Home

About Us

Our Team

Practice Areas

Legal Insights

Career

Contact

Company

Formation

in Serbia.

Core legal and regulatory framework for company formation in Serbia.

Overview

Company formation in Serbia is legally permitted with a minimum registered share capital of 100 dinars (less than one euro), placing Serbia among the most accessible European jurisdictions for corporate establishment from a capital-requirements perspective.

When assessed against a number of EU jurisdictions that require substantial initial capital contributions, this framework is particularly advantageous. The incorporation procedure is generally completed within approximately five business days, reflecting a comparatively efficient registration system. The company formation in Serbia cost remains moderate and predictable, while the applicable corporate income tax rate of 15% is materially lower than in several major European economies, including Portugal, Germany, and France.

In addition to corporate considerations, Serbian law allows foreign founders to structure lawful residence on the basis of company ownership and management. This guide outlines the full legal and procedural framework for establishing a company in Serbia, including the selection of the appropriate legal form, registration steps, and the residence-permit options available in connection with company formation.

Understand Who Can Start a Company in Serbia

Company formation in Serbia offers one of the most inclusive frameworks in the Balkan region. The question of eligibility is straightforward – both domestic and foreign individuals or legal entities can establish businesses in Serbia with essentially no restrictions.

Eligibility for residents and non-residents

The Serbian business landscape welcomes entrepreneurs from all backgrounds. Unlike some countries that impose strict limitations on foreign ownership, Serbia allows both Serbian citizens and foreign nationals to establish companies under identical conditions. This open policy extends to all forms of business entities recognized by Serbian law.

Foreign individuals have the right to:

  • Register as sole proprietors (entrepreneurs)
  • Found limited liability companies (LLCs)
  • Establish joint stock companies (JSCs)
  • Create partnerships or limited partnerships

 

Moreover, these rights apply regardless of your nationality or country of residence.Company formation in Serbia remains uniform for all applicants, with no additional requirements for foreigners when registering with the Serbian Business Registers Agency (SBRA).

One critical point to understand is that although foreigners can easily establish businesses in Serbia, Company formation in Serbia alone does not automatically guarantee obtaining a residence visa. This distinction is important for those planning to relocate to Serbia through business establishment.

Nevertheless, founding a company does create a pathway toward residency. The Serbia Residency by Company Formation program provides a method for foreigners to gain temporary residence permits valid for up to three years. After this period, applicants may qualify for permanent residency for an additional three years, potentially leading to Serbian citizenship.

Legal rights of foreign founders

In essence, foreign founders enjoy equal rights and obligations as domestic founders. This principle of equality represents a core advantage of the Serbian business environment.

Notably, foreign nationals can own 100% of a Serbian company. This means complete control without the necessity to include Serbian partners or representatives. Both domestic and foreign company founders and directors have identical rights – your Serbian company does not require Serbian citizens to be representatives or founders at any stage.

The flexibility extends to company management structures as well. For instance, a foreign citizen could be both the shareholder and managing director of a Serbian company. Alternatively, a foreigner could be the founder while a Serbian citizen serves as director, or vice versa. These arrangements demonstrate the adaptability of Serbian business law to various ownership and management scenarios.

In addition to company formation in Serbia, foreign entities can establish branch offices in Serbia. Though these branches don’t have the status of legal entities, they can conduct business activities in the name of the foreign parent company. Such branches can have their own legal representatives, providing operational flexibility.

For those unable to travel to Serbia, the entire company formation in Serbia process can be handled remotely through a power of attorney granted to a lawyer. In fact, most procedures can be completed via email and a single postal delivery, making the process accessible to entrepreneurs worldwide.

The application process for company formation in Serbia is remarkably efficient, typically taking about a week to complete. Following registration, foreigners engaged with the company as founders or directors may apply for a unified permit that includes both temporary residence and work permit. Prior to February 2024, these were separate procedures, but now a single application covers both requirements.

Indeed, the combination of straightforward registration procedures, equal rights for foreigners, and pathways to residency makes company formation in Serbia particularly attractive for international entrepreneurs.

Company formation in Serbia

Choose the Right Legal Structure

Selecting the appropriate legal structure is a crucial decision when forming a company in Serbia. Each business structure offers distinct advantages and obligations that will impact your operations, taxation, and liability. Let’s examine the most common options for entrepreneurs considering company formation in Serbia.

Limited Liability Company (LLC)

The Limited Liability Company (DOO in Serbian) stands as the most popular form for company formation in Serbia, especially suitable for small and medium-sized enterprises. The primary appeal lies in its minimal founding capital requirement of just 100 RSD (less than €1), making it highly accessible for entrepreneurs with limited initial resources.

