Serbia is currently one of the most demanded destinations for entrepreneurship and relocation. The country is actively developing, and everyone strives to have a share. Serbia is on the verge of joining the EU, which means that those who obtain a residence permit and reside in the country may soon have the right to obtain an EU passport. Serbia has also created all the best conditions for international investors and entrepreneurs, and they hurried to take advantage.
Serbia is definitely a recommendable jurisdiction for company incorporation, and the legal form we would advise is an LLC, or doo in Serbian. If you need more information on how to incorporate a doo in Serbia, you can visit our portal by clicking on the link. You will find a lot of information on Serbia there, as well as articles on international business and banking, investments, taxation, and more.
You will also be able to book a one-on-one session with an expert to get advice and discuss all the issues you may have. Some of our services will cost you nothing: we will analyze your situation and recommend the best jurisdiction and the best bank for free. However, most of our customers need help when they want to carry out business activities abroad, and we can help you with all administrative matters related to business incorporation for a reasonable fee. We have a local office in Belgrade, and our specialists are ready to help you out!
Doo in Serbia: Main Characteristics
The Serbian doo (Društvo sa ograničenom odgovornošću) is in many ways similar to a standard Limited Liability Company. It can be set up by a resident of any country and has the right to carry out its business activities in Serbia and internationally.
Why is doo so popular? Well, the obvious reason is the limited liability of its owner and members: they are responsible for the company’s debts only to the extent of their contribution to the share capital. As a result, you can conduct business activities at a lower risk, which is very attractive (especially for small and medium-sized businesses).
The doo’s owner can be an individual or a legal entity. It needs at least 1 director to exist, and this position can be held by a foreigner.
There is no minimum threshold for the doo’s share capital: you can start with 1 euro if you want.
You will need a legal address in Serbia to properly establish a doo, but there is a virtual address option that can be used.
You will need to select the activity your company will engage in using the Serbian classifier.
You will need to pay a corporate tax rate of 15% regardless of whether your activities are global or local.
Serbia is very active in signing double taxation agreements with various states, and there are over 60 of these at present. It allows the dividend tax rate to be reduced to 5% (the standard rate equals 15%). This is a feature international businesses really appreciate.
If your Serbian business requires a VAT registration, you will have to pay VAT at a standard rate of 20%.
You can register your doo personally or online. If you opt for personal registration, you will have to visit Serbia for at least 3 days. If you want your doo to be registered online, get a power of attorney for our representatives in Belgrade to use. In this case, they will be able to register a company on your behalf.
You will also need a bank account for your Serbian company. The country’s banking sector is quite robust and it offers the following benefits:
- You can choose from a wide range of international and local banks.
- Foreign individuals and legal entities have the right to open personal and corporate accounts.
- An account can be set up for your doo or for a foreign branch (even if this is a unit of an offshore company).
- Serbian banks will protect your deposits for the amount of up to 50,000 euros.
Documents Required for Incorporation
You will need to submit the following documents to register a Limited Liability Company (doo) in Serbia:
- Provide a few possible names for your company for us to check in the register whether they are available.
- If the company owner is an individual, provide a passport copy.
- If the company owner is a legal entity, provide an extract from the company register that contains all the required information (name, address, registration number, as well as the names of the owner and director).
- Proof of the owner’s address of residence (for example, a utility bill that is no older than 3 months).
- Provide the same information about the director (passport copy/proof of residential address).
- A completed form with certified signatures.
- A limited power of attorney with due certification and an apostille.
- Certified Articles of Association (our experts will give you a sample).
- You will have to send the document to Serbia notarized and apostilled.
- Proof of a Serbian legal address for your doo.
- Pay the registered capital (it can be 1 euro).
- Provide the kind of business activity you selected from the Serbian classifier.
All the documents need to be submitted in Serbian.
Prepare the documents in strict accordance with our recommendations to avoid errors or delays. We will check your package thoroughly before submission.
You will have to hire an accountant to start the operation of your company in Serbia,
Benefits for Doo Owners in Serbia
- If you register a doo in a Serbian free economic zone, you will qualify for exemption from VAT and some customs duties.
- You can apply for a Serbian residence permit as a foreign company owner, and it will greatly simplify opening a bank account. If you wish to reside in Serbia, you can later obtain permanent residence and finally a passport. And it may be an EU passport by that time – who knows?
- There are no requirements for the minimum capital or number of employees.
- Serbia is a great place to work in the domestic and international markets.
- Serbia attracts entrepreneurs from all over the world, so you will be able to establish lucrative partnerships.
Interested in Serbia? Get in touch with us to find out more details – or discover which other options may be better suited for your business!