Can you launch a business in Serbia if you are not a resident? You may be surprised but the answer is a definite yes. In 2024, foreign citizens are free to own and establish firms in Serbia. They do not even have to visit Serbia to register the company. The SBRA, which is the Serbian Business Registers Agency, started online registration for sole proprietors in 2018 and later added single and multi-shareholder companies. In fact, since mid-May 2023, online incorporation has been the only option to start a business in this jurisdiction. The new regulations give founders more flexibility, with lawyers’ significant role in the process, saving time and costs for them.
Remote company incorporation in Serbia involves establishing a legal entity without the need for your physical presence in the country. This option enables entrepreneurs to benefit from Serbia’s business-friendly environment, competitive taxes, and access to the European market without any logistical challenges of relocating or maintaining a physical office.
The most common types of legal entities for remote company incorporation in Serbia are limited liability companies (LLCs) and joint-stock companies (JSCs). Both offer limited liability protection to shareholders and can be formed remotely through authorized agents or legal representatives.
Remote company incorporation in Serbia in 2024: requirements
To incorporate a remote company in Serbia, entrepreneurs must adhere to specific requirements outlined by Serbian law. Here’s what these typically include:
- Appointment of a local legal representative: Entrepreneurs must appoint a local legal representative or agent who will act on behalf of the company in Serbia. This representative is responsible for facilitating the incorporation process, handling legal matters, and representing the company’s interests locally.
- Drafting and notarization of legal documents: A future company owner in Serbia is obliged to prepare and notarize the corresponding legal documents, including articles of association, bylaws, and powers of attorney.
- Minimum share capital requirements: Limited liability companies (LLCs) in Serbia require a minimum share capital of RSD 100 (approximately USD 1), while joint-stock companies (JSCs) typically need from RSD 3,000,000 to RSD 10,000,000 (approximately USD 30,000 to USD 100,000). The said share capital must be deposited into a Serbian bank account before company registration.
- Registration with the Serbian Business Registers Agency (SBRA): All companies in Serbia, including the ones incorporated remotely, must register with the SBRA to obtain a unique identification number (ID number) and legal status. The registration process involves submitting all required documents, paying registration fees, and fulfilling any additional regulatory obligations.
- Tax registration and compliance: Remote companies operating in Serbia are subject to Serbian tax laws and regulations. Hence, entrepreneurs are required to register for taxation purposes, obtain a tax identification number (TIN), and comply with ongoing tax obligations, including corporate income tax, value-added tax (VAT), and social security contributions.
Remote company incorporation in Serbia in 2024: benefits
Since you’ve already made up your mind to incorporate in Serbia you obviously know what you are doing and why. You are certainly aware of the country’s important business benefits, especially if you are about to expand your operations or access new markets. In particular, Serbia’s central location in Southeast Europe provides strategic access to regional markets, including the European Union (EU) and Western Balkans.
In Serbia, you will find a favorable business climate characterized by low corporate taxes, easy-to-handle regulatory procedures, and government incentives for foreign investment. The Serbian government has implemented reforms to improve the ease of doing business and attract foreign entrepreneurs.
Serbia boasts a highly skilled and educated workforce, with a strong emphasis on STEM (science, technology, engineering, and mathematics) disciplines. Remote companies have a wonderful opportunity to tap into Serbia’s talent pool to recruit professionals in various fields, including IT, engineering, finance, and marketing, at competitive rates.
Remote company incorporation in Serbia is likely to result in significant cost savings for you compared to establishing a physical presence in other European countries. Lower operating costs, competitive labor rates, and favorable tax incentives make Serbia an attractive destination for entrepreneurs looking to optimize their business expenses.
Of no less importance is the fact that by incorporating a company in Serbia, you gain access to the European market without the need to study individual EU member states’ regulations. Serbia’s status as a candidate country for EU accession facilitates trade and business relations with EU member states, offering opportunities for market expansion and growth.
Remote company incorporation in Serbia in 2024: challenges
When starting any new business, you will inevitably encounter certain challenges regardless of your incorporation jurisdiction. It is true even for companies launched in your home state let alone abroad where everything is different, including your regulatory environment and business stage.
It should be mentioned that doing business in Serbia may require you to overcome language and cultural barriers, even more so if you are an entrepreneur unfamiliar with the local customs and business practices. In this situation, engaging local partners or hiring bilingual staff is a logical first step to mitigate these challenges.
Just like regular businesses, remote companies operating in Serbia must comply with local laws, regulations, and reporting requirements. To ensure compliance and avoid potential penalties or legal issues, stay abreast of regulatory changes and seek professional legal and accounting advice where necessary.
Managing a remote company in Serbia requires effective communication and collaboration to bridge the distance between the headquarters and local operations. Digital platforms, project management software, and regular virtual meetings are all useful tools to achieve this goal.
While Serbia offers a stable business environment overall, entrepreneurs should monitor economic and political developments that may impact their operations. Just like in any other region, currency fluctuations and changes in government policies may affect business stability and investment confidence.
Entrepreneurs should ensure that contracts, agreements, and intellectual property rights are properly drafted and legally enforceable under Serbian law. Consulting a seasoned legal counsel can help resolve complex legal issues and protect the company’s interests in contractual relationships with clients, suppliers, and partners.
Want to know how to register your company and set up a corporate bank account in Serbia completely trouble-free? Ask Serbia Wealth experts any questions worrying you during a free consultation!
