Since the beginning of economic development, Serbia has grown into one of the deluxe investment locations in Central and Eastern Europe. It is open to everybody, it has made a considerable number of free trade agreements, and setting up a company in Serbia is a desirable offer for international investors and entrepreneurs. Also, a foreign business in Serbia will gain from over fifty double taxation avoidance agreements that Serbia has signed with other states. In addition to that, it is possible to register a company in Serbia, even if you are a foreigner.
Step-by-step process of company registration in Serbia
Choose a legal form for your Serbian company
The first step in a company formation in Serbia is to select the appropriate legal form.
According to the Companies law of the Republic of Serbia, there are numerous types of business structures available, and these are:
- An entrepreneur
- A limited liability company
- A partnership company
- A limited partnership company
- A joint-stock company
- A branch office
- Representative office
A limited liability company in Serbia is the most common form that the clients select since it is the most reasonable form for most different business activities.
But, sometimes it will be more cost-efficient, especially from a tax point of view, to register as an entrepreneur.
Select the name of your future Serbian company
Every business in Serbia must have a name and the name of the company must contain essential elements. The business name must include its legal form and the place where the primary office of the company is registered. Also, the business name must comprise other elements in accordance with the Law.
It is also recommended that you check, before sending the setup application, if the name of the company is available and if it is, that you reserve the name in advance.
Select the code of activity of the company
All business entities in Serbia are urged to choose their activity code. This signifies a commitment when applying to set up the company. you have to choose and write down the core activity of the company or the most important activity of the company.
The activity code of the company that is chosen is known as the core activity. Choosing the core activity doesn’t restrict the entrepreneur/business from performing other jobs besides the main one. There is a chance to have additional activities, but the most important thing is to think about the prominent activity when doing a company formation in Serbia.
Register the company address in Serbia
Registering the business address is mandatory in Serbia. The company’s address can be anywhere in the territory of Serbia, there is also the alternative of registering a virtual office address.
A virtual office represents a modern and valuable business concept, which can save a considerable amount of money when it comes to the rent and extra expenses for business premises. Besides, there are some businesses that aren’t connected to a certain location, so they can register a virtual office.
Nevertheless, the first thing to decide is where will the business seat of the company be.
Prepare the company’s articles of association
The set-up of a company (limited liability company, being the most common form of legal entity) in Serbia begins with allocating the articles of association. The company’s articles of association is a company’s general legal act created by the founders of the company. The document must contain on minimum, the following data:
- The information about the members of the company,
- The name of the company,
- Address of the company,
- Assigned code of activity,
- Amount of share capital,
- The individual share of each member, and
- Authorizations for the company representative.
There might also be extra requirements. The articles of Association must be authorized by the notary.
Submitting the paperwork to the Serbian Business Registers Agency (BRA)
The signature/s of the founder/s of the company must be notarized before the company is officially formed in Serbia. Then you can submit the application to register to the Serbia BRA. This can be done directly in the BRA’s seat in Belgrade, in BRA’s organizational units, or by mail.
When Serbia BRA accepts the application, then will the company number, tax identification number, and health insurance number, allocated by the National Health Insurance Fund, be given.
Conclusion
Having a company in Serbia, is a good choice of investment for many foreign investors and entrepreneurs, considering the startup costs which are reasonably low compared to other European states. The process of a Serbian company formation takes only a few weeks if all the documents are appropriately submitted and on time.
If you want to start a business in Serbia and need the right firm to help with it, go ahead and contact your Damalion expert now.
