Doing business in Serbia can be one of the best decisions you can make. In recent years, the country has had a solid economic performance, thanks to its low taxes and strategic position in Europe. Serbia is the ideal place for those who want to expand their commercial horizons and protect their well-earned capital.

These are some of the reasons why foreign capitals have been flowing into Serbia in recent years. In fact, Serbia is the second largest recipient of Foreign Direct Investment (FDI) in the Eastern Europe economies, just after Russia.

In a nutshell, we will tell you the main reasons to establish a company in Serbia:

-A corporate tax rate of 15%, one of the lowest in Europe.

-Free trade agreements with many countries in Central and Eastern Europe, as well as preferential custom regimes for some exports to the European Union.

-A strategic location, just between Asia and Europe

-A highly educated labor market.

-Sound business opportunities. Serbia has an astronomus economic potential because it remains largely undeveloped.

Low taxes, a privileged geographical position and a potential entrance to the European Union in the future are some of the advantages that make Serbia the perfect place to open a company in Eastern Europe.

Corporate Structures in Serbia

When investing in Serbia, a foreign investor may face a dilemma about the commercial structure that would fit them best in the country. However, most of the financial solutions are held through Limited Liability Companies and Branches.

In this section we will give you a detailed explanation about this two types of corporate structures, according to Serbian law.

Limited Liability Companies (LLC) 

These are some of the characteristics of a Serbian Limited Liability Company: 

-The equity in the company’s capital can be held by either one or more members of the association. 

-Each member’s liability is defined by the value of their investment in the company. 

-The minimum initial capital is of RSD 100, which is less than an EUR.

-Contributions of founders can be in money or in kind and are expressed in RSD. 

-In kind contributions can be in the form of assets and rights.

Creating an LLC is both easy and cheap, gives you the opportunity to apply for temporary Serbian residency by just investing a tiny amount of your capital in the country, and covers your liability exposure for doing businesses in the country. 

About Branches

Branches are a widely used solution for establishing a business in Serbia. In this country, some of the characteristics of a branch are:

-They are an additional organizational unit of a foreign company through which that corporation carries out businesses in Serbia. Therefore, it lacks an independent legal capacity and acts on behalf of the founder company in all commercial dealings.

-A founder company bears unlimited liabilities for obligations to third parties that are the result of any commercial transaction. 

-The founder of the company is the one who decides to incorporate the branch, and it should be registered in the public register of the company. 

The branch is not a separate legal entity but just an additional unit of the main company. Once it gets formed the branch gets a tax identification number and banks then treat it as a resident structure which guarantees us a calm attitude from the banks and many more banking options for the clients.

There are other types of corporate structures in Serbia, such as Joint Companies, partnerships and Joint ventures.

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How to open a Corporate Structure in Serbia?

Once an investor has selected the appropriate legal form that you wish to give to your company, he needs to follow the next steps to set up a company, the whole process can take up to three weeks:

-The founders need to draft a constituent document, called articles of association, which must contain: the name of the company, its address, its main activities, its objectives, and the initial capital contribution.

-Fill out and submit a registration form for business to the Serbian Business Registration Agency.

-Appoint a legal representative.

-The founder will be provided with a registration certification issued by the Serbian Business Register Agency (SBRA) and will also obtain a registration number and code from the Republic Statistical Agency, the Pension fund, and the Health Fund.

-Open a company bank account.

-Apply for special licenses and permits before starting activities in Serbia. 

Serbia offers many types of businesses for those who want to invest in the country. Sure, depending on your personal financial situation it would be more profitable to choose one corporate structure over another, with each type of company requiring different paperwork. 

As soon as the company is registered, it will receive a tax number, the business registry is in communication with the Serbian authorities.

What Can We Do for You?

In Mundo, our task is to seek business opportunities all around the globe for our clients. Our mission is to keep them happy and with money flowing into their pockets.

Thanks to our longstanding relationship with NTL Wealth, we have developed a wide network of experts in the five continents. Our last investment opportunity is in Serbia, one of the best countries to invest in Eastern Europe.

We understand that doing all the paperwork for setting up a business in Serbia can be time-consuming and mind-boggling, but you don’t have to worry.

Our experts in Serbian Corporate structures can offer you business consultation and help you to create a company, providing invaluable advice on how to do business in this great country.

They will also prepare all the documentation needed for the formation of the structure in Serbia. You would only pick the type of legal structure that is most comfortable with and the most suitable for your economic activities.

Set up a company in Serbia. Contact us now!

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