Serbian Free Zone Company: Pay No Vat!

Serbia is one of the destinations that is definitely worth looking at if you are thinking about business, relocation, or banking. The Balkan country is rapidly developing, and its economy shows an upward trend that you can join. The Serbian authorities have done a lot to make their business environment attractive for international entrepreneurs, including the creation of free zones. It managed to attract major American, Chinese, and European investors, and Belgrade is little by little turning into an international business hub. Join in!

If you want to read more about the Serbian free economic zone setup, please visit our portal. You will find a lot of articles on Serbia as this is a popular business and banking destination. You are welcome to book a free session with our consultant to share the details of your situation and find the best way out or ask any questions you may have. You can delegate all the administrative procedures to us, and we will be happy to assist you in opening a company and a bank account in Serbia for a reasonable fee. We will also be able to support any operations on-site as we have a representative office in Belgrade! Click on the link to contact us.

Free Economic Zones

Serbia is home to 15 free economic zones, and these are the territories surrounded by a fence that have a special designation on the country’s map. You can take advantage of special infrastructure within these areas and conduct different business activities there, such as production and provision of services.

The Serbian free economic zones reached an annual turnover of 4 billion euros in 2020. The number of foreign companies that carry out their operations here exceeds 215 (according to the Serbian Chamber of Industry), with more than 40,000 employees working for them. The export in the free zones is quickly growing, reaching more than 2 billion euros.

The Pirot free economic zone was once recognized as the best one in Europe and the third one in the world.

Let’s look at all the free zones that exist in Serbia:

  • Novi Sad
  • Pirot
  • Vranje
  • Subotica
  • Apatin
  • Zrenjanin
  • Kruševac
  • FAS FZ Kragujevac
  • Svilajnac
  • Šabac
  • Belgrade
  • Užice
  • Priboj
  • Smederevo
  • Šumadija (a new free economic zone)

Activities Permitted in Serbian Free Zones

Any industrial and commercial activities are allowed in the territory of free zones, namely:

  • Banking activities
  • Wrapping of goods
  • Production
  • Insurance
  • Storage of goods
  • Trade

Who Can Benefit from Serbian FEZ Company Formation

Free zones are open to residents and non-residents wishing to register their companies. The profit generated within the free economic zone can be transferred to any country, and you will not have to obtain any additional permits or pay taxes.

The income from commercial activity conducted within FEZs is VAT-exempt (and 20% is a good saving opportunity!). The costs of electricity, construction materials, and transportation are free of VAT, too. And if you import equipment, raw or construction materials, you will not have to pay any customs duties.

You will not be required to pay any duties if you import and then re-export products. However, if you import products from the free zone to Serbia, duties are payable as if they were imported from third countries.

Serbian free zones are very convenient if you intend to work with clients from the Middle East, South-Eastern Europe, and the EU. As the country is located near EU states, it is often used as a transshipment base for the products and the industry that manufactures products for European consumers.

Serbia has signed a number of trade agreements with the EU, the USA, and other countries to provide duty-free access to 1.3 billion clients.

Besides, here are some more benefits to take advantage of in Serbia:

  • Office rent, utility bills, and business maintenance are not expensive
  • You can set up a company online using a limited power of attorney
  • Your Serbian company may be owned by an individual or a legal entity
  • Company establishment will give you the right to easily obtain a residence permit
  • You can set up a Serbian corporate bank account online
  • The local banking system is reliable, and Serbian financial institutions know how to deal with the most important financial products

Documents Required

Here is a list of documents required to set up a Serbian company:

  • A limited power of attorney for us to establish a company
  • Data about the company owner:
  • A passport copy and a proof of residence address for individuals
  • Legal entities are required to submit an original extract from the foreign register
  • The company director will also have to provide a certified passport copy and proof of residence address
  • A foreign legal entity is required to provide a certified form of sample signatures
  • Description of the activities that the company is going to carry out in Serbia
  • Company’s legal address (we will provide it free of charge for the first three months, and then it will cost 100 euros a month)
  • Company’s authorized capital (at least 1 euro)

The documents need to be translated into Serbian (20 euros a page).

We will provide document templates to you, and all you have to do is fill them as they are. These are created by specialists to comply with all applicable laws, and modifications may result in failure of the whole company registration process. The documents you have submitted will not be returned to you, so you will start it all over again.

Additional documents required to open a bank account:

  • Documents related to the Serbian company
  • A certified passport copy and proof of residence address
  • A limited power of attorney that will make it possible for us to open an account on your behalf

You can use our pre-approval service (you send an application to the bank and it replies whether it is ready to onboard you). It does not cost much, and it is very convenient as you do not start collecting a package of documents until you get approved. The banks are becoming more picky (especially when it comes to non-resident corporate accounts), which is the reason why we strongly recommend the service.

Interested in setting up a company in Serbia? Do not hesitate to click on the above link, explore the portal, and get in touch with us!

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