Starting a Business in Serbia: The Expert Guide for Foreigners

Starting a business in Serbia is one of the top ways for foreign nationals to obtain residency. Serbia has a growing economy and offers a strategic location with access to the EU and the Middle East.
In this guide you will learn about:

• The benefits of starting a business in Serbia
• Visa options for starting a business in Serbia
• Requirements to start a business in Serbia
• Document requirements for starting a business in Serbia
• Types of businesses in Serbia
• Business registration in Serbia: Step by step
• Cost of starting a business in Serbia
• Corporate taxes in Serbia

The Benefits of Starting a Business in Serbia

Strategic location

Serbia is situated in the heart of the Balkans, providing easy access to many major business markets, including the Middle East, the European Union, and Russia. Additionally, Serbia has many free trade agreements with various areas, opening entrepreneurs and business owners to a market with over one billion consumers.

Affordable start-up costs

The overall cost of living and business operating costs in Serbia are significantly lower compared to other European countries. This means businesses can do more and increase growth significantly for much less money.

High economic growth

The Serbian economy has seen consistent growth over the last five years. The GDP per capital in Serbia has increased from $7,417 in 2019 to $12,513 in 2024. Predictions show there is no slowing down either, with the GDP per capita expected to increase to $18,413 by 2029.

This consistent increase is a great sign for potential Serbian business owners that want to get into the European economy at a time where things are on the rise.

Skilled workforce

Serbia has a highly skilled workforce, particularly in sectors like IT, energy, and engineering. This along with the low cost of living in Serbia means the labor costs are significantly less and highly competitive with the rest of Europe.

Favorable tax regime

The corporate tax rate is set at 15%, making it attractive for business entities and entrepreneurs looking to establish operations in Serbia.

Business friendly environment

The Serbian Government invites foreign nationals to open foreign companies in Serbia. For this, there is limited bureaucracy, and the application process is kept simple. There is also a specific residency visa option for starting a business in Serbia as a foreigner, making things even more streamlined and inviting for those that want to live and work in Serbia long term.

Visa Options for Starting a Business in Serbia

Serbia Residency Through Company Formation

The Serbia Residency by Company Formation program provides a straightforward way for foreign nationals to gain a Serbian residence permit by starting a business in the country. It is particularly attractive to entrepreneurs and investors looking to take advantage of Serbia’s growing economy and strategic location at the crossroads of Europe and Asia.

A major advantage of this program is that it does not require a minimum investment amount for company formation, making it much more accessible compared to similar programs in many EU countries. Additionally, there are no restrictions on nationality for applicants, allowing people from all over the world to participate.

The application process is efficient and typically takes about a month to complete. This program offers significant benefits, including the right to live, work, and study in Serbia. Temporary residence permits issued through this program can be valid for up to three years, applicants can then apply for permanent residency for a further three years and may then be eligible for Serbian citizenship.

Serbia Residency by Investment

Serbia Residency by Investment through real estate purchase offers a simple and accessible pathway for foreign nationals who want to live and work in the country. To qualify, applicants need to purchase property in Serbia, which can include apartments, houses, or commercial properties.

There are no restrictions on the property’s price or location, making it a flexible option for investors. Foreign nationals from countries that allow Serbian citizens to purchase property can typically acquire real estate without issues. However, in cases where no reciprocity agreement exists, individuals may need to set up a legal entity to complete the purchase.

The Serbia Residency by Investment program provides a straightforward way to establish long-term residency in Serbia while investing in real estate.

Requirements to Start a Business in Serbia

Starting a business in Serbia has a range of requirements set out by Serbian federal laws, including:

• Minimum capital: The minimum capital for starting a business entity in Serbia will vary depending on the legal form of the company. For example, a limited partnership does not have a minimum share capital, while a Limited Liability Company (LLC) requires a minimum capital of €500.
• Appoint a director: Every domestic legal entity in Serbia is required to have a legal representative.
• Tax registration: All business entities in Serbia are required to obtain a tax identification number from the Serbian tax authority.

Document Requirements for Starting a Business in Serbia

Before starting a business in Serbia, the following documents are required:

• Founding documents: A company with multiple founding members will need a founding agreement. Each member’s signature must be notarized, and the document should include the company name, information on members of the company, company shares, company address, etc.
• Proof of address: You will need to provide proof of address of the company. Either a lease or purchase agreement.
• Proof of identity: Individuals will need to provide their personal Serbian passport, national ID, or passport of another country. Legal entities will need a certificate of incorporation from the parent company that should be notarized and translated.
• Business name reservation: Proof of approval from the Serbian Business Registers Agency.
• Bank documentation: The business account must show proof of the initial capital deposit.
• Tax identification: The business must have its own business tax identification number from the Serbian Tax Administration.

Types of Businesses in Serbia

Before you register a business in Serbia you must decide on the legal form of the company as each has its own financial requirements and process. The types of business entities in Serbia include:

Limited Liability Company (D.O.O.)

A limited Liability Company in Serbia is the most popular type of company. They generally have between 1-50 shareholders that are responsible for the company’s obligations and profits based on their company contribution.

Minimum capital: €500

General Partnership (O.D.)

A General Partnership in Serbia is formed by two or more people that agree to run a business. Each of the partners share equal responsibility for the company’s profits and obligations.

