Launching a business venture in Serbia is a wonderful opportunity for a foreigner to enter the European and American markets. Taxes are low in Serbia by European standards and competition is not very tough. The authorities of the country make it possible to launch a company in Serbia at a low cost. Alternatively to starting a new company, you could consider opening a Serbian branch of your existing company. One more option to consider would be buying a ready-made company that already has a client base. When you have a company in Serbia, you qualify for legal residence in the country. After living in Serbia for 5 years (if you are single) or for 3 years (if you are married), you can apply for citizenship of the country. Why is it attractive to obtain Serbian citizenship? Because the country is likely to join the EU very soon.
Advantages and disadvantages of Serbia for a businessperson
You should consider establishing a business company in Serbia for the following reasons:
- An opportunity to become a citizen of a European (and prospectively an EU) country;
- Low taxes especially for small companies and self-employed individuals;
- A geographical position that is great for logistic purposes;
- Free Economic Zones that allow conducting duty-free import/ export operations наличие;
- Small company maintenance costs (an office in downtown Belgrade costs 250 to 300 euros per month and Internet connection costs 15 to 20 euros per month);
- Lower labor costs in comparison to other European countries: the average salary in Serbia is about 1,000 euros per month before taxes;
- Government assistance: loans at discounted interest, free consultations on business administration, informational support, and so on;
- Efficient banking system: banks in Serbia come up to the highest European standards and provide services of superb quality.
Speaking about disadvantages, we must point out that the sphere of online services is not very well developed in Serbia so far. On the other hand, this is where you could find a niche for your business. Another disadvantage of Serbia for a businessperson is the fact that the local bureaucratic machine can be rather slow at times. On the other hand, since May 17, 2023, it has been possible to register a business company in Serbia online.
If you don’t speak Serbian, you should not worry too much: most people in large cities speak good English.
Forms of company ownership available to foreigners in Serbia
We will provide only a brief list of company types below. You can find more information about the forms of company ownership in Serbia on this page if you are interested.
- Sole Proprietorship;
- Limited Liability Company;
- Corporation (private or public);
- General Partnership;
- Limited Partnership.
Stages in the process of opening a business company in Serbia
You have to come up with an original business idea, analyze possible market niches, and assess the level of competition in each of them. Then you will have to do some calculations to find out how much money you’d have to invest in your company in Serbia and how much money you can make. A business plan is mandatory.
You can register a company remotely in Serbia via the official site of the Serbian Business Registration Agency (SBRA).
We provide the algorithm of setting up a company in Serbia in the table below:
| Operations | Comments |
| 1. Prepare for company registration | Your company should have a unique name (you can ascertain that it is unique at the SBRA website). You can reserve the company name for 60 days. You have to choose the business area, decide who the company founders are going to be, and prepare the statutory documents. |
| 2. Acquire a QES (Qualified Electronic Signature) | You have to have an electronic signature to be able to register a company remotely in Serbia. You will also use this signature when filing tax returns online and using the e-government application. However, you have to pay a personal visit to the Chamber of Trade and Commerce or The Ministry of the Interior to acquire a QES. In addition, you will have to pay a fee. |
| 3. Register at the SBRA website | You have to create an account at the website of the Serbian e-government. After that, you can click the icon ‘Register with a qualified electronic signature’ and then follow the instructions. Please note that the instructions are in the Serbian language. |
| 4. Submit the application documents | You have to submit an e-application together with a digital version of the company By-laws using your QES. At this point, you have to pay the company registration fees: 4,900 dinars for registering the company + 1,000 dinars for registering the By-laws. |
| 5. Wait for response | You will have a reply within 5 days. If your application is rejected, you will have 1 month to correct the mistakes and supply the missing documents. When you reapply for company formation, the registration fee is going to be 2 times lower. |
If your application has been approved, you will be automatically assigned a registration number, a tax number, and a social security number. Now you are well-equipped to apply for banking services in Serbia.
What type of small business could you open in Serbia in 2024?
You can choose a time-tested business area that can bring a stable income or you can try some promising new business areas. Let us make a few suggestions.
- Catering services. Since all the COVID-19-reltated restrictions were lifted, Serbian cafes and restaurants have been making good profits again. You can invest 4,000 or 5,000 euros in a small café and return the investment within 5 or 6 months.
- A grocery store. Selling groceries on a small scale will not make you a millionaire but your income is going to be stable. People have to eat to continue living.
- Beauty industry. Opening a barbershop or a SPA salon does not require large investments but such institutions will let you make a living.
- IT industry. This is where you can make good profits as the sector is actively growing in Serbia and everywhere else in the world. Tax cuts are available to IT startups in Serbia.
- Car maintenance. The demand for high-quality car maintenance services exceeds the supply by far in Serbia. With several stations in a large city, you could make a fortune within a few years.
Regardless of what niche you choose, your success will largely depend on how talented and how industrious you are. A favorable business environment is there in Serbia and you have to make the best use of all the advantages that it offers.
