comapny formation

Company formation in Serbia has been gaining significant attention among foreign entrepreneurs for good reason. In this comprehensive guide, we’ll take you on a journey through the intricacies of establishing your company in this vibrant Balkan nation, without the legalese but with a clarity.

Why opening a company in Serbia? Well, for starters, it’s an up-and-coming European destination with a strategic location, a growing economy, and a welcoming business climate.

Now, let’s get down to business…

A Competitive Edge: In the global business arena, where every percentage point counts, Serbia’s 15% corporate tax rate is like finding a hidden gem. It’s significantly lower than many European counterparts, giving businesses that much-needed financial breathing space. This tax rate means more profits stay in your pocket.

This rate is not merely competitive—it’s a game-changer. When we cast our gaze across Europe, it’s evident how Serbia stands out.

Consider France or Germany, where corporate tax rates hover around 30%, or even the United Kingdom, post-Brexit, maintaining a rate upwards of 19%.

These differences are substantial, especially for businesses where margins are crucial and every percentage point in tax savings can translate into significant financial breathing room.

But that’s not all … As of Republic of Serbia introduced the amendments on the Law on Foreigners, reducing the conditions for permanent residency – a total of three years of temporary residency is needed for a foreigner to apply for permanent residency (reduced from five years under the previous regime).

Here’s a kicker – you don’t even have to step foot in Serbia to set up your business.

Yes, you heard it right, you do not need to come to Serbia to open a company.

With local law firm at your beck and call, armed with a power of attorney, they’ll get the ball rolling while you sip your espresso back home.

company formation serbia


Limited Liability Company (DOO)


The crown jewel for foreign investors. Why? Limited liability, flexibility in ownership, and no personal asset risks. It’s like wearing a business armor while charging into the Serbian market.

LLCs are the preferred choice for many, thanks to their flexibility and low capital requirements. Shareholders in an LLC are generally not personally liable for the company’s debts, up to the amount of their investment.

However, if they misuse their privileges or break the rules, the corporate veil can be lifted, and they can become personally liable. This is a safeguard for creditors.

Personal Asset Protection: The cornerstone of an LLC’s appeal is its limited liability feature. This means that as an owner (or ‘member’), your personal assets are typically shielded from the company’s debts and legal issues. It’s a safety net that provides peace of mind, encouraging bolder business moves.

Tax Efficiency: LLCs in Serbia benefit from a favorable taxation regime. Profits are generally taxed at the company level, and Serbia’s corporate tax rate is attractively low – only 15% ! This efficiency can significantly enhance your business’s bottom line.

Operational Flexibility: LLCs aren’t bound by the stringent operational and administrative requirements often seen in other corporate structures. This flexibility allows for quicker decision-making and adaptation to market changes—a crucial advantage in today’s fast-paced business world.

Ease of Setup and Maintenance: Setting up an LLC in Serbia is a relatively straightforward process, and the ongoing compliance requirements are less cumbersome compared to joint-stock companies. This ease makes LLCs an excellent choice for entrepreneurs who want to focus more on growing their business and less on red tape.

Credibility with Clients and Partners: Operating as an LLC can enhance your business’s credibility. This perception can be a significant asset when dealing with clients, suppliers, and financial institutions.

Ideal for a Range of Business Sizes and Types: Whether you’re a solo entrepreneur, a start-up, or a growing enterprise, the LLC structure is versatile enough to accommodate a wide spectrum of business sizes and types, from tech companies to traditional trade businesses.

Attracting Investment: If you’re looking to attract investors, LLCs can be an attractive option. Investors often prefer the clear structure and limited liability offered by LLCs, making it easier for you to secure funding.

In conclusion, LLCs are suitable for medium and small businesses, but even larger enterprises can adopt this form based on their specific needs.



 Ideal for solo flyers. Think of it as a nimble, one-person fighter jet, perfect for small-scale missions. To establish an entrepreneurship agency in Serbia, you don’t need to deposit a specific share capital. The trade-off is that as a natural person running a business, your personal assets are on the line – if your business incurs debts, your personal property could be used to settle them.


