2007, it has attracted more than $39 billion in direct foreign investment. The country ranked first in the FDI Europe 2019 list, compiled by the Financial Times. The list is based on the attractiveness of investments in new projects by the size of the economy.
Among the perks of starting a business in Serbia are:
- Advantageous geographic location and excellent connections to both European and Asian countries, and the United States.
- Low operating costs with a moderate tax burden (tax on profit is 15%).
- A qualified labor force allows for achieving high results, especially in the IT sector.
- Easy procedure for obtaining a residence permit based on the creation of a business in the country.
- No taxes for most key industrial goods.
- Foreigners are not allowed to own agricultural land, but the ban is lifted if they register a company in Serbia.
We should also highlight Serbian Free Zones. There are 15 of them), and business registration in special parts of the Serbian territory gives certain benefits to the company. Among them are exemption from VAT, the ability to transfer tax-free income from within the zones abroad, and hassle-free import and export of goods.
Peculiarities of establishment of the foreign company
Foreigners can open a business remotely if they ask our specialists for help. To register a company in Serbia you will need to provide the following things:
- Passport or another document confirming the identity of the business owner.
- Power of attorney for the company.
- White card confirming the physical address of the owner in Serbia. It will be needed for various paperwork. To get the white card you must register with the police within 24 hours of arriving in Serbia.
- Business plan.
- Receipt of payment of fees.
- Information about the location of the physical office in the country (virtual office is allowed).
- Some other papers, depending on the form of the legal entity.
To engage in certain activities (e.g. payment systems, pharmaceuticals, medical services, etc.), it is necessary to obtain a license from the authority that regulates this particular sphere.
How to register a company
To start a business in Serbia, contact IT-OFFSHORE experts.