Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

2 MUNICIPAL LEVEL COSTS OF STARTING AND OPERATING BUSINESSES IN SERBIA Belgrade, May 2002

3 Authors Nikola Krickovic Dragan Tomic Publisher World Bank Group, International Finance Corporation, Southeast Europe Enterprise Development Beograd, Kneginje Zorke Editor Jasmina Vignjevic Copy editor Sonja Velaševic Proof-reader Julian Lee Print run 1000 copies Printed by Dosije, Beograd

4 CONTENTS Costs of Doing Business... 5 Introduction... 5 I Costs of Starting Businesses... 5 II Federal Administrative Fees... 6 III Serbian Level Administrative Fees... 7 IV Costs of Doing Business at the City Level... 8 V Costs of Utility Fees VI Municipal and Administrative Fees OVERVIEW OF COSTS BY MUNICIPALITIES City of Belgrade Jagodina Municipality Kruševac Municipality Kraljevo Municipality City of Kragujevac Knjaževac Municipality Kikinda Municipality Leskovac Municipality Cacak Municipality Požarevac Municipality Pirot Municipality Pancevo Municipality City of Novi Sad City of Niš Sombor Municipality Subotica Municipality Stara Pazova Municipality Sremska Mitrovica Municipality Šabac Municipality Vršac Municipality Valjevo Municipality Užice Municipality Zrenjanin Municipality Zajecar Municipality... 60

5 COSTS OF DOING BUSINESS INTRODUCTION Having in mind the improved political, economic, and legislative environment in Serbia, and with the objective to respond to the needs of domestic and foreign investors, we have set off to produce this study in order to determine the costs encountered by start-up businesses. It is understood here that the costs refer to registration of businesses, including such business entities that are being registered pursuant to the Law on Private Entrepreneurship, the costs of Federal and Serbian level administrative fees, fees paid at the city level, and finally municipal level fees. However, it has to be noted that administrative fees do not represent the only costs weighing down on businesses, as concurrently to these costs there are also compensation classified costs (e.g. for use of city-owned construction land), utility fees which are not in the category of administrative fees and costs of advertising in the Official Gazette of FRY, i.e. Official Gazette of RS. We emphasize that the Federal administrative fees apply throughout the territory of FRY and that the Serbian level fees are uniform in the entire territory of Republic of Serbia, while the amounts of city and municipal administrative fees differs depending on the city and municipality. I COSTS OF STARTING BUSINESSES Ia FORMS OF BUSINESS COMPANIES The Law on Enterprises recognizes these forms of businesses: Limited Liability Company Joint-Stock Company Limited Partnership Partnership The minimum cash initial capital for a limited liability company is US$ payable in dinars at the Central Bank exchange rate on the date of payment. The minimum cash initial capital for a joint-stock company founded simultaneously is US$ payable in dinars at the Central Bank exchange rate on the date of payment, and for a joint-stock company, founded successively, it is US$ , payable in dinars at the Central Bank exchange rate on the date of payment. No minimum cash capital requirement has been set for limited partnership and partnership, and the investment may include both cash and objects. Non-cash stakes are evaluated and recorded in cash. When registering the above companies a court fee of din and fee for advertising in the Official Gazette in the amount of din are requierd. A significant step forward towards deregulation and creation of a business-friendly environment is the amendment to the provisions 18 of the Federal Law on Enterprises and 11 of the Republican Law on Private Entrepreneurs stating that following the registration of a company and prior to starting business operations, it is necessary for the company to

6 6 obtain a certificate of inspection from the relevant authority confirming that the company has fulfilled the requirements for performing the activity it is registered for. The recently amended laws state that such a certificate needs to be obtained only if the company carries out the activities involving the production, sale, distribution, processing, and storage of hazardous materials which are harmful to public health and the environment. Otherwise the company does not need the certificate of the relevant inspection authority in order to start operating. According to the new regulations (for further details on types of business activities subject to certification see amended Law on Enterprises published in Official Gazette of FRY No. 36 of July 3, p. 11 and amended Law on Private Entrepreneurs published in Official Gazette of RS, No. 35 of June 20, p. 29 ) the company has to perform its activities in accordance with the regulations for technical equipment, work place safety, environmental protection and other specified requirements. Whether these requirements are met or not shall be established in the course of regular inspection control. The costs of inspections, in cases where the certificate issued by the inspection body is a necessary prerequisite for the company to start its business operations, are shown in the section III of this publication. II FEDERAL ADMINISTRATIVE FEES II a Federal administrative fees are set out in the Law on Federal Administrative Fees. They are paid for documents and actions taken in the course of legal matters before the Federal organs. The fee payer is a person upon whose request the procedure is initiated. The fee is paid at the moment when it becomes due unless prescribed otherwise for individual cases. II b Among other federal administrative fees, the anticipated fees also include: license to export goods din. license to import goods din. decision on distribution of export quotas din. approval of export-import customs clearing of goods din. approval of barter deals with other countries din. approval of agency role in foreign trade din. approval of contracts on long-term production cooperation din. Fees for entry into and erasing from the register: opening of a branch of a foreign entity in FRY din. status-related and other changes in the branch and erasing of the branch din. Fees for entry into and erasing from the register: contract on representation of foreign entities in Yugoslavia, sales contract for goods from a consignment stock and contract on provision of servicing din.

