Company formationEuropeSerbia company formation: entrepreneur or LLC
Foreign founders in Serbia usually register either as an entrepreneur, a natural person trading in their own name, or as a limited liability company (d.o.o.). As of October 2026, entrepreneurs pay 10% income tax, companies pay 15% profit tax, and either form can support a single permit for self-employment.
Updated
An entrepreneur (preduzetnik) is not a separate legal entity: you trade in your own name and are liable with your own assets. Registration is quicker and cheaper than for a company. Income is taxed at 10%, either on taxable profit from your books or as flat-rate (lump-sum) income, which the Tax Administration sets as a fixed amount. Flat-rate status is open to entrepreneurs with annual turnover below RSD 6 million who meet the independence criteria.
A limited liability company has its own legal personality, and its members are not liable for its debts. It pays 15% profit tax. Dividends paid to resident individuals are taxed at 15%, and dividends paid to non-residents carry 20% withholding tax unless a tax treaty reduces the rate.
Both forms are registered with the Serbian Business Registers Agency, electronically and with a qualified electronic signature or through a representative. The registrar decides within five working days. The same filing can request VAT registration, flat-rate taxation and social security registration, and companies record their beneficial owner within 15 days of formation.
Running a business is a recognised basis for residence in Serbia. Founders and entrepreneurs apply for a single permit for self-employment, and the National Employment Service checks that the business is genuine. Because extensions depend on the ground still existing, the company should have real activity and keep its filings up to date.
Bookkeeping, tax returns and contracts are handled by licensed Serbian accountants and lawyers; Redomiciled sets up the structure with them and keeps the timeline.
Who it suits
Consultants and freelancers
Your turnover stays below the flat-rate limit and you want simple, predictable taxation.
Agencies and software businesses
You employ people, reinvest profits and prefer limited liability.
Founders who need residence
You want your Serbian business to be the ground for a single permit for self-employment.
Owners planning to distribute profits
You want a company that pays 15% on profit and 15% on dividends to resident individuals.
Requirements
- Required
Registered seat in Serbia
A business address for the entrepreneur or company.
- Required
Electronic signature or representative
Registration is electronic; a qualified certificate or an authorised representative files for you.
- Required
Founding act
For a company, the decision or agreement on formation.
- Required
Beneficial owner record
Companies register their beneficial owner within 15 days of formation.
- Required
Bookkeeping and annual filings
Financial statements go to the Business Registers Agency; flat-rate entrepreneurs keep a turnover book instead.
- Depends on your case
VAT registration
Mandatory once turnover passes the statutory threshold, voluntary below it.
- Depends on your case
Flat-rate status
Requested at registration if you qualify.
Documents
- Passport copiesFor founders, directors and the entrepreneur.
- Founding act or registration formPrepared for the Business Registers Agency.
- Proof of registered seatLease agreement or owner's consent for the business address.
- Power of attorneyIf a representative files, legalised or apostilled as required.
- Bank onboarding fileSource of funds and a description of the business model.
Timeline
- 1Choose the formEntrepreneur, entrepreneur with flat-rate tax, or limited liability company.
- 2Prepare documents and signatureFounding act, address and a qualified electronic signature or power of attorney.
- 3Electronic registrationFiled with the Business Registers Agency; the decision comes within five working days, together with the tax number.
- 4Tax and social security set-upFlat-rate request, optional VAT registration and contributions registration through the same filing.
- 5Bank account and residenceOpen the business account, register the beneficial owner and apply for the single permit.
Tax notes
- Companies pay 15% profit tax; resident companies are taxed on worldwide profit.
- Entrepreneurs pay 10% income tax on taxable profit or on the flat-rate amount, plus social contributions at 24% for pension and disability, 10.3% for health and 0.75% for unemployment insurance on the contribution base.
- Dividends are taxed at 15% for resident individuals and carry 20% withholding tax for non-residents, subject to treaty relief.
- The standard VAT rate is 20%; registration becomes mandatory above a turnover threshold.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Serbian banks open business accounts for newly registered entrepreneurs and companies once the registration decision and tax number are issued.
- Expect questions on the source of funds, expected turnover and foreign clients; a clear description of the business shortens the review.
Questions
How do I open a company in Serbia as a foreigner?
Register an entrepreneur or a limited liability company with the Serbian Business Registers Agency. Filing is electronic, with your own qualified signature or through a representative, and the registrar decides within five working days. The tax number is issued with the registration.
What is the difference between a Serbian entrepreneur and an LLC?
An entrepreneur is a natural person trading in their own name with unlimited personal liability, taxed at 10%. An LLC is a separate legal entity whose members are not liable for its debts; it pays 15% profit tax, and dividends to resident individuals are taxed at 15%.
What is flat-rate taxation in Serbia?
A regime for entrepreneurs who do not keep full books. The Tax Administration fixes the tax and contributions as a set amount. It is available when annual turnover stays below RSD 6 million and the independence criteria are met.
Does a Serbian company give me residency?
It can be the ground for it. Founders and entrepreneurs apply for a single permit for self-employment, valid for up to three years. The business has to be genuine, and the permit is extended only while that ground continues.
What tax does a Serbian LLC pay on profits and dividends?
Profit tax is 15%. When profits are distributed, dividends to resident individuals are taxed at 15%, and dividends to non-residents carry 20% withholding tax unless a tax treaty lowers it.
More in Serbia
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- ResidencySerbia residence permits: business, property and permanent residenceA Serbian temporary residence permit lets a foreigner live in Serbia for more than 90 days on a legal ground such as self-employment, employment, family reunification or ownership of a home. As of October 2026, permits are granted for up to three years, and permanent residence follows three years of continuous stay.View
Company formation elsewhere
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Sources
- Ministry of Interior: Law on Foreigners (Official Gazette 24/2018, 31/2019 and 62/2023), English text, retrieved 2026-10-25
- Ministry of Interior: Information for foreign nationals (single permit, electronic filing), retrieved 2026-10-25
- Welcome to Serbia (government portal): Approval and extension of temporary residence, retrieved 2026-10-25
- Welcome to Serbia: Information about the single permit, retrieved 2026-10-25
- Welcome to Serbia: Visa for foreign business owners, retrieved 2026-10-25
- Welcome to Serbia: Choose the appropriate form of business organization, retrieved 2026-10-25
- Welcome to Serbia: Income taxes, retrieved 2026-10-25
- Serbian Business Registers Agency: Companies register, general instructions, retrieved 2026-10-25
- Welcome to Serbia: Initiate the registration process, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Serbia, taxes on corporate income, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Serbia, individual residence, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Serbia, taxes on personal income, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Serbia, income determination, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Serbia, corporate withholding taxes, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Serbia, other taxes (VAT), retrieved 2026-10-25
- Welcome to Serbia: Family reunification, retrieved 2026-10-25
- Redomiciled internal notes: Serbia residence programme (internal), retrieved 2026-10-25
- Redomiciled internal notes: Serbian tax residence for entrepreneurs (internal), retrieved 2026-10-25
- Redomiciled internal notes: Serbia residence and tax residence guide (internal), retrieved 2026-10-25
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