How to Open a Company in Serbia: Step-by-Step Guide, Costs, and Requirements

Opening a company in Serbia is becoming an increasingly popular step among foreign entrepreneurs. This small but strategically significant Balkan country attracts attention with its favorable business conditions, convenient location, and access to international markets. Situated at the crossroads of Europe and Asia, Serbia is an ideal hub for logistics and trade. Moreover, local legislation and economic policies are designed to attract foreign investments, creating a welcoming environment for new businesses.

The purpose of this article is to provide a detailed guide on registering a company in Serbia. We will explore the key steps of the process, the advantages of doing business in this country, and the potential pitfalls you should be aware of. Whether you are a startup seeking international opportunities or an experienced entrepreneur planning expansion, this information will help you make an informed decision and prepare for a successful business launch.

Let’s delve into the details and understand why Serbia is emerging as one of the most promising destinations for foreign investors.

– Why Open a Company in Serbia?

Serbia is a country actively developing its economy and offering investors unique opportunities for business. A combination of strategic location, a competitive tax system, and government support makes Serbia an attractive choice for both startups and large corporations. Let’s take a closer look at the key advantages of starting a company in Serbia.

1. Geographical Location and Access to International Markets

Serbia is located at the crossroads of major trade routes between Europe and Asia, making it an important logistics hub. The country borders European Union members and has signed free trade agreements with:

• The European Union.
• The Eurasian Economic Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan).
• Turkey and other Western Balkan countries.

This means that companies registered in Serbia gain access to a market of over 1.3 billion consumers.

2. Favorable Tax System

Serbia offers one of the lowest tax rates in Europe:

• Corporate Tax: Just 15%, highly competitive compared to other regional countries.
• Personal Income Tax: 10–15%, depending on income levels.
• VAT (Value-Added Tax): Standard rate of 20%, with a reduced rate of 10% for certain goods and services.

Additionally, there are tax incentives for new companies, particularly in the IT and high-tech sectors, where the government actively supports startups.

More about taxes in Serbia in our article: About Taxes in Serbia.

3. Government Investment Incentives

The Serbian government provides various forms of support for foreign investors, including:

• Financial subsidies for creating new jobs.
• Investment grants for large-scale projects.
• Simplified access to infrastructure and land for business operations.
• Tax exemptions during the initial years of operation for companies that create a significant number of jobs.

4. Economic and Political Stability

Serbia actively collaborates with international organizations, including the International Monetary Fund (IMF) and the European Bank for Reconstruction and Development (EBRD). This fosters economic stability and improves business conditions. While Serbia is not yet an EU member, it is actively preparing for integration, aligning its legislation with European standards.

5. Growth of the IT Sector and Innovation

Serbia has become a regional hub for IT companies and startups due to:

• A large pool of skilled professionals.
• Government support programs, including tax benefits.
• Access to venture capital and acceleration programs.

The government also actively invests in infrastructure development for high-tech industries.

6. Skilled Workforce

Serbia boasts a highly skilled workforce with competitive salaries. Workers are well-educated, especially in technical, engineering, and IT fields. Additionally, most young professionals are fluent in English, facilitating collaboration with international teams.

7. Business Mentality and Culture

Serbians are known for their hospitality and willingness to collaborate. The business culture combines Western approaches with traditional Balkan values, creating a comfortable environment for foreign entrepreneurs.

8. Examples of Successful Companies

Many international brands, such as Microsoft, Fiat, and Nestlé, are already operating in Serbia and achieving significant success. These examples demonstrate that the country is ready for integration into the global market.

– Main Types of Businesses in Serbia

Before opening a company in Serbia, it is crucial to choose its legal form, as this decision affects the registration process and the company’s future operations. Several types of legal structures are available in Serbia, each with its own characteristics, advantages, and limitations.

1. Limited Liability Company (LLC, DOO – Društvo sa Ograničenom Odgovornošću)

The LLC is the most popular business form among foreign investors in Serbia due to its flexibility and minimal requirements.

• Minimum Share Capital: 100 RSD (approximately €1).
• Number of Members: From 1 to 50 founders (can be individuals or legal entities).
• Liability of Members: Limited to the size of their contributions to the share capital.

Key Advantages:

• Simple management and accounting.
• Suitable for small and medium-sized businesses.
• Foreign individuals can participate as founders and directors.

Key Documents: Articles of Association, registration application, company formation agreement.

LLCs are ideal for most types of businesses, including trade, services, manufacturing, and IT.

2. Sole Proprietorship (Preduzetnik)

This business type is designed for individuals who want to run a small business without involving partners.

