Serbia-Limited Liability Company
SERBIA – European country which has a fast-growing economy and very good laws for foreigners who intend to live in it. Serbia is not in the EU, but that is why it offers a large number of benefits for those who whant to open a company or become residents of this country.
Limited Liability Company
LLC or in Serbian (DOO) is the most popular form for starting new business. It opens up wide range of opportunities that can be very important and beneficial later on when doing business in Serbia.
Due to its flexibility, this business model is best for small and medium-sized companies.
Director of the company does not have to be a citizen of the Republic of Serbia and if he wants, he has the right to apply for residency.
Benefits of Serbian LLC
- Founding capital 1 euro
- Time required for establishment 7 days.
- Only the basic documentation for the establishment is needed.
- It can be opened without the presence
- 15% corporate and dividend tax
- Company is required to appoint a qualified accountant.
- Director of LLC doesn’t need to be citizen of Serbia
Tax obligations
LLC is a tax subject and all income generated through company is subjected to 15% corporate tax
After registering a company in Serbia, a foreigner should remember that even if the company does not conduct economic activities this does not exempt a foreigner from making tax reports (even with 0 profit) and paying other taxes, such as corporate and personal income tax on their employees.
The basis for the corporate tax is only the company’s net earnings. In other words, the corporate tax is only paid on the amount obtained when expenses are deducted from income.
In case of bankruptcy, shareholders of LLC are not obligated to pay the company’s debt with their own assets.
If you are resident of the country by which the Republic of Serbia has concluded a Double Taxation Avoidance Treaty you can optimize taxation in order to reduce operation costs.
Maintenance costs
Some of the main costs that foreign companies have while doing business in Serbia are accounting and address costs for their office.
Qualified accountant must be appointed so that the company can function properly.
Companies that have a minimum number of transactions, pay 50 euros per month.
Companies with an average number of transactions pay up to 100 euros per month.
Cost of virtual address is 50 euros.
And those who want to have their office, price varies from 200 to 250 euros for small office space in Belgrade.
Corporate bank account
Together with the company, two bank accounts are opened at the same time in order to enable uninterrupted business.
One of the biggest advantages of opening a company in Serbia is the possibility of doing business with CIS countries. Despite the sanctions between East and West, banks in Serbia can be a simple solution due to their flexibility.
The process consists of several key stages:
- Preparation and notarization of documents
- Company registration in the Business Registry Agency
- Assistance when opening personal and corporate bank account
- Searching and signing contracts for the office and accounting
Documents that are needed:
- Passport copy of shareholder/director
- Prof of address
- Power of attorney in case you cannot be present.
Obligations after company formation
Maintaining the company requires constant communication with the bank as well as the accountant and state institutions. This is a problem for some clients, especially if they have several companies, as is often the case.
An obstacle can be represented by two things:
- If accountant does not understand English. This can be a difficulty when it is necessary to submit the documentation or to find out more about taxes
- Most forms as well as notices from banks and state institutions can only be found in Serbian language
It is possible to achieve all this but it will take a lot of time.
If you want to be carefree and focus only on your business, you can request our Monthly Advisor service.
Our main job will be to:
- Coordinate with banks as well as government and tax authorities
- Provide legal and consulting services
- Inform you about upcoming obligations
Be free and let us know if you want this additional service. You choose the duration of the contract and you can also cancel the service at any time.
FAQ
Company can appoint up to 5 directors.
Yes, foreigners are allowed to register multiple companies.
Maximum is 3 months.
Yes, from start to finish whole process can be done remotely
Our principles of work
Information handling requires a responsible approach, so we always inform you in advance about the upcoming steps and documentation that is required, so you can plan your schedule and enjoy your time.
After the job is done, we don’t turn our backs on you and we don’t charge premium for further consultations.
Even for everyday challenges you stumble on in Serbia you can always ask us for advice and we will be happy to assist.
Wish you luck and achievement of future plans! See you in Serbia!
