Registering a Branch of a Foreign Company in Serbia

Serbia offers international companies the opportunity to establish presence in Europe by setting up branches and opening corporate bank accounts there. A major advantage is that this can all be done remotely and the entire process is going to take no longer than two months. Your international business can continue operating globally while also gaining access to a European bank account.

Why open a branch in Serbia?

Serbia’s stable economy and strong political environment make it attractive to foreign investors. Key benefits of having a company in the country include the following ones:

• Free access to the European market reaching over 1.1 billion potential clients.
• Highly qualified workforce.
• Low business maintenance and living costs.

Serbia is also on track to join the European Union and it has established tax treaties with 54 countries to prevent double taxation.

Corporate tax and dividend tax in Serbia are both 15%. Reducing this rate is possible by taking advantage of incentives and international agreements aimed at avoiding double taxation.

Benefits of registering a branch of a foreign company in Serbia

Creating a branch of an offshore company in Serbia offers several notable benefits:

• The business can operate globally using the resources of the Serbian branch.
• The branch receives a Serbian tax number without having to establish a new legal entity.
• The branch is listed in the Serbian business registry and it can be registered remotely with the help of a trusted agent.
• The registration process takes about a month.
• You can use the parent company’s existing bank account or open a new account in a Serbian bank.
• Opening a bank account for the branch is swift.
• Registering a branch involves fewer bureaucratic steps than creating a new company.

Entrepreneurs who open branches in Serbia or purchase property may also qualify for residency, which brings some additional perks:

• Better banking relations thanks to financial institutions’ trust in residents.
• A potential path to citizenship in a country preparing for EU membership.
• Reduced political and social risks.
• Tax optimization opportunities.

Key benefits of doing business in Serbia

Choosing to open a branch in Serbia has many advantages:

• Market expansion. Serbia has free trade agreements with the EU and other European nations. This makes it easier to enter new markets. Planned EU membership by 2025 should also facilitate trade and allow access to European business support programs.
• Support for startups, including grants and training programs. New businesses can benefit from tax breaks and other types of assistance.
• Easy process of obtaining residency after business registration with minimal paperwork and no language requirements. Family members of the primary investor can also obtain residency in Serbia.

Opening a bank account in Serbia

Bank accounts for companies and individuals in Serbia can be opened with minimal formalities. Having an account in a Serbian bank allows for easy fund management, international payments, and multi-currency transactions. The account opening process is straightforward and it requires only proof of identity, address confirmation, and, if applicable, residency and income verification.

To open a bank account, a foreign company branch has to provide incorporation documents and owner information. This account will support international transactions and come with flexible usage conditions.

Serbian banks allow accounts to be opened remotely. They offer asset protection, competitive rates, and remote account management options for corporate clients.

Legal considerations

The parent company is fully responsible for the Serbian branch’s obligations. Since July 2018, branches with annual revenue exceeding €100,000 have to appoint a Serbian-resident representative to sign VAT reports. This representative can be a local employee or the company owner with resident status.

For Serbian banks, initial transactions may require clarification. The bank will reach out for verification, so it’s essential to respond promptly to avoid frozen transactions or account closure. During the initial months, stay in touch with the bank or hire a local agent in Serbia to handle potential issues quickly.

Steps in the process of registering an offshore company branch in Serbia

A foreign company’s branch in Serbia serves as a separate administrative unit of the parent company entitled to conduct business independently. The registration process involves several stages.

Document preparation

The owner submits the necessary documents. This task is best handled by professional lawyers who specialize in company registration. Required documents include:

• Certificate of Incorporation (two copies), issued within the past three months and notarized and apostilled.
• Certificate of Incumbency (two apostilled copies) confirming the company’s ownership details, issued within the past three months.
• Certificate of Good Standing, verifying the company’s legitimacy.
• Trust agreement identifying the company’s beneficiaries.
• Completed forms from the Serbian registry (APR) and branch establishment documents, to be requested from the registry.
• Passport copies of all owners for address verification.
• Sample signatures notarized and apostilled if notarized outside Serbia.
• Power of Attorney, notarized and apostilled, with the wording provided by legal advisors.
• A resolution from the parent company approving the branch establishment (formatted according to Serbian legal requirements as advised by lawyers).
• A declaration by an authorized individual that the parent company is accountable for the branch’s obligations in Serbia.
• Proof of an active bank account from any bank in the world, issued within the last month.

All documents have to be translated into Serbian, with translation costs starting at €20 per page.

Opening a corporate bank account in Serbia

Once the branch registration is complete, you can open a bank account for financial transactions. Since 2019, Serbia has participated in the CRS information exchange standard and you have to bear this fact in mind when opening a corporate bank account in the country.

Tax obligations

If the parent company’s country has a double taxation agreement with Serbia, tax rates in Serbia can be minimal or even close to zero. However, the branch has to submit the parent company’s financial statements and balance sheet annually.

Conclusion

We have to admit that offshore-registered companies often face trouble when trying to conduct business operations in Europe. Banks on the continent are suspicious of offshore companies and they are reluctant to provide services to them. However, it is quite possible to set up a branch in Serbia even if your parent company is registered in an offshore jurisdiction. Because the company branch is a Serbian resident, local banks will have nothing against taking it onboard. Do banks in other European countries trust Serbian banks? Yes, they do! So you can freely do business all around Europe via your Serbian branch.