How to Set Up an Entity in Serbia

Setting up a legal entity in Serbia gives companies a strategic foothold in the Western Balkans and access to broader Southeast European markets, supported by strong regional connectivity and trade links. Serbia’s geographic position makes it a natural hub for serving both EU-adjacent and non-EU markets, offering businesses a practical base for regional operations and expansion.

While international founders may encounter administrative challenges such as document formalities, language requirements, and local banking procedures, these are balanced by Serbia’s business-friendly fundamentals. A competitive tax environment, a highly skilled and cost-effective workforce, low minimum capital requirements, and a centralized one-stop registration system together create a transparent and predictable setup process that supports efficient market entry and long-term growth.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Serbia?

Opening an entity in Serbia means registering a business to obtain legal status, fiscal identification, and the right to operate commercially within the Republic of Serbia. This includes choosing a legal form, completing incorporation documentation, and securing tax and social contributions registrations.

Entity overview in Serbia

This table highlights key attributes of entity setup in Serbia, including commonly used structures and regulatory requirements:

Step-by-step guide: How to open an entity in Serbia

Step 1: Choose the right structure

Serbia offers several legal forms. The Limited Liability Company (d.o.o.) is commonly used due to limited liability, flexible governance, and low minimum capital. A Joint‐Stock Company (a.d.) is suited for larger operations with many shareholders. A Sole Proprietorship suits individual entrepreneurs, while branch offices and representative offices allow foreign companies to maintain a presence without full incorporation.

Step 2: Verify business name availability

Before registration, select a unique company name compliant with Serbian naming rules and include the legal form (e.g., “d.o.o.”). Check name availability using the SBRA register search or via the SBRA portal.

Step 3: Prepare incorporation documents

Prepare the required incorporation documents, which generally include:

• Founding Act or Memorandum/Articles of Association.
• Identification documents for founders and directors (passport/ID).
• Registered Serbian address and office details.
• Proof of share capital deposit.
• Declaration of ultimate beneficial owners.
• If applicable, apostilled and translated foreign documents

Step 4: Register with SBRA

Submit the registration application to the SBRA either electronically via its e-incorporation system or physically at an SBRA office. Completed filing yields a Certificate of Incorporation, company registration number, and simultaneously triggers issuance of a Tax Identification Number (PIB) and other identifiers via the one-stop-shop system.

Step 5: Register for tax and social security

Once incorporated, register the entity with the Serbian Tax Administration for corporate tax, obtain VAT registration if applicable, and enroll with the Central Register of Compulsory Social Security for employer contributions.

Step 6: Open a corporate bank account

Open a corporate bank account with a Serbian bank using the company’s registration certificate, notarized documents, and director identification. Banks may have stringent KYC requirements, especially for non-resident owners.

Step 7: Set up payroll and employment compliance

To hire employees, register with the relevant pension, health, and employment insurance funds. Ensure employment contracts and payroll systems comply with Serbian labor and tax laws, including withholding personal income tax and social contributions.

Discover how Elemental Enzymes accelerated regulatory approvals and market entry with Deel.

Post-registration obligations

Once your entity is established in Serbia, you must remain compliant with local corporate, tax, and employment regulations, including:

• Tax and financial reporting: File annual corporate income tax returns and submit VAT returns if registered, in accordance with the requirements of the Serbian Tax Administration and applicable Serbian accounting standards.
• Corporate registers: Maintain accurate and up-to-date records of directors, shareholders, and beneficial owners, and report any changes to the SBRA within the prescribed deadlines.
• Compliance tracking: Monitor tax, statutory, and regulatory deadlines through a compliance calendar or service provider to avoid late filings and penalties.
• Licenses and renewals: Renew any sector-specific licenses, permits, or registrations in line with requirements set by relevant ministries or municipal authorities.
• Recordkeeping: Retain accounting, payroll, HR, and corporate records for the minimum periods required under Serbian law, typically 5 to 10 years, depending on the record type.
• Employment law compliance: Comply with Serbian labor laws, including issuing compliant employment contracts, registering employees with social security authorities, and meeting payroll tax and contribution obligations.

Taxes and financial considerations

Key tax obligations for businesses in Serbia include:

• Corporate income tax: A flat 15% corporate income tax applies to taxable profits, with annual filing and advance monthly payments generally required.
• VAT/GST: The standard 20% VAT rate applies to most goods and services, with a reduced 10% rate for specific categories. VAT registration is mandatory once the statutory threshold is exceeded.
• Payroll/social contributions: Employers are required to contribute approximately toward social security, alongside employees, and a 10% payroll tax
• Accounting standards: Companies must prepare financial statements in accordance with Serbian accounting standards, which are broadly aligned with EU accounting rules and IFRS for certain entities.

Discover how Climate-KIC navigated complex restructuring with Deel.

Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Serbia?
Typically 2–4 weeks, though timelines depend on documentation accuracy and registration method. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
For an LLC (d.o.o.), RSD 100 (≈ $1 USD), though higher amounts may increase credibility.

Can foreign companies own 100 of an entity in Serbia?
Yes, foreign ownership is fully permitted.

Do I need a local director or representative?
There is no mandatory Serbian residency requirement for directors or shareholders.

How much does it cost to register an entity?
Registration fees vary by filing method but typically range from around RSD 5,900 for e-filing plus notary and service costs. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Serbia?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.