A Practical Guide to Company Registration, Business Setup, and Legal Requirements in Serbia
Start a Company in Serbia: Complete Legal Guide for Foreign Investors
Starting a business begins with choosing the right legal framework. Serbia has become an increasingly attractive destination for international entrepreneurs, combining low operating costs, a competitive 15% corporate tax rate, and a streamlined digital registration process.
Whether launching a startup or relocating an existing business, a well-structured market entry is essential—not only for compliance, but also for minimizing future legal and operational risks.
Choosing the Right Business Structure
Selecting the appropriate legal form is one of the most important early decisions. In Serbia, the most common options include:
- Limited Liability Company (D.O.O.) – The most widely used structure, particularly among foreign investors. It limits personal liability and requires minimal initial capital.
- Sole Proprietorship (PR) – A simple and cost-effective option, but with full personal liability for business obligations.
- Joint Stock Company (A.D.) – Designed for larger businesses, especially those planning to raise capital through shares.
- Partnerships (O.D. or K.D.) – Less commonly used by foreign investors, involving shared responsibilities and varying levels of liability among partners.
Key Requirements for Company Registration
Before registering with the Serbian Business Registers Agency (APR), several essential elements must be prepared:
- Company Name – Must be unique and distinguishable from existing entities.
- Initial Capital – For a D.O.O., the minimum is symbolic (100 RSD).
- Registered Address – A legal seat is required; virtual offices are commonly used.
- Director Appointment – At least one director must be designated, regardless of nationality or residency.
- Founding Documents – Articles of Association defining internal governance and operations.
Remote Company Formation via Power of Attorney
Foreign founders are not required to be physically present in Serbia. Through a Power of Attorney, the entire incorporation process—including registration and initial banking procedures—can be completed remotely.
Establishing a company in Serbia may also serve as a basis for obtaining temporary residence, making it a practical pathway for individuals seeking to live and work in the country.
Post-Registration Compliance and Taxation
After registration, companies must complete several additional steps:
- Obtain a Tax Identification Number (PIB)
- Register the Ultimate Beneficial Owner (UBO)
- Open a local bank account
From a tax perspective, Serbia offers a competitive environment:
- Corporate Income Tax: 15% flat rate
- VAT (PDV): Mandatory registration threshold at 8 million RSD annual turnover (optional below that level)
- Tax Incentives: Available for investments in R&D, employment, and certain industries
Long-Term Considerations
Setting up business in Serbia is fast, but it shouldn’t be careless. The way you draft your founding documents determines whether your business runs smoothly or hits avoidable hurdles. A well-structured legal foundation not only ensures compliance but also supports future growth, investment opportunities, and operational stability.
Note: This text provides general information and does not constitute legal advice. For specific questions and legal advice, please consult a lawyer.
Author
Vojislav S. Dulić
Vojislav Dulić is an attorney at law born in Herceg Novi, specifically in the town of Bijela.
He successfully completed his primary and secondary education in Geneva, thus acquiring an international education and perspective that further enriches his practice. Upon returning to Serbia, he further honed his knowledge and skills by practicing law in Belgrade, where he had the opportunity to work on various complex cases at a prestigious law firm.
He further complemented his practice by working in Geneva, within various branches of law. He speaks English, French, and Italian.
He is a member of the Belgrade Bar Association.
How can we help you?
Fill out the form below to contact us.
Our team will reply as soon as possible.