At its core, a partnership in Serbia is a legal arrangement where two or more individuals (or entities) come together to conduct business. What makes it appealing is the blend of diverse skills, resources, and perspectives each partner brings to the table.

Shared Responsibility, Shared Rewards: In a partnership, not only are profits shared, but so are the decision-making and management responsibilities. This shared approach can lead to more innovative and well-rounded business strategies.

Foreign Legal Entity Branch

Your mother company’s outpost in Serbia. A bit like setting up your own embassy – you’re in charge but under the home country’s flag.

 Naming Your Business

Choosing a company name in Serbia is like naming a royal heir – it’s got to be dignified, compliant, and unique. Ensure it’s not already taken. It’s not just a name; it’s your brand’s first handshake with the Serbian market.

Registering a company in Serbia

Dealing with government paperwork can be a daunting task, even for the most seasoned entrepreneurs. But fear not; we’re here to lighten the load. Our guide will lead you through the registration process and help you tackle the necessary documents with ease. Serbia may have its quirks, but it’s worth every form you fill.

Required Documentation:

The Memorandum of Association

  • Think of it as your company’s birth certificate. It’s not just a document; it’s the DNA of your Serbian business venture.

    This pivotal document, required to be notarized, should encapsulate the following critical details:

    • Member(s)/Shareholder(s) details
    • Company Name and Address
    • Chosen Activity Code
    • Total Share Capital
    • Contribution details (monetary and non-monetary)
    • Share allocation among members
    • Authorization of company representatives (directors)

    • Remember, the Memorandum of Association is not just a legal requirement; it’s the blueprint of your company’s operational and structural foundation.

      How to Select the Company’s Activity Code in Serbia

  • When establishing your foothold in the Serbian market, selecting your company’s activity code is more than a mere formality; it’s a declaration of your business’s primary mission. Every legal entity is mandated to pinpoint and declare its core activity – the primary engine driving your profitability and business identity.

    What Does This Mean for Your Business?

    This ‘core activity’, also termed as the leading or dominant activity, defines the primary services or products your company will offer. It’s essential to understand that while a company might engage in various secondary activities, the core activity is what defines its essence.

    Adapting to Market Changes:

    Business dynamics are fluid, and sometimes a secondary activity may evolve into your main profit generator. If this occurs, it’s imperative to officially reclassify this as your core activity, particularly for Limited Liability Companies (LLCs). This shift demands a modification in your Memorandum of Association – a key document that outlines the fundamental elements of your company.

    The Advantages of a Virtual Office in Serbia


    The concept of a virtual office is revolutionizing how businesses establish their presence in Serbia. Instead of investing in physical office space, you have the option to opt for a virtual office.

    The Efficiency of Virtual Offices:

    This modern business solution not only cuts down on rent and associated overheads but also provides crucial administrative support. A virtual office in Serbia offers flexibility, allowing you to conduct your business seamlessly, irrespective of the physical location of your main office. It’s an ideal strategy for emerging and smaller businesses looking to make their mark in the Serbian market.


    Essential Documentation for Company Registration in Serbia

    Setting up an LLC in Serbia, whether as an individual or a collective, follows a streamlined process, typically concluding within five working days post-document submission.

    Key Documents for Submission:


    • Registration application for LLC setup;
    • Identity Proof of company members (ID for residents, Passport for non-residents, or Corporate Registration Extract for legal entities);
    • The Memorandum of Association (or equivalent founding documents);
    • Proof of payment for LLC registration fees.


    New E-Registration System for Business Entities in Serbia: A Digital Leap from May 17, 2023


    Big News for Serbian Entrepreneurs: Say Goodbye to Paperwork!

    As of May 17, 2023, Serbia takes a significant step into the digital age for business registration. If you’re planning to set up a limited liability company (LLC), a joint-stock company (JSC), a limited partnership (LP), or a general partnership (GP), listen up! The traditional paper-based registration process is officially a thing of the past. Now, it’s all about clicking your way through the process. Here’s what you need to know about the all-digital shift:

    Mandatory E-Registration: The Agency for Business Registers has gone fully digital. Whether it’s an LLC or any other form of business entity, e-Registration is the only way to go.company formation

  • What You’ll Need: Gear up with a few digital essentials.

