Serbia is rapidly becoming a key destination for business in Europe, thanks to its strategic location, skilled workforce, and cost-effective operations. Foreigners can establish a business in Serbia, and this process can serve as a gateway to obtaining a temporary residence permit. Once your company is set up, you can apply for this permit, which typically takes about 2-4 weeks to process. Following this, you may also apply for a work permit, making company formation a practical first step for relocating to Serbia.

Types of Companies in Serbia

Serbia offers various company structures:

1. General Partnership

This form involves two or more partners who share unlimited liability for the company's debts. Profits are distributed equally among partners unless the partnership agreement specifies otherwise.

2. Limited Partnership

Comprising at least two members, a limited partnership includes one general partner with unlimited liability and one or more limited partners whose liability is restricted to their contribution. Both types of partners typically share in profits and losses proportionately.

3. Limited Liability Company (LLC)

In an LLC, one or more members own shares in the company, but are generally not liable for company obligations beyond their investment. This structure is popular due to its minimal initial capital requirement (RSD 100, less than EUR 1) and limited liability for its members.

4. Joint Stock Company

This type features capital divided into stocks held by shareholders who are not liable for company obligations beyond their shareholdings. Typically, a joint stock company requires a minimum capital of RSD 3,000,000.

Costs for Company Registration in Serbia

Registering a company involves a fee of RSD 6,500. Additionally, individuals can set up a sole proprietorship, which is often chosen for its simplicity and lower cost (registration fee of RSD 1,600). A sole proprietorship is run by an individual who is fully liable for all business-related debts.

Process for Obtaining a Temporary Residence Permit through Company Formation

Once you have registered your company, you will receive a registration excerpt from the Business Registers office within 5 working days. This document, along with additional paperwork, is required to apply for a temporary residence permit. Other necessary documents include a passport copy with an entry stamp, proof of address in Serbia, a bank statement from a Serbian account, a lease agreement or proof of property ownership, and private health insurance coverage.

To register your address (known locally as "beli karton"), you must report to the Police within 24 hours of arrival. If you are staying in a hotel, registration may be completed online. For rental accommodations, the property owner must assist with registration at the Police station. You will need to open a Serbian bank account, which can be done within a week with just your passport and address proof. Many foreigners prefer renting to purchasing property, so a lease agreement will often suffice.

Submit all required documents along with the governmental fee for the residence permit application, which is RSD 19,206 if applying online.

After Receiving Your Temporary Residence Permit

Once your temporary residence permit is approved, you will need to bring your passport to the Police station to have the permit sticker affixed. If you plan to work in Serbia, whether as a sole proprietor or CEO of your LLC, you will need to apply for a work permit. Processing typically takes about one month, and the fee is RSD 14,690.

Steps for Obtaining a Temporary Residence Permit through Company Formation:

1. Register your company in Serbia.

2. Open a personal bank account in Serbia.

3. Secure rental or purchase property.

4. Submit your application for a temporary residence permit.

5. Apply for a work permit if necessary.