Start a business in Serbia by following a clear plan that covers registration, taxes, hiring and banking for both local and foreign founders.
- Why Serbia is a competitive location
- Choosing the right legal form
- Company registration step-by-step
- Taxes, accounting and compliance
- Hiring, payroll and employment rules
- Banking, funding and operational costs
- How NNRoad helps foreign founders
Why Start a business in Serbia?
Serbia offers cost-competitive labor, favorable tax incentives for certain activities, and a strategic location between Western Europe and emerging markets. The market has growing tech and export-oriented sectors that attract both domestic entrepreneurs and foreign investors.
For international founders, the combination of lower overheads and an educated workforce makes Serbia attractive for software, manufacturing, and services operations. Understanding the local rules up front reduces delays and limits unexpected costs.
Choose the right legal form
The most common options for entrepreneurs are the limited liability company (DOO) and the sole proprietorship (preduzetnik). Each has different liability, tax and reporting implications.
- DOO (limited liability company): preferred for businesses that expect external investment or multiple owners.
- Preduzetnik (sole proprietor): simpler structure, often chosen by freelancers and small traders.
- Branch or representative office: options for foreign companies that want a presence without a separate legal entity.
Choose based on ownership, liability preferences and exit plans. Consulting an advisor helps match your business model to the right form.
Company registration step-by-step
Registering your company in Serbia generally follows a predictable path, but attention to detail is essential to avoid delays.
Prepare documentation
Required documents typically include a company name, articles of association, founder IDs or passports, proof of address, and information about company activities (PKD codes).
Submit to the Business Registers Agency
Registration is done with the Serbian Business Registers Agency. You will receive a company ID and tax identification after successful filing.
Open a bank account and deposit capital
For certain legal forms you must deposit initial capital. Banks also require company documents and authorized signatory information to open accounts.
Taxes, accounting and compliance
Serbia’s tax system includes corporate income tax, VAT, payroll taxes and local contributions. Rates and obligations vary with company size and activity.
- Corporate income tax: a standard rate applies, with some incentives available for qualified investments.
- VAT: registration thresholds mean many small companies can delay VAT registration, but exporters should understand VAT refund rules.
- Payroll taxes: employers are responsible for withholding and reporting employee income tax and social contributions.
Accurate bookkeeping and timely filings are crucial. Local accountants can manage monthly and annual obligations and advise on deductible expenses.
Important compliance note: Foreign founders must ensure proper residency and work permits for staff, and verify any sector-specific licenses before starting operations.
Hiring, payroll and employment rules
Employment contracts in Serbia may be fixed-term or permanent and must comply with the Labor Law on working hours, leave and termination rules.
Employers must register employees for social security and withhold taxes and contributions at source. Payroll frequency and reporting timelines are strict, so set up payroll systems early.
If you prefer a simpler option for short-term hires or contractors, consider professional employer solutions. These can simplify hiring while you establish a local entity.
Banking, funding and operational costs
Opening a local bank account may require founders or directors to appear in person, depending on the bank’s policies. Prepare certified documents and translations when necessary.
Operational costs vary by city, with Belgrade typically higher than smaller towns. Budget for office space, utilities, accounting, and initial legal fees.
Funding sources include local venture capital, EU funds for eligible projects, and international investors. Presenting clear incorporation and compliance documents helps when negotiating financing.
How NNRoad helps foreign founders
NNRoad supports entrepreneurs who want to start in Serbia by combining local expertise with hands-on assistance. We help with entity formation, tax registration, and ongoing compliance.
Use our NNRoad services page to learn about company setup packages and tailored solutions. If you need immediate advice on local rules or timelines, please contact our team to schedule a consultation.
For companies that want to hire before a full legal entity is established, NNRoad can advise on employer of record services to manage payroll and local employment compliance safely and quickly.
Practical next steps
- Decide on the legal form and prepare founding documents.
- Register with the Business Registers Agency and obtain tax IDs.
- Open a bank account and set up accounting and payroll systems.
- Plan for hiring, permits and any sector-specific licenses.
Starting a company in Serbia is straightforward when you plan for registration, tax obligations and local employment rules. Use local advisors to reduce risk and accelerate launch timelines.
If you have questions, please contact us at [email protected].