• Registration: The process is highly simplified.
• Liability: The entrepreneur is personally liable for business obligations with all their assets.
• Taxes: Fixed or percentage-based, depending on the type of activity.

Key Advantages:

• Minimal registration costs.
• Simple accounting.
• Suitable for freelancers, craftsmen, and small family businesses.

Limitations:

• Inability to attract partners or investors.

A sole proprietorship is an excellent choice for those starting with minimal investment and without plans for scaling.

3. Joint-Stock Company (JSC, AD – Akcionarsko Društvo)

A JSC is suitable for large projects, especially if attracting investors or entering the stock market is planned.

• Minimum Share Capital: 3,000,000 RSD (approximately €25,000).
• Number of Shareholders: Unlimited.
• Liability of Shareholders: Limited to their shares in the capital.

Types of JSCs:

• Public (Open): Shares are traded on the stock exchange.
• Private (Closed): Shares are distributed among a limited group of individuals.

Key Advantages:

• Ability to raise capital through share sales.
• Prestige and trust from partners.

Key Limitations:

• Complex management structure.
• Strict reporting requirements.

JSCs are commonly chosen by large enterprises in manufacturing, trade, or finance.

4. Representative Office of a Foreign Company

If a company does not plan to conduct commercial activities in Serbia, it can register a representative office.

• Purpose: Market research, brand promotion, customer support.
• Key Features: Representative offices cannot engage in commercial activities and are not subject to taxation.

Advantages:

• Minimal registration and management costs.

5. Branch of a Foreign Company

A branch allows a foreign company to conduct full-fledged commercial activities in Serbia.

• Status: A branch is not a separate legal entity but can enter into contracts on behalf of the parent company.
• Key Features: The branch is fully subject to Serbian law and the parent company’s control.

– How to Choose the Right Business Form?

The choice of business form depends on several factors:

1. Investment Size: For small projects, an LLC or sole proprietorship is suitable, while large-scale projects require a JSC.
2. Planned Activities: If flexibility and limited liability are important, an LLC is the best option.
3. Future Plans: If you plan to attract investors or expand internationally, consider a JSC.

Registering a company in Serbia offers a wide range of business forms, allowing every entrepreneur to find the optimal solution based on their goals. Regardless of the chosen structure, it is essential to understand legal nuances and involve experienced lawyers to ensure a smooth registration process.

– Steps to Register a Company in Serbia

Opening a company in Serbia is a structured process involving several key steps. While the procedure is relatively straightforward, it’s essential to follow the established requirements and prepare documents correctly to avoid delays. Below are the main steps for company registration.

1. Preparatory Stage

Before starting the official procedure, several preparatory tasks must be completed:

• Choosing the Business Form
  Decide which type of business best suits your goals: LLC, sole proprietorship, branch, or joint-stock company.
• Selecting a Company Name
  The name must be unique and comply with legal requirements. You can check the availability of the name through the Serbian Business Registers Agency (APR) system.
• Determining a Registered Address
  Your company must have a registered legal address. This can be your office or rented premises.
• Preparing Founding Documents
  For registering an LLC, the following are required:
  • Articles of Association.
  • Minutes of the company’s establishment.
  • Proof of share capital.

2. Registration Process

The official registration of the company is conducted at the Serbian Business Registers Agency (APR). The procedure includes the following steps:

• Submitting the Application
  Applications can be submitted online or in person at one of the APR offices. You must provide:
  • A completed application form.
  • Copies of passports for founders and directors.
  • Articles of Association.
  • Proof of payment for the registration fee.
• Paying the Registration Fee
  The fee depends on the company type, but for an LLC, it is approximately €60.
• Registration at the APR
  After submission, registration takes 3 to 7 business days. Upon completion, you will receive:
  • A company identification number (MB).
  • A tax identification number (PIB).

3. Opening a Bank Account

After company registration, a corporate bank account must be opened. Required documents include:

• Founding documents of the company.
• Proof of registration with the APR.
• Personal identification documents of the director.

Some banks require the director’s physical presence, although certain banks offer remote account opening options for foreign founders.

4. Tax Office Registration

After obtaining the tax number (PIB), the company must register with the tax authorities:

• VAT Registration: If applicable.
• Employer Registration: If hiring employees.

Tax registration takes about 5 business days.

5. Obtaining Licenses and Permits (if required)

Certain activities require special permits or licenses, such as:

• Construction.
• Medical services.
• Financial activities.

The process of obtaining licenses depends on the specifics of your business.

6. Notifying State Funds

Companies in Serbia are required to notify the social and health insurance funds about their employees. This is necessary to formalize all social contributions.

