Doing business in Serbia involves a straightforward process for company registration, a business-friendly environment that welcomes foreign investment, and specific legal and administrative steps to ensure compliance.
Here is a comprehensive guide to doing business in Serbia, covering the key steps, legal structures, and business environment.
1. Key Steps to Establish a Business in Serbia
The company registration process is managed by the Serbian Business Registers Agency (SBRA), and can often be completed in a few days. The process has been streamlined, and can often be completed online.
| Step | Action | Key Details |
| 1. Choose a Business Structure | Select the legal form that best suits your business goals. | The Limited Liability Company (D.O.O. or LLC) is the most popular choice, particularly for foreign investors. Other options include Joint Stock Company (A.D.), General Partnership, Limited Partnership, and Sole Proprietorship (Entrepreneur). |
| 2. Name Reservation | Check the availability and reserve a unique name for your company. | This is done through the SBRA. The name must be distinctive and include the chosen legal form (e.g., D.O.O.). |
| 3. Prepare Founding Documents | Draft the necessary legal documents and get them certified. | Key documents include the Articles of Association and, for multiple founders, the Memorandum of Association (Founding Act). For foreign documents, notarization and an Apostille stamp may be required. |
| 4. Deposit Share Capital | Deposit the required minimum capital into a temporary Serbian bank account. | For an LLC, the minimum share capital is low (as low as RSD 100 or approximately €1), although a higher amount (e.g., €250 or €500) may be beneficial for securing a temporary residence permit. |
| 5. Register with SBRA | Submit the application and documents to the Serbian Business Registers Agency (SBRA). | The application can often be submitted online or in person. The SBRA aims to process registrations quickly, often within 5 working days. |
| 6. Obtain Tax Identification Number (TIN) | Register the company with the Tax Administration. | The company will be assigned a Tax Identification Number (PIB), which is essential for all tax-related transactions. This is usually done automatically by the SBRA after registration. |
| 7. Open a Corporate Bank Account | Formalize the company’s permanent business bank account. | You will use your Certificate of Incorporation and TIN to open a permanent corporate account. |
| 8. Post-Registration Compliance | Register with other authorities and obtain necessary permits. | This includes registering beneficial owners in the Central Register, registering employees with social security funds, and obtaining any necessary business permits or licenses based on your activity. |
2. Most Common Business Structures
The legal form you choose determines your liability, minimum capital, and administrative burden.
| Business Structure | Serbian Name | Key Characteristics | Minimum Capital (Approximate) |
| Limited Liability Company (LLC) | Društvo sa ograničenom odgovornošću (D.O.O.) | Most popular choice. Shareholders have limited liability up to the value of their contribution. Suitable for small to medium enterprises. | RSD 100 (approx. €1) |
| Joint Stock Company (JSC) | Akcionarsko društvo (A.D.) | Suitable for larger businesses planning to raise capital through public offerings. | Closed JSC: €10,000 |
| Open JSC: €25,000 | |||
| Sole Proprietorship | Preduzetnik (PR) | Simplest form, for individuals. The owner is personally liable for the business’s debts. Simplified taxation options (e.g., lump-sum tax) may be available. | None |
| Branch/Representative Office | Podružnica | Entities of a foreign company. A Branch Office can conduct business activities, while a Representative Office is generally limited to market research and promotion. | None |
3. Business Environment and Opportunities for Foreigners
Serbia actively welcomes foreign investment and offers several advantages:
Attractive Investment Climate
- 100% Foreign Ownership: Foreign individuals and legal entities can own 100% of a Serbian company.
- Strategic Location: Positioned at the crossroads of Central and Southeast Europe, providing access to major markets.
- Skilled Workforce: A well-educated, multilingual, and competitively priced labor force.
- Free Trade Agreements: Access to key markets through Free Trade Agreements (FTAs) with the European Union (EU), EFTA, CEFTA, Turkey, and others.
- Government Incentives: The government offers various investment incentives, including tax relief and financial subsidies for high-value and export-oriented sectors.
Key Sectors with High Growth Potential
- Information and Communications Technology (ICT): The technology and digital sector is rapidly growing, with a strong focus on e-government and AI development.
- Manufacturing: A well-established sector that benefits from foreign direct investment (FDI).
- Automotive: Serbia is an important hub in the European automotive supply chain.
- Agriculture and Agro-processing: An important sector with potential for modernization and export growth.
- Energy and Environmental Protection: Opportunities in renewable energy, energy efficiency, solid waste management, and sewage treatment.
Taxes and Finance
- Corporate Income Tax (CIT): A flat rate of 15%.
- Value Added Tax (VAT): The general VAT rate is 20%. VAT registration is generally mandatory if a company’s annual turnover exceeds RSD 8 million (approximately €68,000).
- Profit Repatriation: Foreign investors have full rights to repatriate profits and dividends.
Residency and Work Permits
Foreigners looking to establish a company and reside in Serbia can apply for a single permit, which combines a Temporary Residence Permit and a Work Permit based on self-employment or management of the newly registered company. This can be initiated after the company is legally established.
Disclaimer: This information is a general guide and does not constitute legal or financial advice. It is highly recommended to consult with a local Serbian lawyer or business consultant to navigate the specific legal requirements, tax obligations, and documentation for your business venture.