COMPANY FORMATION · BUSINESS SETUP · UPDATED OCTOBER 2026
Company formation in Serbia for foreign entrepreneurs in 2026: DOO or entrepreneur, what it costs, how long it takes, the taxes you will pay, and how a foreign-owned company becomes your residence permit
A foreigner can own 100% of a Serbian company, be its only director, and never have lived in Serbia before. The usual vehicle is a DOO (limited liability company) with a minimum share capital of 100 dinars, registered with the Business Registers Agency (APR), which by law decides within five working days; the state fee is 8,000 dinars from 1 January 2026. Solo professionals often use the entrepreneur (preduzetnik) form instead, with flat-rate tax available below 6,000,000 dinars of annual turnover. Corporate profit is taxed at a flat 15%, dividends at 15% for residents and 20% for non-residents unless a treaty lowers it, and VAT registration becomes compulsory above 8,000,000 dinars of turnover in any 12 months. A founder who works in his own company can apply for a single permit (residence and work in one document) with no labour-market test, valid for up to three years, and permanent residence follows after three years. The registration itself is quick; the decisions that decide your tax bill, your bank account and your residence case come before it.
Company formation in Serbia is the route most of our business clients take: consultants moving themselves, founders who want a European base outside the EU, and companies hiring a Serbian team. The attraction is real: full foreign ownership, a flat 15% corporate tax, registration in days, and a residence permit that can be built on the company. The friction is real too, and most of it comes after the APR decision: the bank's compliance checks, the company-or-entrepreneur choice, the activity code that fixes your tax regime, and a residence application that has to match the company exactly. This guide covers, as of October 2026, the legal forms and who each suits, what formation actually involves, costs, timelines, taxes, the residence permit, and the mistakes that cost foreign entrepreneurs the most. It is a guide to the decisions, not a filing manual; the sector choice is covered in our business opportunities in Serbia guide.
DOO, entrepreneur, branch or representative office: which legal form fits a foreign entrepreneur?
Serbian company law offers foreigners the same forms as locals. In 2025 the APR registered 59,721 new business entities: 46,749 entrepreneurs, 7,925 limited liability companies and about 5,000 other forms, with business consulting, restaurants and computer programming the most common activities. For a foreign founder the realistic choice is between four of them.
| Form | Capital and liability | Tax regime (2026) | Residence route | Who it suits |
|---|---|---|---|---|
| DOO (društvo s ograničenom odgovornošću, limited liability company) | Minimum capital 100 RSD, payable within five years; liability limited to the company; one or more owners, 100% foreign ownership allowed | 15% corporate income tax; dividends 15% (resident) or 20% (non-resident, treaty rates lower); VAT above 8,000,000 RSD | Founder or member working in the company: single permit on the self-employment basis, no labour-market test | Anyone with a partner, employees, property to hold, investors to bring in, or revenue above the flat-rate ceiling |
| Preduzetnik (registered entrepreneur, sole trader) | No capital; the individual is liable with all personal assets; one person only, two partners cannot share one registration | Flat-rate (paušal) tax below 6,000,000 RSD turnover for eligible activities; otherwise 10% on profit or a self-set salary | Registered entrepreneur: single permit on the self-employment basis | Solo consultants, developers and other remote professionals with one-person income and no employees |
| Ogranak (branch of a foreign company) | No separate legal personality; the foreign parent is fully liable; registration at the APR is compulsory | Taxed as a permanent establishment at 15% on Serbian-source profit; own tax number and annual accounts | Posted or transferred staff: single permit on the intra-corporate or posting basis | Established companies running a project or team in Serbia without a subsidiary |
| Predstavništvo (representative office) | No legal personality; may only perform preparatory and auxiliary work for the parent | Cannot invoice or trade; costs only | Staff on an employment or posting basis | Market research and liaison before a real entry |
| No entity: hire through an employer of record | None in Serbia; a licensed Serbian agency employs your staff | Payroll taxes paid by the agency; your contract is a service fee | For employees, not for owners | Testing the market or hiring a few people before deciding on a company; see our employer of record service |
Two decisions here are the ones we spend most time on with clients. The first is DOO versus entrepreneur: the entrepreneur form is cheaper and simpler, but it exposes your personal assets, it cannot have a partner or a shareholder, it cannot hold property or a licence in a company's name, and its flat-rate regime ends the moment turnover passes 6,000,000 dinars in a calendar year or 8,000,000 in any twelve months. Someone who registers as an entrepreneur because it is quick and then outgrows it in year two pays for two set-ups. The second is whether you need an entity at all. A foreign company that only wants two or three Serbian employees can use an employer of record for a year and form a DOO once the team and the market are proven; our hiring employees in Serbia guide compares the models.
