Company Formation in Serbia: A Guide for Foreign Founders (2026)
Serbia has quietly become a popular base for remote founders and IT contractors: low operating costs, a deep engineering talent pool, a 15% flat corporate tax and a simple flat-rate regime for sole traders. This guide walks foreign founders through the two main routes — the flat-rate paušal and the d.o.o. (LLC) — and explains honestly what “near-EU” does and does not mean.
Near-EU, not EU
First, the honest part. Serbia is not in the EU single market. You do not get automatic EU/EEA market access or an EU VAT number by registering here. What you do get is a low-cost base next to the EU, with a wide network of double-tax treaties and a strong, affordable IT workforce. For many remote founders that is exactly the right trade-off; for businesses that need EU single-market access, an EU jurisdiction is a better fit. Decide based on where your customers and substance really are.
Two routes: paušal vs d.o.o.
There are two structures most foreign founders consider:
- Preduzetnik on the flat-rate (paušal) regime — a sole trader who pays a fixed, pre-set monthly tax and contributions and keeps no books, while annual income stays under 6,000,000 RSD. Simple and cheap, but you are personally liable, and you must understand the independence test (below).
- d.o.o. (LLC) — a limited company. Liability is capped at the share capital, it looks more solid to larger clients and investors, and it has no income cap. It requires double-entry bookkeeping. Minimum share capital is just 100 RSD (about €1).
Quick comparison
| d.o.o. (LLC) | Paušal (sole trader) | |
|---|---|---|
| Liability | Limited to share capital | Full personal assets |
| Bookkeeping | Double-entry (required) | None |
| Tax | 15% on profit | Flat-rate (pre-set) |
| Income cap | None | up to 6,000,000 RSD/yr |
| Best for | Larger business, investors | IT freelancers, low costs |
The independence test (for paušal)
If you go the paušal route as an IT contractor, the single most important thing to understand is the independence test (test samostalnosti) — a nine-criterion test that checks whether you are genuinely independent or really a disguised employee of one client. Meet five or more criteria and your income can be re-classified and taxed far more heavily. We cover this in detail on the Serbia for IT freelancers page. If you keep living abroad while invoicing one foreign client, a d.o.o. is often the cleaner structure.
Registering remotely via the APR
Both structures are registered with the APR (Serbian Business Registers Agency), and the process can be done remotely:
- Choose the form, name, activity code and registered address.
- Prepare the documents — articles of association (for a d.o.o.) and the APR filings.
- Sign electronically with a qualified e-signature (eID) or by notarised power of attorney (useful if you cannot get an eID). Foreign-language documents are filed with a certified Serbian translation.
- File with the APR and pay the state fee — electronic d.o.o. formation is roughly 4,900 RSD (verify the current APR pricing).
- Receive the decision, company number and PIB (tax ID). Registration usually takes 1–3 business days once the signed paperwork is complete.
After registration
Forming the company is only the start. Next come the bank account, the VAT decision (mandatory above 8,000,000 RSD of turnover in the previous 12 months; voluntary registration is possible earlier), and ongoing accounting. A d.o.o. must keep double-entry books; a paušal does not, but still tracks turnover and files the fixed monthly obligations.
How we help
We set up your Serbian company end to end and run the accounting in English — see company formation in Serbia and accounting services. Not sure which route fits? Contact us — we’ll give you an honest recommendation and a clear, orientational quote.