Serbia is an emerging business hub in Europe, having its optimal geographic location, high-quality labor, and competitive operating costs. Opening a company in Serbia is possible, even if you are a foreign citizen or a foreign legal entity. Another good point is that one of the basis to get a temporary residence permit in Serbia is to register a company in Serbia. After opening a company in Serbia, you can apply for a temporary residence permit. It usually takes around 2-4 weeks for a temporary residence permit in Serbia to be ready. Then, you can apply for a work permit in Serbia as well. Therefore, immigration to Serbia can start with one simple step - company formation in Serbia.
Types of companies in Serbia
Firstly, let's introduce the legal forms of a company in Serbia. According to the company law in Serbia, there are:
1) General Partnership - a company of two or more partners who have unlimited joint and several liability with all their assets for the company's liabilities. The company's profit is distributed in equal shares among partners unless the partnership agreement provides otherwise.
2) Limited Partnership - A limited partnership is a company of at least two members, at least one member who has unlimited joint and several liability for the liabilities of the company (general partner), and another member who has limited liability up to the amount of his contribution (limited partner). General partners and limited partners usually participate in the division of profit and in covering the company's losses proportionately to their shares in the company.
3) Limited Liability Company - a company in which one or more company members own shares in the company's share capital, and company members are not liable for the company's obligations (except in a few cases provided by company law in Serbia). Having in mind that company members are not liable for the company's obligations, and that company's initial capital amounts to at least RSD 100 (less than EUR 1), this legal form is chosen very often.
4) Joint Stock Company - A joint stock company is a company whose share capital is divided in stocks held by one or more stockholders who are not liable for the company's obligations (except in a few cases provided by company law in Serbia). The company is held liable for its obligations with all of its assets. A joint stock company usually has a minimum share capital amounting to RSD 3,000,000.00.
How much does it cost to open a company in Serbia?
Business registers office fee for company registration in Serbia amounts to RSD 6.500,00.
Also, it is possible to register a sole proprietorship, that is a legally capable natural person who conducts an activity in order to gain profit. It is liable for all its obligations arising from performing its activity with all of its personal assets, including the assets acquired with regard to the performance of the activity. This is also chosen very often, considering that for registering a sole proprietorship, only a personal ID is required. Business registers office fee for registering a sole proprietorship in Serbia amounts to RSD 1.600,00.
Procedure for granting temporary residence permit by company formation in Serbia
After applying for company formation in Serbia, within 5 working days, the Business Registers office will issue an excerpt from the legal entity's/ sole proprietorship registration. This excerpt is one of the documents required for filing a request for a temporary residence permit in Serbia. You will also receive the registration number and tax identification number of the company. Apart from this excerpt, other documents should be enclosed, such as a copy of the passport's page with the stamp of the last entrance to Serbia, a copy of the white paper (registration of foreigner's address in Serbia), a bank statement of funds on the personal bank account registered in the Republic of Serbia, lease agreement or proof of the real estate ownership, private health insurance in Serbia, etc.
Regarding white paper (in the Serbian language: beli karton), on arrival in Serbia, it is required that every foreign person register with the Police within 24 hours. This informs the local authority of your official address in the country. If you are staying in a hotel, the registration would mostly be done online, and if you are renting an apartment, the owner of the apartment should go to the Police station with your passport and register you as a tenant at his/her apartment or other real estate. Considering a statement of funds on the personal bank account registered in the Republic of Serbia, it implies that the personal bank account should be opened. There are banks in Serbia that open the bank account in seven days, and they require only white paper and a passport. Regarding proof of real estate ownership, most foreigners do not own a property in Serbia and do not buy a property upon arrival, so renting a property is a more convenient option. The lease agreement shall be enclosed as well when applying for a temporary residence permit in Serbia. There are also a few other documents, that can be collected in a day.
Documents shall be enclosed together with a temporary residence permit governmental fee, which in case of an online submission of a request amounts to RSD 19.206,00.
It usually takes around 2-4 weeks for a temporary residence permit in Serbia to be granted. Then, a foreign national will bring their passport to the Police station, and leave it for a few days, so a temporary residence sticker can be affixed to a foreign national's travel document.
What comes after your temporary residence permit is granted? If you plan to work in Serbia, for example, in the form of sole proprietorship, or as a CEO in your Limited Liability Company, you need to apply for a work permit in Serbia. For further information regarding how to file a request for a work permit in Serbia, please visit blog. Work permit processing time in Serbia is around one month, and the National Employment Service fee is RSD 14.690,00.
Attorney for residence permit in Serbia
That would be the end stage of your immigration to Serbia. Company formation in Serbia is one of the ways for granting a temporary residence permit in Serbia. Collecting the necessary documents, and a temporary residence permit application in Serbia could seem like a demanding process, however, with an experienced immigration lawyer in Serbia, this entire process can only take a few hours of your time. Law office Pekić has a lot of experience and satisfied immigrants in Serbia who have become and have remained our clients since. If you want to apply for a temporary residence permit in Serbia, or if you are interested in the cost of applying for a temporary residence permit charged by the Pekić law office, write to us at [email protected] or via Facebook messenger.
Featured Image – Photo by Gemma Evans on Unsplash
