Serbia’s borders crystallized in 2006 following the dissolution of the State Union of Serbia and Montenegro. In 2008, the declaration of independence by Kosovo further defined its territorial limits. Presently, Serbia is an official candidate for European Union membership, actively engaged in the negotiation processes.
Fueling its economic activities is the Serbian Dinar, the national currency in Serbia. The nation’s vibrant heartbeat emanates from its capital, Belgrade. A dynamic metropolis, strategically nestled in the heart of Southeastern Europe, Belgrade serves as an influential crossroads, connecting the West and East of the Old Continent.
Business environment and taxation in Serbia
Serbia has a great environment for businesses. One reason is the low corporate tax rate, which is only 10%. Besides that, the government helps businesses grow by offering excellent incentives. If investors want to start a business in less developed areas, they can avoid paying corporate taxes for 5 years. Bigger projects that bring at least 100 new jobs and invest at least EUR 8 million may enjoy a 10-year break from corporate tax. When thinking about where to start a business, it’s worth noting that compared to other places in the world and Europe, Serbia is a favorable jurisdiction for businesses.
Serbia has special areas, where businesses get extra benefits. Known as special economic zones, they are found in Subotica and Novi Sad. There, business owners avoid paying certain taxes and duties on materials they import. The process is made easier with special customs offices in the above zones.
When thinking about starting a business in Serbia, take into account other benefits like cheap labor. The government gives grants to businesses ranging from EUR 2,000 to EUR 10,000 for every job created, especially in manufacturing and exporting. Bigger companies can get even more assistance from the local government.
The strong economy and quick growth of important industries in Serbia have caught the attention of foreign investors. They’re looking at how business works in the country. Instead of starting a company from scratch, business people can now choose to buy a company that’s already set up in Serbia. This kind of company is ready to start working right away. Once business people decide what kind of business they want to do, they can buy one of these ready-made companies and start working quickly. This is a good idea for international investors who want to get into the Serbian market fast. It helps them avoid waiting for a company to be created and all the steps that come with it. Buying a Serbian shelf company which is another name for a ready-made company in Serbia is a smart way for them to achieve this.
Understanding ready-made companies in Serbia
A ready-made company in Serbia is a business that’s already set up and waiting for people who want to have their own businesses in Serbia to purchase it. These pre-established companies are often used for different activities in Serbia, as long as they follow the rules in the country’s Commercial Code.
No matter if you’re a big entrepreneur or a small business owner, you can choose to buy a ready-made company in Serbia and take advantage of what it offers. Ready-made shelf companies are suitable for both Serbian nationals and foreign investors who want to set up their businesses in Serbia quickly.
Perks of buying a ready-made company in Serbia
When you decide to purchase a ready-made company in Serbia, you don’t have to worry about opening a account because that’s already done. Also, a ready-made company in Serbia is more trustworthy in the market because it has been around for some time and comes with an established history, unlike new businesses.
Ready-made companies offer an opportunity to operate across various sectors in Serbia, except those controlled by the government. Entrepreneurs interested in manufacturing, tourism, business management, insurance, finance, and more, have the option to acquire a shelf company in any of those industries. Thanks to the already available registration, these companies can be put into operation right after the ownership transfer has been completed.
Such companies usually come without any debts, loans, or financial liabilities. Once investors complete the ownership transfer with the Serbian Trade Register, they may promptly start their business activities. Ready-made companies in Serbia maintain a comprehensive record of their financial undertakings spanning at least 2 years.
Risks associated with ready-made companies in Serbia
Even though a shelf company is a type of business that currently has no ongoing operations and thus no existing obligations, it’s still a prudent step to carry out a thorough background check. If the investigation uncovers any previous commitments related to labor laws or specific taxation matters, the new management might assume responsibility for addressing these issues. It’s of paramount importance to carefully evaluate whether the company has any outstanding debts and to confirm that its financial records are properly organized.
Even though ready-made companies in Serbia make potential buyers feel confident, certain situations may arise that require you to do due diligence on the company and other checks that come with it. The due diligence procedure offers a detailed report that shows any problems or hidden issues. The due diligence in question looks into the history of the company, analyzing both the possible risks and benefits. Don’t forget that although ready-made companies in Serbia are registered entities they don’t have any ongoing activities, which means they don’t have any debts or current liabilities.
With the above precautions, you will successfully avoid any risks associated with the purchase of a ready-made company in Serbia.
No matter whether you already know what kind of company you want to start in Serbia or are just pondering this question, you are welcome to contact the International Wealth team of experts for help. We are here to offer you the assistance and recommendations you need to buy a ready-made company in Serbia or incorporate a new one without a hitch. Don’t hesitate to make this step into a better and more prosperous future now!