Certification of Business Friendly Municipalities (BFC) is a process which promotes standards of efficient and transparent local administration and enables evaluation of the quality of services and information municipalities offer to investors and businesses. The certification is designed for all cities and municipalities in Serbia seeking to improve their business environment, attract new investments and foster local economic development. National Alliance for Local Economic Development (NALED), supported by the United States Agency for International Development (USAID), initiated the BFC program in 2007. Today, the certification is supported by a large number of relevant state institutions and international organizations, including: Ministry of Regional Development and Local Government, the Government of AP Vojvodina, Provincial Secretariat for Interregional Development and Local Government, National Agency for Regional Development (NARR), Open Society Foundation and Deutsche Gesellscha für Internationale Zusammenarbeit (GIZ).

1. certification of
business friendly municipalities

2. Certification
Certification of Business Friendly Municipalities (BFC) is a process which promotes standards of efficient and transparent local
administration and enables evaluation of the quality of services and information municipalities offer to investors and businesses.
The certification is designed for all cities and municipalities in Serbia seeking to improve their business environment, attract
new investments and foster local economic development.
National Alliance for Local Economic Development (NALED), supported by the United States Agency for International Development
(USAID), initiated the BFC program in 2007. Today, the certification is supported by a large number of relevant state institutions and
international organizations, including: Ministry of Regional Development and Local Government, the Government of AP Vojvodina,
Provincial Secretariat for Interregional Development and Local Government, National Agency for Regional Development (NARR),
Open Society Foundation and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Significance
One third of all local governments in Serbia use NALED’s certification program to improve their business environment. Over
the past five years, a total of 27 cities and municipalities were certified as business friendly, while 19 of them have a valid
certificate today. In its FDI report for 2012/13, Financial Times included five certified municipalities from Serbia among
the top investment destinations in South East Europe. Starting from 2012, with the support of GIZ, BFC has turned into
an internationally recognized quality standard, implemented not only in Serbia, but also in Croatia, Macedonia and Bosnia
and Herzegovina (BFC SEE – Business Friendly Certification South East Europe). Out of 18 cities and municipalities from
SEE participating in the pilot project of the regional certification, 8 have been certified according to the BFC SEE standard,
including two municipalities from Serbia – Pirot and Ruma.
Process
In order to reinforce the credibility of the certification process, in 2012 NALED accredited SGS and TÜV SUD, global
certification companies dealing with international quality standards such as ISO and HACCP, to implement the BFC
standard in Serbia.
after one year after two years
Preparation for
the process
Certification
Audit
Certificate
Award
Promotion
Surveillance
Audit
Recertification

3. E 75
E 70
E 75
Municipalities need to fulfill 75% of the stated criteria in order to become
business friendly. The official certificate confirming this title is issued by NALED
and responsible ministries, as a sort of guarantee to investors that the municipality
will provide all the necessary conditions for successful start-up and business
development. The Certificate is valid for two years.
Promotion
ActivemunicipalpromotionofficiallybeginswiththeCertificateawardceremony,takingplaceonceayearattheNationalAssembly
of the Republic of Serbia. The Certificates are traditionally delivered by a representative of responsible ministry and the President of
NALED Managing Board, in the presence of foreign diplomats, investors, donors, institution representatives and the media.
Certified municipalities acquire the right to use the Certification logo which is a registered trademark. They also receive a standard
promotional package consisting of fact-sheet on local investment potentials, advertisement, poster and advertising board. This is
what differentiates the BFC municipalities from other and makes them recognizable. Finally, the municipalities are granted an
opportunity to promote themselves on NALED website and social networks, magazine Synergy, Nikola Tesla Airport, in all relevant
national media, as well as on investment fairs and conferences organized by NALED.
Criteria
According to the BFC standard, the quality of local business
environment is evaluated based on 80 criteria grouped in 12
categories. The criteria provide clear guidelines to municipali-
ties regarding the type and quality of services, information and
infrastructure investors and businesses expect:
BFC municipalities
BFC SEE municipalities
BFC candidates
Corridor X
Corridor VII
1. Strategic approach to local economic development
2. Administrative capacity to support businesses (LED Office)
3. Cooperation and regular communication with local businesses
(Business Council)
4. Efficient system for issuing construction permits
5. Availability of relevant information for doing business
6. Proactive approach to investment promotion and municipal marketing
7. Creditworthiness and financial stability
8. Promotion of job creation and human resources development
9. Encouraging public-private partnerships
10. Adequate infrastructure and reliable utility services
11. Transparent and stimulating policies on local taxes, fees and incentives
12. Applying information technologies

4. © NALED 2013
National Alliance for Local Economic Development, 30/VII Makedonska street, 11000 Belgrade, Serbia
T: +381 11 3373 063 , F: +381 11 3373 061 , E: naled@naled-serbia.org, www.naled-serbia.org