Business zones

Business zones are important generators of the economy. They offer chances to increase exports, employment and the balance between the manufacturing and service sectors. Furthermore, they stimulate the creation and development of production capacities in these zones.

The benefits at the local self-government level are:
- Incentives in payment of utility and other charges;
- Favorable lease/purchase prices for space in the business zones;
- Reduction or exemption from surtax on personal income;
- Reduction of taxes on real estate;
- The possibility of defining a favorable model of public-private partnerships;
- Creation of infrastructure in areas where it does not yet exist.

In 2012, the business zones in Berane and Kolašin were opened for investments.

The Municipality of Berane defined the business zone of “Rudeš”, which includes, except the industrial zone, also the green areas and roads. The business zone covers an area of 548,355.398m² of which one part is privately owned.

Incentives for doing business in business zones:
- Allocation of land without charge for a period of up to 10 years;
- In return the potential investors commit themselves to employ a number of workers, including:
- For the use of an area of 2.500m² to employ 3-5 workers
- For the use of an area of 5.000m² to employ 6–10 workers,
- For the use of an area of 10.000m² to employ 11-20 workers.
- Removal of administrative barriers;
- Reinforcement of institutional and financial support to small and medium-sized enterprises;
- The possibility of public-private partnerships;
- The possibility of release of land tenure;
- The possibility of assignment of office space and
- Parceling - adjustment of areas to potential investors.

The Municipality of Kolašin declared the site “Bakovići” as a business zone, which is located only 3km from the center, on the left and right sides of the main road Kolašin – Mojkovac, in the area of 30ha.
- Incentives for doing business in the business zone:
- The potential investors in light industry manufacturing facilities are exempted from fees for the communal infrastructure;
- The possibility of release of land tenure and
- Exemption from property tax and surtax on income for the first 8 years of operation in the business zone.

The Royal Capital of Cetinje defined a program of incentives. The complex “Gornji Obod“is located in the area of the former Košuta and it covers 23,121m². The areas are equipped with the necessary infrastructure, including water, electricity, roads and other.

In the administrative capital of Podgorica the proposed land for the formation of the first business zone is located nearby the airport Golubovci and it covers an area of about 46ha.

For the Municipality of Bijelo Polje, the City Park represents the most competitive location to build a business zone. The capacities would be adapted to the use of micro and small manufacturing facilities, management units of companies, a business incubator, a logistics center, while in the area around the existing capacities additional facilities could be build according to the needs and interests of investors.

The Municipality of Nikšić has declared as a business zone an area which includes part of the capacities of the company Toščelik Nikšić to provide investors with a favorable business environment to carry out production activities.

The Municipality of Ulcinj has declared as a business zone the site "Vladimirske Krute" and a part of the main road Bar-Vladimir comprising a total area of 276.166m².

The Municipality of Žabljak has identified five potential business zones:
1. Njegovuđa and Pilana – total area of around 10ha,
2. Njegovuđa II - total area of 4ha,
3. Vruljci – pebbly terrain, area of 10ha,
4. Žabljak work zone - area of 32ha, and
5. Service zone - area of 8ha.

Planned business zones for the Municipality of Mojkovac are:
- An area of the former wood processing plant "Vukman Kruščić" and "Zakršnica" in Podbišće as hotel-tourist zones;
- An area of the former "Tailings pond" and "Babića field" as a sports and recreation zone;
- An area in Gornja Polja "Varda" and the former mines "Brskovo" as economic zones.

The spatial and urban plan of the Municipality of Tivat by 2020 defined the locations that are suitable for manufacturing and utility activities. The DUP “Gradiošnica” planned the zone of the total area of 23.690m². Also, within the scope of the State Location Study “Part of the Sector 22 and Sector 23” in the urban zone 4 are designed for utility and business services. Within the scope of the State Location Study, an area “Kalardovo - the Island of Flowers - Brdišta“ placed in the urban zone 6, is planned as a storage and service zone.

For the construction of industrial buildings The Municipality of Danilovgrad planned a space in the area of Spuž, which is defined as an agro-industrial zone where agro-production plants have already been built or are in construction. This area also includes a narrower band around the train station Spuž which envisages the construction of storage and possibly industrial plants.

The second land area where the construction of industrial and agro-processing plants is allowed is an area near the main road M-18 Podgorica-Nikšić and the reconstructed local road Danilovgrad-Spuž-KPD-Podgorica.

The third land area where the construction of industrial and agro-processing plants is allowed is the immediate area around the train station in Danilovgrad and the area on the right side of the local road Danilovgrad-Glava Zete-Bogetići stretching from the gas station in Danilovgrad to the border with the Municipality of Nikšić.

Source: Chamber of Economy Montenegro