How to open a company in Serbia remotely

Serbia has emerged as one of the most business-friendly destinations in Southeast Europe. Thanks to competitive tax rates, affordable incorporation costs, and a strategic location that bridges Western Europe, Eastern Europe, and the Balkans, the country is drawing more attention from foreign investors and entrepreneurs.

But what makes Serbia even more attractive is the ability to open a company remotely, without ever setting foot in the country. With proper legal representation, this process is not only possible but also straightforward.

This article provides a detailed overview of how foreigners and citizens alike can establish a business in Serbia, what legal forms exist, the steps required, the costs involved, and why hiring a lawyer is highly recommended.

Why consider Serbia for companyformation?

Before we dive into the registration process, it’s worth exploring why Serbia has become a preferred destination for business formation:

1. Low Capital Requirement
   1. Starting an LLC requires a minimum founding capital of only 100 RSD (less than €1). This can be paid in up to 5 years after incorporation, making entry very affordable.
2. Attractive Taxation
   1. Corporate income tax: 15%, one of the lowest rates in Europe.
   2. Value Added Tax (VAT): 20% standard (10% reduced).
   3. Double taxation agreements with more than 60 countries.
3. EU Accession Path
   1. Serbia is not yet an EU member but is in the accession process, giving businesses early-mover advantages.
4. Strategic Location
   1. Excellent geographic position for companies trading with both EU and non-EU markets.
5. Skilled Workforce
   1. Serbia has a highly educated workforce, especially in IT, engineering, and finance, with significantly lower labour costs compared to Western Europe.
6. Remote-Friendly Legislation
   1. Since 2023, the company formation process has moved entirely online, which streamlines remote incorporation.

Who can open a company in Serbia?

The answer is simple: anyone.

• Foreign natural persons (individuals) can establish a company.
• Foreign legal entities (companies) can also register subsidiaries or branches.
• Domestic citizens have identical rights to foreigners.

This equality under the law ensures that no matter where you’re from, you can enjoy the same opportunities for doing business in Serbia.

Legal forms of business in Serbia

When forming a company in Serbia, you have several options:

• Limited Liability Company (LLC / DOO)
  • The most common choice. Flexible, low-cost, minimal capital required. Suitable for small to mid-sized businesses.
• Joint Stock Company (JSC / AD)
  • Designed for larger businesses, especially if planning to raise capital via shares. Requires higher founding capital.
• General Partnership (GP / OD)
  • Rarely used, involves unlimited liability for partners.
• Limited Partnership (LP / KD)
  • At least one partner has unlimited liability, while others have limited liability.
• Sole Proprietorship (PR)
  • Available only for individuals. Simple to register, but the owner is personally liable for debts.

For 90% of foreign investors, the LLC is the most practical solution.

The Process of Remote Company Formation in Serbia

Foreigners can establish a company in Serbia without physically travelling to the country. This is done by authorising a local lawyer to act on their behalf.

Step 1: Drafting a Special Power of Attorney

• You, as the founder, issue a special power of attorney (POA) allowing a Serbian lawyer to represent you.
• The POA is notarised in your home country.
• Depending on your jurisdiction, it may also require apostille certification or legalisation.
• The document is then mailed to Serbia for official translation by a licensed court translator.

Step 2: Drafting the Articles of Association

• Your lawyer prepares the Articles of Association (statute of the company).
• This document defines the structure of the company, ownership, share capital, and internal rules.
• The Articles are notarised in Serbia on your behalf.

Step 3: Submitting Application to the Business Registers Agency (APR)

• All applications for company formation are now submitted electronically.
• The APR processes applications within 5 working days.
• Once approved, the APR issues a decision confirming the company’s establishment.

Step 4: Appointing a Director (CEO)

• At least one CEO is mandatory.
• This can be either a foreign or Serbian citizen.
• Many corporate lawyers recommend appointing a director who resides in Serbia to handle day-to-day administrative matters more efficiently.

Step 5: Registered Office Address

• Every company must have a registered seat.
• If you don’t have physical premises, your lawyer can help secure a virtual office address, which is legally valid.

Step 6: Opening a Bank Account

• After incorporation, the lawyer can open a corporate bank account in Serbia on your behalf.
• Internet and mobile banking can be activated so you can control finances remotely.
• Debit/credit cards are delivered by mail.

Step 7: Recording Beneficial Owners

• Serbian law requires all companies to register their beneficial owners within 15 days of incorporation.
• The registration must be signed using a qualified electronic certificate.
• At present, these certificates must be collected in Serbia, which can pose a logistical challenge.

Costs of company formation in Serbia

While exact costs vary depending on your situation, typical expenses include:

• Registration fee (APR): ~6,150 RSD
• Notarization of Articles of Association: ~1,080 RSD
• Court translation: ~15 EUR per page
• Special POA notarization and postage (in your country): varies
• Virtual office address (optional): depends on the provider

Overall, compared to other European jurisdictions, the cost of incorporation in Serbia remains very low.

Taxes and accounting obligations

Every entrepreneur should be aware of Serbia’s taxation system before opening a company:

• Corporate Income Tax (CIT): 15%
• Withholding Taxes: 20% on dividends, interest, and royalties, unless reduced by a double taxation treaty.
• Value Added Tax (VAT): 20% standard, 10% reduced. Companies with an annual turnover above 8 million RSD (~68,000 EUR) must register for VAT.
• Payroll Taxes: Employers must contribute Social Security and health insurance on employee salaries.

Proper accounting is mandatory, and foreign-owned companies often rely on local accounting agencies to remain compliant.

Benefits of remote company formation

1. Time-Saving – No need to travel or wait in person at state institutions.
2. Full Legal Compliance – A licensed lawyer ensures your company is properly registered.
3. Cost-Efficiency – Remote incorporation eliminates unnecessary expenses like travel and accommodation.
4. Flexibility – You can continue running your international business while expanding into Serbia.

Challenges and considerations

While the process is straightforward, there are still issues to keep in mind:

• Electronic Certificate Requirement – Currently, beneficial owner registration requires a Serbian-issued certificate, which cannot be obtained abroad.
• Local Director Advantage – Although not mandatory, having a local resident as CEO simplifies practical matters.
• Ongoing Compliance – Tax filings, accounting, and potential audits must be handled locally.
• Bank Policies – Some banks may require in-person presence for higher-level services.

Why work with a lawyer?

Foreigners attempting to register a company in Serbia without professional support often face unnecessary delays. A corporate lawyer not only drafts the legal documents but also:

• Represents you before the APR.
• Secures translations and notarizations.
• Opens bank accounts.
• Advises on tax and compliance matters.
• Provides virtual office and director services if required.

Ultimately, working with a trusted legal professional ensures the process is smooth and risk-free.

Conclusion

Opening a company in Serbia remotely is not only possible — it’s efficient, affordable, and increasingly common among international entrepreneurs. With minimal capital requirements, low tax rates, and a transparent registration process, Serbia offers a highly competitive environment for doing business in Europe.

If you want to take the next step, you can learn more about the process here: company formation in Serbia.

By leveraging professional legal support, you can have your company registered in as little as five working days — without setting foot in Serbia.