7 contract on performance of investment works abroad and in FRY din. contract on obtaining and conceding the rights of industrial ownership din. annexes to these contracts din. For entry into and erasing from the register: agreement on concession din. 7 III SERBIAN LEVEL ADMINISTRATIVE FEES III a Serbian level administrative fees are set out in the Law on Administrative Fees. The Serbian level administrative fees are paid for documents and actions in administrative matters, including other documents and procedures at the ministries and special organizations, bodies of territorial autonomy and local self-governance in the course of performing the duties entrusted to them, and organizations invested with public authority. The administrative fee may not be collected unless it is prescribed in the Fee Structure, nor can it be collected in the amount over or below the prescribed amount. The fee is payable in administrative tax stamps, or cash. The fee payer is the person on whose request the procedure is set in motion. III b Apart from the other anticipated Serbian level administrative fees, there are also fees for: the decision establishing met requirements for producing technical documentation as specified by the law defining construction of facilities din the decision approving construction of facilities (permanent and temporary)...the fee payable is 0,1% of the preliminarily estimated value of the facility establishing whether requirements have been met to carry out construction in accordance with the law which regulates construction of facilities din III c In specific cases stated in the amended Law on Enterprise and Law on Private Entrepreneurs, prior to the start-up of business operations enterprise and the entrepreneur must obtain a certificate of the relevant inspection which establishes the conditions for performing appropriate activities. The costs of establishing that the requirements of worker protection have been met, including the prescribed conditions, are set out in the Law on Protection at Work" and "Regulations on the Cost of Procedure for Establishing that the Set Out Conditions of Protection at Work Have Been Met." For the inspection of facilities in the sector of trade and catering in which the size of working and auxiliary areas is: up to12m² din from 12m² to 40m² din

8 8 from 40m² to 70m² din from 70m² to 100m² din over 100m² din The costs of inspecting facilities in the crafts sector, excluding personal services din. The costs of inspecting facilities in the crafts sector, used to provide personal services din. The authority to establish whether the conditions of protection at work have been met rests with the labor inspection. III d The Serbian Ministry of Trade and Tourism has laid out the amounts of fees payable for establishing that requirements have been met to carry out activities in tourism and catering: for catering facilities offering accommodation (hotel, motel, room and board) and marina din. for catering facilities offering food and drinks (restaurant, coffee shop, pizzeria, beer hall) din. for tourist, travel, car rental and other agencies din. for stands and similar temporary catering facilities din. The authority for establishing if the prescribed conditions have been met rests with the tourist inspection. III e The Ministry of Health and Environment has prescribed the amount of costs for establishing that the conditions for performing activities have been met. The costs range from din to din. The authority to establish whether the facilities fulfill the requirements of the activity for which they are used, rests with the sanitary and health inspection. III f for: The Ministry of Agriculture, Forestry and Water Management has set out the costs establishing fulfillment of requirements for agricultural production din. establishing fulfillment of requirements for trading in the amount of din. IV COSTS OF DOING BUSINESS AT THE TOWN LEVEL IV a In this section we focus on giving an outline of the costs of doing business at the level of city and municipalities within the city, which is not uniform as will be shown further in this study.

9 At the city level and in the city municipalities there are a number of different fees and cash charges that must be complied with. IV b BUILDING LAND Land is an important issue for any potential investor. The Law on Building Land contains answers to the following questions: is the land on the market, how and in what way it can be used, what are the costs of development, what is the procedure of obtaining license for the land, etc. Building land is developed land and land used in the course of everyday use facilities built thereon, including the land intended for building and use of facilities in accordance with the law. The building land can be: urban area building land building land in a development area building land outside a development area. Urban area building land is used as developed or undeveloped building land. The transfer of right to a facility on developed building land also transfers the right to land on which the facility was built, which is used for regular use of the facility. IV c State-owned city building land is provided for use by the municipality. The state-owned urban area building land is provided for use based on a public bidding or collection of bids through a public announcement. IV d FEE FOR USING CITY BUILDING LAND A fee is paid for using city building land. The fee for using city building land is paid by the user, while the fee for use of developed city building land is paid by the owner of the facility or the holder of the right to use the facility. The fee for using city building land is set out depending on the extent to which the land has been developed, its position in the urban area, availability of standard utilities on the land, road access, etc. The fee for land use is paid per square meter of building land or per square meter of developed area. IV e COSTS OF DEVELOPING BUILDING LAND A Decision on Elaboration of Measures, Methodology of Accounting and Setting the Level of Fees for Developing Building Land has been passed at the city level. This decision sets out in detail the issues of fees, evaluation of locations, and definition of minimum fee. The costs of developing building land include costs of preparation and equipping building land with utilities, including building plots that need to be arranged according to the program of developing building land; costs of earlier works on adjacent, developed land and on the building plot itself: the costs of preparing building land, which include the acquisition of land (sorting out ownership and legal issues, purchase of apartments and premises 9

