Company Formation in Serbia: The Ultimate Guide for Foreign Entrepreneurs

Looking to obtain residency in Serbia while launching a business in Europe? Company formation in Serbia is one of the most efficient, low-cost ways to achieve both. Whether you're a digital nomad, remote consultant, investor, or an international partnership looking to expand, Serbia offers 100% foreign ownership, attractive tax rates, and fast-track residency options through business setup.


At Relocation Serbia, we’ve helped dozens of clients from North America, Europe, and beyond structure their businesses correctly from day one. In this blog, we break down everything you need to know to start a business in Serbia as a foreigner—and how to do it right.


Let’s break it all down.


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Choosing the Right Business Structure: DOO vs. Entrepreneur

There are two main company structures in Serbia available to foreigners:

📌 DOO (Društvo sa Ograničenom Odgovornošću / LLC)



  • Ideal for partnerships, larger businesses, or property ownership.




  • Requires hiring a local accountant.




  • Can own real estate in Serbia.




  • More paperwork, but more flexibility for scaling.



📌 Preduzetnik (Entrepreneur / Sole Proprietor)



  • Best for solo professionals (e.g. digital marketers, developers, consultants).




  • Simplified tax and accounting.




  • No accountant needed until annual income exceeds €60,000.




  • Easiest way to gain residency through business in Serbia.
     









💡 Have a business partner? You’ll need to open a DOO to legally operate together. Serbia does not allow two individuals to operate one business jointly as separate entrepreneurs.


Step-by-Step Guide: Company Formation in Serbia

Whether you're forming a DOO or a sole proprietorship, here’s how the process works.

1. Define Your Legal Structure & Activity Code

You’ll choose your company type (DOO or entrepreneur) and select a business activity code, which determines your taxation category. This must match your actual work experience or field of expertise.

2. Secure a Serbian Business Address



  • Digital nomads can often use their rental apartment.




  • Restaurants, retail shops, or clinics must use a commercial address.




  • Co-working spaces or virtual offices are also available—we help with setup.



3. Register with APR & Get a Tax ID (PIB)

All companies must register with the Serbian Business Registry (APR) and obtain a PIB number. This is your official tax ID.

4. Open a Business Bank Account

You’ll need:



  • APR confirmation or articles of incorporation




  • Your passport or temporary residency card




⚠️ Bank policies change frequently. Some banks allow non-residents to open accounts, others don’t. We help clients choose the best bank with a reliable digital platform and minimal red tape.



5. Get a Qualified Accountant (for DOOs)

All DOO (LLC) companies must have a certified Serbian accountant. We work with trusted professionals across Serbia who understand international tax implications.

6. Obtain a Digital Signature Card

This enables your accountant or legal rep to act on your behalf when filing taxes, contracts, or official paperwork.

7. Apply for Residency & Work Permit

Once your company is formed:




















  • Apply for temporary residency based on company ownership.




  • Simultaneously apply for a work permit (usually valid for 1 year).

Understanding Serbian Taxes for Foreign-Owned Companies

  • Corporate income tax: Flat 15%




  • Entrepreneur flat tax: Depends on activity code (typically very favorable)




  • Payroll tax: Calculated based on employee income




  • Double tax treaties: Serbia has them with many countries—but not the U.S.





If you're American, you may face double taxation on personal income. However, your Serbian-registered company is NOT taxed in the U.S. if properly structured. We help clients navigate this with the right legal and tax setup.

Common Pitfalls to Avoid

  • ❌ Getting misled by lawyers claiming you need a local partner (you don’t!)



  • ❌ Being registered as a sole proprietor when you meant to open a DOO



  • ❌ Forgetting to translate diplomas or proof of work experience



  • ❌ Choosing the wrong activity code = wrong tax rate







  • ❌ Relying on bank staff who don’t speak English or understand foreign company setups

    • Why Work with Relocation Serbia?

    Unlike cookie-cutter agencies or disconnected law firms, we offer:



    • ✅ All-in-one pricing: No surprise fees for notaries, translators, or documentation.




    • ✅ Bilingual legal team: All documents prepared in both English and Serbian.




    • ✅ Step-by-step residency support: From business registration to work permits.




    • ✅ Personalized service: We handle your case based on your country of origin, profession, and goals.






    🧾 “One of our clients came to us after being misadvised by a top-tier lawyer. What they thought was a Serbian corporation turned out to be a sole proprietorship in their name. We fixed it.”


    – Andreja Milosavljević, Founder, Relocation Serbia

    Final Tips Before You Launch Your Serbian Business

  • Learn basic Serbian or hire a translator—it goes a long way.



  • Prepare your diplomas and CV for official translation (we’ll assist).



  • Budget for additional setup costs: capital injection (€1 min), digital ID, etc.






  • Be clear about your business model so we can assign the correct codes from day one.

    • Ready to Form Your Company in Serbia?

    Book a consultation with Relocation Serbia today. We’ll help you choose the right structure, navigate Serbian bureaucracy, and get you legally established fast—so you can focus on growing your business, not fighting paperwork.


    From residency and rentals to business setup and legal support, Relocation Serbia is your expert guide on the ground.


    📩 Get a consultation today and learn how we can assist you with residency, business setup, and real estate investments in Serbia.


    🚀 Visit us at RelocationSerbia.com to learn more!