Business Startup Costs in Serbia
Business Startup Costs in SerbiaUpdated on Sunday 26th January 2020
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Having a business in Serbia is for many foreign investors a good choice of investments and operations considering the startup costs which are relatively low compared to other European states. If you would like to start a business in Serbia and need legal advice in this sense, you can get in touch with our team of lawyers in Serbia specialized in company formation. They can also provide support in matters of visa and work permits for foreigners in Serbia. Moreover, you can receive legal assistance for litigation cases or for debt collection in Serbia.
What is the minimum share capital for an LLC in Serbia?
A limited liability company in Serbia can be established with a minimum share capital of EUR 500 deposited in a Serbian bank account. Such entity is registered by at least two shareholders and if the Articles of Association are drafted with the entitled authorities.
Capital for joint stock companies in Serbia
Foreign investors who want to establish joint stock companies should pay attention to the minimum share capital requested for such an entity. EUR 10,000 are necessary for a closed joint stock company and EUR 25,000 for an open joint stock company. They should also consider the registration and the notary fees involved.
Labor costs in Serbia
Serbia is among the countries with low costs for employees. For example, for an average salary of EUR 500 in Serbia, the social insurance charges and salary taxes sum up approximately 65% of the net salary. However, employers can benefit from a series of tax reliefs like 70% tax reduction if they hire local workforce and they create more than 10 job positions in their company.
Utility costs in Serbia
Once you decide for a company and a business office in Serbia, you should also consider the utility costs as part of the business startup expenses. The water, the electricity, and the gas companies are state-owned and deliver the prices in agreement with the international standards and US dollar exchange rates. Besides these expenses, a business owner will have to consider the rental costs for the company’s office which are among the lowest in Europe. We invite you to address your inquiries to our team of attorneys in Serbia and find out more details about the business startup costs and about the legal requirements for opening a company in Serbia.
Fees at the Serbian Business Registers Agency
When deciding for a business formation and registration in Serbia, an entrepreneur should bear in mind the costs and fees imposed by the Serbian Business Registers Agency. The following information contains the average costs for different applications and registrations:
- • the reservation for business name costs approximately RSD 1,000;
- • RSD 600 is the cost for issuing the registration certificate of a company in Serbia;
- • RSD 2,500 for opening a branch of a local company;
- • RSD 4,500 represents the registration fee of a company in Serbia;
- • RSD 4,500 is imposed for changing the company structure in Serbia;
- • sole traders need to pay around RSD 1,200 to register their business;
- • data changes in a sole proprietorship in Serbia costs around RSD 700.
Each subsequent information change in a company is subject to a fee of approximately RSD 300.
Costs for the registration of associations in Serbia
The Serbian Business Registers Agency issues a series of documents for the registration of associations connected with varied fees. For instance, an association is registered for a cost of RSD 4,500. The same is available for registering a representative office in Serbia. Please bear in mind that additional costs are applicable for any changes related to the association you own in Serbia. Also, the notary costs may vary, depending on the documents you need to validate for your brand-new company or association in Serbia. In any case, it is best to have an idea about the startup costs for your business in Serbia and solicit complete legal assistance at the time you wish to register a company with the entitled authorities. Our Serbian lawyers specialized in company formation are at your service if you are a foreign investor in Serbia.
Short facts about the taxes in Serbia
Serbia’s tax regime is appealing to many foreign investors looking for business in this country. For instance, the personal income tax rate is set at 10%. The withholding tax for dividends, royalties, capital gains, and interests is set at 20% and it is imposed for non-residents in Serbia. As for the standard VAT, this is set at a 20% rate for most goods, services, and supplies available for sale purposes. A lower VAT rate of 10% is imposed on basic food products, utilities, and newspapers.
Besides the registration for VAT in Serbia, international investors can address to our team and ask for help for obtaining the EORI number.
If you would like to know the legal requirements for setting up a business in Serbia, we kindly invite you to contact our law firm in Serbia. They can also provide information about the business startup costs in Serbia.