10 10 for potential relocations, evicting tenants from facilities due to be demolished, and the like), preparatory works, cleaning up and clearing works. costs of utilities which include the provision of water supply, sewage system, road communications and organization of unutilized areas. The fee for developing building land is calculated per m² of facility area. The calculation of the cost of developing building land is also performed by zones. The city of Belgrade is divided into eight such zones. The initial price is set depending on the zone in which the land is located. V COST OF UTILITY FEES The obligation of paying utility fees is introduced with the decision on local utility fees at the level of city or municipality. The local utility fees are paid by natural persons and legal entities for the utilization of rights and services in the territory of the city or municipality. Among other things, the utility fee is paid for posting the company name on the business premises. The above fee is payable in differing amounts depending on the zone in which the office bearing the company name is located. VI MUNICPAL AND ADMINISTRATIVE FEES The Decision on Municipal Administrative Fees introduces administrative fees for documents and procedures in actions initiated before the municipal administration bodies. The type and amount of administrative fees varies from municipality to municipality. An outline of the most important fees for potential investors is provided in this study. We would like to note that this study is an attempt to provide an overview and assist potential investors by providing an insight of the costs they would face if they decide to do business in Serbia. This study does not cover the costs in all municipalities in Serbia. We are of the opinion that this is not necessary as the selection of municipalities was done in order to represent the territories of the most developed, developed and undeveloped municipalities in Serbia. We wish to emphasize that aside from the above mentioned costs, there are other costs which have not been covered by this study, since we consider them irrelevant for business and insignificant in terms of their impact upon the budgets of investors. Our intention was not to provide an absolute calculation of all costs, but to provide an outline of the essential, most important and highest cost items facing the initial stage of investing and starting up businesses.

11 OVERVIEW OF COSTS BY MUNICIPALITIES

12 12

13 13 C i t y o f Bel g r a d e N u m b e r o f m u n i c i p a l i t i e s : 16 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 1 7 5

14 14 CITY OF BELGRADE ADMINISTRATIVE FEES amount in din.?? Decision to enter the business into register of activities 1.500,00?? Cancellation of the registration of shop and activity 300,00?? Issue of decision to use the name Belgrade in company name for foreign natural persons ,00 for domestic legal entities ,00 for entrepreneurs ,00 CITY PLANNING, CONSTRUCTION WORKS?? Certification on settled property and legal relations aimed at issuing building permit for construction of business facility ,00?? Request for establishing a building plot 150,00?? Inspection of the facility in order to issue a building permit following notification about the works 300,00?? Review of technical documentation and issuing building permit from 30m² 3.750,00 over m² ,00?? Issuing approval for use 750,00?? Request for notification about the works 150,00?? Certification of the project 450,00?? Issuing decision to set up a temporary facility 3.000,00?? Issuing decision on advertising and posting of company name 1.500,00?? Excerpt from city development plan for natural persons 300,00 for legal entities 750,00?? Excerpt from city planning analysis for natural persons 530,00 for legal entities 1.500,00?? Release of available geological research condusted for building purposes for natural persons 1.050,00 for legal entities 1.050,00?? Issuing city planning permit for natural persons from 30m² 3.750,00 over 1.000m² ,00 for legal entities from 30m² 7.500,00?? Confirmation of urban plan compliance for technical documentation over 1.000m² ,00 for natural persons from 30m² 750,00 over 1.000m² ,00 for legal entities from 30m² 2.700,00 over 1.000m² ,00?? Field trips required to issue approval 2.250,00?? Review of technical documentation in the course of issuing building permit up to 100m² 1.500,00 over 1.000m² ,00?? Decision to issue a building permit up to 100m² 7.500,00 over 1000m² ,00?? Construction works for every building under construction monthly per m² 75,00

15 15 MUNICIPAL TAXES?? For posting company name, annually Ia Ib II III IV V VI , , , , , , ,00?? Monthly fee for billboards Ia Ib II III IV V VI 2.970, , , , ,00 900,00 600,00?? Use of public areas during construction, annually per m² 690,00?? Use that requires restriction of movement on a main street, annually per m² ,00?? Use that requires restriction of movement on an auxiliary street, annually per m² 7.950,00?? Use that requires restriction of movement on sidewalk, annually per m² 5.250,00 FEE FOR LAND DEVELOPMENT PER m²?? The costs of building primary facilities and an infrastructure network (road communications with sewage and water supply networks) have been determined and calculated per zones of functional units in water basin areas: I zone Srem direction central system II zone Srem direction Batajnica system III zone Banat area IV zone Bolec direction V zone Ostružnica direction VI zone Central area Sava Danube slope VII zone Central area Mokri Lug river basin VIII zone Central area Topcider and Makis river basin I II III IV V VI VII VIII Industrial facilities 4.007, , , , , , , ,00 Production facilities 3.405, , , , , , , ,00 Business commerce 5.531, , , , , , , ,00?? Fee for use of building land for businesses Accounting elements number of points value of a point in din. Zone I II III IV I II III IV Industrial facilities ,00 8,00 5,00 4,00 Production facilities ,00 10,00 5,00 4,00 Business commerce ,00 20,00 16,00 12,00 Fee accounting per m² is done by multiplying the number of points with the value of point for the zone in which business or shop is located.?? Costs of connection to power supply networks for three phase current from 6,6kw 10A 3 counters ,00 from 41,5kw 63A 3 counters ,00?? Cost of connection to water supply network per m² and categories I category up to 100m² requirements 3.825,00 approval 1.593,00 I V category, new connection ,00 VI category over m² requirements ,00 approval ,00 VI category, new connection ,00?? Cost of connection to sewage system ,00

16 16 J a g o d i na m u n i c i p a l i t y Po m oravlje District 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n ic i p a l i t i e s : 5 3

