Starting Your Business in Serbia: An Expat’s Guide

Published on October 4, 2025 and written by Cyril Jarnias

International entrepreneurship represents an exciting opportunity for expatriates looking to embark on the entrepreneurial journey. Serbia, with its growing economy and business-friendly environment, is attracting more and more foreign entrepreneurs. This comprehensive guide will walk you through the key steps to establish your business in Serbia as an expatriate.

Understanding the Business Environment in Serbia

Before starting a business in Serbia, it’s essential to thoroughly understand the country’s economic and entrepreneurial context.

An Expanding Market

Serbia has experienced sustained economic growth for several years, with steadily increasing GDP. The country has implemented numerous reforms to attract foreign investment and facilitate business creation.

Promising Sectors

• Information technology and digital
• Agriculture and food processing
• Manufacturing industry
• Tourism
• Renewable energy

A Business-Friendly Environment

• Simplified procedures for business creation
• Tax incentives for foreign investors
• Free zones offering tax and customs benefits
• Easier access to financing for SMEs

Choosing the Right Legal Structure

Choosing the legal form for your business in Serbia is a crucial decision that will have significant implications for your operations.

Main Legal Forms in Serbia

• Limited Liability Company (D.O.O.): This is the most common form for small and medium-sized enterprises. It requires a minimum capital of 100 dinars (less than 1 euro) and can be established by a single person.
• Joint Stock Company (A.D.): Suitable for large companies, it requires minimum capital of 3 million dinars (approximately 25,000 euros) for closed companies and 4 million dinars (approximately 34,000 euros) for open companies.
• Sole Proprietorship (PR): Ideal for individual entrepreneurs, it doesn’t require minimum capital but involves the owner’s personal liability.
• Branch: An option for foreign companies wanting to establish a presence in Serbia without creating a separate legal entity.

Selection Criteria

• The size and nature of your business
• Number of partners
• Your capital requirements
• Desired management flexibility
• Tax implications

Steps to Establish a Business in Serbia

Establishing a business in Serbia follows a relatively simple and quick process. Here are the main steps to follow:

1. Reserve the Business Name

Check the availability of your chosen name with the Serbian Business Registers Agency (APR) and reserve it.

2. Prepare Incorporation Documents

Draft the founding act (for a single-member company) or articles of association (for a company with multiple partners). These documents must be certified by a notary.

3. Open a Temporary Bank Account

Deposit the initial capital into a temporary bank account in Serbia.

4. Register with the APR

Submit your registration application with all required documents to the Serbian Business Registers Agency.

5. Obtain a Tax Identification Number

The APR will automatically forward your application to the tax administration to obtain the tax identification number (PIB).

6. Open a Permanent Bank Account

Once the business is registered, open a permanent bank account for your operations.

7. Register with Social Security Organizations

Register with pension and health insurance funds.

Tax and Financial Considerations

Understanding the Serbian tax system and available financing options is crucial for your business success.

Corporate Taxation in Serbia

• Corporate tax: 15% (one of the lowest rates in Europe)
• VAT: 20% (standard rate), 10% (reduced rate for certain products and services)
• Personal income tax: 10% for salaries
• Social contributions: approximately 37% of gross salary

Tax Incentives

• Corporate tax exemption for 10 years for investments exceeding 8.5 million euros creating at least 100 jobs
• Tax credits for R&D investments
• Tax benefits in free zones

Financing Options

• Bank loans
• Venture capital funds
• Government grants
• EU support programs
• Crowdfunding

Understanding Business Culture in Serbia

The success of your business in Serbia will largely depend on your ability to understand and adapt to the local business culture.

Characteristics of Serbian Business Culture

• Importance of personal relationships: Serbians prioritize trust-based relationships in business
• Hierarchy: Respect for hierarchy is important in Serbian companies
• Direct communication: Serbians generally appreciate frank and direct communication
• Flexible hours: Working hours may be more flexible than in Western Europe
• Negotiations: Negotiations can take time, patience is required

Adaptation Tips

• Learn basic Serbian language, it will be highly appreciated
• Invest time in building professional relationships
• Be punctual for appointments, even if your counterparts may sometimes be late
• Prepare for meetings that may last longer than expected
• Be ready to socialize after office hours, this is often where business relationships are built

Resources and Support for Expatriate Entrepreneurs in Serbia

Numerous resources are available to help expatriate entrepreneurs succeed in establishing themselves in Serbia.

Support Organizations

• Serbian Chamber of Commerce and Industry
• Serbian Development Agency (RAS)
• Business France in Serbia
• Foreign Investors Council (FIC)

Incubators and Accelerators

• ICT Hub
• StartIt
• Science Technology Park Belgrade

Expatriate Networks

• InterNations Belgrade
• Belgrade Entrepreneurs
• Expatriates in Belgrade (Facebook group)

Challenges and Opportunities for Expatriate Entrepreneurs in Serbia

Establishing a business in Serbia as an expatriate presents both challenges to overcome and opportunities to seize.

Potential Challenges

• Language barrier: Although English is widely spoken in business, Serbian proficiency can be an advantage
• Bureaucracy: Despite improvements, some administrative procedures can still be complex
• Cultural differences: Adapting to local business practices may take time
• Access to financing: Finding funding can be more difficult for foreign entrepreneurs
• Local competition: Some sectors may be dominated by well-established local players

Opportunities to Seize

• Growing market: Serbia offers numerous opportunities in developing sectors
• Competitive operational costs: Labor and operating costs are relatively low
• Strategic geographic position: Serbia is a bridge between Eastern and Western Europe
• Government incentives: Many benefits are offered to foreign investors
• Skilled workforce: Serbia has a well-trained workforce, particularly in technical sectors

Establishing a business in Serbia as an expatriate is an exciting adventure that offers numerous opportunities. With careful preparation, thorough understanding of the local market, and adaptation to Serbian business culture, you can transform challenges into growth opportunities. Serbia, with its dynamic economy and business-friendly environment, can be an excellent springboard for your international entrepreneurial success.