Serbia is one of the best visa–free countries for Russians to move to. Democratic migration requirements eliminate common problems with legalization. Cultural and mental similarities contribute to rapid adaptation. The Government’s immigration and economic policy promotes the opening and relocation of businesses in Belgrade, Novi Sad, on the periphery.
Entrepreneurs everywhere open catering outlets, IT companies, and develop the service sector. They are attracted not only by business opportunities, but also by the simple registration of organizations without large investments, access to international sales markets. Foreigners also receive social / advisory assistance from the state, loans at a favorable interest rate, a residence permit for 3 years with an extension. Expats are changing their temporary resident cards for Serbian passports in the future.
Features of the opening of the Serbian IP
There are more than 10 grounds for obtaining a residence permit in the country’s migration law. An easy way to legalize is to open a company. A person who is solely engaged in a certain activity is considered an individual entrepreneur. The authorities offer registration in various organizational and legal forms. It depends on the project, capital investments, the number of partners and employees.
The simplest Pr (Pre-wallet) without mandatory investments, VAT payments. It assumes personal responsibility for property obligations. Sole proprietors have the right to hire Serbs, as an exception, family members without registration in the state.
An LLC is opened to provide services, construction, and production of goods. The law allows the creation of Limited Liability Companies with several shareholders. The form is limited by the size of the authorized capital (1€) and assumes a collective management method. Dividends are paid in proportion to the shares or according to the principle provided for in the Articles of Association.
A partner company is established by two or more partners without capital requirements in order to operate in different fields. This legal form is more often used in the establishment of telecommunications and IT startups, publishing houses.
A public/closed joint stock company (AD) with assets in the amount of 10,000 – 25,587euros, a large staff of managers and employees is suitable for large businesses. The peculiarity of the legal form is the division of capital into shares for co-owners.
Expats often register branches of foreign companies, which implies opening an office/representative office in Serbia. At the same time, the activity of the department may differ from the main specialization. Responsibility for the obligations is assigned to the head office.
Many open representative offices of foreign companies registered in the country. They are suitable for marketing research and business entry into the local market. The main company is responsible for all obligations.
Advantages of opening a sole proprietorship in Serbia:
- quick registration in the registry SBRA;
- fixed low taxes;
- agreement (Sydney) on double taxation on personal income;
- duty-free trade with the EU, EFTA, CEFTA;
- low start-up and operating costs;
- free assistance in starting your own business;
- the possibility of replacing the legal form;
- obtaining a residence permit immediately for 3 years with an extension.
Requirements for foreigners
Conditions in Serbia are loyal and transparent. Individuals and legal entities have the right to open their own business, regardless of citizenship. It is also not necessary for shareholders and representatives of companies to have resident passports. The establishment takes place in 10 days with the help of Serbian lawyers. First of all, the relocators choose the activity, form, address, and appoint an executive director. In parallel, they agree on the amount of the authorized capital, find a bank to open an account.
Eligibility criteria for foreigners:
- coming of age;
- no criminal record;
- solvency;
- financial stability;
- availability of documents translated into the official language with an apostille.
Required documents
The process of opening a company involves the preparation of a minimum package of documents with translation into Serbian and a notary’s seal. List:
- application indicating the taxation system in Serbian Latin;
- payment of duties;
- copy of passport;
- legal address;
- foundation agreement.
The package should contain information about the type of activity, the amount of capital, information about shares, powers of partners and representatives.
Changes in legislation in 2024
The acquisition of a residence permit is regulated by Law “About foreigners”. In the light of new realities, it periodically undergoes changes. In 2023, Parliament approved amendments to The Law on the Employment of Foreigners. Now they immediately issue a boravak and a work permit. At the beginning of 2024, the D visa allows you to work in the country for 90-180 days without having to sign contracts with employers in advance.
After the deadline, applicants receive a Single permit to stay in the country. Applicants are allowed to work without him for one of the following reasons: family reunification, purchase of real estate and more. The changes also affected temporary residence. Since August last year, expats who have been continuously living in the country for 3 years have been allowed to apply for permanent residence.
Opening a sole proprietorship in Serbia step by step
Russian citizens do not need a visa to enter the country. Upon arrival, you need to buy a SIM card and medical insurance, get a “white cardboard”. Relocators planning to do business immediately rent a house.