What forming a Serbian company actually involves
Registration is one act, but a working Serbian company is the result of about ten connected decisions, several of which quietly determine your tax position and whether your residence application will be approved. In outline:
- The founding act. A DOO is created by a founding act with notarised signatures (or qualified electronic signatures in the electronic procedure) fixing the name, seat, activity code, capital, members and director. The activity code (šifra delatnosti) decides whether flat-rate taxation is available, which coefficient applies, and whether sector premises are needed.
- Electronic filing with the APR. Since 17 May 2023 companies can only be founded electronically, with a Serbian-issued qualified electronic certificate; foreign certificates are not accepted and a Serbian one is issued to a non-resident only in person. Most foreign founders therefore act through a Serbian lawyer under a special power of attorney, notarised at home, apostilled and translated by a court interpreter. The registrar must decide within five working days of a complete application.
- Beneficial owners. Every DOO must record its ultimate beneficial owners, natural persons with 25% or more, in the APR's central register within 15 days of registration and of every later change. The fine for a legal entity that does not is 500,000 to 2,000,000 dinars, and concealing an owner is a criminal offence.
- The registered seat. The seat is the address the business is managed from, not necessarily premises you operate in, so a residential address or a virtual office is lawful for most activities. Since June 2022 the owner of the premises can ask the commercial court to strike a company's seat, and a company without a new seat 30 days after a final judgment goes into compulsory liquidation, so the address needs the owner's written consent and a real agreement.
- Electronic mailbox. Companies register an e-mail address and use the eUprava portal; APR decisions arrive in the electronic mailbox and deadlines run whether or not anyone reads them.
- The bank account. This is where foreign-owned companies lose the most time. The bank identifies every beneficial owner through the whole ownership chain, the director, the account's purpose and the source of funds; foreign corporate shareholders need recent register extracts and ownership evidence, apostilled and translated. Simple structures take one to three weeks, holding structures three to eight, and incomplete ownership documentation is the usual reason for refusal. Most banks want the director in person at least once. Our bank account service handles the file with the bank before the company is even registered.
- Tax registration and the VAT decision. The tax number (PIB) comes with registration and an advance corporate-tax return is due within 15 days. VAT registration is compulsory above 8,000,000 dinars of turnover in twelve months and voluntary below it with a two-year lock; service exporters and equipment buyers often register at once to recover input VAT. Our VAT in Serbia guide explains the choice.
- Accounting. Books may be kept in-house, but an outsourced provider, which almost every foreign-owned company uses, must be licensed and in the APR register of accounting providers; annual financial statements are due by 31 March, and VAT payers invoice through the state e-invoicing system (SEF).
- The founder's own status. A founder who works in the company without an employment contract is compulsorily insured, and the company pays contributions on at least the lowest monthly base, 51,297 dinars in 2026, about 18,000 dinars (roughly €150) a month before any salary. A non-founder foreign director instead needs an employment-based permit with a labour-market test.
- The residence application. Built on the registered company and checked against its activity, seat and the founder's qualifications; explained below.
Why foreign founders rarely file this themselves. No single step is hard for a Serbian lawyer or accountant; the difficulty is the sequence. The activity code decides the tax regime, the seat agreement decides whether the bank accepts the address, the ownership documents decide whether the account opens, and the company's registered details decide whether the single permit is approved. A mismatch found at the residence stage means amending the company and re-filing. Relocation Serbia has offices in Belgrade and Novi Sad, so you can go through the structure and the documents with us in person (by appointment) or by video call before anything is signed.
