Following the onset of the Russian-Ukrainian conflict, there has been a noticeable increase in the number of foreign entrepreneurs, especially in the IT sector, registering businesses in Serbia. Consultants report a 20-30% rise in foreign IT founders compared to the pre-conflict period.
Here’s a guide on the procedure for foreigners registering a business in Serbia:
1. Application process
The process begins with submitting a registration application to the Agency for Business Registers (APR), along with the required documentation. For foreigners, proof of identity is needed, typically a passport or foreign identity card. If the person has asylum status in Serbia, a certificate from the Asylum Office is required.
Applications can be submitted electronically, provided the founder has a qualified electronic certificate (electronic signature), a card reader, and a payment method for the associated fees.
2. Business form options
Foreigners can choose from a variety of business structures as outlined in Serbia’s Law on Business Companies, including partnerships, limited liability companies (LLC), joint-stock companies, branches of foreign companies, and more. For entrepreneurial activities, foreigners must obtain a single residence and work permit, but this is not necessary for other legal entities if the owner is not employed by the company.
3. Registration time and fees
The APR typically decides on the registration within five working days, though in practice it often takes 7-10 days, assuming the documentation is complete. The registration fee for a foreign entrepreneur is the same as for domestic entrepreneurs: 1,760 dinars (1,560 dinars for electronic submissions). The fee for company formation is higher at 6,780 dinars (6,150 dinars for electronic submissions), while a branch registration costs 3,230 dinars.
4. Naming the business
The business name for both entrepreneurs and companies must comply with legal requirements. Entrepreneurs must include their first and last name, the designation “entrepreneur,” and the location of their headquarters. Companies must include their name, legal form, and business location. Foreigners may use foreign words or even a foreign country’s name with the relevant consent.
5. Licenses and permits
Certain industries require additional licenses or approvals, such as pharmaceuticals, banking, oil, and tobacco. If applicable, these permits must be obtained before registration.
6. Foreign company branches and representative offices
Foreign companies can establish branches in Serbia. These branches do not have the status of legal entities but are treated as tax residents. To establish a representative office of a foreign company, specific documentation such as proof of registration in the foreign country, account information, and a statement of responsibility from the foreign company’s authorized representative is required.
