When establishing your business abroad, it is vital to know the management of each of the companies available in the favorite country to do business, if your choice was Serbia you should know that there are several options and our experts at Foster Swiss will take care of the incorporation process and recommend the company that best suits your requirements.

Among the commercial entities most used by foreign investors in Serbia are the private limited liability company (DOO), public limited companies (OD), branch and subsidiary.

The limited liability company in Serbia, is created with 1 or more shareholders, in which each member participates in the share capital of the company, there are active partners, fully responsible for debts and profits, and administrative decisions, and silent partners responsible only within the limits of their contributions, and no share capital is required for registration.

Moreover, there are joint stock companies in Serbia, which are aimed at foreign entrepreneurs and depending on the activities and type of business, can be established with 25,000 euros and can have maximum 100 shareholders with a capital of 10,000 Euros for a closed public company and has no limit for shareholders equally responsible for debts and income.

Branches and subsidiary in Serbia are fully legal

The establishment of a Branch in Serbia is autonomous and governed by the Serbian Companies Law, they can carry out legal transactions and activities of the parent company in Serbian territory, double taxation, withholdings on interest, royalties and dividends are avoided, in order to be exempt or reimburse corporate taxes and the best thing is that it does not require minimum capital for registration.

Subsidiary in Serbia

The subsidiary is independent of the parent company and may have a different name in the market, subsidiaries in Serbia must file an annual financial report is subject to a corporate tax of 15% on the profits of the branch and the rest of the dividends can be transferred to the main company without taxes.

There are differences in taxes if the main company is from the jurisdiction with preferential tax treatment. Some of the expenses of the main company can be transferred to the branch using special accounting methods, which can reduce the tax base in Serbia and it is not mandatory for the director to be a resident, the funds received by the main company are not taxable.

For more information on this topic or any related questions about our services, you can contact directly through: info@fosterswiss.com | sergiodelmar@fosterswiss.com