The Serbian economy has undergone a rapid and relatively significant development over the past few years. The total national product has increased by an average of 6.5 % in the last three years in Serbia. The guideline interest rate of the national bank fell from 30 % to 10 %. In the last year more than $ 4 billion of foreign capital came to the country. This is one of the highest sums concerning this area.
The benefits of investing in Serbia:
However it is worth mentioning the Russian-Serbian relationship in a few sentences, the free trade agreement that was established in 2000. It has provided a great opportunity to increase the competitiveness of the economy, growth of export and the growth of commodity trade.
The Serbian company establishment has many advantages though it is not easy. Three types of businesses can be found. The first and the most popular form of company is the Limited Liability Company (DOO). In addition there is also a Deposit Company (KD) and a Share Company (AD). DOO is the most popular form of business.
Why should a company be founded in Serbia?
First of all, because there are different benefits for foreigners and the tax system is also favorable. In Serbia the VAT is only 20%. The corporate income tax is 10% and the personal income tax is 12% (this concerns to wages, there is a 20% tax rate for additional income). There are also employee contributions of 17,9% but it includes unemployment benefits, pension contributions and health insurance contributions. The minimum capital for a DOO is only 1 Euro.
In order to strengthen economy, it is critical to privatize, to modernize companies and to reduce driving costs.