An LLC in Serbia provides several key advantages:

  • Limited liability protection – Shareholders are responsible only for the amount of their capital contribution, not with personal assets
  • Tax flexibility – The corporate tax rate is fixed at 15%, allowing for optimized tax planning
  • Ownership flexibility – Can be formed by a single member or multiple individuals/legal entities
  • Management simplicity – Can be managed by a single director
  • Business continuity – The company continues to operate even if founders leave

 

Additionally, LLCs can benefit from Serbia’s network of Double Taxation Avoidance Agreements, enabling entrepreneurs to optimize their tax burdens. Furthermore, if your LLC operates within one of Serbia’s 15 Free Trade Zones, you can work without customs duties and enjoy VAT exemptions on goods and services traded within these zones.

Sole Proprietorship

As opposed to forming an LLC, registering as a sole proprietor (preduzetnik) represents the simplest and most affordable path to company formation in Serbia. Initially, you must understand that a sole proprietor lacks separate legal entity status – the person and business are legally identical.

Among the advantages are lower registration costs, reduced administrative requirements, and simplified bookkeeping options. Sole proprietors can even opt for “flat rate” taxation according to a predetermined amount, eliminating the need to maintain complex accounting records.

Despite these benefits, consequently, the entrepreneur bears unlimited personal liability for all business debts and obligations with their entire personal property. Additionally, each individual can register only one sole proprietorship in Serbia.

The registration process for sole proprietors has been streamlined with online application options now available. Usually, the decision on registration comes within 3-5 days of application.

Branch and Representative Offices

Foreign companies looking to establish presence without company formation in Serbia, have two primary options: branch offices and representative offices.

A branch office operates as a separate organizational unit of the foreign company in Serbia. Despite lacking independent legal status, branches can conduct full business activities, including import and export operations. The parent company remains fully liable for all branch activities.

Representative offices, conversely, are limited to preparatory and marketing activities. They cannot directly generate revenue or perform commercial activities but serve primarily as liaison offices.

Both structures require registration with the Business Registers Agency and, accordingly, each has specific documentation requirements.

Prepare Key Business Details

After selecting your legal structure, the next crucial step in company formation in Serbia involves preparing several key business details that will define your company’s identity and operations.

Select a company name

The business name of your Serbian company consists of three essential elements: the company name, legal form, and location of the company seat. For example, a typical business name would appear as “ABC DOO Belgrade (Stari grad)” where ABC is the company name, DOO indicates legal form (LLC), and Belgrade (Stari grad) specifies the location.

When choosing your company name:

  • It must be unique and distinguishable from existing registered businesses
  • Cannot contain words that offend public morals
  • Must not create confusion regarding legal form or company’s activities
  • Cannot include the word “Serbia” without prior approval from competent authorities

 

Subsequently, you can register a shortened business name consisting only of the company name and legal form (e.g., “ABC DOO”). Additionally, Serbian law permits registering your business name in foreign languages using Latin script.

Before finalizing your selection, verify availability through the Business Registers Agency (BRA). You can reserve a name for 60 days by paying a fee of 1,670 RSD (approximately €14) for LLCs. This reservation is renewable for an additional 60 days.

Define your business activity

Serbian regulations require registering one primary business activity for your company. Overall, this activity should represent your core operation that will generate the most significant portion of your revenue.

In relation to secondary activities, your company can engage in multiple business areas beyond your registered primary activity. However, any activities requiring special permits, licenses, or approvals will need additional documentation.

The activity code follows the Regulation on Classification of Activities, which categorizes all possible business operations by sectors, codes, descriptions, and areas. Throughout the registration process, you’ll need to specify only one activity code with the BRA, but your Memorandum of Association can list additional activities.

Choose a business address or virtual office

Every Serbian company requires a registered headquarters address on Serbian territory. At this stage, you have two options: a traditional physical office or a virtual office solution.

Virtual offices have become increasingly popular, especially for startups and foreign entrepreneurs. They provide a prestigious business address plus additional services such as mail handling, virtual presence, telephone answering and virtual receptionist.

Given these points, virtual offices are particularly beneficial during early business stages when operations are still being defined. They offer flexibility while providing essential services like mail handling, company registration, and administrative support.

Appoint a managing director

The final preparatory step for company formation in Serbia involves appointing a managing director who will legally represent your company. Both Serbian citizens and foreign nationals can serve in this capacity.