17 ADMINISTRATIVE FEES JAGODINA MUNICIPALITY amount in din.?? For certificates without specified fee 50,00?? For decisions without specified fee 70,00?? For inspection of premises in the course of entry into registry and for environmental inspection 600,00?? For decision on entry into register of craft shops 400,00?? For decision on entry into register of a joint shop 800,00?? For decision on cancellation or change of status of a shop 200,00 400,00?? For decision on the fee for change of use of agricultural land for legal entities 2.000,00 for natural persons 1.000,00 TOWN PLANNING, CONSTRUCTION WORKS?? Issuing building permit for legal entities 1.500,00 for natural persons 400,00?? For field trips of officials when issuing town planning permission 850,00?? Approval of technical documentation when issuing a building permit for legal entities 1.250,00 for natural persons 300,00?? Issuing building permit for investment facilities 2.500,00 for individual facilities 1.000,00?? Issuing decision on use of built business facilties (inspection certificate) 2.000,00 for investment facilities for individual facilities 600,00?? Condition of facility and risk to facility for legal entities 3.200,00 MUNICIPAL TAXES?? For posting company name, annually Zone Large Medium enterprises enterprises for natural persons 200,00 Small enterprises Entrepreneurs Craftsmen I , , , ,00 600,00 II , , ,00 960,00 480,00 III , , ,00 800,00 400,00 IV , , ,00 640,00 320,00 outside zones ,00?? For taking up public areas to store construction material, daily / m² I zone II zone III zone 20,00 15,00 10,00?? The fee for use of bilboards is determined on a daily basis up to 1m² 10,00 over 1m² 20,00?? For construction office space per m² of developed construction land 24,00?? For works that require excavation asphalt, concrete / m 16,00 green areas / m 8,00 FEE FOR LAND DEVELOPMENT PER m² Zone Business facilties Production facilities Annexes to prod. and business facil. Extra 2.500,00 / 930,00 I 1.900,00 / 750,00 II 1.500, ,00 600,00 III 1.200,00 900,00 450,00 IV 700,00 600,00 270,00 V 300,00 240,00 120,00 17

18 18 Kru{ evac m u n i c i p a l i t y Rasina Dis tric t 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n ic ip a l ities: 92

19 19 ADMINISTRATIVE FEES KRUŠEVAC MUNICIPALITY amount in din.?? For request, application unless otherwise specified 35,00?? For decisions unless otherwise specified 40,00?? For decision on starting a crafts shop 300,00?? For decision on establishing a shop in other domains 500,00?? For an environmental inspection of business premises 800,00?? For decision on cancellation of a shop from the register 300,00?? For decision on change of activity 200,00?? Field work of the inspection upon customer's request 250,00 TOWN PLANNING, CONSTRUCTION WORKS?? Issuing notification about intended use of the plot 40,00?? For application for bidding for allocation of building land 150,00?? For contract approving use of building land 500,00?? Issuing of excerpts from town plans F.A3 150,00?? Issuing of building permit for business premises and industrial facilities with total gross area up to100m² 500,00 over 500m² 3.000,00?? Approval of technical documentation for natural persons 150,00 for legal entities 250,00?? For decision to establish a commission for technical inspection of business facilities 800,00?? For decision on changed intended purpose of agricultural land 400,00?? For decision approving a connection to the facilities of infrastrucutre for business facilities 250,00?? For decision approving excavation of a public area 150,00 MUNICIPAL TAXES Zone Base For posting company name, annually Enterprises in sectors Construction, Design, Transport, Railways, Tourism of Enterprises with more than 50 employees, production, services Entrepreneurs, crafts, production Ia ,00-50% -80% -96% Ib ,00-50% -80% -96% II ,00-50% -80% -96% III ,00-50% -80% -96% IV ,00-50% -80% -96% V ,00-50% -80% -96%?? For taking up public areas during construction, monthly / m² 90,00?? For taking up public areas for construction that requires excavating, daily / m² 35,00 90,00?? For taking up public areas to store construction material, daily / m² 15,00 FEE FOR LAND DEVELOPMENT PER m² Zone Production areas and business facilities of small businesses and commerce sectors Other business premises Covered halls, storages, housing production Gas stations, per m² of stor. capacity Ia 2.760, ,00 0,75 od cene posl. prost ,00 Ib 2.300, ,00 0,75 od cene posl. prost ,00 II 1.840, ,00 0,75 od cene posl. prost ,00 III 1.380, ,00 0,75 od cene posl. prost ,00 IV 920, ,00 0,75 od cene posl. prost ,00 V 920, ,00 0,75 od cene posl. prost ,00

20 20 Kra lj e v o m u n i c i p a l i t y Raska District 2 Area: k m N u m b e r o f inh a b i t a n t s : N u m b e r o f lan d r e g i s t e r m u n ic ip a l i t i e s : 8 4

