Incentives for the investors - Why Kragujevac?
 
- Local legislative – set of incentive measures for inducing investments
- Low investments costs for construction land
    - from 20-50 employed – decrease of 2.500 EUR per employee;
    - from 51-200 employed – decrease of 5.000 EUR per employee;
    - more than 200 employees – decrease of 7.000 EUR per employee!
- If more then 50% of the production is exported, rent for construction land decreases to 20% of the initial value.
- Flexible service, communal infrastructure

KRAGUJEVAC as a macro-regional centre of economic and scientific development of the Republic of Serbia shall be characterized by a favourable economic climate and leadership in investments enabling the sustainable development of the local community. The City will have a recognizable identity and will provide living and working comfort.   

The Chamber of Commerce and Industry Kragujevac provides professional support to its members to solve their particular problems, promote their production programs at fairs and exhibitions both in the country and abroad, make presentation on Internet, establish cooperation among domestic and foreign partners through contacts with foreign chambers, various representative offices and embassies of the foreign countries.

Mobilizing all its creative forces in a quicker and more efficient recovery of the businesses and in its adaptation to the new conditions for doing business, the Chamber of Commerce and Industry Kragujevac is being expected the quicker inclusion of the businesses of the Region in modern trends of the market economy.

On its part, the Chamber will stimulate the necessary changes and will contribute to more efficient ways of overcoming existing difficulties. The long-term task in the upcoming period is to create healthy, profitable and modern market oriented business in the Region. 

KRAGUJEVAC, once a capital city of Serbia, remained economic and cultural hub of Sumadia region. The City is well placed 120 km to the South of the Capital of Belgrade and lies within the slopes of Rudnik, Gledic and Crni Vrh Mountains that encompass Kragujevac valley. The River Lepenica runs slowly through the city. A series of rivers and tributaries bisect the city creating trafficked transportation routes and due to that fact the first «get together» -market place was located here during the Turkish rule in 1476. The area covered by the Chamber of Commerce and Industry Kragujevac includes enterprises from the territory of two counties: Sumadia and Pomoravlje, with 13 municipalities. The region is situated in the central part of the Republic of Serbia and covers the area of 5.000 km2 or 5,6% of the total area of the Republic. The population of the Region counties totals 530.000 inhabitants in 365 places. The town of Kragujevac as the regional center is 120 km away from Belgrade, and the majority of municipalities are situated along the Belgrade-Nis highway. Kragujevac, as a regional center, used to be a capital of Serbia principality in the period between 1818 and 1841. First institutions of great importance for the development of Serbia were established then, such as first lyceum, theatre, pharmacy... The Gun foundry established in 1853 gained a very important role in the development of Serbia industry. Kragujevac is an important educational center. The University of Kragujevac consists of eleven faculties and two institutes. It is also one of the most significant cultural centers in the Republic of Serbia.

Financial Incentives for Investors in Sebia In addition to the existing benefits comprising highly qualified labor force at competitive prices, the possibility of duty-free exports to all the markets in South East Europe and Russia, strategic geographic position and the lowest corporate profit tax in Europe at 10%, Serbia is proud to offer financial assistance for future investments in the country. Based on the Serbian Government Decree adopted in late June of 2006, the non-refundable funds will be assigned according to specified criteria for investment projects in all areas, except for trade, tourism, hospitality and agriculture. Eligible companies are those involved in manufacturing activities, internationally marketable services sector* and research and development sector. Investments in manufacturing activities:

• Available funds: starting at €2,000 up to €5,000 per every new employee,
• The minimum investment amount: between €1 million and €5 million, depending on the unemployment rate in the municipality where the investment is made,
• The minimum number of new job positions: 50. Investments in the internationally marketable services sector:
• Available funds: starting at €2,000 up to €10,000 per every new employee,
• The minimum investment amount: €1 million,
• The minimum number of new job positions: 10. Investments in the R&D sector:
• Available funds: starting at €5,000 up to €10,000 per every new employee,
• The minimum investment amount: €1 million,
• The minimum number of new job positions: 10. Investment projects will be scored and evaluated based on the specific criteria:

1. investor’s references,
2. participation of domestic suppliers in the final product and the investment effect on local companies,
3. investment’s sustainability and viability,
4. the effect related to the R&D sector,
5. the effect on human resources,
6. environmental impact,
7. international turnover of services for investments in this area,
8. the effect on development of the local community, and
9. municipality support related to providing all necessary permits and incentives.

By legal transformation of Regional centre for SMEs development, the Regional Agency for Economic Development of Sumadija and Pomoravlje was established. This institution is the first of its kind in Serbia, and its founders are the Government of Republic of Serbia, the City of Kragujevac, the municipalities of Jagodina, Svilajnac, Despotovac, Rekovac, Aranđelovac, Topola, Knić, Rača, Batočina, Lapovo, Credy bank Kragujevac, Association of private entrepreneurs „Šumadija“ Kragujevac, Association of entrepreneurs „Sloga“ Kragujevac, Association of citizens „Šumadijska inicijativa“ Kragujevac, Association of citizens „Baština i budućnost 1859“ Aranđelovac and Regional Chamber of Commerce in Kragujevac.

General assembly of the Regional Agency is the body which adopts the final version of development strategy plan.

The teams were formed from representatives of local authorities, Regional Agency, local institutions and experts. They were organized as thematic working groups. The working groups represented the core of the strategy building process in each of the target areas.

Five working groups were established:

• Human resources development and social capital
• Rural and agricultural development
• Economy and SMEs development
• Infrastructure development and spatial planning
• Tourism development

The total number of active members of working groups is 130.

The working groups worked on:

· Technical and professional support in developing socio-economic analysis of Šumadija and Pomoravlje

· Developing SWOT analysis

· Defining the vision of the region

· Defining strategic goals

· Defining measures