Capital: No minimum, but each partner must contribute the same amount.

Joint Stock Company (A.D.)

There are two types of Joint Stock Companies in Serbia, including:

• Open: Made up of over 100 shareholders and requires a minimum of €25,000 capital.
• Closed: Has less than 100 shareholders and requires a minimum capital of €10,000.

Each of the shareholder’s responsibilities, business purpose company name, and other specifics of the company should all be outlined in the Articles of Association.

Limited Partnership (K.D.)

Limited Partnerships in Serbia require no minimum capital and are formed by two or more partners, with two sub-types:

• Limited partners: Liability is limited to their contribution amount.
• General partners: Each is fully responsible for profits and losses.

Business Registration in Serbia: Step by Step

Registering a business in Serbia is a straightforward process, facilitated by the Serbian Business Registers Agency (SBRA). Here’s a detailed step-by-step guide:

1. Step one: Choose a business structure: Select the business structure that will suit your new company in Serbia.
2. Step two: Reserve a business name: Check whether the business name you want is available on the SBRA’s website through a Serbia company register search. If it is, submit a business name request and pay the name reservation fee.
3. Step three: Prepare the founding agreements: Before you can register the business, you will need to prepare a Decision of Establishment (single founder) or Articles of Association (document outlining ownership, operations, and company structure).
4. Step four: Register the company with the Serbian Business Registers Agency: First you will submit a Serbia company registration form and documents on the SBRA online platform or visit the physical office. You can then pay the registration fee, and lastly receive the registration certificate.
5. Step five: Obtain a tax identification number: Each business in Serbia needs a tax identification number (PIB). The SBRA will generally send the company details to the Serbia Tax Administration on your behalf.
6. Step six: Open a bank account: Your business should have its own Serbian corporate bank account. You will need the registration certificate, tax number, and proof of initial deposit to open the account

Important to note: Your business may require additional steps such as registering employees for social security. It’s always best to work with a local lawyer to ensure everything is in order before starting operations.

Cost of Starting a Business in Serbia

The cost of starting a business in Serbia can vary depending on the type of business entity you choose. Key expenses include:

Important to note: These are general cost estimations; your company may be required to pay more or less depending on the structure and legal assistance required.

Corporate Taxes in Serbia

One of the most important parts of starting a business in Serbia is knowing which Serbian taxes you are liable for. In general, a company in Serbia is liable for the corporate tax rate of 15%.

Additionally, there is social security tax which employers are liable for. Businesses in Serbia must pay 15.65% of the employee’s salary to the Serbia Tax Authority. This covers retirement and disability as well as health insurance.

Frequently Asked Questions About Starting a Business in Serbia

How much does it cost to open a business in Serbia?

The costs of opening a business in Serbia can vary depending on the type of business structure you choose. Key expenses include:

• Company registration fees: Typically range from €5 to €40.
• Minimum capital: For a Limited Liability Company (LLC), the minimum capital requirement is €500, while a Joint Stock Company (A.D.) requires at least €10,000 (for a closed joint stock) or €25,000 (for an open joint stock).
• Notary fees: Between €50 and €150.
• Translation services: Around €20 to €50 per page.

Overall, the cost of starting a business can range from €500 to €25,000 or more, depending on the company type and associated legal fees. 

Is Serbia a good place to do business?

Yes, Serbia is an excellent place for foreign companies or new businesses to establish operations due to the low start-up costs, skilled workforce, and favorable business environment.

What are the requirements for starting a business in Serbia as a foreigner?

Foreign nationals will need the following to start a business in Serbia:

• Bank account
• Tax registration
• A business address
• A company director
• Founding documents
• Minimum capital (depending on the business type)

Can foreigners own a business in Serbia?

Yes, foreigners can own 100% of a business in Serbia, as there are no restrictions on foreign ownership. The legal framework in Serbia allows foreign nationals to fully invest in and operate businesses.

How long does it take to register a company in Serbia?

The average time for registering a company in Serbia is about one or two weeks but is dependent on whether the application is submitted in full and whether all the required documentation is attached to the application.

What is the process of starting a business in Serbia?

The process of starting a business in Serbia is as follows:

• Choose a business structure.
• Reserve a business name via the Serbia company register search on the SBRA’s website and pay the name reservation fee.
• Prepare the founding agreements (Decision of Establishment or Articles of Association).
• Register the company with the SBRA, submit the online company registration form and documents, pay the registration fee, and receive the registration certificate.
• Obtain a tax identification number (PIB) from the Serbia Tax Administration.
• Open a Serbian corporate bank account with the registration certificate, tax number, and proof of initial deposit.

What taxes do businesses in Serbia have to pay?

Serbian businesses are liable for corporate tax which is 15% on profits. They are also liable for social security contributions for each employee, making up 15.65% of each salary.

What is the minimum capital required to register a company in Serbia?

The minimum capital requirement to register a company in Serbia is based on the type of business. An LLC requires €500, a joint stock company requires €10,000 (closed) and €25,000 for an open joint stock company.

What if I don’t want to open a full business entity in Serbia?

A representative office can be established by foreign legal entities that wish to operate in Serbia without registering a full business entity. This office typically conducts market research and promotes the business but does not engage in profit-generating activities directly.