Starting a company in Serbia is a crucial step for every entrepreneur who wants to begin their own business. A properly conducted formation process not only ensures legal operations but also provides a stable foundation for the future growth and development of the company. The most common dilemmas founders face relate to the choice of legal form, required documentation, and registration costs.
Many entrepreneurs wonder what is needed to establish a company, how long the registration process takes, and whether it is more favorable to open a sole proprietorship or a limited liability company (LLC). Foreign citizens additionally have uncertainties about whether they can be company founders in Serbia and what specific conditions they must meet.
With the professional support of lawyers specializing in commercial and corporate law, the entire company formation process becomes significantly simpler, ensuring compliance with all legal regulations and avoiding potential mistakes that could later lead to legal and financial problems.
Who can establish a company in Serbia?
The right to establish a company in Serbia belongs to both domestic and foreign natural and legal persons. This means that almost anyone who wants to start a business can become a founder of a company, regardless of citizenship or place of residence.
Domestic individuals most often choose to establish a sole proprietorship or a limited liability company (LLC), depending on their business goals and the level of personal liability they are willing to assume. Serbian legal entities, such as already existing companies, can also be founders of new businesses.
Foreign natural and legal persons have the same opportunities to establish a company as Serbian citizens. They can form an LLC, a joint-stock company, or operate through representative offices and branches of foreign companies registered in Serbia. The establishment process for foreigners involves obtaining additional documentation, usually notarized and translated personal or corporate documents, powers of attorney, and apostilles, in line with international standards.
It is important to emphasize that the law does not distinguish between domestic and foreign founders when it comes to rights and obligations, which makes Serbia an attractive destination for investment and starting a business.
Types of business entities in Serbia
When starting a company in Serbia, one of the first steps is choosing the legal form, as it determines the scope of the founder’s liability, the management structure, and tax obligations. The Law on Business Entities provides for several types of business structures, with the most common being:
- Sole Proprietor (Preduzetnik) – the simplest form of business established by a natural person. The proprietor is personally liable for all business obligations with their entire assets. This form is suitable for small businesses, freelancers, and family enterprises.
- Limited Liability Company (LLC / DOO) – the most common form of business entity in Serbia. The founders (company members) are liable only up to the amount of their initial capital contribution, which significantly reduces risk. The minimum share capital is 100 dinars, and an LLC can have one or more members.
- General Partnership (OD) – a company established by at least two partners who are jointly and unlimitedly liable with their personal assets for the company’s obligations. It is suitable for smaller businesses based on mutual trust between partners.
- Limited Partnership (KD) – consists of general partners, who bear unlimited liability for the company’s obligations, and limited partners, whose liability is restricted to their contribution. This form is less common in practice.
- Joint-Stock Company (AD) – a more complex form of business entity intended for larger enterprises. The capital is divided into shares, and shareholders are liable up to the value of their contribution. It can be public (if shares are traded on the stock exchange) or private.
The choice of legal form has long-term implications for business operations, so it is best to make the decision with the guidance of experts in commercial and corporate law, to ensure legal compliance and an optimal business structure.
Documentation for starting a company
To successfully register a company in Serbia, certain documentation must be prepared. The type and scope of documents depend on the chosen legal form, but there are general steps that must be fulfilled.
For establishing a limited liability company (LLC/DOO), the most common required documents are:
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Founding act (articles of association for a multi-member LLC or decision of establishment for a single-member LLC)
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Proof of payment of share capital – minimum 100 dinars, deposited to a temporary bank account
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Statement by the founder accepting the role of director
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Notarized signatures of authorized persons
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Proof of the right to use business premises (lease agreement or ownership certificate)
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Proof of payment of registration fees to the Serbian Business Registers Agency (APR)
For other types of business entities, documentation includes:
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Sole proprietor – registration application and proof of identity of the founder
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General and limited partnership – partnership agreement, notarized by a public notary
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Joint-stock company (JSC/AD) – articles of association, decision of establishment, and proof of capital contribution
In addition to the basic documentation, additional permits may be required (e.g., approvals from competent ministries for specific activities). Foreign citizens and legal entities must provide notarized and translated personal or corporate documents, along with an apostille if applicable.
Proper preparation of documentation speeds up the registration process and reduces the risk of application rejection, which is why hiring a lawyer or legal advisor is highly recommended.
Company registration with the Serbian Business Registers Agency (APR)
The central institution responsible for registering all business entities in Serbia is the Serbian Business Registers Agency (APR). The registration process is clearly regulated, allowing founders to complete all necessary procedures in one place.
