The Financial Times has named Serbia a global frontrunner in attracting foreign investments, which reflects the country’s population size and geographical area rather than sheer investment volume.
Serbia outstrips global competitors in foreign investment inflow
In 2018, Serbia initiated 107 projects backed by foreign investment, with key sectors including motor vehicle production, food processing, tobacco and textile manufacturing, and construction.
In 2024, Serbia outpaces Singapore, Great Britain, the UAE, Hungary, and Poland in terms of foreign investment inflow. The nation alone draws more foreign capital than all other Balkan states combined.
Major corporations from China, Italy, and the United States are investing in Serbia’s economic development. Chinese firms are constructing a highway as a segment of the One Belt, One Road initiative and are also planning to build a subway system in Belgrade.
Despite this, the European Union continues to be the principal investor in Serbia, although there is an increasing sense of rivalry with China’s expanding influence.
Why Serbia?
Serbia’s economy is flourishing, and the spending power of its consumers is on an upward trend.
It is for several reasons that investors are drawn to Serbia in 2024:
- Foreign entrepreneurs are permitted to set up businesses in Serbia, even from afar.
- Opening a bank account for a local company in Serbia is a straightforward process.
- Operating costs, including utilities, telecommunications, office space, and accounting services, are significantly lower compared to other European countries.
- Business owners with a company registered in Serbia may seek a permanent residence permit.
- As a candidate for EU membership, Serbia enjoys a favorable position.
- The nation sustains amicable ties with Europe, China, and the USA.
- Serbian producers enjoy duty-free access to markets with over 1.1 billion consumers, including the EU, the US, and China.
Business setup in Serbia: opportunities for foreign investors
In Serbia, the Limited Liability Company (LLC), locally known as d.o.o., is the preferred business structure. The financial risk for founders is capped at their investment in the company’s charter capital.
Both foreign individuals and entities are eligible to establish a company. They can even do it remotely via Power of Attorney.
The minimum charter capital requirement is just RSD 100, equivalent to roughly EUR 1, though a higher amount is advisable.
A company may be founded by a single individual or entity and managed by one director, irrespective of their residency status in Serbia.
Serbia’s corporate tax rate stands at 15%, lower than in many other European countries. The same rate applies to dividends. Personal income tax rates range from 10% to 20%.
All companies in Serbia are required to have a legal address and must maintain proper accounting records. Serbian entities must also outline their business activities upon registration.
You can register a company in Serbia during your visit to the country. Our local representative will help you complete the process in just 3 to 4 days.
For those wishing to set up a company remotely, a legalized Power of Attorney, translated into Serbian, is necessary. This document is essential for both registering the company and opening a bank account.
With a Serbian branch of your existing foreign company, you are free to maintain your current business and it allows you to open a European bank account for the new branch.
Registering a company in Serbia paves the way for permanent residency, with the freedom to reside indefinitely in Serbia and potentially obtain EU citizenship, as Serbia is on track to join the EU. In the case of investors, they have the right to apply for citizenship after a few years of permanent residency.
Setting up a business in Serbia: document checklist
To set up a business in Serbia, you must compile a document package with the following:
Owner Information:
- For individuals: Notarized copies of domestic and foreign passports.
- For legal entities: A complete set of corporate documents, including personal documents of the owner and director.
Director Information:
- A copy of the director’s passport and proof of residence.
Legal Requirements:
- A Power of Attorney for setting up the company remotely (assistance provided with drafting, but the document must be apostilled).
- An incorporation certificate for the foreign legal entity.
- An authorized signature specimen.
Company Essentials:
- A minimum charter capital of EUR 1.
- A registered legal address in Serbia.
- A detailed description of the intended business activities.
NB: All documents must be translated into Serbian and legally certified.
The registration process typically takes 7 business days.
When engaging the services of external companies or professionals for company registration, make sure you can provide us with the necessary documents:
- A form authorizing the use of electronic accounting services.
- An accountant contract.
- A rent agreement for the company’s legal address.
- An activated electronic signature for the accountant’s use.
The accountant will handle the submission of annual reports, which include details of social security and pension fund contributions.
Once these documents are in our possession, we will finalize the application package and forward it to you for your signature.
Open your Serbian corporate bank account today
You can set up a corporate bank account in Serbia remotely, without the need for a personal visit. This option is available to local Serbian companies and Serbian branches of foreign companies, whether owned by Serbian citizens or foreign nationals.
These are the documents required to open a corporate bank account in Serbia:
- A Power of Attorney.
- A legalized copy of the company owner’s passport and proof of address.
- Corporate documents of the newly established Serbian company.
On a standard basis, it takes approximately one week to open a corporate bank account in Serbia. However, we allocate additional time to guarantee a smooth account setup. You’ll be required to complete up to 5 application forms, available in both English and Serbian, for submission to various banks. This strategy will save you time should any bank decline to serve your company. This way, we can promptly move forward with alternative banking institutions.
After you’ve taken care of all the paperwork, you’re ready to start your business in a country with a fast-growing and promising economy.
Any questions left?
Should you have any questions left about company registration and corporate account setup in Serbia, don’t hesitate to contact SerbiaWealth experts! We’re here to help with all your needs and queries.