What company formation in Serbia costs in 2026
The state's own charges are small; the real cost is professional time, the bank, and the running costs that start the month the company exists. The figures below are the 2026 statutory amounts and the market ranges we see; the euro conversion uses about 117 dinars to the euro.
| Item | 2026 amount | Notes |
|---|---|---|
| APR fee, founding a DOO | 8,000 RSD (≈ €68) | New APR fee decision in force from 1 January 2026 (was 4,900 RSD plus 1,000 RSD publication) |
| APR fee, registering an entrepreneur | 2,500 RSD (≈ €21) | Was 1,500 RSD; branch or representative office of a foreign company 8,000 RSD |
| Minimum share capital | 100 RSD | Payable within five years of the founding act; banks and partners may expect more |
| Notarisation, power of attorney, apostille, court-interpreter translations | ≈ €150–500 | Depends on how many documents and languages; corporate shareholders cost more than individuals |
| Registered seat | ≈ €30–100 a month for a virtual office; free if you own or rent the premises | Owner's written consent needed in every case |
| Accounting | ≈ €100–250 a month for a small DOO; ≈ €45–85 a month for a flat-rate entrepreneur | Payroll per employee and VAT returns are usually extra |
| Founder's contributions without salary | ≈ 18,000 RSD (≈ €150) a month | 35.05% on the lowest base of 51,297 RSD; falls to pension contributions only if you are insured through a job elsewhere |
| Single permit state fees | ≈ 23,200 RSD (≈ €200) per person | 430 RSD application plus 22,770 RSD on approval (2026); family members apply separately |
| Late filing surcharge at the APR | 6,260 RSD | Changes must be registered within 15 days of the event |
A complete set-up through a third party, with the company, the tax registrations, the bank file and the first residence application handled together, is sold in Serbia as a package; the price depends on how many people and shareholders are involved and whether a foreign company sits above the Serbian one. Our company formation service page lists the current packages.
How long company formation in Serbia takes
| Stage | Legal deadline | Realistic time (2026) |
|---|---|---|
| Preparing the founding act, powers of attorney, translations | None | 1–2 weeks, longer with a foreign corporate shareholder |
| APR decision on registration | 5 working days from a complete application | 3–5 working days |
| Beneficial-owner entry | 15 days after registration | Same week |
| Corporate bank account | None | 1–3 weeks for a simple structure; 3–8 weeks for holding structures |
| Single permit for the founder | Employment Service assessment within 10 days; Ministry of Interior decision within 30 days of a complete application | 4–8 weeks in practice, then biometrics in person |
Put together, a foreign founder who starts with clean documents usually has a registered company within two to three weeks, a working bank account within four to six, and a residence card within two to three months. The common delays are a bank that declines the structure, a missing apostille, and a residence file whose activity, seat or qualifications do not match the company.
Should your move be built on a company, an entrepreneur registration, or no entity at all?
Take the free two-minute Route Finder. It asks about your nationality, your business, your family and your timeline, and shows which company form and residence route realistically fit, and which would cost you a second set-up later.
Taxes for a foreign-owned company in Serbia (2026)
Serbia's tax rates are a large part of the appeal, and they are flat and predictable. The traps are not the rates but the interactions: the 20% withholding on dividends to a non-resident owner, the social contributions that attach to a founder whether or not a salary is paid, and, for Americans, the absence of any tax treaty with the United States.
| Tax | 2026 rate or threshold | What to know |
|---|---|---|
| Corporate income tax | 15% flat | No local profit taxes; capital gains of the company taxed separately at 15%; losses carried forward five years |
| Dividends | 15% to resident individuals; 20% withholding to non-resident owners, reduced to typically 5–15% under a treaty | More than 60 treaties in force, none with the United States; relief needs a tax-residence certificate |
| Salary taxes | 10% income tax above a non-taxable 34,221 RSD a month; contributions 19.9% employee and 15.15% employer | Total employer cost is roughly 1.6 times net pay; the non-taxable amount rises to 37,369 RSD from 1 January 2027 under the September 2026 amendments; maximum contribution base 732,820 RSD |
| Founder without salary | 35.05% on at least 51,297 RSD a month | About 18,000 RSD a month; innovative start-ups recognised by a science-technology park can pay founders up to 150,000 RSD a month free of salary tax and contributions for 36 months |
| VAT | 20% standard, 10% reduced; compulsory registration above 8,000,000 RSD turnover in 12 months | Quarterly returns below 50,000,000 RSD, monthly above; invoices through SEF for VAT payers |
| Entrepreneur, flat-rate (paušal) | 10% tax plus 35.05% contributions on an assessed base, together 45.05%; turnover ≤ 6,000,000 RSD a year | Base set by the Tax Administration from the average salary, the activity and the municipality; halved in the first year; a Belgrade IT consultant typically pays about 30,000–45,000 RSD a month |
| Minimum wage | 371 RSD net per hour (2026); 405 RSD from 1 January 2027 | Roughly 62,000–65,000 RSD a month in 2026 |
| Incentives | The 10-year corporate tax holiday for investments above 1 billion RSD and 100 jobs closes to new entrants from 1 January 2028; the start-up investor credit was repealed in 2026 | Grandfathered for conditions met by 31 December 2027; see our business incentives guide |
Two further points. An entrepreneur who works mainly for one client is tested against nine independence criteria (the client sets the hours, provides the workplace and equipment, pays 70% or more of the income, uses him 130 or more days a year, and so on); meeting five reclassifies the income as other income taxed at 20% plus pension contributions, so a disguised employee should not be set up as a flat-rate entrepreneur. And for United States citizens a Serbian company is a controlled foreign corporation, with the annual reporting and possible income inclusions that brings; our US taxes after moving to Serbia guide covers it, and our accounting and tax service runs the Serbian side.
