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This Law shall regulate general legal framework for investments in the Republic of Serbia, investment support subjects for efficient providing of services to investors, education and operations of the Economic Development Council and foundation and operations of the Serbian Development Agency.

The aims of this Law shall be the enhancement of the investment environment in the Republic of Serbia, providing stimulus to direct investments aimed at strengthening economic development and employment growth.

Certain terms used in this Law shall be understood to mean the following:

1) Investing for the purpose of this Law shall mean: 

   (а) Direct investing, i.e. investing into tangible and intangible company assets; 

   (b) Indirect investing, i.e. acquiring stakes or shares within a company; 

2) Investor shall be a legal entity or an individual that invested capital, as        well as a person that acquired investment referred to in item 1) of this Article, in the territory of the Republic of Serbia, in line with the law; 

3) Stimulus funds beneficiary shall be a company having its seat in the Republic of Serbia; 

4) Incentives shall be the monetary funds allocated to a funds beneficiary as support to investments, aimed at financing investment projects in the Republic of Serbia; 

5) Investment project shall be a project by implementation of which direct investment is achieved, in line with this Law; 

6) Authority, pursuant to this Law, shall mean: 

 (а) State administration body, within the meaning of the law governing state administration, bodies of the autonomous province and local self-government, as well as organizations entrusted with public authorizations; 

(b) A legal entity founded or financed, fully or in majority, by a state administration body or any of the authorities stipulated in sub-item (а) of this item; 

7) Economic Development Council shall be defined in Article 25 of this Law; 

8) Serbian Development Agency shall be defined in Article 27 of this Law; 

9) Unit for local economic development and investment support shall be a department within a local self-government unit or a legal entity that provides professional assistance and support to the investor in realization of the investment; 

10) Ministry for the purpose of this Law shall be the Ministry competent for economic affairs; 

11) Period of guaranteed investing and employment is the period of three i.e. five years following the implementation of an investment project, during which, the incentives funds beneficiary is under the obligation not to reduce the value of the fixed assets achieved by investment project implementation, as well as the achieved number of employees and during which it is under the obligation and in line with the agreement on granting stimuli funds, to pay the agreed salary to each and every employee; 

12) The state aid scheme is the set of all regulations presenting basis for the granting of state aid, in line with the law governing state aid control and granting. 

Investment, within the meaning of this Law, shall not be deemed: 

 a) Monetary or other claim arising directly from the commercial transaction; 

 b) Monetary claims arising from loans in connection with commercial transactions.