Sitting in the heart of the Balkan region is Serbia, a small country with no access to the sea. Currently, the nation with a population of approximately 7 million and a GDP of around USD 52 billion, is a candidate for EU membership. In this regard, Serbia has been diligently implementing reforms to harmonize its economy and legislation with EU standards. Serbia’s membership in the Central European Free Trade Agreement (CEFTA) provides it with preferential access to a market of over 20 million consumers.
Benefits of company registration and banking in Serbia for investors
Are you one of those aspiring entrepreneurs who are eager to register a company with a corporate bank account in the country? We have good news for you! In Serbia, you will discover a multitude of business advantages that are likely to raise the country’s appeal in your eyes even higher:
- Low Taxes: Serbia boasts one of the lowest corporate tax rates in Europe, standing at a competitive 15%. The country extends tax incentives for investments in IT, agriculture, tourism, and energy. Further enhancing its appeal for international businesses, Serbia has inked double taxation treaties with more than 50 nations worldwide, effectively reducing or eliminating withholding taxes on dividends, interest, and royalties.
- Skilled Workforce: Serbia is home to a well-educated and skilled workforce, with a strong emphasis on STEM (Science, Technology, Engineering, and Mathematics) fields. Here, you will effortlessly find multilingual employees with an impressive literacy rate of 98% and a notable proficiency in English. This is an admirable breeding ground for a substantial talent pool in IT, biotechnology, and nanotechnology.
- Advantageous Location: Situated at the crossroads of Europe and Asia, Serbia enjoys access to major transport corridors and hubs. It means the country benefits from its proximity to rapidly expanding markets in the region, including Turkey and the Middle East. Here, you will also discover modern infrastructure, comprising a well-developed network of highways, railways, airports, and ports.
- Business-Friendly Environment: Of no less significance is the fact that Serbia has made major strides in enhancing its business climate and competitiveness lately. This is achieved by implementing more efficient procedures and regulations for business establishment and operation. According to the World Bank’s Doing Business 2020 report, the nation secured the 44th position out of 190 countries, ranking 9th in Europe and Central Asia. What is more, Serbia provides an array of incentives and support programs for foreign investors, including grants, subsidies, free zones, and guarantees.
- Low Operating Expenses: Compared to many Western European countries, Serbia offers significantly lower operating expenses, including labor costs, rent, and utilities. This cost advantage allows businesses to achieve higher profitability margins while maintaining competitive pricing in the market. The Serbian government does its best to lure businesses with various incentives and subsidies to attract foreign investment and further reduce the overall cost of doing business in the country.
- Stable Banking System: The nation’s stable and well-regulated banking system provides businesses with access to a wide range of financial services and products. The National Bank of Serbia oversees the banking sector, ensuring financial stability and security. In Serbia, banks offer modern online banking platforms and a high level of customer service, catering to the needs of both domestic and international clients.
- Diverse Business Opportunities: From manufacturing and agriculture to IT and tourism, Serbia offers a diverse range of business opportunities across various sectors. Whether you’re a startup looking to disrupt the market or an established company seeking to expand your reach, Serbia comes with ample potential for growth and success. Here, the government actively encourages foreign investment and entrepreneurship, creating a stimulating environment for business development.
Steps to register a company and bank account in Serbia
The process of registering a company with a bank account in Serbia is relatively simple and fast, especially for a limited liability company (LLC), which is the most common type of legal entity in the country. The steps are as follows:
- Choose a unique and suitable name for the company, and reserve it with the Serbian Business Registers Agency (SBRA), the one-stop shop administration for company registration.
- Prepare and submit the required documents, including the memorandum and articles of association, consent and declaration forms, and proof of identity and address of the company’s shareholders and directors. You are free to do it either online or through a registered agent.
- Pay the registration and capital contribution fees, which vary depending on the type and size of the company. For an LLC, the registration fee is RSD 4,800 (about EUR 40), while the capital contribution fee amounts to RSD 3,000 (about EUR 25) per shareholder. Please note that the minimum share capital for an LLC is currently RSD 100 (about EUR 0.8).
- Receive your certificate of registration and company charter, which confirm the legal existence and status of the company. If needed, your business may also obtain a TIN, a VAT number, and a statistical code.
- Open a corporate bank account in Serbia, and deposit the initial capital. The company can also apply for other services, which include Internet banking, debit or credit cards, or loans.
The entire process of registering a company with a bank account in Serbia can be completed within a week. Things are generally easier and happen faster if you are assisted by a professional service provider who will manage the registration process, bank account opening, and compliance requirements on your behalf, sparing you any unnecessary worries.
Do you want to know how to register your company and set up a corporate bank account in Serbia with ease? Ask anything you want in a free consultation with Serbia Wealth experts! You can rely on us to help you with any VAT registration, tax, or accounting issue that your company may face in Serbia. We will find the best hotel, get a visa, book a transfer from the airport or railway station, and choose the best transport routes for you. Not ready to handle the local red tape? Our staff will take you to the relevant public offices or represent you there.
Sitting on the sidelines of your business dreams is not an option. Get in touch with Serbia Wealth and act now to make them a reality!