  • A qualified electronic certificate (your new digital signature) issued within Serbia.

  • An electronic card reader and the latest NEXU application installed for that smooth digital signing.

  • A Visa, MasterCard, or Dina card ready for handling those fees online.

    How to Do It: All the e-Registration action happens in the dedicated application of the Agency for Business Registers. It’s user-friendly and designed to guide you through every step.

    Electronic Signature: Your electronic signature isn’t just for the registration application. It’s also your go-to for any accompanying documents. Lost on how to use it? Don’t worry, there’s a downloadable guide to help you through.

    Document Submission in the Digital World: Remember, it’s all electronic now. Every document, every form – they all need to be in digital format.

    Instant Electronic Decisions: Once you’re done with e-Registration, the decision on your establishment, decked out with an e-signature from the registrar, lands straight in your inbox. Alternatively, you can download it directly from the application.

    The Bottom Line

    Embracing this digital shift not only simplifies the process but also aligns with the global trend of digitalization. This move by the Serbian government is a clear nod to efficiency, security, and eco-friendliness. For all the aspiring entrepreneurs and existing businesses looking to make their mark in Serbia, the future is just a click away!

     Post-Registration Voyage: Banking, Taxes, and E-Signatures



    • Bank Accounts: Picking a bank in Serbia can feel like a blind date. But fear not, with my our  experience, we’ll match you with a bank that understands your business language.
    • Tax Administration: Taxes in Serbia can be as complex as a Tolstoy novel. We’re here to be your Cliff Notes.
    • Electronic Signatures: Your mandatory digital personality.

    Strategic Banking for Businesses in Serbia: A Guide to Establishing Your Company’s Financial Foundation



    Commencing Your Financial Journey Post-Registration

    Upon receiving the affirmative nod from Serbia’s Business Registers Agency (BRA) regarding your company’s registration, the next pivotal step is to set up your company’s bank account. This decision is akin to selecting a suitable vessel for your enterprise’s financial journey, underscoring its significance for successful navigation in the business world.

    Assembling Your Banking Portfolio: Essential Documents While each bank in Serbia might have its nuances, the following documents generally form the cornerstone of your bank account application:

    1. Confirmation of Company Registration from the BRA: This serves as the official authentication of your business entity.
    2. Bank Account Application: A formal petition to the bank, signifying the initiation of a banking relationship.
    3. Notarized Signatures of Authorized Personnel (OP Form): This legal instrument confirms the identity of individuals authorized to manage financial transactions.
    4. Bank Signature Card: A register of authorized signatures, serving as a navigational chart for your company’s financial transactions.
    5. Identification Documents for Managing Directors or Representatives: Ensuring due diligence in verifying the identities of those steering your business’s financial course.
    6. Supplementary Bank Requirements: These might encompass applications for online banking services or agreements for multi-currency account operations.

  • Additional Considerations for Legal Entity-Founded Companies: Businesses stemming from parent legal entities will need to navigate additional bureaucratic currents, including:

    • Documentation verifying the identity of the ultimate beneficial owner.
    • Relevant registration and foundational documents of the originating company.

  • Non-Resident Bank Account: An International Dimension


    For individuals or entities anchored outside Serbia, the option of a non-resident bank account is available. This account is tailored for those whose primary business base or domicile isn’t in Serbia.

    Advantages of a Non-Resident Account

    1. Transactional Flexibility: From processing payments to managing international transfers, this account type caters to a wide range of financial activities, augmented by the provision of global-access Visa or MasterCard.
    2. Efficiency in Cost and Time: Engaging in business transactions with Serbian partners becomes more streamlined, bypassing the complexities and fees typically associated with cross-border financial operations.
    3. Occasional Requirement: Certain business structures, like foreign companies with Serbian branches, may find the establishment of a non-resident account not just beneficial, but necessary for operational fluidity.

