Starting a company in Serbia is about organizing entrepreneurial activities in a candidate country for EU membership, known for its stable economy, favorable business environment, and welcoming attitude toward foreigners. Serbian legislation permits various forms of income-generating activities, such as individual entrepreneurship (preduzetnik in Serbian), legal entities (joint-stock companies, limited liability companies, general partnerships, or limited partnerships), branches, representative offices of foreign companies, and cooperatives. Foreigners are allowed to start a business in Serbia by either creating it from scratch or purchasing an existing one, as well as providing services as individuals (preduzetnik). Immediately after completing the company registration process, the owner can apply for a residence permit, which is processed by the relevant authority within a month. How to independently open a business in the Republic of Serbia and obtain residency, along with the advantages of doing business in this country, will be detailed further in the article.
Advantages of opening a business in Serbia
Registering a company in Serbia offers several benefits for individuals from other countries:
- Access to international markets
Serbia has free trade agreements with EU countries, CEFTA member states (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, Moldova), EFTA (Iceland, Norway, Liechtenstein, Switzerland), and the Eurasian Economic Union (Russia, Kazakhstan, Belarus). The Republic also benefits from Japan’s Generalized System of Preferences (GSP), allowing goods to be sold in that jurisdiction under favorable conditions. - Low business maintenance costs
Serbia features a lower cost of living compared to most other European countries, reflected in rental prices, wages, and other expenses. For instance, the average salary in the country is around 605 EUR, while businesses in larger European nations such as France, Austria, Germany, and Italy pay employees approximately 1,500 to 3,000 EUR. - Quick adaptation
Serbians are extremely friendly and responsive. Many speak English fluently, as it is taught from kindergarten. - Government support for businesses
Regional development agencies operate in Belgrade, Novi Sad, Subotica, and other major Serbian cities (a total of 15 organizations), providing entrepreneurs with administrative, legal, and informational assistance. The Republic’s development fund implements financial support programs for new entrepreneurs, and the Banja Luka Innovation Center oversees companies engaged in advanced technologies. Serbia has signed double taxation avoidance agreements with 61 countries, and tax incentives for businesses are stipulated in the country’s legislation, alongside financial incentives from regional authorities (such as reduced construction costs and connections to local infrastructure). - Obtaining residency for entrepreneurs and their families
Foreign entrepreneurs have the right to obtain a residence permit (boravak) in Serbia upon completing business registration. Their spouse and children under 18 can apply for residency simultaneously. After three years of legal residence in the Republic, they can request permanent residency, followed by an application for citizenship. As of 2024, Serbia is a candidate for EU membership, with plans for accession by 2025. Individuals holding residency, permanent residency, or a passport from the Republic by that time will automatically become EU residents/citizens.
Ways to open a business in Serbia
Opening a business in Serbia is accessible to foreigners through several options: operating as an individual entrepreneur, creating a new enterprise, or purchasing an existing one. If an applicant has an existing company in their home country and plans to relocate to the Republic, they must legally close the firm there, then arrive in Serbia (or authorize a representative) to register a legal entity from scratch in the host territory.
The most common ways to open a business in Serbia are:
- Registering as an individual entrepreneur
An individual entrepreneur (preduzetnik) is a capable individual conducting lawful income-generating activities without forming a company. The entrepreneur can register for a fixed or indefinite period, and there are no capital requirements. The application for individual entrepreneur registration can be submitted physically at the main office of the Business Registers Agency (APR) or its regional office where the applicant resides, by mail, or electronically. The application must include a passport or equivalent identification and proof of payment of the registration fee. This organizational form is suitable for those planning to run a business with small turnovers, either independently or with a few employees. The entrepreneur is liable for obligations with all their property, including personal assets. - Opening a company as a legal entity
The most common forms of business organization in Serbia are joint-stock companies (AD) and limited liability companies (DOO). Joint ventures in the format of partnerships or limited partnerships are also possible. An AD requires a minimum share capital (UK) of 25,670 EUR, divided into securities (shares) with a nominal value of at least 0.86 EUR. A joint-stock company operates in accordance with its statutes, and its participants sign a founding contract when establishing the business. A DOO can be owned by one or multiple individuals. Each co-owner contributes a share to the UK, which can start from 0.86 EUR. Companies are financially liable to creditors with their assets.
Partnerships (general partnerships) are formed by two or more individuals who contribute equally to the business. Each participant bears joint liability for the company’s contractual obligations with all their assets. A limited partnership must have at least two owners, with at least one participant bearing joint liability (with all assets) while at least one is liable only up to the amount of their contribution. Registration of AD, DOO, general partnerships, and limited partnerships is conducted exclusively electronically through a special APR platform. This form of business is suitable for entrepreneurs planning to engage in trade or production with larger turnovers and attract funds from other parties.
- Establishing a branch or representative office of a foreign firm
Each of the aforementioned organizational forms represents a separate part of the enterprise with its director and staff but does not constitute a legal entity. A branch and representative office operate on behalf of and by the authority of the parent company. Registration of the business entity in this case occurs through physical or electronic submission of an application to the Business Registers Agency. Establishing a branch or representative office is suitable for existing foreign entrepreneurs who wish to operate in the Republic but do not plan to fully relocate their business to Serbia. - Purchasing an existing Serbian company
To buy an existing business, you need to choose an offer on the local market that meets your needs and budget. Next, you should contact the seller and, upon reaching an agreement, conclude the deal. Within 15 days of signing the purchase agreement, the entrepreneur must register the changes by submitting documents to the Business Registers Agency (online or physically). This option is suitable for foreigners who do not want to spend time creating and promoting a company from scratch—developing founding documents, purchasing equipment, hiring a full staff, building a reputation, etc.
Whichever of the alternatives listed above you choose, you will qualify for a residence permit in Serbia as a company owner. There are other paths to Serbian residency too but this one probably looks most attractive.