21 21 KRALJEVO MUNICIPALITY ADMINISTRATIVE FEES amount in din.?? For claim, request, suggestion 30,00?? For decision, unless otherwise specified 60,00?? For decision on establishing a shop 750,00?? For decision on permanent cancellation of a shop from the register 240,00?? For decision on temporary cancellation of a shop 240,00 TOWN PLANNING, CONSTRUCTION WORKS?? For decision on expropriation of immovables 900,00?? For decision to award building land for use 450,00?? For development of a town plan project 3.900,00?? For town plan compliant permit per m² of gross area 3,00?? For review and certification of technical documentation when issuing building permit per m² of gross area 4,50?? For decision on use of facility to final value 0,10%?? For excerpt from a detailed town plan 300,00?? For notifications and certificates related to town planning 90,00?? For decision on excavating public areas 90,00?? For establishing compliance with environmental requirements in business premises 600,00 MUNICIPAL TAXES?? For posting company name, annually, by zones extra I II III IV V VI 4.500, , , , , ,00 900,00?? For putting up billboards, monthly/m² 120,00 FEE FOR LAND DEVELOPMENT PER m² Type of facility/zone extra I II III IV V VI Production facilities 3.350, , ,00 810,00 600,00 510,00 390,00 Business facilities 4.800, , , , ,00 800,00 500,00

22 22 C it y o f Kragujevac Sumadija District N u m b e r o f m u n i c i p a l i t i e s : 2 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 6 2

23 23 CITY OF KRAGUJEVAC ADMINISTRATIVE FEES amount in din.?? For request, unless otherwise specified 35,00?? For decisions, unless otherwise specified 50,00?? For certificates, unless specified otherwise 50,00 TOWN PLANNING, CONSTRUCTION WORKS?? For issuing building permits for permanent facilities facility up to 100m² 500,00 facility over 1.000m² ,00?? For issuing building permits for temporary facilities on public area 250,00 on undeveloped cons. land 350,00 for business facilities 150,00?? For issuing excerpts from town plan 150,00?? For issuing confirmation about town plan compliance 100,00?? For initiating development of town plan 250,00?? For decision on taking up public areas for carrying out construction works 80,00?? For decision on excavating public areas 200,00?? For decision on excavating traffic areas 400,00 MUNICIPAL TAXES?? For posting company name, annually Zone Large enterprises Medium enterprises Small enterprises Entrepreneurs extra ,00-20% -40% -60% I ,00-20% -40% -60% II ,00-20% -40% -60% III ,00-20% -40% -60% IV 7.920,00-20% -40% -60% Outside area IV 5.280,00-20% -40% -60%?? For use and putting up a billboard per m² / monthly Extra zone 300,00 I zone 300,00 II zone 200,00 III zone 100,00 FEE FOR LAND DEVELOPMENT PER m² Zone Production and storage area brick structure prefab Business up to 30 m² Temporary lease of building land Extra 1.720,00 880, , ,00 I 1.370,00 510, , ,00 II 1.230,00 390, , ,00 III 740,00 250, , ,00 IV 490,00 150,00 490,00 840,00?? Price of connection for built facility legal entities Water supply ,00 Sewage system ,00 Heating system din/kw 9.870,00 Telephone ,00

24 24 K n jazavac municipality Zajec a r D i s t r i c t 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 8 5

25 KNJAŽEVAC MUNICIPALITY ADMINISTRATIVE FEES?? For request, application unless otherwise specified 20,00?? For certificates, unless otherwise specified 40,00?? For request from industrial sector 100,00?? For decision on entry of a shop into the register crafts 400,00 other 1.000,00?? For decision on registration of a shop in rural areas crafts 200,00 other 500,00?? For decision on removing from the register crafts 200,00 other 500,00?? For decision on environmental inspection of premises for legal entities 3.000,00 for natural persons 2.000,00 TOWN PLANNING, CONSTRUCTION WORKS?? For request to award building land for permanent use 400,00 temporary use 300,00?? For decision to award building land for permanent use 400,00 temporary use 800,00?? For certificate on the status of immovables for legal entities 200,00 for natural persons 100,00?? For notification about issuing of building permit for legal entities 400,00 for natural persons 140,00?? For request to develop a town planning project 600,00?? For issuing building permit for business and industrial facilities up to 500 m² 400,00 over m² 1.200,00?? For decision on the priemptive building right 400,00?? For decision on restitution of immovables 1.000,00?? For decision on completing the building plot 1.000,00?? For excavating public areas for legal entities 600,00 for natural persons 200,00?? For decision to change intended purpose of agricultural land for legal entities 400,00 for natural persons 100,00?? For decision approving construction of a facility on agricultural land 400,00?? For decision unless otherwise specified, % cost estimate for the facility 0,10%?? For request of technical inspection of the facility for legal entities 1.000,00 for natural persons 200,00?? For decision approving the use of constructed facility for legal entities 2.000,00 for natural persons 200,00?? For decision approving the use of constructed business facility for legal entities 4.000,00 for natural persons 1.000,00?? For decision approving advertisements and billboards 200,00 MUNICIPAL TAXES?? For posting company name, for enterprises, annually (% decrease for the base amount) base I II III IV ,00 91,60% 92,50% 93,40% 94,00% 25 amount in din.?? For posting billboards, annually, per billboard 100,00?? For building of facilities per m² of usable area in the facility for legal entities 5,00 for natural persons 2,00 FEES FOR LAND DEVELOPMENT PER m² OF USABLE AREA IN THE FACILITY?? Production facilities, halls 432,00?? Covered storage areas 216,00?? Facilities for crafts and services 216,00

26 26 Kik i n d a m u n i c i p a l it y Severno -banatski District 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 1 0

