However, very specific situation is
prescribed in the Law on Foreign
Investments which declares that no
foreign investor may form, either
alone or together with another foreign
investor, an enterprise in the
Republic of Serbia in the field of
armament production and trading,
as well as in a region that has been
declared a prohibited zone pursuant
to law. Furthermore, a foreign
investor may form an enterprise in
these fields and regions together
with a domestic legal entity or invest
in such enterprise, on condition
that it does not acquire the majority
share in the control over that enterprise.
Specific requirement in that
case is referred to the circumstance
that foreign investor shall obtain
the approval of the federal author
ity in charge of national defense for
its participation in the formation of
the enterprise or investing in it. In
the approval-granting procedure,
the authority shall take into account
particularly the quality, kind and
volume of the foreign investment involved.
The authority liable for registration
must notify ex officio the
authority in charge of foreign economic
relations of any registered
foreign investment, for recording
purposes.