How to Start a Business in Serbia: Step-by-Step Guide for Foreign Investors
Serbia is becoming an increasingly attractive destination for international investors thanks to its strategic location in the Balkans, competitive labor costs, tax incentives, and strong infrastructure.
If you are considering setting up a company there, this guide will show you everything you need to know: types of companies, legal requirements, costs, timelines, and the procedures you’ll need to complete.
1. Choosing the Type of Legal Entity
When starting a business in Serbia, the first step is to decide on the legal form your company will take. The most common options are:
DOO (Limited Liability Company – “Društvo sa ograničenom odgovornošću”): Ideal for small and medium-sized enterprises. Requires fewer formalities, relatively low share capital, and is suitable for foreign investors.
AD (Joint Stock Company – “Akcionarsko društvo”): Designed for larger companies with greater financial activity, potential listings, multiple shareholders, and a board of directors.
Branch of a foreign company: Not a separate legal entity; it reports to the parent company but operates in Serbia under certain regulations.
General partnership / association: Less commonly used for large operations; partners may be personally liable for certain obligations.
2. Basic Requirements
Minimum share capital: Depends on the company type. For a DOO, it is typically a low or moderate amount; for an AD, more substantial.
Company name: Must be unique, not misleading, and compliant with Serbian commercial naming regulations.
Registered address: The company must have a legal address in Serbia.
Legal representative: For foreign investors, a local representative or at least someone with legal residence in Serbia (or dual nationality) may be required for certain procedures.
3. Registration Procedures
Draft articles of association or founding documents: defining business purpose, ownership structure, share distribution, and management bodies.
Open a temporary (or permanent, as required) bank account to deposit share capital before registration.
Register the company with the Business Registers Agency (“Agencija za privredne registre”).
Obtain tax identifiers: company tax number and VAT registration (if applicable).
Register with social security, health, and pension institutions if hiring employees.
Comply with any sector-specific permits or licenses (e.g. concessions, sanitary, or environmental approvals).
4. Estimated Costs and Timeframes
Registration fees: Payable upon submission to the Business Registers Agency; vary depending on company type and size.
Notary and translation/legalization fees for foreign documents.
Bank charges for opening accounts and deposits.
Duration: Generally between 1 and 2 weeks to complete registration if all documents are in order. Regulated sectors may take longer.
5. Taxes and Fiscal Obligations
Corporate tax: Applicable rate and possible deductions/incentives.
VAT: Standard rate, possible exemptions, and registration thresholds.
Payroll taxes: Social contributions, health insurance, and pension payments when employing staff.
Double taxation agreements: Serbia has treaties with numerous countries (including Spain) to prevent double taxation.
Annual filings: Accounts, audits (if thresholds are exceeded), and financial statements.
6. Incentives for Foreign Investors
Special tax regimes for major investments (e.g. fixed asset acquisition, job creation).
Possible full or partial tax exemptions for priority sectors or underdeveloped regions.
Access to European funds and development banks if eligibility criteria are met.
Free trade agreements with the EU, Balkan markets, Russia, Turkey, and others.
7. Risks and Considerations
The legal framework can change; local legal advice is essential.
Cultural and language differences; administrative processes may take time.
Hidden costs: translations, notaries, interpreters, specific permits.
Location factors: Belgrade, Novi Sad, and other cities differ in rental prices, wages, and infrastructure.
Opening a company in Serbia can be an excellent opportunity if you plan properly, understand the costs, legal and tax requirements, and take advantage of the available incentives. With the right steps and reliable guidance, the process can be relatively quick and involve fewer barriers than in other European countries.