27 27 KIKINDA MUNICIPALITY MUNICIPAL FEES amount in din.?? For all decisions without a specified set fee 60,00?? For decision on establishing a business 200,00?? For decision on cancellation of a business from the register 200,00?? For decision on expansion of an activity 200,00?? For decision on establishing a joint businesses 200,00?? For environmental inspection 450,00?? For issuing of license to import intermediate goods for the business 200,00?? For field visit of an official upon customer's request 100,00 TOWN PLANNING, CONSTRUCTION WORKS For issuing certificates on state of facility and degree to which construction has been completed, per facility natural persons 450,00 legal entities 900,00?? Act approving construction of a facility, per facility natural persons 300,00 legal entities 450,00?? For technical inspections of facilities natural persons 900,00 legal entities 1.500,00?? For field visit by the commission to establish a state of affairs 160,00 MUNICIPAL TAXES?? For posting company name, annually Legal entities in: transfer and distribution of electric energy, oil production, prod. of constr. mat ,00 commerce, production of beverages, marketing, project design ,00 agriculture, metal industry ,00 Independent businesses: commerce, catering 8.000,00 agencies, services 5.000,00 pharmacies, medical practices 3.000,00 crafts and production 2.000,00?? Taking up public areas during construction, daily/m² Zone Legal entities Natural persons I 50,00 10,00 II 30,00 8,00 III 20,00 5,00?? For excavating public areas during construction, daily/m² 100,00 COSTS OF BUILDING LAND DEVELOPMENT WITH FULL INFRASTRUCTURE?? Urban 310,00 din/m² gross area of facility?? Rural 105,00 din/m² gross area of facility

28 28 Lesk o vac m u n i c i p a l i ty Jab l a n i c ki D i s t r i c t 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n ic i p a l i t i e s : 1 4 0

29 29 LESKOVAC MUNICIPALITY ADMINISTRATIVE FEES amount in din.?? For decision on entry into businesses register production and services 700,00 other forms of businesses 1.120,00?? For decision on temporary removal of a business from the register 210,00?? For decision on permanent removal of a business from the register 350,00?? For decision on temporary registration of a business 420,00?? For environmental inspection 700,00 TOWN PLANNING, CONSTRUCTION WORKS?? Marking of construction and regulation line 560,00?? For approval of opening the facility 1.400,00?? For approval to excavate public areas 420,00?? For approval to take up public areas with construction material 280,00?? For decision to determine house number 280,00?? For approval to put up billboards 280,00?? Issuing excerpts of town plan with graphics 390,00?? For report from town planning documentation 210,00?? For establishing conditions to convert agricultural into building land 280,00?? For field visits of officials upon request 140,00?? For confirmation of technical documentation compliance with town plan for facilities under 100m² 420,00 for facilities over 100m² 1.120,00?? For town planning permit for business facilities under 100m² 550,00 MUNICIPAL TAXES?? For posting company name, annually Zone Large enterprises Medium enterprises over 100m² 2.800,00 Small enterprises Entrepreneurs Craftsmen I , , , , ,00 II , , , , ,00 III , , , , ,00 IV 9.800, , , ,00 980,00 V 7.000, , , ,00 700,00 Outside zones 5.600, , , ,00 560,00?? For movable billboards, the amount is set per m², daily extra zone zone I zone II 5,00 3,50 3,00?? The amount for use of billboards is set per m² annually 1.400,00?? Banners are paid per piece, daily 110,00?? For issuing of construction permit per m² or the length of site 14,00?? For works that require exavating public areas per m of length streets 280,00 developed public areas 140,00 cleaved, undeveloped areas 70,00

30 30 C a c a k m u n i c i p a l i t y Mor a v i c k i D i s t r i c t 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 5 7

31 CACAK MUNICIPALITY ADMINISTRATIVE FEES?? For all decisions for which no fee has been determined 15,00?? For all certificates for which no fee has been determined 15,00?? Requests and decisions on the priemptive right to build 80,00?? For decisions on starting up a business 150,00?? For decision on early registration 100,00?? For decision on change of business activities 90,00?? For decision on cancellation from the business register 70,00?? For decision on classification of houses for the purposes of tourism 300,00 TOWN PLANNING, CONSTRUCTION WORKS?? Notification on intended use of the plot 30,00?? Issuing town planning permission act natural persons 40,00 legal entities 70,00?? Confirmation that technical documentation is compliant with town plan natural persons 15,00 legal entities 40,00?? Issuing the plan of building plots natural persons 30,00 legal entities 75,00?? Issuing excerpts from DUP 40,00?? Approval excavating streets 20,00?? Issuing certificate of facility construction 40,00?? Inspection certificate for a facility natural persons 50,00 legal entities 50,00?? For administration and adoption of an urban planning project 1.000,00?? Fee for field visit upon customer s request 60,00 MUNICIPAL TAXES?? For posting company name, annually Zone Large and small enterpr. Small enterprises Entrepreneurs Old crafts I , , ,00 II , , ,00 III , , ,00 IV 9.000, , ,00?? For posting up and writing company name on premises owned by the municipality I zone 5.000,00 II zone 3.000,00 III zone 2.000,00?? For use of billboards, daily I zone 35,00 other zones 25,00?? Taking up public areas with construction material, daily/m² I, II, III zone 20,00 other 15,00 COSTS OF DEVELOPING BUILDING LAND?? Land fee?? Production of town plans?? Building water supply network?? Development of sewage network?? Construction of power supply network?? Establishing public lighting system?? Development of asphalt road network?? Relocation of previous owners Zones Business facilities Industrial halls I 4.250,00 + 8% 2.150,00 + 8% II 4.250,00 + 6% 2.150,00 + 6% III 4.250,00 + 4% 2.150,00 + 4% IV 4.250,00 + 2% 2.150,00 + 2% V 4.250,00 + 1,5% 2.150,00 + 1,5% The price is adjusted for the growth of retail prices. 31 amount in din.