The director can be engaged through:

  1. Employment contract (standard employment relationship)
  2. Management Agreement (contract outside employment relationship)

 

Notably, the same individual can simultaneously serve as both founder and director of the company. For foreign directors, depending on their physical presence in Serbia, additional considerations apply:

If a foreign director will spend more than 90 days within a 180-day period in Serbia, they must obtain both a temporary residence permit and work permit. However, if managing remotely with only occasional visits, these permits may not be necessary.

Foreign directors working under Management Agreements have considerable flexibility regarding their physical presence, work conditions, and compensation arrangements.

Draft and Submit Founding Documents

Once your key business details are finalized, preparing the founding documents becomes the next critical milestone in your company formation in Serbia journey. These documents legally formalize your business entity and establish its operating framework.

Memorandum of Association (MoA)

The Memorandum of Association (Osnivački akt in Serbian) serves as the constitutional document in procedure of company formation in Serbia. First and foremost, it takes the form of a decision on incorporation if established by a single person, or an agreement of association if founded by multiple individuals. This document must be meticulously drafted in Serbian and contain several mandatory elements:

  • Information about company members (personal details for individuals, business information for legal entities)
  • Business name and registered headquarters
  • Company’s predominant business activity
  • Total amount of company’s share capital
  • Monetary and non-monetary contributions from each founder
  • Payment schedule for contributions
  • Percentage share of each member in the total capital
  • Company bodies and their respective competences
  • Duration and termination provisions

 

The MoA becomes legally effective only when signed by all founders and certified by a notary public. Since 2023, certification of signatures can be replaced by qualified electronic signatures of company members, streamlining the process. Typically, this document isn’t amended for joint stock companies, whereas LLCs may modify it as needed.

Electronic signature requirements

For limited liability companies in Serbia, the Articles of Incorporation (also called the founding act) is the primary document defining your company’s structure and operational framework. In practice, it must be drafted in full compliance with Serbian Companies Law.

Joint stock companies require both a Memorandum of Association and separate Articles of Association that govern management and other operational matters. In contrast, sole proprietors don’t need to create any founding documents to register their businesses.

The Business Registers Agency (BRA) mandates that all documentation, specifically the Memorandum of Association and related establishment documents, be submitted in electronic form. In this regard, a lawyer with an electronic certificate can sign the Articles of Incorporation electronically, potentially reducing notary certification costs.

Company formation in Serbia

Company formation in Serbia with the Business Registers Agency (BRA)

The company formation in Serbia starts registration of the company with the Serbian Business Registers Agency (SBRA). This step represents a crucial step in officially establishing your business entity. Since May 17, 2023, Serbia has made a significant change to its registration procedure—all company formations must now be conducted exclusively electronically.

Online registration process

The electronic registration system administered by the Serbian Business Registers Agency (SBRA) enablescompany company formation in Serbia to be completed through a centralized online platform. While the system is formally available to users holding Serbian electronic identification tools, in practice the procedure is most efficiently conducted through a licensed attorney.

Attorneys registered with the Bar Association of Serbia are explicitly authorized to carry out the entire electronic company formation in Serbia process on behalf of clients, using their own qualified electronic certificates. This includes the electronic submission of incorporation documents, payment of registration fees, and communication with the SBRA throughout the procedure.

Most importantly, when paper-based documents must be submitted in electronic form, Serbian attorneys are legally authorized to digitize and certify such documents for the purposes of registration. This function is critical in cases involving foreign shareholders, where extracts from foreign business registers, powers of attorney, and corporate documents are typically issued in hard copy form. For legal validity within the electronic registration system, these documents must be digitized by a lawyer or a notary public.

In practice, this means that foreign founders and corporate shareholders are not required to obtain Serbian electronic certificates or navigate the technical requirements of the online system themselves. The incorporation can be completed fully through legal representation, ensuring compliance with SBRA requirements and avoiding delays caused by technical or formal deficiencies.

Required documents and fees

Your e-application for company formation in Serbia must include all mandatory information fields and attachments:

  • Memorandum of Association
  • Proof of payment of the registration fee
  • Bank certificate (if monetary contributions are made) with an electronic signature from the authorized bank representative
  • For foreign legal entities: digitized extract from the business register of the country of origin

 

The fees for company registration in Serbia are structured as follows:

  • Electronic registration of an LLC: RSD 5,900 (approximately €50)
  • Registration of a sole proprietor: RSD 1,600 (approximately €13)
  • Reservation of business name: RSD 1,100 (approximately €9)

 

Payment can only be made electronically using Visa, MasterCard, or Dina payment cards.

