Serbia has several benefits that make it a desirable location for business. One of these benefits is the low corporate income tax rate of 15% and the possibility to use the Double Taxation Agreement with Russia to lower the dividend tax rate to 5%.
Authorized capital may take the form of cash or a non-financial asset, such as rights or other kinds of property. Capital must be approved for at least 100 days. This money is provided during registration, with the exception of obligatory operations.
Documents for business registration in Serbia
There are different company models and fields of operation to pick from when creating a corporation in Serbia, thus the list of papers needed to establish a legal organisation there may differ. Here are a few instances:
Copies of other nations’ passports. from all human founders is necessary.
An extract, certificate, or other proof of the company’s registration in the country of origin, if the registration application is made by the founder-legal entity.
A power of attorney enables a person to act on behalf of a potential company and has the legal power to sign contracts, create accounts at local banks, and do other measures required to register a Serbian company.
All documents submitted to state bodies must be:
- Apostilled. An apostille is only necessary for citizens of nations that have accepted the Hague Convention.
- Translated. According to document management guidelines, the translation into Serbian needs to be notarized.
What taxes do businesses pay in Serbia?
The law in Serbia imposes the following tax liabilities on businesses:
- 15 percent income tax (lower than in much of Europe);
- 20 percent profit tax (which Russian citizens can pay just 5 percent of); and VAT.
The VAT rate can be set, even though it isn’t initially. VAT must be paid if the company’s yearly revenue reaches 4 million dinars.
Compared to the majority of other European nations, this is one of the most trustworthy indices for international trade. The optimum tax burden for the foreign corporation is provided by lower rates on other responsibilities in the nation.
Registration of an offshore company in Serbia
In Serbia, there are fresh opportunities for foreign investors. With duty-free access to 1.1 billion potential consumers, a highly qualified population, and reasonable business and housing costs, Serbia is a politically and economically stable nation. The following are a few aspects that make setting up an offshore branch in Serbia particularly appealing:
- While conducting business in Serbia, you can continue to run your current offshore firm.
- While a foreign company that establishes a branch in Serbia doesn’t establish a new legal organisation, it does get a tax ID number and resident status.
- A branch can be opened remotely without travelling to Serbia with a restricted power of attorney.
- It takes three business days or fewer to start a branch.
- An open bank account is OK.
- There is less paperwork to register a branch than to establish a complete company.
In order to make an investment, we also encourage you to think about your alternatives for acquiring a resident visa in Serbia. With this choice, you gain status in a nation that is getting ready to join the EU, have the chance to get a second passport, and give yourself better access to local banks (residents are always more trusted than non-residents).
Conclusion whether to establish a company in Serbia?
As was already said, Serbia is a reliable nation with a strong economy and a stable political system. A state-owned firm is also permitted to maintain its anonymity since the Republic of Serbia has no immediate plans to ratify the Convention on Automatic Exchange of Tax Information. And as you can see, the registration process entails three phases. Serbia is a good place for us to settle down, develop a business, and conduct commerce.
With Eternity Law International, you can easily register your company in Serbia. Profit from having one of the lowest company tax rates in all of Europe as well as a simple and quick business registration procedure for foreign owners. To find out more, email us!
Contact our experts – we will select the most convenient option for you in terms of reliability and potential profitability. You also have the opportunity to see new offers in categories Cryptocoins and licensing of cryptocurrency operations, Ready-made companies, Banks for sale and Licenses for sale