Residence through your company: how the single permit works for founders
Since 1 February 2024 Serbia issues a single permit (jedinstvena dozvola) that covers temporary residence and the right to work in one document, applied for electronically. For a foreigner who is a founder or member of a Serbian company and works in it, or who is a registered entrepreneur, the basis is self-employment. The National Employment Service assesses only whether the person's qualifications match the registered activity and the planned staffing; there is no labour-market test, which is the key difference from a foreign director who is not an owner and must be employed under the ordinary rules. The Service has 10 days for its assessment and the Ministry of Interior 30 days from a complete application; permits run for up to three years at a time, an extension is filed within the three months before expiry, and lawful stay continues while a timely extension is pending. After three years of continuous residence, with absences of no more than ten months in total and six at a stretch, the founder can apply for permanent residence.
The company is examined as part of the file: its activity, seat and the founder's qualifications are checked against the application, and at extension the authorities look for substance: real activity, a bank account that moves, contributions paid, often staff. Separately, the Government has designated an investor category (at least €50,000 invested in an existing Serbian company; first permit six months) and a start-up category (founders of companies recognised as innovative by a science-technology park). Neither is needed for an ordinary owner-managed DOO.
What a Serbian company does not do. Registering a company does not by itself give anyone the right to live in Serbia: the permit is a separate decision by the Ministry of Interior, with its own conditions on accommodation, means and health insurance. Owning a company does not make you a Serbian tax resident; that depends on your days and your centre of vital interests. A spouse and children are not covered by the founder's permit and apply for family reunification. And there is no golden visa and no citizenship by investment in Serbia; the company is a residence route, with citizenship possible only after years of residence under the ordinary law. Our residence permit service runs the permit side alongside the company.
Common mistakes foreign entrepreneurs make when forming a company in Serbia
- Registering as an entrepreneur to save money, then needing a DOO. A partner, an investor, property or turnover above the flat-rate ceiling all force a second set-up and a second residence file.
- Choosing an activity code for the name rather than the tax. The code decides whether flat-rate taxation is available, which coefficient applies and whether the seat needs commercial premises.
- Treating the bank as an afterthought. A company whose ownership chain cannot be documented will be registered by the APR and then refused an account; sort the ownership evidence before you file.
- Paying no founder's salary and expecting no payroll. Contributions on the lowest base are due every month the founder works in the company, salary or not.
- Setting up a disguised employee as a flat-rate entrepreneur. The nine-criterion independence test exists for exactly this, and the reclassification is expensive for the payer.
- Missing the 15-day deadlines. Beneficial owners within 15 days of registration, every change within 15 days of the event, the advance tax return within 15 days; the fines and surcharges are larger than the fees.
Form the right company, with the bank and the residence permit built in.
Our company formation service chooses the structure with you, prepares and files the founding documents under power of attorney, registers the company, beneficial owners and tax numbers, opens the corporate bank account, sets up licensed accounting and payroll, and files the founder's single permit so that the company and the residence case match from day one.
Frequently asked questions about company formation in Serbia
Can a foreigner own 100% of a company in Serbia?
Yes. Serbian company law allows a foreign natural or legal person to own all of the shares in a DOO and to be its sole director, with no requirement for a local partner, a resident director or Serbian citizenship. Foreign and domestic investors are treated equally under the Law on Investments. Owning the company does not by itself grant residence; that is a separate application.