Today, electronic company registration is increasingly used, as it significantly speeds up the procedure and reduces costs. E-registration requires the use of a qualified electronic signature and the submission of complete documentation in digital form. The main advantages of this system are faster application processing and a reduced risk of technical errors.
In addition to e-registration, APR also applies a one-stop-shop system. This means that when submitting the application for company registration, the founder can simultaneously file requests for tax registration, obtain a tax identification number (PIB), and register for mandatory social insurance. This greatly shortens the time needed for a company to become fully operational.
As for deadlines, APR is legally required to issue a registration decision within five working days from the submission of a complete application. In practice, the process is often faster, especially with electronic registration.
If the documentation is incomplete or incorrect, APR issues a notice of deficiencies and provides an additional deadline for correction. This is why careful preparation of the application is crucial to avoid delays and extra costs.
Starting a company while being employed
An employee who is already employed has the right to establish a company in Serbia, but there are certain specifics and restrictions to keep in mind.
First, an employee can establish a limited liability company (LLC/DOO) or register as a sole proprietor while still maintaining their employment. However, it is important to check whether the employment contract or internal company regulations include a non-compete clause. If such a clause exists, the employee is not allowed to engage in activities that would compete with their employer.
Employees working in state institutions and public services are subject to stricter rules. In many cases, they are completely prohibited from founding or managing business entities in order to avoid conflicts of interest.
Although the law permits company formation while retaining employment, it should be noted that running a company requires time and active involvement. For this reason, many founders choose to appoint a director or another person to handle day-to-day business operations while they remain formal owners.
This model is particularly practical for those who want to test a business idea, keep the security of steady employment, and at the same time start their own business.
Company formation for foreign citizens
Foreign natural and legal persons have the full right to establish a company in Serbia under the same conditions as domestic citizens. This makes Serbia an attractive investment destination, as foreign investors can easily enter the market and start a business without special restrictions.
Options for foreigners include:
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Establishing a limited liability company (LLC/DOO) – the most common choice due to minimal capital requirements and limited liability
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Establishing a joint-stock company (JSC/AD) – suitable for larger investments
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Registering a branch or representative office of a foreign company in Serbia
Required documents for company formation by foreigners:
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Passport or ID card (notarized and translated into Serbian)
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Founding act (decision or articles of association)
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Proof of payment of share capital
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Proof of the right to use business premises
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Statement on the appointment of a director
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Power of attorney, if the founder does not attend the registration procedure in person
Foreign documents must be notarized, translated, and in most cases accompanied by an apostille stamp, which certifies their legal validity under international standards.
A major advantage for foreign founders is that the registration process can be completed without being physically present in Serbia, through an authorized representative (usually a lawyer). This greatly simplifies and speeds up the entire process.
Opening a bank account and accounting obligations
After APR issues the registration decision, the newly registered company must open a permanent business bank account. Without this step, the company cannot conduct payment transactions, pay taxes, process salaries, or operate with partners.
To open a bank account, the following documents are usually required:
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Registration decision from APR
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Signature card (certified at the bank or by a notary)
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ID card of the director or authorized person
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Lease agreement or proof of business premises (in some banks)
Banks often offer special packages for newly established companies, which may include reduced fees or free account maintenance during the first months of business.
In addition to opening a bank account, every business entity in Serbia has accounting obligations. These include keeping business records, calculating taxes and contributions, preparing financial statements, and submitting them to the relevant authorities.
Due to the complexity of tax regulations, most companies hire an accountant or an accounting agency, as timely and accurate bookkeeping is the foundation of lawful business operations. Failure to comply with these obligations may lead to significant fines and issues with the tax administration.
Opening a bank account and setting up reliable accounting are therefore the first essential steps that ensure the company can actually start its business activities after registration.
Virtual headquarters and online company formation
Modern business increasingly relies on digital solutions, and when it comes to starting a company in Serbia, there are options that make the process easier and faster.
A virtual headquarters allows entrepreneurs to register their company at an address that is not their actual place of business. This is especially useful for startups, freelancers, and foreign investors who want a presence in the Serbian market but do not need a physical office. In addition to providing the address, the service often includes mail reception, client notifications, and forwarding of documents.
On the other hand, online company formation has become a reality thanks to electronic signatures and APR’s digital platforms. This process eliminates the need for physical presence, which is particularly convenient for foreigners and entrepreneurs looking to save time. Electronic registration is often cheaper as it reduces notary and administrative fees.
Advantages of virtual headquarters and online formation:
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Cost savings on office rent and notary services
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Flexibility to run a business from any location
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Faster registration and business launch
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Easier handling of administrative tasks
These models are becoming increasingly important, as they meet the needs of modern entrepreneurship, where speed and efficiency are often crucial for success.