Business can be quite challenging when you do not have the right legal and entrepreneurial help. Serbia has become one of the most desirable business locations due to its trade agreements, location and availability of a market. Unlike most of its neighbouring areas, Serbia is able to carry the economic recessions that come with infrastructure development. The place has endless of population with a great workforce of highly trained and skilled professionals. Serbia has become an investment destination for foreigners all round the world. He place has a low salary and corporate tax, making it low cost operation and creating a high demand in the area.
So what are some of the challenges people face when doing business in such an area?
Starting a business can be hard
Even though the area has improved in terms of agriculture, infrastructure, market economy and ranking it is one of the hardest place to start a business. The Serbian government has come up with reforms that have changed the position of the republic globally. It will take you less than two weeks to create a corporate entity in the country. With these developments has come a strict legislation. You must pay to register your business, get a tax certificate and also register your employment contracts with an employment fund in order to qualify for a business.
Getting electricity to your property can be somehow challenging
The EDB is the only legal entity with the authorisation to connect electricity in different areas. The EDB agency should give out the conditions, contract and connection approval before any electric work can begin in your property. It is also in charge of connection and installations.
Registering your property can e a hustle
Even though it will take you less than two weeks to legally register the property, there are up to six procedures you will follow. You will need an extract from the commercial registration agency and get a purchase agreement registered and verified by the republic geodesy institute. You will also have to pay all the tax obligations before you can legally pronounce any property as your own.
Paying the taxes
The tax payments are overwhelming. When compiled, they will take you up to 12 days to finish. In Serbia, there are 66 tax payments. A massive 12 are made for contributions to social security, VAT, income tax obligations, urban land usage and other major taxes. You will need professional help to complete these payments.
Trading across the Serbian borders
Trading across the Serbian border is a tedious and costly process. You will take up to two weeks to export and import goods across the borders. You will also need to fill endless documents and make a large payment for the containers at the border.
Enforcing some of the contracts
This is again, another difficult procedure that will cost you your time. it takes up to 36 procedures to enforce a contract and this will be carried out over a period of two years. The cost is very high compared to other countries.
The culture in the area
If you are not used to being formal or conservative then business will be hard for you in these areas. You must also maintain respect by being respectful and maintaining eye contact with the people living in this area.