Serbia possesses a combination of characteristics that can hardly be found in any other country of the world. First, it’s a European country. It’s not a member of the EU but its affiliation with the Union is planned for 2025. Second, Serbia has an advanced business infrastructure. Office buildings, transportation networks, logistic centers, Techno parks, business incubators – you can find any business facility that you could think of in Serbia. Third, the country is located at the crossroads of many important trade routes between east and west, south and north. Fourth, Serbia charges less in taxes than many of its neighbors do. The corporate income tax is only 15% in the country and the personal income tax is 10%. In addition to that, the Government of Serbia gives numerous fiscal incentives to newly established companies. The Serbian authorities support business development with all their might.
Thus, you will find a comfortable business environment in Serbia and you will be able to save on taxes if you launch a business venture in the country. At the same time, you don’t have to build a company from scratch in Serbia. Instead, you can relocate your existing company there. You can relocate your company to Serbia wholly or partially.
Liquidating your company and starting a new one in Serbia
- Liquidate your existing company in accordance with the regulations applicable in the country where it is registered. You could consider selling your company but in this case, you will have to use a new company name in Serbia and you may be unable to keep the company personnel. Probably you should consider selling the company’s assets and having the Registrar scratch the name of the company from the list of registered companies in your home country.
- Register a new company in Serbia. This method of company relocation presumes starting a new business entity in Serbia. You will have to register a company with the authorities, rent or buy an office, hire company personnel, find the required manufacturing facilities, and purchase manufacturing machinery. Please bear in mind that you can take your old company’s assets (such as machinery and equipment, for instance) with you to Serbia. Besides, you can employ the personnel of your old company too. In this case, however, you will have to justify the need to hire foreign workers for the Serbian labor authorities. This is not going to be too difficult: your staff will have unmatched experience in the business area where your new Serbian company is going to work.
You should also bear in mind that renting a company is also possible in Serbia. An ‘umbrella’ company already registered in Serbia can handle your financial and administrative issues while acting as an intermediary between you and your customers. Please follow the link above to learn more about this opportunity and we will proceed with company relocation matters.
Setting up a representative office or a company branch in Serbia
- Set up a representative office in Serbia. This is something you might want to do prior to relocating your company to Serbia in full. A representative office is often used for market research and promotional purposes. It is not going to be an independent business entity but a Serbian division of your company stationed in another country.
- Set up a company branch in Serbia. Unlike a representative office, a company branch registered in Serbia is entitled to engage in any sorts of business operations that are legal in the country. You can set up a company branch to test the opportunity of relocating your company to Serbia in full.
Documents required for registering a representative office or a company branch in Serbia
You can register one of these entities yourself but then you would have to visit Serbia in person. Alternatively, you can issue a Power of Attorney in the name of a trusted agent in Serbia and he or she will register a representative office or a company branch in the country on your behalf. The following documents have to be supplied in the registration process:
- An official application form;
- A resolution from an authorized body to set up a representative office or a company branch in Serbia;
- An extract from the Register where the parent company is registered and its translation into Serbian by a sworn translator (the translation can be done in Serbia);
- Details of the bank accounts used by the parent company;
- A document that certifies that the parent company undertakes to be fully responsible for the activities of its representative office or branch in Serbia (also translated into Serbian);
- A receipt certifying payment of the company registration fee.
Relocating your company to Serbia can open new horizons for your business activities. Because foreign company owners are eligible for residence permits, you may become an EU citizen one day. Residence permits turn into passports of Serbia with time and the country is planning to join the European Union. This is another compelling reason to seriously consider establishing a business entity in Serbia.
Some promising business ideas for a company registered in Serbia
Serbia opens wide business opportunities for domestic and foreign entrepreneurs; the business area choice will depend on your personal preferences, of course. Below, are a few suggestions you might want to consider when going into business in Serbia.
- A marketing or an IT agency. The Serbian market is rather small. But if you sell digital products (targeted ads, website design, promotion in social networks, etc.), you can cooperate with clients from countries other than Serbia too.
- Waste Management. The Serbian authorities launched a waste management program in 2022 in order to conform to the European standards of garbage processing. In 2020, only about 15% of garbage was processed in accordance with these standards. If you engage in this business area, your company may well interest the Serbian Government. When the Government of the country is interested in a business project, it supports it in every way it can.
- Hotel industry. The popularity of Serbia as a tourist destination has been steadily growing over recent years. This is attributable to its geographical location in the middle of Europe and the growth of the overall welfare of Serbians. A growing number of tourists requires a larger number of residential accommodations. You can open a hotel or a guesthouse and team up with an advertising agency to promote it.
- An event agency. You could organize wedding ceremonies, team-building sessions, quests, corporate celebrations, promotional campaigns, and other events.
These are only a few suggestions – Serbia offers immense business opportunities in many different spheres. We suggest you apply for professional assistance if you would like to relocate your company to Serbia and start a new one there from scratch.
