SonsözPartner provides structured consultancy for entrepreneurs and investors who want to establish a company in Serbia and obtain legal residence based on company ownership or management. Serbia has become one of the most attractive destinations in Southeast Europe due to its strategic location, low taxation, competitive workforce and EU alignment process.
Belgrade and Novi Sad host dynamic technology and business ecosystems, and forming a company in Serbia not only offers commercial advantages but also opens a pathway to residency, making the country a gateway to the wider European region.
Why Establish a Company in Serbia?
Serbia stands out through its tax advantages, workforce quality and wide market access. The combination of affordability, transparency and strategic trade agreements makes it highly attractive for international business owners.
1. Low and Stable Tax System
- Corporate Income Tax: 15% flat rate.
- Personal Income Tax: 10%, with incentives for IT and R&D fields.
- VAT: Standard 20%, with reduced rates of 10% and 0% depending on product type and export category.
2. Strategic Trade Position
Serbia provides access to nearly 800 million consumers through multiple agreements, including:
- EU Stabilization and Association Agreement (SAA)
- CEFTA
- EFTA
- Bilateral agreements with Turkey and Russia
3. Skilled and Multilingual Workforce
Serbia has a strong talent base in engineering, IT and scientific fields, with widespread English and German language skills.
Steps for Company Formation in Serbia
The DOO (Limited Liability Company) is the most common and flexible structure for foreign entrepreneurs.
Step 1: Determine Company Type and Name
The preferred form is DOO. The name must be checked and approved through the Serbian Business Registers Agency (APR).
Step 2: Prepare Required Documents
- Founding Agreement / Articles of Incorporation
- Appointment of company director
- Notarized passport copies of founder(s) and director
- Criminal record certificate (where required)
Step 3: Minimum Share Capital
The minimum capital is only 100 RSD (less than €1).
Step 4: Registration with APR
Registration usually takes 3–5 business days. Once complete, the company receives:
- Registration Number (MB)
- Tax Identification Number (PIB)
Step 5: Bank Account Opening
After registration, a corporate bank account is opened in RSD or EUR. Physical presence of the director is generally required.
Residency Through Company Formation
Company founders or directors can obtain temporary residency in Serbia. Residence permits are usually issued for one year and renewed annually as long as the business remains active.
Requirements for Residency
- Company registration documents
- Valid passport
- Local health insurance
- Registered Serbian address (white card)
- Proof of financial means
Residency Period and Permanent Stay
- Initial Residence: 1 year
- Renewal: Requires active operation and compliance
- Permanent Residency: Eligible after 5 continuous years
Family Reunification
Spouses and children may receive residency through family reunification procedures.
Other Business Options in Serbia
Paušal (Flat-Rate Entrepreneurship)
A simplified taxation model suitable for freelancers, consultants and IT professionals. Taxes are paid at a fixed monthly amount regardless of income.
Branch or Representative Office
International companies may open a branch or representative office under Serbian commercial law depending on their operational needs.
Who Cannot Establish a Company in Serbia?
Certain individuals are legally restricted from forming or managing a company:
Financial Crimes
Those convicted of tax fraud, corruption, money laundering or similar offenses cannot establish or manage a company until restrictions are lifted.
Management Bans & Bankruptcy Issues
Persons with active management bans or proven responsibility for fraudulent bankruptcy cannot form companies.
Legal Capacity Requirements
- Applicants must be 18 or older.
- Applicants must have full legal capacity.
International Sanctions
Individuals listed on major global sanctions lists (UN, EU, etc.) cannot establish companies due to compliance obligations.
Advantages of Doing Business in Serbia
- Low corporate tax
- Wide international trade access
- Educated, multilingual workforce
- Fast and affordable company formation
- Growing alignment with EU standards
SonsözPartner provides full support in establishing your Serbian company, managing residency procedures and maintaining compliance with all legal and administrative requirements.