FREE-TRADE ZONES AND BENEFITS FOR COMPANIES
Free-trade zones are designed to boost production and trade, while reducing costs and administration activities. They stimulate investments in various businesses, and are especially interesting for production, storage, logistics and trade.
Such concepts are widely applicable in all the countries, and deviate only in relation to the legal frameworks of the country in which they are located. They are based in areas with many geographical advantages for trade and are fully infrastructurally equipped.
In 2019, free-trade zones in Serbia generated around 3 billion euros of investments, achieved 5 billion euros in turnover, with over 200 multinational companies and 37,000 employees.
ADVANTAGES OF FREE-TRADE ZONES
Doing business in a free-trade zone brings certain benefits in relation to taxes, imports, customs and administration. In Serbia, an additional advantage is the free trade agreement with the European Union, EFTA members, the Russian Federation, Belarus, Kazakhstan, Turkey and the United States. Benefits that are only available in free-trade zones, result in cost reduction and more efficient business.
WHO ARE THEY MEANT FOR
Free-trade zones are particularly suitable for businesses that are operating in the fields like: storage of goods, imports of raw materials and products, assembly, and further transport. By abolishing impost on work processes, companies’ costs are reduced, the goods can be placed at a more competitive price, and there are more favorable conditions for the supply of raw materials and goods to companies outside of the zone.
Free-trade zones play a major role in attracting investments. Doing business in a free-trade zone has an indirect impact on local companies as well, because they also enjoy certain benefits when cooperating with companies within the free zone.
By completing this process, companies located within the free-trade zone can more easily reach and maintain their full business potential.