In recent years, Serbia has witnessed remarkable economic progress, bolstered by implemented reforms. These have curtailed national debt and attracted foreign investment, thereby fostering the growth of small and medium-sized enterprises.
Internationally recognized rating agencies, including Fitch and Standard and Poor’s, have bestowed Serbia with a sovereign credit rating of “BB+” with a stable outlook, affirming its favorable economic trajectory.
In light of any apprehensions regarding potential risks, now is an opportune moment to weigh all the pros and cons. Admittedly, arguments against Serbia mirror those against entrepreneurial ventures in other European nations. Nonetheless, the affirmative arguments for Serbia are increasingly compelling and incontrovertible.
5 compelling reasons supporting the establishment of a company in Serbia
1. Serbia: A reputable non-offshore jurisdiction
The assertive deoffshorization measures pursued by most prominent nations have inevitably reshaped the dynamics and priorities of global commerce. The ambiguous zones characterized by minimal taxes and heightened levels of privacy are gradually dissipating, evolving into transparent jurisdictions. While this transitional phase may prompt a temporary capital outflow, it heralds promising prospects for the future. Legitimization and transparency emerge as pivotal trends in the forthcoming years, constituting indispensable elements for thriving business endeavors.
However, this paradigm shift also confers supplementary benefits upon business proprietors: Serbia stands wholly exempt from international regulatory blacklists and gray lists. This signifies that your enterprise will no longer encounter skepticism or impediments. You will be empowered to conduct your commercial affairs openly and boldly traverse leading global markets. Crucially, it’s imperative to grasp that information exchange doesn’t entail the wholesale disclosure of all your data into the public domain. Hence, a certain level of confidentiality is preserved.
2. Serbia: A bastion of steady progression
In August 2019, Serbia ratified the United Nations Convention on International Settlement Agreements Resulting from Mediation, colloquially known as the Singapore Convention. This pivotal step underscores the nation’s steadfast commitment to fostering enhanced stability and predictability in international trade endeavors. As elucidated by the State Secretary of the Ministry of Justice of Serbia, this endorsement is poised to augment economic rights and opportunities while refining the business landscape.
Fundamentally, this development aligns with our earlier discourse concerning the burgeoning economic prowess of the country. The trajectory of consistent amelioration in Serbia’s business milieu serves as a principal catalyst for attracting foreign investments, unlocking novel markets, augmenting existing ones, and fortifying infrastructure and financial institutions. This positive momentum engenders an influx of enthusiastic stakeholders, perpetuating a symbiotic relationship wherein all participants thrive.
3. Serbia: Striding Confidently Towards EU Integration
The Serbian government has reiterated its steadfast commitment to joining the European Union, accompanied by concrete actions and decisions to bolster this aspiration. Despite the protracted nature of the process since its inception in 2012, significant strides have been made, albeit without a discernible leap forward.
While occasional doubts may arise, the overarching trajectory remains resolute. Several members of the European Union, notably Hungary, have expressed unwavering readiness for Serbia’s integration into Europe, underscoring a collective commitment to expedite this endeavor. It is noteworthy that the EU’s apprehensions primarily revolve around the burgeoning influence of China in Serbia, alongside the amicable rapport with Russia, which thus far has refrained from imposing sanctions and continues to foster cooperation. This reiterates Serbia’s allure for European enterprises and stakeholders.
However, a pivotal takeaway lies in Serbia’s capacity to furnish a relatively swift and seamless pathway to accessing European markets. Today, owning a Serbian company opens the doors to the entire EU tomorrow. This consideration gains further significance for those inclined toward mitigating national risks. In this context, Serbia emerges as an enticing prospect. From securing a residence permit to pursuing citizenship and residency, the country offers avenues for minimizing potential risks.
4. Serbia: A Politically and Economically Neutral Haven
This aspect stands as another affirmative facet for entrepreneurs hailing from diverse corners of the globe. In the contemporary landscape, banks wield the authority to freeze accounts and impede business operations should you inadvertently become entangled in another round of sanctions or associated with sanctioned individuals.
Serbia maintains a stance of neutrality in international relations. As previously mentioned, the nation fosters amicable ties not only with the European Union but also with China and even Russia, a feat notable amidst the prevailing geopolitical complexities. While pressure from the EU has introduced a degree of complexity, establishing a company in Serbia nonetheless affords you the liberty to engage in business dealings with virtually any nation across the globe.
5. Serbia: A Leader in Minimal Company Maintenance Costs
Serbia stands at the forefront among European nations when it comes to minimal company maintenance expenses. Predominantly, the primary outlays encompass office rent and accountant fees. Rental rates commence at EUR 2,400 annually. Notably, the average salary in 2023 hovered around EUR 700, experiencing an upward trajectory in recent years.
Moreover, Serbia boasts a vast reservoir of highly skilled workforce, further enhancing its appeal as a business destination. Social and medical insurance contributions remain nominal and pragmatic in comparison to Europe. Additionally, Serbia exhibits favorable metrics in terms of electricity, gas, and fuel expenses, attributable to self-generation practices and advantageous contracts with suppliers. Furthermore, the corporate tax rate in Serbia stands at a competitive 15%, constituting a favorable proposition vis-à-vis the majority of European counterparts.
Establish a Company or Branch in Serbia with Our Expertise
While the roster of reasons advocating for the establishment of a company or branch in Serbia can be expanded further, we have concentrated on delineating the most pivotal and defining factors. One of the notable advantages of initiating a company or branch in Serbia is the expeditious registration process and the ability to execute numerous operations remotely. In this regard, we extend comprehensive support, encompassing the preparation of requisite documentation and guidance throughout the subsequent procedures.
It is prudent to acknowledge that along this trajectory, aspiring entrepreneurs may encounter impediments and challenges. Hence, it becomes imperative to lean on the expertise and steadfastness of seasoned professionals. Our team possesses the requisite expertise, acumen, and, significantly, an extensive communication network, enabling us to navigate the intricacies adeptly. With a physical presence in Serbia, we boast an intimate understanding of the local milieu and prevailing conditions.
Should our insights aid in elucidating your decision-making process or should queries arise regarding the registration prerequisites for a company/branch in Serbia or acquiring residency in the nation, do not hesitate to reach out to us by using the above link. Contact us today, and our specialists will furnish detailed responses to address all your inquiries.