- Preparing for registration. The process begins with the submission of an application to the headquarters of the BRA of the capital or to its organizational unit, centralized The online system. 3-5 working days pass from the moment of submitting the application and making a decision.
- Getting QES. This is an electronic signature for remotely signing documents, creating online tax reports, and working in the e-government system. This requires the personal presence of the entrepreneur. If it is not possible to come to Serbia, many turn to a lawyer for help. He has the right to receive a certificate from the Ministry of Internal Affairs, the Chamber of Commerce or the Certification Center after payment of the fee.
- Registration on SBRA. The founder is obliged to create an account on the e-government website. When passing verification, you need to select “Registration with an electronic certificate”, according to the instructions, fill out the questionnaire in Serbian. In the same place, a unique company name is registered in the state register within 2 months.
- Collecting dossiers. After signing the act on the establishment of a commercial enterprise, an application is submitted within 2 weeks. A digitized constituent act, certified with an electronic signature, and a receipt for payment of fees are added to the e-application.
- Waiting for a decision. The response is received within 5 days. If you refuse, you will receive a letter with comments. A month is given to correct defects and report missing documents. Applicants resubmit the folder and pay 50% of the administrative fee.
Upon satisfaction of the application, an IIN is immediately assigned and an account on the social insurance portal is activated. On this basis, the sole proprietor opens a bank account. In the case of depositing non-cash capital, the procedure is carried out remotely on the e-government resource. The next step involves registration in the Agencija za Priivredne Registry or the Agency of Business Entities.
Financial costs at the start:
- tax on registration of the company and residence permit – 25€.
- state duty – 16€.
- the fee for the establishment of the company is RSD 4,900.
- registration of the Charter is RSD 1,000.
Registration of a residence permit after registration of an individual entrepreneur
For legal residence, foreigners and their families apply for Privremeni boravak in the form of a holographic sticker indicating personal data, expiration date, and individual number. This is the first step towards obtaining citizenship. A passport is issued for a total stay of 8 years in the country. Basic package for submission to the Office of Foreigners or the police:
- an application for each member indicating the purpose of immigration;
- a copy of the passport with a time reserve;
- “white cardboard”;
- medical policy;
- address registration;
- certificate of non-conviction for adults;
- document from the AP on the registration of the company;
- financial balance (€4,000 per month per family).
The application is considered for 30 days. If the decision is positive, a sticker is immediately pasted into the passport for a period of one year with the right to extend. Possible reasons for refusal: incomplete list of documents, lack of notary seal, lack of funds in the account, violation of the visa regime in the past. 8 days are given to eliminate minor defects.
Legal and tax obligations
One of the reasons for Russians moving is the low tax rates for citizens and non–residents. Entrepreneurs choose a lump-sum system (an analogue of the patent system in the Russian Federation with fixed rates). For sole proprietors, it is 10%. Legal entities pay a corporate fee of 0-15%. One-time payments simplify business operations and eliminate the need to hire an accountant. But this type of calculation is suitable only for companies with an annual turnover of 51,300€. With incomes above € 8 million, merchants are required to pay 20% VAT to the state.
Companies engaged in the production of goods and services pay only 10% or even less. Income tax is calculated from income. With the expansion of production, the state partially returns the interest for social insurance withheld from employees’ salaries. Self-employed and freelancers without company registration pay fees according to the self-taxation scheme based on monthly and minimum quarterly income. There are calendar deadlines for submitting reports. Declarations are accepted in paper and electronic form.
Recommendations
The success of a business depends not only on the strategy, but also on the interests of the population. Since manufacturing is considered the main sector here, you can bet on the food industry, consumer goods, and electronics. The country also strives to become an IT hub and actively attracts investors. Foreigners open businesses for the distribution of digital marketing, engage in software and receive additional tax benefits.
Starting in May 2023, businesses can be registered remotely. However, it is important to take into account the complexities associated with online services. The system is still in the process of development and failures often occur. The IP holder also needs to take into account that the key monetary mechanism in the country is subject to the global banking system and standards governing corporate policy. Due to the current political and economic situation, experts recommend that businessmen from Russia plan financial transactions in foreign currency in advance. When applying for permanent residence and citizenship, it is important to demonstrate activity: spend money through a Serbian bank account, monitor reporting and pay taxes on time.
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