Setting Up a Business in Serbia: A Complete Guide for Entrepreneurs

Serbia is rapidly becoming a top destination for entrepreneurs and businesses looking to expand or relocate. Whether you're a freelancer, startup founder, or an established business owner, setting up a business in Serbia offers favorable tax rates, a pro-business environment, and the opportunity to gain Serbian residency.

In this guide, we’ll break down the process of starting a business in Serbia, the different business structures, tax benefits, and how you can use your company to obtain residency.

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Choosing the Right Business Structure in Serbia

1.1 Preduzetnik (Entrepreneur Business)

This is a sole proprietorship, ideal for freelancers or small business owners. It operates under a flat-rate tax system, making it an attractive option for those who want a simple setup with minimal bookkeeping.

Key Benefits:

Flat tax rate applies to earnings up to €60,000 per year.
Less administrative burden (no requirement for a bookkeeper).
Suitable for freelancers and independent professionals.

Downsides:

No tax deductions on business expenses (rent, equipment, travel, etc.).
Limited growth potential compared to an LLC (DOO).
If earnings exceed €60,000 annually, restructuring is necessary.

1.2 Društvo s Ograničenom Odgovornošću (DOO) - Serbian LLC

A DOO (Limited Liability Company) is the Serbian equivalent of an LLC in North America. It is the best choice for businesses looking for scalability, tax deductions, and residency eligibility.

Key Benefits:

Separate legal entity (your personal assets are protected from business liabilities).
Corporate tax rate of just 15%, significantly lower than many Western countries.
Full tax deductions on business expenses (office rent, salaries, equipment, travel, etc.).
Residency eligibility for business owners and their team members.
100% foreign ownership is allowed.

Downsides:

More administrative requirements (bookkeeping, annual reports, corporate compliance).
Initial setup process requires legal documentation and registration.

The Serbian LLC (DOO): Key Roles and Responsibilities

When setting up a DOO in Serbia, understanding the roles within your company is crucial:

2.1 Shareholders (Members)

In Serbia, shareholders are the business owners who invest capital into the company and make strategic decisions. Their key responsibilities include:

Providing financial capital.
Holding equity and voting rights.
Making key business decisions, including mergers and acquisitions.

2.2 Directors

Directors are responsible for the day-to-day operations and long-term business strategy. Their primary duties include:

Managing business operations.
Ensuring legal and financial compliance.
Making executive decisions for company growth.

Important Note: If you set up a single-member LLC, you can act as both the sole shareholder and director, simplifying management and compliance requirements

Tax Benefits of Setting Up a Business in Serbia

One of the biggest advantages of relocating your business to Serbia is the favorable tax system. Here’s how Serbia compares to other countries:

Country	Corporate Tax Rate
Serbia	15% (flat rate)
Canada	Up to 39%
United States	Up to 29%
Germany	Up to 30%
France	Up to 28%

3.1 Lower Income Taxes

If you choose to take a salary from your Serbian business, the personal income tax rate is only 10%, significantly lower than in Canada, the U.S., or the U.K.

3.2 Tax Deductions for Businesses

Unlike a sole proprietorship, an LLC in Serbia allows you to deduct business expenses before tax is applied. This includes:

Office rent and utilities.
Employee salaries and benefits.
Business travel and client meetings.
Equipment purchases (laptops, cameras, office supplies).

Residency Through Business Setup

Many entrepreneurs choose to set up a business in Serbia as a pathway to residency.

Steps to Obtain Residency:

Register a DOO (LLC) and obtain a business license.
Apply for a temporary residence permit through business ownership.
Maintain compliance with Serbian business laws (tax filings, reporting, etc.).
Renew residency yearly and apply for permanent residency after five years.

Serbia offers 100% foreign ownership, meaning you don’t need a Serbian partner to open a business and qualify for residency.

How Relocation Serbia Can Help

Setting up a business in Serbia involves legal paperwork, tax compliance, and strategic planning. That’s where Relocation Serbia comes in.

We specialize in helping entrepreneurs, startups, and international businesses register and operate successfully in Serbia. Our services include:

✅ Legal assistance with business registration.

✅ Accounting & tax advisory to ensure compliance.

✅ Residency applications for business owners and their families.

✅ Business setup consulting to choose the best structure for your needs.

Ready to Start Your Business in Serbia?

If you’re considering starting a business in Serbia, let us help you navigate the process smoothly.

Serbia offers one of the most business-friendly environments in Europe, with low taxes, simple residency options, and full foreign ownership rights. Whether you’re a freelancer, investor, or entrepreneur, setting up a business in Serbia could be the perfect move for you!

📩 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!