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Doing business in Serbia – Chances and risks from a industrial sector perspective Serbia is the state in the South-Eastern Europe, is the part of Central Balkan peninsula, it doesn’t have an exit to the sea. Serbia is a Member of the UN since 2000. On March 1, 2012 officially was acknowledged as candidate for European Union membership. The population of Serbia is 7,163,976 inhabitants.
World Bank acknowledges Serbia as an upper-middle income country. Political reforms and economic llberalization in the beginning of 2000 helped the country to experience economic growth. Today Serbia is preparing for membership in the European Union so it keeps making reforms, including reforms directed on creating positive environment for doing business.
Key factors that are taken into consideration are business environment, economic structure, economic growth and labor market.
Business Environment. First of all, attention should be payed to the index of economic freedom, corruption and index of fiscal freedom. * Index of economic freedom. Currently it’s meaning is 59.4. This figure is lower than in other Balkan countries and the EU. However, in recent years there is a tendency to positive change (increase of 2.8% over the past 5 years); * One of the problematic issues is corruption. Index of corruption peception is quite high and is 42 points, it is the average rate in the Balkan countries, but relatively high in comparison with other European countries. This may indicate the need for searching for relations, lobby and high costs of corruption and bribery; * Index of fiscal freedom also has a negative tendency, it is 83.1. This indicator can have a negative impact on business activities because the company is spending heavily on taxes. Tariff rate is the highest in the region and is characterized by a rate of 6.5%. Income Tax Rate - 15%, Corporate Tax Rate -

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