Despite the fact that Serbia’s economy has not been doing well in the past several years, Serbia has become the new hotspot for manufacturing operations in Europe in recent years and multinational companies have been expanding into and moving their operations to this Eastern European Country to take advantage of Serbia’s competitive operating costs in the areas of labor, utilities and of course tax. Earlier this year, Swarovski moved its manufacturing plant from Liechtenstein to Serbia, to join a fleet of other global companies from Fiat to Nestle. For set up of a manufacturing plant in Serbia, Healy Consultants Group PLC recommends an LLC (Limited Liability Company) for a number of reasons:
Set Up Costs
Setting up in Serbia is a relatively straight forward process and can be completed in about 3 weeks (inclusive of opening a bank account) with only 1 non-resident director and 1 shareholder required. A minimum share capital of only €1 is required and you do not need to travel to Serbia for company incorporation or bank account opening services.
Labor & Utility Costs
This is one of the primary reasons why manufacturing companies set up here. Serbia’s labor force is generally skilled, well trained and speak good English. Labor costs are one of the lowest in Europe and rent and utilities are also available at very competitive rates.
Corporate Tax & Foreign Ownership
A very big advantage that Serbia has is that it has one of Europe’s lowest tax rates at just 15% which makes it a very attractive place to set up a company’s headquarters. Foreign entrepreneurs can have a 100% foreign owned businesses in Serbia with its own property and incorporate companies in any part of the country without restrictions.
Free Trade Agreements & Location
Serbia is the only country in Eastern Europe with a free trade agreement with the EU, Russia, Belarus and Turkey allowing cross border duty free trade between these countries making it an ideal location to set up a manufacturing or distribution company. Serbia is also a member of the Black Sea Economic Cooperation (BSEC), the Central European Free Trade Agreement (CEFTA) adding to its attractiveness as a distribution hub.
According to experts at Healy Consultants Group PLC, an LLC in Serbia is the way to go and as Peter Chavkarov, our Eastern European consultant puts it “Owing to the country’s favorable location, Serbia serves as a connection between Western Europe and the Middle East with a well-developed network of infrastructure as well as a stable business climate and is therefore an ideal business hub for entrepreneurs who would like to access these markets”
Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Serbia. Our services include i) Serbia company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
- Company Registration: https://www.healyconsultants.com/serbia-company-registration/
Photo by East Capital, available under a Creative Commons Attribution 2.0 Generic (CC BY 2.0) license.