  • Selecting the appropriate banking partner and account type is an exercise in strategic financial planning. It’s about ensuring that your business’s fiscal journey is fortified by efficiency and compliance, allowing you to concentrate on steering your enterprise towards its desired horizons.

    Kickstarting Your Tax Journey

  • Alright, you’ve crossed the starting line by setting up your company. What’s next? It’s time to introduce yourself to the tax world. Think of the tax return as your formal ‘hello’ to the Tax Administration Office. It’s more than a formality; it’s your official entry ticket into the realm of taxpayers.

    Tax Application: Let the Pros Handle It

    The Clock’s Ticking: Meet Your Deadline Timing is crucial here. You’ve got a 15-day window to submit your tax application, starting from the moment your company springs into existence or from when the BRA (Business Registers Agency) hands you the Decision of Registration. Mark your calendars, set reminders, do whatever it takes. This deadline waits for no one. 

    Procuring Your Digital Signature

  • To obtain this digital asset, one must engage with an authorized certification authority in Serbia, specializing in issuing qualified electronic certificates. Expect to receive your electronic signature within approximately 15 business days post-application, accompanied by a requirement for personal collection.

    Beyond Obligation: Enhancing Business Dynamics

  • The application of an electronic signature transcends mere compliance. In scenarios where its use isn’t mandated, such as contract signings with clients, it introduces an unmatched level of expediency and connectivity. Imagine closing deals across different continents, time zones, and legal frameworks – all facilitated by the click of a button.

    Registering the Ultimate Beneficial Owner

  • For critical tasks such as registering the Ultimate Beneficial Owner, the managing director must be equipped with a qualified electronic signature, underscoring its significance in corporate governance.


Embarking on a Journey: Company Formation as Your Ticket

  • Here’s the exciting part – starting a business in Serbia isn’t just about entrepreneurial adventure; it’s a pathway to calling this culturally rich country your home. Yes, you heard it right! Forming a company in Serbia can be your stepping stone to obtaining temporary residency. Let’s unpack this incredible opportunity.

  • Step 1: Setting the Stage with Your Serbian Company

    First things first, kick off your Serbian saga by establishing a company. Whether it’s a Limited Liability Company (LLC) or a joint-stock company, this is where your journey begins. This isn’t just a business move; it’s a strategic play that opens up a world of possibilities, including the chance to apply for temporary residency.

    Step 2: Navigating the Legal Labyrinth

    Now, let’s talk legalities. Once your company is up and running, you’re eligible to apply for temporary residency in Serbia. It’s like Serbia is rolling out the red carpet for entrepreneurs. The Serbian government recognizes the value and potential foreign business owners bring to the table, offering them a chance to not just invest in the economy but also to weave their lives into the Serbian social fabric.

    Step 3: The Residency Application – A Blend of Bureaucracy and Anticipation

    The application process for temporary residency can seem like a bureaucratic ballet. You’ll need to provide a bundle of documents, including proof of your company formation, a valid passport, proof of address in Serbia, and financial stability – basically showing that you can sustain yourself while you’re here. Each document is a thread in the tapestry of your new life in Serbia.

    Step 4: Embrace the Serbian Way of Life

    Getting your temporary residency isn’t just about the stamp in your passport; it’s about embracing a new way of life. Serbia is a land of vibrant culture, rich history, and warm-hearted people. As a resident, you’re not just building a business; you’re building a life. You’ll find yourself sipping strong Serbian coffee, exploring ancient fortresses, and maybe even dabbling in the language.

    Step 5: The Path to Permanent Residency

    Temporary residency is your first chapter in Serbia, but it doesn’t have to be the last. After 3 years, you can apply for permanent residency, further cementing your place in this dynamic country. It’s a journey from being a foreign entrepreneur to a local business owner.

    Closing Thoughts: More Than Just Business


    Setting up a business in Serbia is more than an economic endeavor; it’s a life-changing journey. It’s about planting your roots in new soil, about opportunities for personal and professional growth. Whether it’s the allure of the Serbian landscape, the charm of its cities, or the warmth of its people, there’s something magnetic about this place that makes it not just a business destination, but a home.

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