Incentives for electric motor manufacturer Johnson Electric - VIP Fund supports investors from Hong Kong

the company HQ

Investors from Hong Kong, representatives of the company Johnson Electric, which produces small electric motors and other electrical components for the automotive and other industries, had a meeting with the representatives of the City of Sombor on 16 November 2012 and expressed interest in building a factory in that city on that occasion.

After the visit of the representatives of the Johnson Electric Group, the City of sombor turned to the Vojvodina Investment Promotion (VIP) Fund for help and support and received a response saying that the Serbian government grants employment incentives in the amount ranging from 4,000 to 10,000 euros per newly created job to all companies engaged in production, development and research. Minimum requirements are that the company creates at least 50 new jobs and invests not less than EUR 1 million.

As it was announced at the city website, new companies are exempted from income tax over the period of 10 years, starting from the first year in which the company turns profit, but they are obligated to invest more than EUR 1 billion and employ minimum 200 workers for an indefinite period of time.

Investors who are declared strategic partners by the republic and who employ more than 1 percent of the total number of employees in the municipality in which the investment is made can receive a building land for free or with a certain discount. As of 2013, the Vojvodina government will co-finance the expenses of construction projects and supervision services up to the certain amount, but only for those investors who invest more than EUR 3 million (greenfield investment) and hire over 100 people.

In cooperation with the city, the VIP Fund will back Johnson Electric in each investment phase in Sombor and provide that company with all the necessary assistance in the process of applying for and receiving all aforementioned privileges.