How To Start A Business In Serbia

Lined with cobbled streets, a lively city life and old-world charm, Serbia is a land of mountains, magic and surprisingly, business potential. This Balkan country is attracting tourists and entrepreneurs alike and it’s easy to understand why.

If you appreciate history, you can explore the Petrovaradin Fortress in Novi Sad or if you prefer the outdoors, head to Tara National Park for hiking trails and untouched landscapes. And if you are eyeing Serbia for a business agenda, you are in the right place.

 

Why Is Serbia A Good Place To Start A Business?

 

Serbia’s startup scene is growing steadily and as a result, this country is quietly climbing the ranks as a top startup destination. So what makes it stand out from neighbouring competitors? Let’s get into it.

Growing infrastructure: The country is heavily investing in road networks and digital connections in an effort to embrace the modern times.

Government support: Serbia’s government offers various subsidiaries to attract new businesses specifically in the sectors of manufacturing, R&D and IT.

Affordable: Expenses from salaries to office space are much cheaper than you would find in Western Europe, which is ideal for the entrepreneurs on a tight budget.

Startup culture: New businesses are welcomed with open arms in cities like Novi Sad and Belgrade with strong support systems.

 

Industries With High-Growth Potential

 

If you are considering starting a business in Serbia, it’s worth knowing which sectors are seeing consistent growth. These ones in particular have a lot of potential if you are looking to spot an opportunity.

Agriculture: Serbia has a long farming history and an abundance of fertile land, so there is plenty of room for organic farming and exporting startups.

IT: The country boasts incredible tech talent with globally-recognised companies like Microsoft having development centres there. Software development, AI and gaming are also on the rise.

Renewable energy: In recent years, Serbia has been exploring hydro, solar and wind power and businesses in these sectors can also benefit from incentives.

Tourism: As the country sees more tourists each year, there is a need for boutique hotels and local experiences.

 

Understanding Serbia’s Tax Regulations

 

Serbia has one of the lowest corporate tax rates in Europe at 15%. The Value Added Tax (VAT) rate is set at 20% although this is reduced to 10% for certain products and services.

The government does offer tax incentives for those who hire new employees or work in rural areas. Additionally, if you invest in fixed assets or work in R&D, you are also eligible for some incentives.

 

 

Would You Encounter Any Language Barriers?

 

Most of the young population can speak English fluently especially in the major cities. You will find that a lot of business documentation is available in English as well so in these areas, you could probably get by without having too many problems.

However, those in smaller towns may not be able to speak English as well and paperwork in government offices will be in Serbian. Fortunately, you can work with a translator to help you navigate any linguistic hurdles.

 

Visa And Residency Requirements For Foreigners

 

If you are not from Serbia or a Balkan country, you will need a visa to be able to live and work in Serbia. Here is a quick rundown on the options available.

For short-term stays, you can apply for a Tourist Visa where you can stay in Serbia for up to 90 days. Or, you could get a Business Visa for temporary work or to explore potential business opportunities.

To live and run a business in Serbia, you would need a Temporary Residence Permit which is valid for up to 1 year and can be renewed. If you want to work for your own company and employ staff, you’ll need a Work Permit.

After 5 years of living in Serbia, you can apply for continuous residence.

 

How To Start A Business In Serbia

 

Getting your business up and running legally in Serbia is a relatively easy process. Here is a step-by-step guide on how you can get started.

 

Select A Business Structure

 

The first step is to decide on your legal entity. You can operate as a sole trader which is simple and affordable to set up, but involves full personal liability should something go wrong. Most startups tend to choose a Društvo sa Ograničenom Odgovornošću which is a Limited Liability Company. The best part is you only need 1 EUR of starting capital!

 

Reserve Company Name And Prepare Documentation

 

When you have decided on a desired name for your business, you can check its availability and reserve it with the Serbian Business Registers Agency (SBRA).

For your documents, you will need proof of your identity, Articles of Association if you have more than one founder, a company address, proof of capital amount and an appointed director for the business.

 

Register The Business

 

When you register the business, you can do it online or in person with the SBRA. Once approved, you will be issued with your company ID number and tax ID.

 

Should You Start A Business In Serbia?

 

Serbia may not be the first country that comes to mind when thinking of business locations, but it is a strong contender. With its low tax rates, supportive startup ecosystem and massive market opportunity, there is a lot of untapped potential in this Balkan state.

For the ambitious entrepreneurs eyeing digital services, agriculture or hospitality, Serbia is open for business and it might just surprise you.

Srećno!