The beautiful Balkan country has become a real draw for entrepreneurs and investors in recent years as it is turning into an international business hub that offers really good conditions to foreigners. Serbia is interested in attracting foreign capital, and business people opt for it to take advantage of low taxes as compared to other European countries, excellent investment opportunities, top-notch corporate/personal banking services, and an opportunity to obtain a local residence permit in return for setting up your business. As Serbia is about to join the EU, you may get an EU passport in about 7 years from now if you start by obtaining a residence permit today!
If you want to know more about the destination, we strongly recommend visiting our site called SerbiaWealth. Explore our portal where you will find a lot of information about different aspects of Serbian life as the jurisdiction is very popular with our customers. You can schedule a free individual session with our expert to discuss the details and make sure that Serbia is the right country for your needs. We will help you set up a company and open an account at a reasonable fee!
Here are the main reasons that make the country an appealing destination for entrepreneurs and investors from various countries:
- Top-notch IT infrastructure
- Business maintenance expenses are not very high
- The crime rate in the country is low, which makes the environment secure for business and life.
- You can get professional services here at a low cost
- The local population is multilingual and well-educated, which means that you will have no problem finding employees for your company
- The local legislation is transparent and business-friendly, and the taxation system is favorable to foreign entrepreneurs.
- Company registration gives you the right to obtain a Serbian residence permit, which is an attractive opportunity for many foreigners.
- The country offers quite a high quality of life at an affordable cost.
- Take advantage of excellent banking with access to branches of large international banks.
- Finally, Serbia is a stable country in political and economic terms that maintains friendly relations with all the world’s major economic powers.
Different Legal Forms in Serbia
There are five main legal company forms that you can set up in Serbia, and you can also open branches of foreign and local companies. Let’s consider the details about each of these below.
This kind of business is very easy to set up, and the owner will not have to submit any reporting. However, the obvious disadvantage is unlimited liability: the sole proprietor is liable for his/her debts and obligations with all personal property. This form is suitable for small-scale businesses that mainly rely on the efforts of their owners. Naturally, you will have limited flexibility and growth opportunities.
You can establish a general or a limited partnership.
A general partnership includes at least two partners, and all of them bear unlimited liability. Partners may be individuals or legal entities that cooperate on the basis of a partnership agreement. There is no lower share capital threshold set, and the amount of capital has to be specified in the agreement.
A limited partnership has at least one general partner with unlimited liability, while the other members are limited partners whose liability is limited by their contribution to the partnership. There is no lower threshold for the share capital, either. The general partner is the company’s legal representative and manager, while the other partners may play a silent role.
If you set up a closed joint-stock company, the number of shareholders is limited to 100, and your share capital cannot be less than 10,000 euros.
As for the open joint-stock company, the minimum share capital amounts to 25,000 euros, and the number of shareholders can exceed 100. The shares of OJSC can be registered on the stock exchange, while CJSC shares cannot. All important decisions are made at the general meeting of shareholders, while daily operations are managed by the board of directors controlled by the supervisory board.
Limited Liability Company
This is the most common legal form in Serbia as it proved to be suitable for a wide range of activities. The main advantage is, of course, the owner’s limited liability. The registration procedure is quite straightforward and will not take more than two weeks, and the expenses you incur will be quite reasonable.
The main features of a Serbian LLC:
- The minimum share capital is about 1 euro (RSD 100). However, your company will not look serious with this amount, so we recommend starting with a larger amount.
- You can pay up the share capital within 5 years, but you have to state the amount at registration.
- The company is registered by the Business Register Agency of the Republic of Serbia.
- The founder needs to file notarized Articles of Incorporation and a Registration Application signed by the company founder(s) (the signatures must be notarized).
- You will need to submit original documents along with the translation into Serbian.
- You will need a unique name for your company.
- The owner will need to choose the company’s main activity that complies with the local Regulation on Classification of Activities.
- An LLC must have at least one director and an assembly (which includes all the company founders/members).
- The director can be a local or foreign individual or legal entity.
One of the appealing features of Serbia is its benign taxation system. Let’s look at the tax rates:
- The dividend tax rate and the corporate tax rate amounts to 15%.
- The standard VAT tax rate is 20%, but it can amount to 10% or even 0% in some cases.
- The social security tax is 17.9% for companies and 19.9% for employees.
- The individual income tax varies between 0% and 15% depending on the amount of income.
In addition, you will be able to take advantage of more than fifty double taxation agreements between Serbia and other countries.
Interested in company registration in Serbia? Click on the above link to find more details or get in touch with our expert for professional advice and assistance!