Timeline for approval

Once all documentation is properly submitted, the Business Registers Agency processes applications promptly. Henceforth, the entire registration process typically takes between 3-5 working days. Some sources even report that the registration can be completed in just 2 working days from the date of document submission.

Upon approval, the BRA issues a formal decision confirming your company formation in Serbia is approved. At this point, your business entity officially receives:

  • Company Identification Number (MB)
  • Tax Identification Number (PIB)

 

This “one-stop-shop” company formation in Serbia system eliminates the need for separate applications to different government bodies, making the process much more efficient than before, when it took up to 23 days.

After receiving registration confirmation, you have 15 days to submit your first tax application. This initial tax declaration includes your subjective evaluation of potential profit for the first year, which establishes your tax obligations for that period.

Open a Corporate Bank Account in Serbia

After completing the company formation in Serbia with the Business Registers Agency, opening a corporate bank account becomes the next vital step for your Serbian company to operate legally. Without a bank account, your business cannot process financial transactions or meet tax obligations.

Documents required by banks

To open a corporate account in Serbia, banks typically request the following documentation:

  • Company registration documents: Certificate of Registration from the Business Registers Agency, Tax Identification Number (PIB) confirmation, and the Memorandum of Association
  • Identification documents: Personal ID or passport of all directors, shareholders, and authorized signatories
  • Proof of address: Both for the company and for directors/owners (utility bills or other official documents)
  • Financial information: Description of business activities, expected transaction volumes, and source of funds

 

It is important to note that Serbian banks often apply institution-specific requirements in addition to the standard documentation. These may include internal forms, compliance questionnaires, enhanced KYC declarations or additional supporting documents, depending on the bank, the ownership structure and the intended business activity.

In practice, such requirements are not uniform across banks and are typically not fully disclosed in advance, which is why prior verification is essential. Conducting a preliminary check of the selected bank’s requirements allows the process to be structured efficiently and prevents delays or repeat visits caused by missing or non-compliant documentation.

Where the account opening is handled through legal counsel, the documentation set is usually aligned with the bank’s internal requirements in advance, ensuring that the client attends the appointment with a complete and compliant file, or that the process is conducted remotely where possible.

Choosing the right bank

Serbia hosts numerous reputable banks that offer corporate accounts with varying services and fee structures. Major banks operating in Serbia include:

Banca Intesa, with 147 branches across nearly 100 Serbian cities, offers multiple account packages including special options for foreign currency accounts.

Raiffeisen Bank provides comprehensive corporate services through their account packages, making them popular among foreign entrepreneurs.

UniCredit Bank and OTP Bank maintain extensive ATM networks throughout the country, which can be advantageous for businesses requiring regular cash operations.

When selecting a bank, consider factors such as:

  • Online banking capabilities
  • Foreign currency account options
  • International transfer fees
  • Branch accessibility
  • English-speaking staff availability

Non-resident bank account options

Foreign companies may open corporate bank accounts in Serbia even without company formation in Serbia. Such non-resident accounts are subject to a specific regulatory and compliance framework, which differs from the requirements applicable to resident companies.

In addition to standard corporate documentation, banks typically require a detailed extract from the foreign company’s business register, duly legalized or apostilled, depending on the country of origin. The scope and form of supporting documents may vary depending on the ownership structure, jurisdiction of incorporation and the intended use of the account.

Foreign legal entities may be fully represented during the account opening procedure by authorized representatives acting under a power of attorney, which in practice often eliminates the need for managing directors or shareholders to be physically present in Serbia. This is particularly relevant for companies with complex ownership structures or directors based outside Europe.

Once approved, non-resident corporate accounts may operate in multiple currencies, including Serbian dinars (RSD) and major foreign currencies, enabling international payment flows and operational flexibility.

As part of the approval process, banks conduct comprehensive Know Your Customer (KYC) and anti-money laundering checks, including verification of the company’s registration data, ownership and control structure, and identification of ultimate beneficial owners holding 25% or more of the shares or voting rights. Proper preparation and alignment of documentation at an early stage is essential to ensure a smooth and timely completion of the procedure.

Fulfill Tax and Accounting Obligations

Completing your tax and accounting setup constitutes a mandatory step after your company formation in Serbia. This phase requires attention to detail as it establishes your ongoing compliance framework.

In addition to standard corporate documentation, banks typically require a detailed extract from the foreign company’s business register, duly legalized or apostilled, depending on the country of origin. The scope and form of supporting documents may vary depending on the ownership structure, jurisdiction of incorporation and the intended use of the account.

