If you’re an entrepreneur looking to expand into Europe, Serbia might just be the perfect spot for you. It offers access to a market of over 1.1 billion people, and what’s even more appealing is that you can register a branch of your offshore company without setting foot in the country. Yes, the whole process can be handled remotely. You could have your branch up and running in as little as two months and with a European bank account to boot.
Why Serbia?
Serbia stands out among European countries for several reasons, including its economic and political stability and investor-friendly incentives. Here are some key benefits of doing business in Serbia:
- Duty-free access to the European market: Serbia has free trade agreements that allow access to the European Union’s markets and other European nations.
- A skilled workforce: Serbia has a highly educated and skilled workforce at relatively low wages, making it easier to find qualified employees without breaking the bank.
- Low operational costs: The cost of maintaining a company and living in Serbia is significantly lower than in many other European countries.
Serbia is working towards joining the European Union, which enhances its appeal. It has double taxation agreements with 54 countries, helping you avoid double taxation on earnings. The corporate and dividend tax rates are also reasonable at 15%.
The Benefits of Opening a Branch in Serbia
Registering an offshore company branch in Serbia offers numerous advantages, making it a practical choice for many global businesses.
- Continue your global operations: You don’t have to shut down or re-register your offshore company. Instead, you can keep running your existing business while having a Serbian branch for your European operations.
- Get a tax ID without a new legal entity: Your branch will receive a Serbian Tax Identification Number (TIN), which allows it to operate in the country. You don’t need to establish a whole new company.
- Streamlined registration process: You can register the branch remotely using a Power of Attorney. The whole thing can be wrapped up in about a month.
- Banking made easy: You can either use your existing corporate bank account or open a new one in Serbia. The process of opening a corporate account is straightforward and usually guaranteed within a reasonable time frame.
Having a business branch in Serbia can lead to residency, which offers benefits like increased trust from local banks and the opportunity to apply for Serbian citizenship as the country moves closer to EU membership.
Serbia’s Business Environment: What to Expect
Serbia has created a business-friendly environment, making it an attractive place to do business. Here are some key highlights:
- Expanding your market reach: Serbia’s free trade agreements provide access to European markets and with its upcoming EU membership, this will only get easier. Once Serbia joins the EU, your branch could benefit from a range of European business support programs.
- Government support: The Serbian government offers several forms of assistance to entrepreneurs, especially startups. Grants, tax incentives, and training programs are available to help you get your business off the ground.
- Simplified residency process: Once you register your business in Serbia, obtaining residency is relatively simple. You don’t even need to speak the local language, and your family members can also apply for residency permits.
Opening a Bank Account in Serbia
After setting up your branch, you should open a corporate bank account to simplify finances and transactions. You’ll typically need to provide personal ID, proof of address, and possibly a residency permit and income statement.
Incorporation documents and beneficiary information are essential for company branches. Serbian banks facilitate international transactions and offer flexible services. Many banks also allow remote account opening, which is convenient for those who prefer not to travel.
Legal and Tax Considerations
The parent company is responsible for all the branch obligations in Serbia. If turnover exceeds EUR 100,000, a local resident must be appointed to file VAT reports. This can be an employee or the owner with a residency permit.
Another point to keep in mind when dealing with Serbian banks is that they may be extra cautious during the first few months of your relationship. If a transaction seems unusual, the bank may ask for clarification, and it’s crucial to respond within 24 hours. Failure to do so could result in your transaction being frozen or, worse, your account being closed. To assist with these issues, you can rely on our local office to help smooth things over with the bank.
The Registration Process
Opening a branch in Serbia involves several steps, but it’s a fairly straightforward process. Here’s a general outline of what you can expect:
- Document preparation: You’ll need to submit a set of documents, including your offshore company’s Registration Certificate, a Certificate of Good Standing, and more. Our team can handle most of this paperwork for you and guide you through the process.
- Registration: After submitting the necessary forms and documents, it usually takes around one or two months to complete the registration. Once done, you’ll receive your official registration papers.
- Bank account opening: After your branch is officially registered, you can open a bank account. You can either do this remotely or in person.
Residency and Citizenship Opportunities
Opening a branch in Serbia offers the benefit of legal residency. You can obtain a residency permit through business formation, employment, or property purchase. This residency provides easier travel, access to local healthcare and education, simplified banking, and a more favorable tax environment.
Residency permits can be granted for anywhere from six months to three years, with the option for renewal. After living in Serbia for three years, you can apply for permanent residency, and after five years, you’re eligible to apply for citizenship.
Serbia’s affordable living costs, combined with its business-friendly environment, make it an appealing option for entrepreneurs and investors. The process of acquiring residency is straightforward, and we can assist you every step of the way.
Ready to Get Started?
Serbia offers a wealth of opportunities for businesses looking to expand into Europe. From tax advantages to market access and government support, the benefits are significant. If you’re ready to explore this exciting opportunity, reach out to our experts. They can assist you with everything—from document preparation to navigating the legal and tax requirements. Let us help you take the first step toward opening your offshore company branch in Serbia.
