Establish a Company in the Serbian Free Zone and Enjoy a 20% VAT Discount
Establishing a company within the Serbian Free Economic Zone (FEZ) presents enticing VAT and customs advantages, especially beneficial for manufacturing enterprises and businesses working in the re-export of goods.
Serbian Free Economic Zones
Serbia hosts fifteen free economic zones, each providing dedicated areas and infrastructure for diverse business activities such as manufacturing and servicing. In 2020, these zones generated a total turnover of 4 billion euros, with over 215 international companies employing more than 40,000 individuals. Notably, exports from these zones reached 2 billion euros in 2020. According to fDi magazine, the Pirot Free Zone earned recognition as Europe’s best and the world’s third-best in 2018.
The list of Serbia’s free economic zones includes the following:
- Svilajnac
- Novi Sad
- Šabac
- Kruševac
- Šumadija (a new free economic zone)
- Zrenjanin
- Priboj
- Užice
- Pirot
- Subotica
- Apatin
- Belgrade
- Smederevo
- FAS FZ Kragujevac
- Vranje
Types of operations permitted within the Serbian Free Economic Zones (FEZs)?
Within the Serbian Free Economic Zones (FEZs), businesses have the permission to conduct a wide range of commercial and industrial activities:
- Manufacturing;
- Warehousing of goods;
- Packaging of goods;
- Commercial transactions;
- Provision of banking services;
- Insurance operations.
Who can start a company in the Serbian FEZs?
Locals and foreigners can establish businesses in Serbian FEZs, with VAT exemptions on commercial revenue and certain expenses. Customs duties are waived for imports, and duty exemptions apply to re-exporting businesses. Leading industry sectors like automotive, agriculture, textiles, and construction thrive in Serbian FEZs.
Serbian FEZs are an ideal hub for working with customers from the EU, Southeastern Europe, and the Middle East. Its proximity to the EU makes Serbia an excellent transit point for transporting goods and facilitating industries around the European market.
Due to the trade agreements, Serbia offers duty-free access to a vast market comprising 1.3 billion consumers across the EU, the USA, and other regions.
Additionally, Serbia boasts the following advantages:
- Remote company setup with limited power of attorney;
- Swift remote bank account opening for local companies;
- Appointing individuals or legal entities as owners;
- Robust banking system offering key financial products;
- Cost-effective business upkeep, utilities, and rent;
- Attaining residency through establishing a business.
In 2022, Serbia implemented tax incentives for IT firms, including a 3% income tax rate and reduced employee taxes.
Documents needed to register a company in the Free Zones in Serbia
We will provide support with the following documents and services:
- Submitting proof of company owner identity:
- For individuals – a certified copy of their passport and proof of residential address;
- For legal entities – an original extract from the foreign register containing the company’s name, registration number, address, and details of owners and directors issued within the last three months.
- Information about the chosen director: a certified copy of an ID (for example, a passport) and proof of residence;
- A limited power of attorney for company establishment (we will draft it on your behalf);
- You will receive full support for completing a certified form that includes specimen signatures for a foreign legal entity;
- A form with certified signatures is part of the service package;
- We arrange the authorized capital (minimum 1 euro in Serbia);
- We assist in locating the company’s legal address; the first three months are complimentary, followed by a fee starting from 100 euros per month;
- You receive guidance on preparing a description of the company’s business activities in Serbia.
All the documents will require Serbian translation (20 euros per page).
Modifying document templates provided during the process is strictly prohibited, as it may lead to service denial in the register. Furthermore, returning previously collected documents won’t be possible, necessitating a restart of the entire process.
For immediate bank account opening (included in the service price), additional requirements include:
- A limited power of attorney for account opening (example provided by us);
- Passport copy and proof of residential address, both certified;
- Documentation connected with the company registered in Serbia.
Please note that aligning with global trends the requirements of Serbian banks are getting increasingly stringent for their customers. While opening a corporate account for non-resident companies is becoming more challenging, it remains feasible with careful preparation of a comprehensive document set and preliminary document review by the bank through our Pre-approval service.
The availability of services offered by banks for non-residents is limited compared to residents. We strongly recommend acquiring resident status in Serbia to secure more favorable banking conditions. This can be achieved through either establishing a company in Serbia or purchasing real estate.
In the summer of 2019, Serbia joined the CRS Standard agreement and joined in the process of exchanging bank information.
Opening a Company in the Serbian Free Zone: the procedure
Step 1
Contact us and inform us about your intention to register a company in a FEZ in Serbia.
Step 2
Collaborate with one of our consultants to clarify the specific Free Economic Zone (FEZ) where you intend to establish your business and to identify any additional services you may require.
Step 3
Pay for the services. The setup costs for a company in Serbia begin at 4,500 EUR with a personal visit and 5,500 EUR for completely remote registration with the use of a power of attorney. We accept payments by credit card, bank transfer, WebMoney, Western Union, Bitcoin, or MoneyGram.
Step 4
If you need to open a bank account, you will have to sign the documents in the bank in person. You have the option to visit Serbia, or we can send you the necessary documents via courier. You can then sign them and return them to us.
Step 5
Upon company establishment, you will gain access to it and can commence business operations. The process of setting up a company, including opening a bank account, typically takes 1-2 months from the receipt of all required documents and payment. Should you have any inquiries, please don’t hesitate to reach out to the aforementioned address.