7. Connecting to the Tax Authority’s Electronic System

To submit tax declarations and reports, the company must register with Serbia’s electronic tax system (ePorezi).

8. First Tax Reporting

Once all registration steps are completed, the company must submit its first tax report. A professional accountant or tax consultant can assist with this.

– Timelines and Costs

• Overall Registration Timeframe: 10 to 30 working days (including bank account opening and tax registration).
• Costs: Registration fees, notary services, legal assistance, and account opening can range from €500 to €2,000, depending on the type of business and additional services required.

– What to Do After Registration?

Once your company is registered in Serbia, you can begin operations. It is essential to:

• Ensure timely submission of tax reports.
• Comply with local legislation.
• Establish reliable accounting practices.

– Legal Aspects and Requirements for Opening a Company in Serbia

Registering a company in Serbia involves several legal formalities that must be considered. A clear understanding of legal requirements and adherence to them will help avoid administrative and legal issues in the future.

1. Required Documents for Registration

To successfully register a company in Serbia, the following documents must be prepared and submitted:

• Application for Company Registration
  Completed on the official Serbian Business Registers Agency (APR) form.
• Articles of Association
  The key document regulating company activities, which must include:
  • Company name.
  • Registered address.
  • Objectives and business activities.
  • Management structure.
  • Share capital amount.
• Copies of Founders’ and Director’s Passports
  Notarized translations are required for foreign citizens.
• Proof of Share Capital Payment
  For LLCs, the minimum capital is only 100 RSD (approximately €1).
• Proof of Registration Fee Payment
  The fee varies by company type; for LLCs, it is about €60.
• Lease Agreement or Proof of Ownership for the Registered Address
  This is mandatory to confirm the place of registration.

2. Requirements for a Registered Address

Every company in Serbia must have a registered address. The address must be:

• Real: Fake addresses are not allowed.
• Documented: Supported by a lease agreement or ownership certificate.
• Accessible: Available for receiving official correspondence.

3. Roles of Directors and Shareholders

• Director:
  • Can be a resident or non-resident of Serbia.
  • Responsible for the company’s daily management.
  • Must provide a notarized copy of their passport.
• Founders and Shareholders:
  • LLCs can have 1 to 50 founders.
  • Foreign founders have the same rights as residents.
  • Founders can be individuals or legal entities.

Restrictions:
Directors and founders must not be on sanction lists or have business prohibitions.

4. Legislative Requirements for Accounting

Serbian law imposes strict requirements on financial reporting for companies:

• Accounting:
  • Mandatory for all companies, regardless of size.
  • Must comply with national or International Financial Reporting Standards (IFRS).
• Annual Reports:
  Companies must submit annual financial reports to the tax authorities and the APR.
• Tax Reporting:
  • Monthly VAT reporting (if registered as a VAT payer).
  • Annual corporate tax declaration.

Penalties for Non-Compliance:
Late submission or errors in reports can result in significant fines.

5. Other Legal Aspects

• Work Visa and Residency for Foreigners
  Foreigners opening a company in Serbia can apply for a residence permit. The process includes:
  • Company registration.
  • Work visa issuance.
  • Residence permit application.
• Labor Relations:
  When hiring employees, companies must comply with Serbian labor laws, including:
  • Registering employees with the Social Insurance Fund.
  • Paying mandatory contributions (pension, health, insurance).
• Sector-Specific Licenses and Permits:
  Certain activities, such as construction, pharmaceuticals, or financial services, require special licenses.

6. Legal Support and Advice

• Hire a Lawyer:
  Working with a lawyer familiar with Serbian law ensures proper document preparation and legal compliance.
• Consult an Accountant:
  Accounting and tax requirements can be complex, especially for foreign nationals.
• Stay Informed of Local Legislation:
  Regularly updating your knowledge of new regulations helps mitigate risks.

7. Timelines and Potential Delays

• Registration Timeframe: 3 to 7 working days.
• Potential Causes of Delays:
  • Errors in documentation.
  • Inadequate or improperly documented registered address.
  • Lack of proof of share capital payment.

– Useful Resources for Company Registration

• APR (Company Registration)
• Serbian Tax Administration
• Ministry of Economy of Serbia

Conclusion

Understanding all legal aspects and requirements is crucial for successfully launching a business in Serbia. The country offers favorable conditions for entrepreneurship, but the company registration process demands attention to detail and adherence to all formalities.

If you have questions or need professional assistance at every stage of company registration, our experts are ready to help. We offer a full range of services, from document preparation and registration to tax and legal consultations. Contact us, and we will make the process of starting a business in Serbia simple and transparent for you.