Serbia has become an increasingly attractive destination for entrepreneurs and investors, both local and foreign, thanks to its strategic geographic location, favorable tax policies, competitive labor costs, and expanding infrastructure. The Serbian government has implemented various reforms to ease doing business, including simplifying registration procedures and offering investment incentives.
Whether you are a resident or a foreigner looking to tap into Serbia’s emerging market, this guide walks you through the key legal steps and considerations for starting a business in Serbia.
1. Choose the Right Legal Form
The first step in starting a business in Serbia is selecting the appropriate legal structure. The most common types are:
a. Sole Proprietorship (Preduzetnik)
- Suitable for freelancers or very small businesses.
- Easy to register.
- Taxed based on income or lump-sum for certain professions.
- Owner is personally liable for debts.
b. Limited Liability Company (DOO – Društvo sa Ograničenom Odgovornošću)
- Most popular for SMEs and startups.
- Requires at least one shareholder (natural or legal person).
- Minimum capital: RSD 100 (approx. €1).
- Shareholders’ liability limited to their contributions.
c. Joint Stock Company (AD – Akcionarsko Društvo)
- Ideal for larger businesses and companies seeking to issue shares.
- Minimum share capital: RSD 3,000,000 (approx. €25,000).
- May be private or public.
d. Branch Office or Representative Office
- A way for foreign companies to operate in Serbia without forming a separate legal entity.
- Representative offices cannot perform commercial activities; branch offices can.
2. Business Name and Registered Address
Every business must have a unique name registered with the Serbian Business Registers Agency (SBRA). The name can be in Serbian or a foreign language using Latin or Cyrillic script.
You will also need a registered office address in Serbia. This must be a physical address, which will be used for official correspondence.
3. Register with the Serbian Business Registers Agency (SBRA)
The SBRA (APR) is the central authority for company registration in Serbia. You must submit the following documentation (varies slightly depending on the legal form):
Company formation in Serbia requires submitting a structured set of documents to the APR, which oversees the legal establishment of all business entities.
For a DOO:
- Application form (available on the SBRA website).
- Founding Act (decision if one founder, agreement if multiple).
- Proof of identity of founders.
- Proof of payment of registration fee (~RSD 6,000).
- Proof of registered office address (ownership document or lease).
Timeline: Registration is usually completed within 3–5 business days.
4. Open a Business Bank Account
After registration, the SBRA issues a registration certificate and a company identification number (MB). With this, you can open a business bank account in any commercial bank in Serbia.
If you’re forming a DOO, the minimum capital contribution can be deposited within five years, unless otherwise stated in the founding act.
5. Register with the Tax Authorities (PU)
The next step is registering with the Tax Administration (Poreska Uprava), including:
- Tax Identification Number (PIB).
- VAT registration (mandatory if annual turnover exceeds RSD 8 million, or voluntarily if desired).
- Payroll taxes and contributions (if hiring employees).
You must also keep proper accounting records and file regular tax returns.
6. Obtain Other Necessary Licenses and Permits
Depending on your industry, additional licenses or approvals may be required. Examples:
- Food production: Health and sanitary inspections.
- Construction: Construction and zoning permits.
- Transportation: Licenses from the Ministry of Construction, Transport, and Infrastructure.
It’s important to consult with sector-specific regulatory bodies to determine what’s required.
7. Register Employees and Comply with Labor Laws
If you plan to hire employees, you must:
- Register them with the Central Registry of Compulsory Social Insurance (CROSO).
- Comply with the Labor Law, which governs employment contracts, working hours, wages, and termination.
- Pay payroll taxes and social contributions (pension, health, and unemployment insurance).
Types of Employment Contracts:
- Indefinite-term (standard).
- Fixed-term (up to 24 months, with certain exceptions).
- Part-time.
- Work outside of the employer’s premises (e.g., remote work).
8. Understand the Tax System
Serbia offers a competitive tax regime:
| Tax | Rate |
| Corporate Income Tax | 15% |
| Personal Income Tax (standard) | 10% |
| VAT (standard) | 20% |
| VAT (reduced) | 10% (e.g., for basic foodstuffs, medicine) |
Other taxes may apply, such as property tax, excise duties, and withholding tax on dividends, interest, and royalties (20%, or reduced under double tax treaties).
9. Foreign Investment and Ownership Rules
Serbia allows 100% foreign ownership in most sectors. There are no restrictions on repatriation of profits, and foreign investors enjoy national treatment, meaning they are treated the same as domestic investors.
Foreign citizens may freely establish businesses, but may require a temporary residence permit and work permit if they plan to manage the business in Serbia personally.
10. Incentives for Entrepreneurs
The Serbian government offers various incentives for local and foreign investors, including:
- Tax holidays: Up to 10 years of corporate tax exemption for large investments (min. €8 million and 100 new jobs).
- Employment subsidies: Grants for hiring unemployed individuals.
- Free zones: Special zones with customs and tax benefits.
- Innovation support: State funding, incubators, and favorable tax treatment for R&D activities.
11. Ongoing Compliance and Reporting
Businesses must meet ongoing legal obligations, including:
- Annual financial reports to the SBRA.
- Regular tax filings (monthly or quarterly VAT returns, payroll taxes, etc.).
- Compliance with accounting standards (IFRS for larger companies, simplified standards for SMEs).
- Statutory audits, if certain thresholds are met (e.g., annual turnover over €4.4 million or more than 50 employees).
Non-compliance can lead to fines, penalties, or even dissolution of the business.
12. Legal Support and Business Culture
While it is possible to complete many steps independently, engaging a local attorney, accountant, or business consultant is highly recommended, especially for foreign investors unfamiliar with Serbian law and bureaucracy.
Business culture tips:
- Serbian businesspeople appreciate formal introductions and face-to-face meetings.
- Contracts are essential—always document agreements in writing.
- While English is widely spoken among professionals, Serbian is the official business language.
Starting a business in Serbia is relatively straightforward, thanks to recent government reforms and digitalization of services. The country is part of multiple free trade agreements (including with the EU, EFTA, Russia, and CEFTA), making it a strategic hub for companies targeting European and Eurasian markets.
By choosing the right legal structure, fulfilling registration and tax obligations, and complying with local regulations, entrepreneurs can build successful ventures in this growing economy.
Whether you’re starting a tech startup in Belgrade, a manufacturing firm in Niš, or a tourism company on the Danube, Serbia offers fertile ground for innovation and investment—provided you take the time to understand and comply with the legal framework.
