COMPANY IN SERBIA
Serbia is a country with a rich history, whose current borders were formed in 2006 after the break-up of the State Union of Serbia and Montenegro and in 2008 after the declaration of independence by Kosovo. The country now has the status of an official candidate for accession to the European Union and is negotiating with it. The current currency is the Serbian Dinar (RSD). The capital is located in Belgrade, which is a very dynamic city, where tradition meets modernity. Its convenient location on the map, in the heart of the Southeastern European region, makes it a business combination from the west and east of the Old Continent.
Business in Serbia and its taxes
Serbia has one of the lowest corporate income tax rates, which is 10%. Moreover, the state provides for a 5-year CIT exemption for small investments in developing areas and a 10-year CIT exemption for companies undertaking investments worth at least EUR 8 million which will generate at least 100 new jobs. Taking into account the rates in other countries, including those of the European Union, Serbia appears to be a business-friendly place in this respect.
It should also be noted that similarly to Poland, there are special economic zones in Serbia (e.g. in Subotica or Nowy Sad). Entrepreneurs in these zones are exempt from VAT and do not have to pay duty on production materials imported into the country. All documentation can be handled in one place, as each zone has its own customs chamber branch to speed up procedures.
As far as the establishment of the business in Serbia is concerned, low employment costs should also be added to the above figures. The state offers grants ranging from €2,000 to €10,000 per job created in the manufacturing and export related sector. The larger the company in Serbia, the greater the economic benefits it can receive from local authorities. The favourable conditions offered by open business in Serbia have already tempted large global companies such as Coca-Cola, Henkel and Gorenje.
Before you start company registation in Serbia choose the best legal form
Registration of a partnership in Serbia can take place in the following, most common forms: general partnership (o.d.), limited partnership (k.d.), limited liability company (d.o.o.) or stock partnership (a.d.).
The legal forms of enterprises remain similar to those known in Poland and other European countries, as Serbia strives to unify its legislation and align it with EU standards.
Serbian limited liability company (d.o.o.)
A limited liability company in Serbia may be established by no less than one natural or legal person, and the number of shareholders may not exceed fifty. Responsibility for liabilities shall be borne by the company with all its assets. The potential liability of a shareholder is limited to the amount of the contribution made, which may be both monetary and non-monetary (including the possibility of contributing e.g. services to the company’s assets). It is not necessary for the contributions to be equal. The minimum amount of the share capital of a d.o.o. company is the equivalent of EUR 500 in Serbian dinar, and at least half of this amount must be paid into a provisional account of the company until registration.
Ready made company in Serbia
It is possible to buy a company in Serbia, but due to simplified procedures and short time, opening a company in Serbia seems to be much more beneficial. It should also be remembered that the purchase of a company in Serbia carries a risk concerning its history and the need to verify obligations and all documents. Therefore, it is important to consider all aspects of such a process before taking any steps that would result in the purchase of a company in Serbia.
Is this the right time to open a company in Serbia
Despite the lack of European Union membership, Serbia is a very interesting alternative to business in the EU, and registering a company in Serbia can bring many benefits. It is a rapidly developing country and its authorities are favourable to entrepreneurs from other countries. Specialists in the area of new technologies and information technology are particularly valued, as the country is only just entering the sphere of computerisation. The presence of large international companies in the Serbian market proves that investing and establishing a business in Serbia does not have to involve excessive risk as it is a market open to new entities and catching up with Western countries more and more quickly. Given that Serbia’s EU membership is rather a matter of time, this seems to be the ideal time to invest in Serbia, as the prospects for the Balkan market are very optimistic.