How much does it cost to register a company in Serbia?
The APR fee for founding a DOO is 8,000 dinars (about €68) from 1 January 2026, and 2,500 dinars for an entrepreneur; the minimum share capital is 100 dinars. Notarisation, apostille and translations add roughly €150–500, and a registered address and licensed accounting run from about €30 and €100 a month respectively. Professional packages that include the bank account and the founder's residence permit are priced on top of these state costs.
How long does it take to open a company in Serbia?
The Business Registers Agency must decide within five working days of a complete electronic application, and three to five days is typical. Preparing the documents takes one to two weeks for a foreign founder, the bank account one to three weeks for a simple structure, and the founder's single permit about four to eight weeks after that. A complete set-up with a residence card usually takes two to three months.
DOO or preduzetnik: which should a foreigner choose?
A preduzetnik (entrepreneur) is cheaper and simpler and can use flat-rate taxation below 6,000,000 dinars of annual turnover, but the individual is personally liable, cannot have a partner or shareholder and cannot hold property in the business's name. A DOO limits liability, allows partners and investors, can own property and scales without a change of form. Solo remote professionals often start as entrepreneurs; anyone with a partner, employees or growth plans usually needs a DOO.
Can I get Serbian residency by opening a company?
A founder or member who works in his own Serbian company, or a registered entrepreneur, can apply for a single permit on the self-employment basis, with no labour-market test. The permit is issued for up to three years at a time, the Ministry of Interior decides within 30 days of a complete application, and permanent residence is possible after three years of continuous residence. The company must be genuine and must match the application; the permit is never automatic.
What taxes does a Serbian company pay?
Corporate income tax is a flat 15%. Dividends are taxed at 15% for resident individuals and 20% withholding for non-residents unless a double-tax treaty reduces it; Serbia has more than 60 treaties but none with the United States. Salaries carry 10% income tax plus contributions of 19.9% from the employee and 15.15% from the employer, and VAT at 20% (10% reduced) becomes compulsory above 8,000,000 dinars of turnover in twelve months.
Does a foreign-owned company need a Serbian director or a physical office?
No resident director is required, and the registered seat does not have to be premises you operate from: a residential address or a virtual office is lawful for most activities, with the written consent of the owner. A founder who works in the company without a salary still owes monthly social contributions on the lowest base, about 18,000 dinars in 2026, and a non-founder foreign director needs an employment-based permit with a labour-market test.
Can I register a Serbian company remotely without visiting Serbia?
The registration itself can be done through a Serbian lawyer under a notarised and apostilled power of attorney, because company founding is electronic-only and requires a Serbian qualified electronic certificate that non-residents can obtain only in person. Banks, however, usually want the director to appear at least once for identification, and the single permit requires the founder to give biometrics in Serbia. Plan for one visit around the bank account and the residence application.
Talk your structure through before anything is signed.
Book a strategy call and we will map the right legal form, the tax regime it puts you in, what the bank will ask for your ownership structure, and how your residence permit and your family's fit around the company. Prefer to talk it through in person? Book a strategy call and meet our team at our Belgrade or Novi Sad office (by appointment), or by video call.
Written by the Relocation Serbia team. Last reviewed: October 2026. General information, not legal, tax or immigration advice; registration decisions rest with the Business Registers Agency, residence decisions with the Ministry of Interior, and account decisions with each bank; no outcome, fee or timeline is guaranteed. Figures are the 2026 statutory amounts and published market ranges and change each January. Sources: Law on Companies (Articles 11, 19, 21, 45–46, 145, 567, 574); Law on the Procedure of Registration with the APR (Articles 9, 10, 15); APR fee decision in force from 1 January 2026; Law on the Central Register of Beneficial Owners (Articles 2, 7, 13, 14); Law on Corporate Income Tax as amended in August 2026; Law on Personal Income Tax (Articles 15a, 40–42, 85) and the 2026 harmonised amounts; Law on Contributions for Compulsory Social Insurance (Articles 6, 37, 42, 44); Law on VAT (Articles 33, 38); Law on Accounting; Law on Electronic Invoicing; Law on Foreigners and Law on Employment of Foreigners (single permit, in force 1 February 2024); Welcome to Serbia portal fee schedule; APR registration statistics for 2025. See also our company formation service.