32 32 Po z a r e v a c m u n i c i p a l i t y Branic e vsk i Dist r i c t 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 2 9

33 ADMINISTRATIVE FEES POŽAREVAC MUNICIPALITY 33 amount in din.?? For requests without special purpose 50,00?? For requests to provide opinions on municipal regulations 100,00?? For decision unless otherwise specified 50,00?? For decision on performance of an activity through self-employment 1.500,00?? For decision on permanent or temporary cancellation of activity from the register 1.000,00 TOWN PLANNING, CONSTRUCTION WORKS?? For notification on position of a plot or certification of technical documentation 200,00?? For adoption of a town plan project for housing facilities up to 2.000,00 for business facilities up to 4.000,00?? For issuing town plan and building permit for housing facilities over 200 m² 600,00 for business facilities over m² 6.000,00?? For setting up radio and TV devices 800,00?? For confirmation of town plan and technical requirements compliance for billboards 400,00?? For defining a building plot 400,00?? For establishing environmental protection compliance for facilities 600,00?? For issuing certificates to import equipment and intermediate goods 300,00 MUNICIPAL TAXES?? For posting company name, annually Zones Large enterprises Medium enterprises Small enterprises Shops I , , , ,00 II , , , ,00 III , , , ,00 IV , , , ,00?? For construction per m² of gross area 8,00 15,00?? For taking up public areas during construction, daily 8,00?? For works that require excavation of public areas, daily/m² depending on the duration 5,00 10,00?? For billboards, monthly I zone II zone III zone IV zone V zone 320,00 200,00 170,00 200,00 200,00 FEE FOR DEVELOPING OF BUILDING LAND Type and intended purpose of facility C3 Current price of construction/ m² C2 Ratio?? Business centers and branch offices 100 m² ,00 0,30?? Storage area in the function of business premises ,00 0,30?? Business premises for crafts, services and commerce, under 100 m² ,00 0,25?? Facilities for wood processing ,00 0,25?? Metal processing facilities ,00 0,15?? Production of construction materials ,00 0,20?? Production of food products ,00 0,25?? Production of beverages and tobacco ,00 0,25 zone I II III IV V VI VII C1 0,35 0,25 0,20 0,17 0,13 0,10 0,07 Calculation formula: Fee for development of building land / m² gross area = C1 x C2 x C3

34 34 Pir o t m u n i c i p a l i t y Pir o t ski District 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ste r m u n i c i p a l i t i e s : 7 4

35 35 PIROT MUNICIPALITY ADMINISTRATIVE FEES amount in din.?? For certificates from the records, according to the procedure 50,00?? For decisions which do not require any specific compensation 50,00?? For decision on entry at a business into the register 500,00?? For temporary registration of a business 500,00?? For decision on temporary cancellation from the register 240,00?? For decision on permanent cancellation from the register 400,00?? For decision on change of activity 400,00?? For certificate of activity performed 80,00?? For establishing compliance with environmental requirements 1.300,00 TOWN PLANNING, CONSTRUCTION WORKS?? Written notification about intended purpose of the building plot 80,00?? For issuing town planning permit for business and industrial facilities natural persons 300,00 for legal entities 600,00?? For issuing town planning permission for other facilities 150,00 For confirmation that technical documentation complies with the issued planning permission under 20m² 150,00 over 500m² 900,00?? Presenting the planning documentation for inspection 100,00 For decision approving construction and use of business and industrial facility for enterprises and other legal entities 1.000,00 for natural persons 600,00?? For decision to mark the facility for legal entities 100,00?? For field trips of officials 120,00 200,00?? For decision on defining fee for change of intended use of agricultural land for legal entities 200,00 for natural persons 100,00?? For decision on awarding urban building land permanent use 1.000,00 temporary use 600,00?? Making the acts in urban planning available for inspection 200,00

36 36 Pan c evo m u nic i p ality J u zno -banatski District 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 1 2

37 37 ADMINISTRATIVE FEES PANCEVO MUNICIPALITY amount in din.?? For registration of business unit in the register 200,00?? For customer s request for an official's field visit 100,00?? For request to enforce a decision 300,00 TOWN PLANNING, CONSTRUCTION WORKS?? For request to make project documents available for inspection 150,00?? For environmental inspection of a small business facility 600,00?? For request to set up a temporary facility 160,00?? For request to issue a planning permission 160,00?? For request to issue a building permit 160,00?? For request to issue an approval for use 160,00?? For request to put up an advertisement post or company name 160,00?? For request to issue a house number certificate 160,00 MUNICIPAL TAXES?? Annual fee for company name I zone II zone , ,00?? Annual fee for posting an advertisement /m² I zone II zone?? Monthly fee for billboard 2.118, ,00 I zone II zone 1.061,00 522,00?? For use of public areas during construction When carrying out preparatory works, monthly, per m² 28,00 When excavating roads, daily, per m² 56,00 120,00?? For taking up a public area that requires a restriction of movement, daily, per m² I zone II zone III zone 6,89 5,35 2,81 FEE FOR USE OF URBAN AREA BUILDING LAND PER 1m² DAILY zone Natural persons Lessees of building land Legal entities for business premises Legal entities for building land within a complex Users of housing business and other premises I 0,403 0,403 0,930 0,430 0,930 II 0,260 0,260 0,785 0,260 0,785

