Doing business in Serbia is easier than it is in some neighboring countries. The level of bureaucracy is comparatively low in Serbia and the taxation system is simple and transparent. These factors already make the country attractive for setting up a business company there.
Business continues to grow in Serbia with both local and foreign entrepreneurs establishing new business ventures in the country and expanding their existing companies. The most popular form of company ownership in Serbia is a Limited Liability Company. The Serbian acronym for LLC is DOO. Establishing a DOO in Serbia is probably the fastest and the easiest way of launching a business venture in the country.
You don’t need too many things to start a DOO in Serbia: just a company name and a legal address. Please note, however, that the Serbian registration authorities are serious about the uniqueness of your company name. They will want to make sure that it does not sound similar to other company names.
You Serbian DOO will have to have a registered capital of 500 euros but you can deposit only 250 euros at the moment when the company is created. The outstanding 250 euros can be deposited within 2 years. An obvious reason why DOOs are so popular in Serbia is the limited liability of the company owner. You cannot lose more than 500 euros if the company has to be liquidated.
Foreign nationals as well as foreign legal entities are entitled to register companies in Serbia. A corporate entity registered outside Serbia and establishing a company in the country has to supply the company Registration Certificate, an extract from the home country Business Register, and other corporate documents. Besides, a Power of Attorney has to be issued to the person who is going to sign documents on behalf of the foreign company. Various documents need to be signed in the process of registering a company in Serbia as well as in the process of setting up a corporate bank account in the country.
This is important to realize that all the corporate documents need to be translated into Serbian and notarized. Please also bear in mind that the documents have to be translated by a sworn translator in Serbia. If you bring translations from your home country, you will simply lose money because they are not going to be accepted by the Registrar and you will have to pay the translator again.
Some interesting business ideas in Serbia
Business opportunities in Serbia are plentiful and diverse. Below we list some areas of business that you may want to consider if you have decided to set up a company in Serbia. We do not pretend, however, that the list is exhaustive and that there are no other attractive business areas in Serbia. Business opportunities are plentiful in the country and we are only making a few suggestions.
Public Catering
You will not find a shortage of catering outlets in Serbia. Nevertheless, there is a widespread opinion that all cafes and restaurants are very similar. This means that you have a chance to offer something that cannot be found in the Serbian community where you plan to live. Since you are a foreigner, you can bring something that is unique for your home country, something that is a rarity in Serbia. The payback period for cafes, fast food outlets, and restaurants is usually a few months. You have to invest at least 4 or 5 thousand euros to start a small café. You will need a couple hundred thousand euros if you want to open an elite restaurant. If you can afford buying the building where your café/ restaurant is going to be located, you won’t have to pay the rent, which will reduce your operational costs.
Food Retailing
Similarly to other European countries, large supermarket chains sell most of the food in Serbia. However, if you want to move away from civilization and live a quiet life in a rural area in Serbia, opening a small food store there might be a good idea. It won’t make you rich but you can hardly go broke too because people always need food! They are going to pay regular visits to your little food store if you sell everyday food products.
Beauty, hairdressing, spa, and massage salons
These are popular small business enterprises. Again, a hairdressing or a massage salon cannot turn you into a millionaire but you can make enough for a living. The competition may be tough but the required investment amount is small. In some cases, 3 to 4 thousand euros will be enough to start a salon of a certain type.
Food production
If you are an avid farmer, you can consider starting a farm in Serbia. Foreigners are not allowed to buy arable land in the country but renting land is quite possible. You will have to invest a few dozen thousand euros in your farming business. It would also be wise to try and find buyers for your produce in advance.
Car service
To be honest, there are not very many good car service stations in Serbia and car owners often have trouble finding a diagnostic center or a good garage. If you are an experienced mechanic, you have a fantastic chance to build up a profitable business in Serbia. Even though you will have to invest 10 to 50 thousand euros, your investment can return within a year.
Tourism
Serbia is a country with a rich history and culture and the nature is beautiful there too. These factors make Serbia attractive for tourists. The tourist industry is well-developed in Serbia but there is a lot of space for improvement anyway. This is especially true if you are able to offer a tourist service that is currently unavailable in the country. Alternatively, you can open a tourist company in Serbia and find a reliable partner in your home country. In this case, you will be able to ‘exchange’ tourists with your partner in the country of your birth: they send you theirs and you send them yours. The fact that you speak the same language is going to facilitate mutual understanding greatly.
Electronic commerce
The Serbian electronic commerce service has a great growth potential. People in the country are only starting to get accustomed to buying things online. Opening an Internet shop could be one of the least expensive ways of starting your own business in Serbia because it requires small investments and it can be very flexible. The payback period is going to be short and the business scaling opportunities are going to be unlimited.
There are multiple other business areas that you can consider too. Whichever way you look, Serbia offers wonderful market opportunities for international investors. The geographical position of the country is superb, the education quality is high, the labor is comparatively inexpensive, the infrastructure is advanced, and the taxation system is highly beneficial. What else do you need to start a successful business?