Open a Company
in Serbia

We always recommend starting with a Sole Proprietorship to see how your business progresses, as a Sole Proprietorship can always be converted to an LLC, but an LLC cannot be converted to a Sole Proprietorship.

A Sole Proprietorship is simpler to open and close, with both procedures taking around 5 business days. However, a Sole Proprietorship can only have one activity type, whereas an LLC can have one primary and two secondary activities.

Opening an LLC takes about 10 days, and closing it can take up to six months, with both procedures being quite complex and costly.

Additionally, a Sole Proprietorship can only have one owner, while an LLC can have multiple owners.

However, certain activities, such as foreign trade, are better suited to an LLC. Also, remember that an LLC is liable with its authorized capital, while a Sole Proprietorship is liable with all its assets.

In Serbia, there are two tax systems for Sole Proprietorships:

1. Knjigash(with an accountant) - This system has a 10% income tax. An accountant is mandatory. Bookkeeping can be with or without payroll.

2. Paushal (simplified tax system) - This is a fixed-rate tax system. An accountant is not mandatory. It is available for entrepreneurs with a turnover of up to 6,000,000 dinars per calendar year.

LLCs are required to pay a 15% corporate income tax, a 20% value-added tax (VAT) with exceptions depending on the type of activities, as well as personal income tax and social contributions for their employees.

The minimum authorized capital for an LLC is 100 dinars (RSD).

Yes, if the Sole Proprietorship owner is not a Serbian citizen, a work permit is mandatory to extend the residence permit.

This depends on the chosen tax system. There may be no tax, but social contributions will still need to be paid.

Additionally, lack of company income may result in a refusal to extend the residence permit.

To open an LLC in Serbia, you need a valid passport, a legal address, and notarized founding documents. If you are a foreigner and do not speak Serbian, you will need a court translator for the notary visit.

Opening a company in Serbia offers access to the country's attractive investment climate, favorable tax rates, strategic location in Europe, and access to a large international market.

Serbia also has several programs for startups and other types of businesses that offer tax benefits.