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The Government of the Republic of Serbia

In the service of citizens

Government assists SMEs

Belgrade, 5 June 2008

State Secretary at the Ministry of Economy and Regional Development Luka Andric stated today that the government has done a great deal to improve business conditions for small and medium-sized enterprises (SMEs), but that the largest portion of work in this respect is yet to be carried out.

At the workshop on creating a better legal environment for SMEs, held at the Serbian Chamber of Commerce, Andric said that it is necessary to cut down business expenses and reduce procedures for opening businesses because that is the road to an increase in employment and competitiveness.

In some EU countries, an SME can be opened within five days, but in Serbia this process takes 23 days, he specified and added that the Business Registers Agency has simplified the procedure and enabled registration of companies through the Internet, however the procedure for getting a tax number is still complex.

Together with the Business Registers Agency and the Customs Administration, the Ministry of Economy and Regional Development is trying to enable founders of companies to finish all the necessary procedures in one place, including the insurance procedures which still take a lot of time, explained Andric.

According to him, it is necessary to harmonise work with the Tax Administration, which must protect the tax system from frauds and "phantom companies".

Andric also announced that certain unnecessary regulations are to be abolished by the year’s end, and the results of these changes are to be felt within 18 months of commencement of the process to reduce the volume of regulations.

Andric confirmed that the Ministry is working on amendments to laws on companies and the bankruptcy procedure which are to be completed by the end of the year. He added that essentially amendments to the Law on bankruptcy procedure will simplify the procedures in commercial courts.

Head of the economy department at the European Commission delegation to Serbia Alberto Cammarata said that Serbia is committed to improving the position of SMEs and has the EU’s technical support to do this, as well as special funds from the pre-accession funds.

He said that SMEs must be given special attention because they are the driving force in economic development, adding that in the EU SMEs cost more than larger companies.

According to European Commission statistics, administrative expenditures of large companies’ amount to €1 per employee annually, medium-sized enterprises to €4, and small enterprisers to €10 per employee, explained Cammarata.