38 38 City of N o vi Sad Juzno-b a c k i D i s t r i c t N u m b e r o f m u n i c i p a l i t i e s : 2 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 1 8

39 CITY OF NOVI SAD ADMINISTRATIVE FEES?? For a decision for which no other fee has been prescribed 50,00?? For a certificate on conducted proceedings 50,00?? For a decision issued by an institution with public authority 100,00?? For a decision about environmental inspection of premises 600,00?? For a decision on registration at the businesses register 300,00?? For a decision on change of activity 300,00?? For a decision on permanent cancellation of business from the register 300,00 TOWN PLANNING, CONSTRUCTION WORKS?? For decision to restitute land into ownership 100,00?? For a decision on change of intended use for agricultural land 300,00?? To establish the priemptive building right 100,00?? For request to issue planning permission 200,00?? For request to issue planning agreement 200,00?? For request to receive an excerpt of the regulatory plan 200,00?? For request to parcel out lots and facility reconstruction 100,00?? For request to issue building permit natural person 200,00 legal entity % of cost estimate for the facility 0,2%?? For request to issue inspection certificate 200,00?? For a decision approving the storadge construction material on traffic areas 250,00?? For a decision on excavating of public areas 200,00?? For a decision approving billboards next to a public road 200,00 MUNICIPAL TAXES?? For posting up company name, annually Zone Large, medium and small enterprises Entrepreneurs 39 amount in din. Craftsmen I , , ,00 II 9.000, ,00 900,00 III 8.000, ,00 800,00 IV 7.000, ,00 700,00 V 6.000, ,00 600,00?? For use of billboard, daily per m² 1,50 I II III 11,00 7,00 5,00?? For taking up public areas with construction material, daily per m² During construction 2,00 During construction works that require excavation road, parking 42,50 sidewalk 22,50 green areas 18,00 (for all fees for taking up public areas +100% in the period from to in the year) FEE FOR DEVELOPMING AREA USED FOR A BUILDING LAND?? The fee is calculated per m² of area used for a facility and m² of open business space on the basis of a planning permission and the master project design which has received planning approval.?? The fee is set at least at a par with locational rent, defined in the Program.?? When an investor is building a facility over which he/she has the full right of use, i.e. the ownership right of the facility, the costs of preparation are calculated in the amount of 10% of average value of Program preparation costs?? The costs of preparation and locational rent defined in the Program, are deducted for: closed storages 35% facilities for production and services provision (silos, tanks, annexes, garages) 50% for open storage areas, goods handling areas, other facilities 75%

40 40 C i t y o f Ni s Nisavs k i D i s t r i c t N u m b e r o f m u n i c i p a l i t i e s : 2 2 Area: k m N u m b e r o f inh a b ita n t s : N u m b e r o f lan d r e g i ster m u n i c i p a l i t i e s : 7 0

41 ADMINISTRATIVE FEES CITY OF NIŠ amount in din.?? For requests without a specifically set fee 30,00?? For decisions without specifically set fee 30,00?? For decision on entry into register of businesses 500,00?? For decision on temporary registration 300,00?? For decision on temporary and permanent cancellation of business from the register 200,00 TOWN PLANNING, CONSTRUCTION WORKS?? Issuing of excerpt from town plan 300,00?? For planning permission 280,00 420,00?? For planning approval of technical documentation 280,00 420,00?? For technical inspection of facility in order to determine if all the necessery conditions for use are fulfilled 700,00?? For technical inspection of additionally implemented works 500,00?? For an environmental inspection 300,00?? For establishing conditions to convert agricultural into building land 300,00?? Field visits of expert services upon request 300,00?? For approval to open the facility for trial work 1.300,00?? For putting up billboards 250,00?? For decision to use construction land 60,00 MUNICIPAL TAXES?? For posting company name, annually Zone Large enterprises Medium enterprises Small enterprises Entrepreneurs extra , , , ,00 I , , , ,00 II , , , ,00 III , , , ,00 rural area 1.000, , , ,00??For construction building per m² 4,00 12,00??For putting up moving board, billboard, annually /m² 2.000,00??Monthly rent/m² 40,00 300,00??Municipal tax for carrying out works which require excavating public areas, monthly /m² 9,00 FEE FOR DEVELOPING OF BUILDING LAND?? Costs of preparing utility infrastructure for construction of facilities /m² Small and medium enterprises 2.730,00 Large scale production systems 3.640,00 Business facilities, centers 5.340,00?? Niš construction of facilities locational rent fee / m² Zone Small and medium Large enterprises Business facilities enterprises I 900, , ,00 II 600,00 800, ,00 III 400,00 530,00 930,00 IV 250,00 330,00 600,00 V 150,00 200,00 250,00 VI 70,00 95,00 130,00?? Niška banja construction of facilities locational rent fee / m² Zone Small and medium enterp. Large enterprises Business facilities I 900, , ,00 II 250,00 330,00 600,00 III 150,00 200,00 330,00?? The amount for utilities infrastructure for construction of facilities and locational rent fee are adjusted for an area ratio under m² K-1,00 over m² K-0,95 over m² K-0,90 over m² K-0,85 over m² K-0,80 41