Company registration in Serbia

Serbia is a popular country for registering a business in Europe. The demand for opening companies in this jurisdiction is growing every year. However, problems often arise during registration. In Serbia, like in any other country, there are features related to local legislation. Without knowledge of these nuances, the procedure can drag on for a long time.

The legal association Zigma offers clients services for registering a company in Serbia. Our company’s specialists have extensive experience in carrying out this procedure. Zigma lawyers will register your company as quickly as possible. Zigma also offers services for purchasing ready-made legal entities. The procedure will take no more than 2 days.

Why is it worth opening a company in Serbia?

Serbia is a European state with great industrial and tourism potential. The country is a candidate for membership in the European Union. Business here is developed and continues to develop. There are several reasons why you should open a company in Serbia and not look for other jurisdictions. The main ones are the following:

• Convenient geographical location. The country is located in Central Europe, in the Balkans. Therefore, logistics will be quite convenient, regardless of whether the business operates in Western or Eastern Europe.
• Stability. Serbia is a politically and economically stable country that has a developed industrial sector. It also has significant regional connections.
• Developed infrastructure. Serbia has excellent transport, functioning power plants, and a well-developed telecommunications network.
• Low taxes. Income tax in Serbia is only 15%. This is one of the lowest rates in all of Europe. Duties on equipment imports for foreign investors are 0%.
• Free trade agreements. The state has concluded relevant agreements with EFTA, Turkey, CEFTA, Kazakhstan and a number of other states and economic blocs.

Serbia is actively working to attract foreign capital to the country. In particular, a special tax regime is provided for non-residents who open their branches in the country. To take advantage of it, you must invest at least 8,000,000 EUR in fixed assets and hire at least 100 employees during the investment period.

What forms of company ownership exist in Serbia?

Before registering or buying a company in Serbia, it is important to know what types of legal entities there are in this country. The following types of organizational forms are available in this state:

• Limited Liability Company. Can be established by no more than 50 investors. There must be at least 1 director and shareholder.
• Joint-Stock Company. To open such a company, you need an authorized capital of at least 25,000 EUR. The company must have at least 3 directors and 1 shareholder.
• Partnership. Can be established by both individuals and legal entities. The authorized capital can be contributed both in monetary and non-monetary form.
• Limited partnership. Established by at least 2 partners. It is created to carry out activities under a company name with the aim of making a profit.

For non-resident companies there are two registration options. The first option is a branch. The branch must be part of the parent company, it must have a legal representative, as well as an office in Serbia. The foreign company bears full responsibility for all activities of the branch. The second option is representation. A representative office is a separate organizational unit of a foreign company. It may engage in research and marketing activities for the benefit of the parent company. A representative office is not a separate legal entity.

Tax policy in Serbia.

Taxes in Serbia are beneficial for business. Tax rates in this country are stable and are revised very rarely. For example, corporate income tax is only 15%. Personal income tax is levied at a rate of 10%. Customs duty rates range from 0% to 57.5%, but most rates are below 30%. In addition, non-residents can take advantage of preferential duties on equipment imports - 0%.

Serbian legislation provides for 2 VAT rates. They are as follows:

• Basic – 20%.
• Reduced – 10%.

It is important to know that there are free economic zones in Serbia. This allows you to further reduce taxes. For example, for non-residents in some cases a VAT rate of 0% may be applied. If a company produces in a free economic zone, it does not pay for electricity. Companies may be exempt from certain types of taxes in the case of direct investment from abroad. Customs procedures are expedited.

How to register a company in Serbia?

Opening a company in Serbia requires careful preparation. Local legislation provides for a strict registration procedure. It includes the following steps:

• Selecting a name. The commercial name of a legal entity in Serbia must be unique. It must be approved by the relevant authority.
• Preparation of documents. Every company that intends to operate in Serbia must have a Charter. This is one of the most important documents during registration. You also need information about the founders, managers, information about the company’s office, etc.
• Appointment of a legal representative. An important step for non-residents, since they definitely need a local agent. It must be appointed in accordance with local legal requirements.
• Filing an application. The application is submitted to the state registrar along with a package of necessary documents.
• Opening a bank account. An account must be opened in one of the local banks. The authorized capital must be deposited into this account. Also, the registered bank account will be used in the future for business activities.
• Final stages of registration. Once the registrar approves the application, the company must proceed to registration with other authorities. This may be obtaining a license (if the activity must be licensed), registration with tax authorities, government funds, etc.

It is also important to know information about bank accounts for companies in Serbia. Banking services are available to non-residents subject to the rules for their registration and conduct of business. In this country, you can open an account in any of 29 local banks. An account can be opened both in local currency and in foreign currency, for example, USD or EUR. Corporate clients can take advantage of a number of additional options. For example, these could be non-standard SWIFT payments, letters of credit, bank guarantees, etc. Electronic banking is well developed in Serbia, which makes payments between the company and clients convenient. There is also the possibility of opening deposits in Serbian banks. Clients' money is protected by government guarantees.

Is it possible to buy a ready-made company in Serbia?

The procedure for registering a legal entity in Serbia takes time, but not always the client can afford to wait the several weeks required for the preparation of a package of documents and consideration of the application by the state registrar. In this case, a ready-made company with an account in Serbia may be the solution. The organization does not have to be registered; it can simply be purchased. Buying a shelf company has several important advantages.

• Save time. The client does not have to wait several weeks. Selling companies in Serbia takes no more than 24 hours. Immediately after completion of the re-registration, the organization can conduct business activities.
• Opportunity to buy a company from any industry. When purchasing a ready-made organization, the client can choose a legal entity from the industry in which he intends to work. In addition, you can purchase companies with additional activities.
• Opportunity to get a company with a history of activity. Not all counterparties are ready to cooperate with legal entities that are new to the market and have no history of activity. Purchasing a ready-made company allows you to solve this problem.

Before you buy a company, it is important to make sure that it is not “problematic”. Therefore, before a transaction, a legal entity must undergo a full check for the presence of debts, fines or other problems that may cause claims from government authorities.

Zigma – fast registration or re-registration of companies in Serbia.

The law company Zigma offers clients registration services for legal entities in Serbia. Zigma provides the necessary turnkey services. The company’s specialists will provide advice, prepare the necessary documents and provide legal support services. In the event of an unlawful refusal, Zigma's lawyers will appeal the decision in court.

If you are interested in being able to conduct business faster, Zigma offers to buy a ready-made organization. Our company has a detailed database of legal entities available for sale. Zigma specialists will help you choose the appropriate option at the consultation stage and provide all the necessary re-registration services.

In addition, Zigma offers additional services. For example, if you need a company in Serbia with a nominee director, our law firm will help solve this problem. We also provide full support to companies, support their activities and participation in disputes with regulatory authorities and counterparties.

Do you have questions regarding registering or purchasing a company in Serbia?