Register a Company in Serbia 2024: Valuable Expert Insights

A promising destination for businesses and consumers, Serbia offers a stable economy, low corporate tax, free access to the EU market, and a growing corporate sector. However, starting a business in Serbia is not a bed of roses. In this market, you will inevitably face bureaucracy and legal ambiguity. Would you like to thrive in Serbia in 2024? Then read on!

Launching a business in Serbia: why it makes perfect sense in 2024

One of the main advantages of registering a company in Serbia in 2024 is the low cost of doing business. Serbia offers competitive prices for office and warehouse rent, utilities, labor, and transportation. The average monthly salary here is around EUR 500, which is much lower than in most other European countries. Electricity and other utilities are also cheaper. Moreover, Serbia has a favorable tax regime, with a corporate profit tax of 15%, which is among the lowest in Europe. There, you will also find various tax incentives for investors, including accelerated depreciation, tax holidays, and reduced tax rates for certain activities and regions.

Another benefit is the country’s access to a large and diverse market. With a population of about 7 million, Serbia has a relatively young and educated workforce. It also boasts a strategic location in the heart of the Balkans, with good connections to the rest of the region. And please don’t forget the free trade agreement with the European Union, which allows duty-free exports of most goods and services to the EU market, plus the like treaties with some other states. 

In 2024, Serbia’s potential for growth and innovation is huge. With numerous local and foreign companies in IT, automotive, agriculture, renewable energy, and tourism sectors, Serbia boasts a strong tradition of scientific and technological development. It is further supported by good many research institutes, universities, and innovation centers promoting knowledge and skill transfer. The nation’s supportive government is committed to improving its business environment and attracting FDI. To achieve this goal, it offers various incentives for investors. The latter encompass grants, loans, guarantees, and free zone perks. 

Company launches in Serbia: challenges you may face

The uncertainty of the local legal system is a major obstacle to launching a business in Serbia. The jurisdiction’s civil law is influenced by former Yugoslav law, the EU legislation, and international laws. The legal framework is often inconsistent, which creates confusion for businesses. Regrettably, the country’s judicial system is slow, inefficient, and prone to corruption, which negatively affects the enforcement of contracts and the protection of rights.

If you ever attempted to do business in Serbia, you might have noticed how challenging it is to cope with the red tape there. The difficulty and duration of administrative procedures in the country are striking. Serbia has a one-stop shop system for company registration, which enables businesses to obtain the necessary identification numbers and permits in one place. However, the procedures may still take several weeks or months, depending on your company’s type, the documents required, and the authorities involved. Besides, keep in mind other regulations and obligations, e.g., licenses, employee registration, and report filing, which is often time-consuming and costly.

The competition and saturation of the Serbian market do not simplify the process. It is relatively small and mature, with a low purchasing power and a high unemployment rate, and faces strong competition from neighboring Croatia, Slovenia, Romania, and Bulgaria, as these boast similar or even better conditions. A high corruption level in the country affects market fairness and transparency. It is not infrequent that businesses operate without registration, licenses, or taxes in Serbia, which gives them an unfair advantage over any officially operating ventures. Pressure from political and criminal groups also happens to undermine their security.

Tips to succeed with company registration in Serbia in 2024

Despite the above challenges, registering a company in Serbia in 2024 may be both rewarding and profitable, if done correctly. At Serbia Wealth, industry experts have come up with some helpful tips for you to succeed in the Serbian market:

1. Do your research. Before setting up a company in Serbia, conduct thorough market analysis to identify your opportunities and risks, paying special attention to demand and supply, competitors and customers, as well as local legal and regulatory requirements. It also helps to consult resident experts. These lawyers and accountants will share their valuable advice and offer assistance to you.
2. Choose your structure. Depending on your business objectives, you should select the most suitable and efficient structure for your company. Please note that these business types are the most popular ones in Serbia: limited liability companies (LLCs) and joint stock companies (JSCs). The LLC is a flexible and simple structure, with limited liability for its owners and a minimum capital requirement of RSD 100 (about EUR 1). JSCs are more complex and formal. There, a minimum capital requirement is RSD 3 million (about EUR 30,000). Serbian JSCs also enjoy an opportunity to issue shares and thereby attract investors.
3. Plan your finances. We recommend you prepare a realistic and detailed business plan and budget for your Serbian venture to estimate costs and revenues, and to secure funding sources. Get ready to open a bank account in Serbia, as this is a mandatory step for registering a company. For that purpose, choose a reliable bank that offers a range of banking services and products to choose from. We mean loans, deposits, payments, and online banking.
4. Hire your staff. Recruiting and training motivated employees is of major importance. These people will help you run and grow your business in the long run. Along the way, comply with the labor laws and regulations referring to the minimum wage, working hours, social security, and health insurance. If applicable, go get work permits for your foreign employees.
5. Promote your business. An effective marketing and communication strategy is paramount to build brand awareness and attract loyal customers. Hence, use multiple channels and tools to do it. The latter may include websites, social media, advertising, and networking. With them, reaching the target audience to showcase your products and services is a breeze.

We assume you may still have some questions left. To have them answered, get in touch with Serbia Wealth! Our experienced staff will resolve any issues in no time.