Launching a business company in Serbia is an opportunity to start carrying out business operations in Europe in accordance with the Serbian Commercial Companies Act. By establishing a new company in Serbia or by relocating an existing company there from your home country, you can start doing business by European standards but at affordable costs. In particular, Serbia has very attractive tax rates – by European standards. The country is planning to join the EU in 2025, which will certainly extend your horizons greatly.
A foreigner who registers a company in Serbia becomes eligible for a 1-year legal residence permit. The permit can be extended if the company remains in existence. After 5 years, the foreign company owner and members of his/ her family can qualify for permanent residence permits and after 3 more years, for passports of the country.
Holders of Serbian residence permits have little trouble opening bank accounts in the country. Moreover, they will find better tariffs and service conditions than a non-resident of Serbia can find in a Serbian bank. Besides, you can become a tax resident in Serbia and stop paying taxes in your home country. This opportunity is especially attractive if the tax rates are high in the country where you currently reside. Below we provide general information about registering a company in Serbia. Please follow the link to read about the details of the process.
Benefits of registering a company in Serbia
Foreign nationals and foreign legal entities are entitled to register business companies in Serbia. This is one of the least challenging ways of immigrating to Europe if you live in a different part of the world. The company registration process is quite transparent in Serbia and the country’s economic policies allow using multiple tax incentives. The Government of the country will also finance the best business projects.
Registering a company in Serbia will bring the following main benefits to a non-resident of the country:
- Small business investment amount.
You don’t have to invest a lot of money to start a company in Serbia. The state duties are negligible and office/ warehouse rent is much more affordable in Serbia than it is in Western Europe. An office in Belgrade can cost you only 300 euros per month, for example. If you want to purchase real property, the price starts at 1,000 EUR per m2. - Government support to business companies.
The Serbian Government supports business companies informationally and financially. Depending on your business area, you can qualify for tax cuts and tax breaks. Besides, there are regional business development programs in Serbia. - European standards of doing business.
The Serbian business legislation is in compliance with common European standards. The number of companies registered in Serbia is growing as the date of the country’s becoming an EU member is approaching. - Bank accounts in Europe.
The owner of a Serbian company is entitled to set up a personal and a corporate account with a European bank. When you acquire legal residence in Serbia, you will gain access to inexpensive loans and other attractive banking products offered by Serbian financial institutions. - Low taxes.
Taxes are low in Serbia in comparison to other European countries. The personal income tax starts at 10% and the corporate income tax is 15%. The latter can be lower but it cannot be higher. - Legal grounds for residence in Serbia.
Citizens of other countries registering companies in Serbia qualify for legal residence in the country on these grounds. A temporary residence permit can turn into a permanent residence permit and that can turn into a passport of Serbia.
Types of companies in Serbia
Several forms of company ownership are available to non-residents in Serbia. Your choice of the company type will mainly depend on the following factors: the business area where you are planning to work; the number of employees that your company is going to have; the amount of money that you are prepared to invest; and the level of simplicity of registering a company in Serbia.
Sole proprietorship
You can register as a sole proprietor in Serbia and this will already make you qualified for a residence permit. As you can imagine, establishing a sole proprietorship in Serbia is a simple task. You can even do it online even though you will have to visit the Registrar’s office to pick up the registration certificate. The obvious disadvantage of a sole proprietorship is unlimited liability of the business owner.
IT specialists, software developers, car mechanics, and other technical workers often work as sole proprietors in Serbia.
Limited Liability Company
An LLC can have only one founder in Serbia but it also can have two or more. The main advantage of this company type is evident from its name – limited liability of the company owners. For many business spheres, the charter capital can be as low as 100 RSD (1 EUR) but in some exceptional cases, the charter capital has to be higher.
LLCs are the most widespread form of company ownership in Serbia. It is perfect for small and medium-sized business ventures. You are free to set the principles of profit distribution between the LLC members. This form of company ownership is popular in the service sector, construction, and manufacturing.
Partnership
It takes at least two people to form a partnership in Serbia. A partnership allows conducting business activities in several spheres under the same brand name. This form of company ownership is popular with telecommunication companies, publishing houses, and large IT projects in Serbia. There are no requirements to the charter capital.
Corporation
A corporation is a legal entity whose authorized capital is divided into shares held by one or several persons/ legal entities. This form of company ownership suits large businesses, as a corporation has to have a Board of Directors, an auditor, a secretary, and A Supervisory Council. The minimum authorized capital is 3,000,000 RSD (25,587 EUR) and 25% of it has to be deposited before you can start the company formation process.
Corporations can be private and public in Serbia. A corporation has to file annual financial and audit reports so it has to have quite a few people on the staff. Corporations are popular in heavy industry, manufacturing, and construction in Serbia.
Branch of a foreign company
A branch of a foreign company registered in Serbia operates under the name of its parent company. A branch is entitled to rent (or buy) an office and hire a parent company representative. The representative, in his/ her turn, will qualify for a legal residence permit in Serbia if he/ she is a foreign national. The parent company is responsible for all the obligations of its Serbia branch.
Representative office of a foreign company
Finally, you can register a representative office of a foreign company in Serbia. Representative offices are usually set up to conduct market research in Serbia. The serve the needs of large foreign companies planning to enter the Serbian market. The good thing is the representative of a foreign company in Serbia can also qualify for a legal residence permit in the country.
