Company Formation in Serbia and Residence Permit

Why Should You Set Up a Company in Serbia?

Setting up a company in Serbia is one of the most sensible options for entrepreneurs seeking low taxes, fast incorporation and a strong digital economy in the heart of Europe. The country is an EU candidate and membership negotiations are ongoing; this means forward‑looking value potential for early investors. Serbia offers one of the region’s most competitive business environments with a 15% flat corporate tax and a highly advantageous paušal (lump‑sum) tax regime for freelancers.

Turkish citizens can enter Serbia visa‑free (up to 90 days), which practically simplifies the company formation and residency process. Belgrade’s strong IT ecosystem, large expatriate community, and advanced banking infrastructure create an efficient foundation for developers, consultants, e‑commerce and service entrepreneurs. Cultural and geographic proximity to Turkey also speeds up the adaptation process.

Which Type of Company in Serbia? DOO and Preduzetnik

Two main structures stand out:

• DOO (d.o.o. — Limited Company): The most common choice. Partners’ liability is limited to their capital contribution. Minimum share capital is symbolic (around 100 RSD). It provides corporate credibility, scalability and flexibility in taking on partners; ideal for businesses aiming to grow.
• Preduzetnik (Sole‑Trader): A practical structure for single‑person activity. Its main advantage is that it qualifies for paušal taxation — the most efficient option for consultants, developers and freelancers. Incorporation and accounting are very simple.

Larger or publicly listed structures such as a Joint‑Stock Company (AD) are also possible, but the vast majority of foreign entrepreneurs start with a DOO or preduzetnik. We will determine together which structure best fits your goals.

Serbian Company Formation Process: Step by Step (2026)

1. Pre‑preparation: The company name, activity code (šifra delatnosti) and founder/manager details are determined; documents are notarized.

Registration (APR): The company is registered with the Serbian Business Register Agency (APR); registration usually completes within a few business days and a tax identification number (PIB) is obtained.

Bank account: A corporate bank account is opened. The process may vary depending on the company type and the bank; we prepare the appropriate bank and documents together.

Tax and VAT registration: The company is registered with the tax authority; based on the turnover threshold, VAT liability (if applicable) is established. A preduzetnik applies for the paušal status.

Accounting and residence: An accounting system is established and a temporary residence (privremeni boravak) application is started based on the company's ownership.

Tax System: 15% Corporations, Paušal and VAT

Serbia's tax system stands out for its low rates and special conveniences for freelancers:

• Corporate income tax: fixed 15% — among the lowest in Europe. Company profit is taxed at this rate.
• Dividend withholding tax: Usually a 15% withholding is applied on profit distributions (double taxation avoidance agreements may lower the rate).
• VAT: standard 20% (reduced 10%). VAT registration is not mandatory for annual turnover below a certain threshold — an advantage for small businesses.

Paušal Regime: The Secret of Freelancers

Paušal (lump‑sum) tax is a regime where freelancers with preduzetnik status pay a low, fixed monthly amount determined by their activity code and municipality instead of actual income. It greatly reduces accounting burden and tax costs for developers, consultants, designers, and digital service providers. It applies up to a specific annual turnover threshold; businesses that exceed this limit or fall into certain activity groups move to the standard regime. We evaluate your eligibility and the correct activity code together.

Serbian Residence Permit: How to Obtain It Through a Company?

Serbian residence the most common way to obtain it is a temporary residence permit (privremeni boravak) through the company you establish. The permit obtained for business establishment/company ownership is valid for a specific period and can be renewed. Typically, the following are required for the application:

• Valid passport and registered address (prijava)
• Company registration documents (APR record, PIB)
• Valid health insurance
• Proof of subsistence/income

The residence permit allows family reunification to include the spouse and children. We manage all documentation, translation, notarization and appointment processes in a single point.

From Residence to Permanent Residency and Citizenship

The process is staged: first you obtain a temporary residence and renew it regularly. After a certain period of continuous legal residence, you can apply for permanent residency (stalni boravak); later, if the conditions (duration of stay, language, subsistence, etc.) are met, citizenship may become an option. Rules are updated from time to time; we verify the current durations and requirements together before applying.

Settling in Serbia: Lifestyle, Cities and Cost

Settling in Serbia is becoming increasingly popular for those seeking low cost of living, vibrant city life and proximity to the centre of Europe. Highlighted settlement cities:

• Belgrade (Beograd) — Capital and business hub; strong IT ecosystem, lively nightlife, large foreign and Turkish community, advanced health and education facilities.
• Novi Sad — The country's second city; calm, university- and technology‑focused, offering a family‑friendly lifestyle.
• Niš — Central hub of the south; more affordable, an emerging alternative.

The cost of living is markedly lower than in Western Europe; rent, groceries and services are at levels comparable to Turkey. Private health care is affordable and high‑quality, and there are schools offering international curricula. Visa‑free entry and cultural proximity ease the relocation process. We are with you from company formation through residence up to every step of the settling in Serbia process.

Common Mistakes

• Choosing the wrong activity code: It directly affects the suitability of the paušal regime and the tax burden; selecting the correct code from the start is critical.
• Skipping the residence card and sequencing the process: Some banking and official procedures depend on your residency status; steps need to be planned in the correct order.
• Leaving health insurance and address registration (prijava) incomplete: These are fundamental requirements for a residence application.
• Neglecting accounting: Even under the paušal regime there are certain obligations; regular monitoring prevents penalties.

Expert Opinion: Emre Gürhan

"Serbia is one of the most efficient business and living bases in Europe, especially for freelancers and digital entrepreneurs. The 15% corporate tax and the paušal regime, when structured correctly, significantly reduce both tax burden and bureaucracy. The critical point is to choose the right company type and activity code from the outset according to the goal; we start the process with these strategic decisions." — Emre Gürhan, Balkans company and residency specialist.

Why Resida Global?

We manage the Serbia company formation and residency process end‑to‑end: selection of company name and activity code, notary and APR registration, bank account, tax/paušal registration, accounting setup, and residence application. With a network of local lawyers and accountants, we can handle most steps on your behalf without you having to travel to Serbia (by power of attorney).

Last updated: July 2026. Tax rates, paušal thresholds and residency rules are based on official sources; because legislation may change, we verify the current situation together before applying.