Foreign legal entities may be fully represented during the account opening procedure by authorized representatives acting under a power of attorney, which in practice often eliminates the need for managing directors or shareholders to be physically present in Serbia. This is particularly relevant for companies with complex ownership structures or directors based outside Europe.

Register for tax ID and VAT

Your Tax Identification Number (TIN or PIB in Serbian) is typically issued alongside your company registration certificate. This nine-digit identifier remains unchanged throughout your company’s existence. The TIN appears on all business documentation, especially invoices, making it a cornerstone of your company’s identity. Without it, you cannot open bank accounts, perform business transactions, or fulfill tax obligations.

Regarding Value Added Tax (VAT), registration requirements depend on your situation:

  • Domestic businesses must register if turnover exceeds RSD 8,000,000 (approximately €68,000) in any 12-month period
  • Foreign companies should register before starting business activities in Serbia, regardless of turnover

To register for VAT, submit an electronic application through either the Tax Administration portal or during your initial Business Register Agency registration.

Hire an accountant

Employing a qualified accountant promptly after company formation in Serbia saves considerable time and prevents compliance issues. Your accountant will:

  • Guide you through documentation required by tax authorities
  • Prepare and submit your mandatory tax applications
  • Ensure ongoing compliance with Serbian regulations
  • Provide strategic tax planning advice

 

Rather than selecting accounting services based solely on cost, evaluate expertise in dealing with foreign-owned businesses and international tax matters. Professional accountants familiar with Serbian regulations offer invaluable guidance through the complex tax landscape, potentially saving money through proper tax planning.

Submit initial tax declarations

Within 15 days after company formation in Serbia with the Business Registers Agency, you must submit your initial tax application to the Tax Administration. This crucial deadline catches many new company owners off-guard.

The initial application includes your anticipated income, expenses, and projected profit for the first operational period. Based on these projections, the Tax Administration calculates your monthly tax advances at the 15% corporate rate for LLCs, payable by the 15th of each month.

To complete these declarations, your company director needs a Qualified Electronic Signature (QES). This digital tool enables electronic submission of tax forms and financial reports through Serbia’s digitized government services, making it an essential component of your business infrastructure.

Conclusion

Company formation in Serbia stands out as one of the most accessible and cost-effective options for entrepreneurs in Europe. The minimal capital requirement of just €1 combined with a streamlined registration process makes Serbia particularly attractive compared to other European countries. Additionally, the flat 15% corporate tax rate offers significant financial advantages for businesses of all sizes.

Foreign entrepreneurs will find Serbia’s open approach especially welcoming. Equal rights for domestic and foreign founders eliminate the barriers typically encountered in other jurisdictions. Most importantly, you can own 100% of your Serbian company without local partners while maintaining complete management control.

The process of company formation in Serbia itself has become remarkably efficient through electronic registration. Therefore, you can expect to have your business operational within 5-15 days after submitting properly prepared documentation. Your choice of legal structure—whether LLC, sole proprietorship, or joint stock company—should align with your specific business objectives and risk tolerance.

Consequently, after registration comes the crucial step of opening a corporate bank account and fulfilling initial tax obligations. These steps complete your company’s operational foundation and ensure compliance with Serbian regulations from day one.

The path from company formation in Serbia to obtaining a Serbian residence permit provides another compelling reason many international entrepreneurs choose Serbia. This option requires no specific minimum investment and can lead to permanent residency after five years of continuous legal residence.

Serbia certainly delivers a balanced combination of straightforward registration procedures, favorable tax conditions, and meaningful residency opportunities. These factors together create an environment where businesses can thrive with minimal bureaucratic obstacles while their owners enjoy the benefits of European living.

Need legal support? Get in touch — our team is here to guide you every step of the way. When the law gets complicated, we make things clear — and get things done.

Email:

inquiry@injac.rs

Tel:

+381 11 2458 945

Address:

Makenzijeva 17,

11000 Belgrade - Serbia

Contact Us:

Navigating Serbia’s dynamic business environment requires sharp legal insight and reliable support. Injac Attorneys at Law delivers tailored legal solutions across Corporate Law, M&A, Dispute Resolution, Employment, IP, Real Estate, Data Protection, and Tax. Count on us as your trusted legal partner in every transaction.

Home

About Us

Our Team

Practice Areas

Legal Insights

Career

Contact

Email:

inquiry@injac.rs

Tel:

+381 11 2458 945

Address:

Makenzijeva 17,

11000 Belgrade - Serbia

Linkedin

© 2025 Injac. All rights reserved.

Privacy Policy

Terms of Service