More and more people are immigrating to Serbia alongside their businesses or coming to the country to launch startups, as it offers excellent conditions for developing business projects. Foreign entrepreneurs can establish a new company or register a branch of an existing firm in just a month.
Let’s explore the advantages of obtaining a residence permit in Serbia through a business, the ways to open a company, and the associated costs.
What a residence permit in Serbia through business offers
In recent years, the Serbian economy has been steadily growing, with the number of companies increasing by an average of 20% per year. Foreigners most commonly open cafes, restaurants, logistics companies, beauty salons, and of course, IT offices. The most promising sectors for large businesses in Serbia include agriculture, construction, energy, manufacturing, tourism, and IT.
Advantages of obtaining a residence permit in Serbia through business:
- The opportunity to scale operations.
- Low corporate tax rates — 15%.
- A stable market economy.
- Duty-free export of goods.
- Low operating costs for companies.
- A favorable geographical location at the crossroads of Europe and Asia.
- Business-friendly legislation towards foreign entrepreneurs.
Residence permit in Serbia through business: grounds and methods
To qualify for a residence permit in Serbia through business registration, applicants must be adults without a criminal record, have their own or rented accommodation in Serbia, and possess sufficient funds in a bank account.
In addition to the investor, the spouse and children can also obtain a residence permit in Serbia through the business. They apply for the residence permit (boravak, in Serbian) simultaneously with the primary applicant. Therefore, obtaining a residence permit in Serbia based on business is ideal for families with children.
Ways to obtain a residence permit in Serbia through establishing a company
There are several things you can do to become eligible for a residence permit:
- Open a new company. This is the most common method and is usually done by establishing a limited liability company (LLC). You can also open a joint-stock company or a partnership, but these are more complex to register, so most entrepreneurs prefer an LLC. You can specify a share capital of just €1. The registration process rarely exceeds 15 days from the submission of the application.
- Create a branch. If you have a business in your home country, you can open a subsidiary — a branch (please follow this link to find out how you can do it). The main activity of the parent company doesn’t have to match that of the subsidiary. Although a branch is not considered a legal entity, it is regarded as a tax resident and thus qualifies for a residence permit in Serbia based on business.
- Purchase an existing company in Serbia. If you prefer not to start a company from scratch, you can buy an already established business. In this case, you can also obtain a residence permit in Serbia through business registration.
There is also an investment program in the country, which requires an investment of €50,000 in a local company to obtain a six-month residence permit. However, this document can only be renewed if an additional investment of €5,000 is made.
The simplest way to obtain a residence permit in Serbia through business is to register as a sole trader (IP). The procedure takes about a week, and the state fee is just €25. This option is simpler and faster than opening an LLC, but there are some nuances.
Residence permit in Serbia through business: how to open a company
While most foreigners can enter Serbia without a visa, they must register at their place of residence upon arrival. You can register your residence even in a hotel. This must be done within the first 24 hours; otherwise, you may incur a fine. After registration, you’ll receive a “white card” — a temporary residence registration, which will be useful for obtaining a residence permit in Serbia through business registration.
Before moving on to the main steps for registering a legal entity, determine its type: LLC, joint-stock company, partnership, or sole trader. Based on the conditions, the optimal form for new entrepreneurs is an LLC, while a joint-stock company is better suited for larger businesses. Branches are appropriate for multinational corporations looking to enter the European market.
Also, consider whether you want to open your own company, buy an existing business, or if you already have a business and wish to create a branch. All methods qualify for a residence permit in Serbia through business, so the choice depends on your goals.
Steps to open a company
For your own firm, you’ll need a legal address, so the first step is to find a suitable location. You can purchase an office or opt for a long-term lease. There are other options (like a virtual office), but these come with certain risks, as regulatory authorities tend to trust real addresses more.
What to prepare for business registration:
- An application.
- A passport.
- The company’s articles of association and founding documents.
- A certificate of ownership or a lease agreement for the premises that will be registered as the legal address.
- A receipt for the payment of the state fee.
Companies are registered with the APR (Agency for Business Registers) — the Serbian state registry. The entry of a company into the legal entity database takes no more than 7 working days. After this, you need to notify the local tax authority and police about the company’s establishment. Don’t forget to visit local banks for a business account.
Cost of opening a company and obtaining a residence permit
The cost of registering a firm and obtaining a residence permit in Serbia through business consists of the following expenses:
- Opening an LLC. This will cost between €500 and €1,000. This amount includes the state fee, document translation, and notarization.
- Renting or purchasing an office. Rental prices in Belgrade start at €1,000 per month, while purchase prices begin at €30,000.
- Obtaining a residence permit in Serbia through business. Document preparation rarely exceeds €150–200.
- Work permit. The state fee is only €16. However, you may need to translate and notarize documents. It’s best to allocate around €50 for the work permit.
After opening the company, you’ll only have ongoing business expenses, such as utility bills, a 15% income tax for legal entities, and accounting fees. For LLCs, bookkeeping is mandatory and must be performed by a specialist; you cannot do it yourself. The cost of accounting services can vary.
Assistance in obtaining a residence permit in Serbia through business registration
Opening a company abroad is a strategically important step for entrepreneurs seeking international presence and business development. You can do this and obtain a residence permit in Serbia through business on your own or go through all the steps with a team of professionals.
