Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
Company registration in Serbia
Serbia has become a popular jurisdiction for entrepreneurs from Eastern Europe in recent years, particularly for IT companies, service businesses and startups. The main reasons are relatively low taxes, the possibility of 100% foreign ownership of the company and the fast registration procedure. The corporate tax rate in Serbia is 15%, which is one of the lowest in the region.
At the same time, Serbia is not a classic offshore jurisdiction: companies must keep accounting records, submit financial statements and undergo banking compliance.
Main taxes paid in Serbia
Serbia’s tax system is considered relatively simple and competitive compared to other European jurisdictions.
Main taxes for business:
Corporate Income Tax
- standard rate – 15% of company profits.
VAT
- standard rate – 20%;
- reduced rate – 10% (for certain categories of goods and services).
Mandatory VAT registration occurs if the annual turnover exceeds approximately 8 million Serbian dinars (about 68-70 thousand euros).
Dividend tax
- standard rate – 15%.
Personal income tax
- basic rate – 10%.
For example, an IT company with a profit of 100,000 euros will pay approximately 15,000 euros in corporate tax, which makes Serbia a competitive jurisdiction for service businesses.
The procedure for registering a company in Serbia is relatively fast. Registration through the state register of companies – Serbian Business Registers Agency (APR) – usually takes 3-7 business days if all documents are prepared correctly.
Main stages:
- Choosing the legal form. For example, the most common form used for an IT company is the DOO (analogue of an LLC).
- Preparation of constituent documents. The statute or memorandum of association is prepared, the director and legal address are determined.
- Submission of documents to the APR. The state fee is approximately 50-60 euros, depending on the method of submission of documents.
- Obtaining a registration number and tax ID.
- Opening a bank account and registering for taxes.
To register a company in Serbia, you usually need:
- a copy of the founder’s passport;
- the articles of association or memorandum of association;
- a decision on the appointment of a director;
- the company’s legal address;
- a power of attorney (if the registration is carried out by a representative).
Serbian legislation provides for several forms of doing business.
DOO (Društvo sa ograničenom odgovornošću)
Analogue of the Ukrainian LLC. This is the most popular form for small and medium-sized businesses.
Example: IT company, marketing agency, consulting firm.
AD (Akcionarsko društvo)
Analogue of the joint-stock company. Used for large businesses or companies that attract investors.
Preduzetnik
Analogue of the sole proprietorship. Suitable for freelancers, consultants or small service companies.
For example, a programmer or designer can work as a Preduzetnik and pay taxes under the simplified regime.
The law firm “Prikhodko and Partners” provides comprehensive support for company registration in Serbia.
Our services include:
- Legal analysis and consultations. We help determine the optimal business structure and company form.
- Preparation of documents. Development of the charter, corporate decisions and powers of attorney.
- Registration of the company in the state register. Prikhodko & Partners lawyers interact with APR and accompany the process until obtaining an extract from the register.
- Accounting support. Serbian legislation requires accounting to be conducted by a licensed accountant, so we help clients organize full financial support.
Example: The client is a Ukrainian fintech startup. Prikhodko & Partners lawyers helped create a DOO in Belgrade, open a bank account, and set up accounting for international payments.
Main advantages:
- 100% foreign ownership of the company;
- Possibility of remote registration;
- Over 60 international treaties on the avoidance of double taxation.
Despite the relative simplicity of the procedure, in practice there are some difficulties.
- Notarization and translation of documents. Documents of foreign founders often need to be translated and legalized.
- Opening a bank account. Banks conduct thorough KYC procedures and may request a business plan or confirmation of the source of funds.
- Tax structuring. Incorrect planning can lead to double taxation.
- Bureaucratic procedures. Despite the quick registration of a company, the full launch of a business (account, taxes, registration of beneficiaries) can take 10-30 days.
Serbia is an attractive jurisdiction for international business due to its low corporate tax rate, fast company registration and strategic location between the EU and the Balkans.
Lawyers at Prikhodko & Partners help clients assess the feasibility of using this jurisdiction, register a company, and set up a tax and corporate structure to operate in international markets.
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