Register a Branch of Your Offshore Company in Serbia

If you are looking to gain access to the European market, you can register a company branch and a bank account in Serbia as a foreigner. The entire process takes up to two months, and most of the process, if not all, can be done entirely remotely. Your offshore business can continue its global operations, and having a European bank account is an additional benefit.

Why should you choose Serbia to open a branch of your offshore company?

Serbia stands out for its economic prospects, foreigner-friendly policies, and strategic location. The country offers incentives to international investors to develop their businesses. Some of the key benefits include the following:

• Duty-free access to the European market with hundreds of millions of customers;
• Highly skilled workforce;
• Low costs of maintaining the company, as well as living in the country.

Additionally, Serbia is on its way to joining the European Union. It also has signed double taxation avoidance agreements with 64 countries, and this list is growing.

The corporate tax, as well as the dividend tax, is 15% in Serbia. You can also reduce your tax burden by taking advantage of tax reliefs or using agreements on double taxation avoidance.

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Check the list of required documents, and get the details of the process, terms, and costs.

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Benefits of opening a branch of a foreign company in Serbia

Registering a branch of an offshore company in Serbia offers several important advantages:

• You can continue using your offshore company while doing business in Serbia.
• The branch receives a tax identification number (TIN) in Serbia, but you don’t have to register a new legal entity.
• The branch is entered into the Serbian business register, and this can be done remotely with a Power of Attorney.
• The branch registration process takes around a month.
• You can use the parent company’s existing bank account or open a new account with a Serbian bank.
• Opening a bank account for your company branch is practically guaranteed, and it can be done within a reasonable timeframe.
• Registering a branch involves fewer bureaucratic procedures compared to setting up a new company.

Entrepreneurs who choose Serbia to open a branch of their global business or purchase property can also apply for legal residency in the country. Legalizing your stay in Serbia gives you:

• Better terms when working with local banks due to increased trust;
• The prospect of obtaining a passport of a country that is preparing to join the EU;
• Optimized tax burden.

Main advantages of doing business in Serbia

The decision to register a company branch in Serbia brings the following benefits:

• Market expansion: Serbia enjoys free trade agreements with the EU and other European countries, which simplifies access to the markets. It is also an EU candidate.
• Government support for startups: Done through grants and training programs. Entrepreneurs can also benefit from tax incentives and support programs during the early stages of their operations.
• Ease of obtaining residency after registering a business: You don’t have to know the local language, and only a minimal set of documents is required. Family members of the primary applicant can also obtain residency permits.

Opening a bank account in Serbia

Opening bank accounts for both companies and individuals involves minimal formalities in Serbia. Having a local bank account makes it easy to manage your finances, handle international payments, and carry out multi-currency operations. The process is simple: you’ll have to provide a personal identification document, proof of address, and a residency permit and income statement if applicable.

Company branches can open corporate accounts by submitting incorporation documents and information about the company’s beneficiaries. Business accounts support international transactions and offer flexible service conditions.

Some Serbian banks allow you to open accounts remotely, even if you are a corporate client, though you often have to verify your identity in person. They also provide asset protection and have affordable tariffs.

Legal nuances

The parent company is fully responsible for the obligations of its branch in Serbia. Since July 2018, if a branch’s annual turnover exceeds 100,000 EUR, it is required to appoint a local resident to sign VAT reports. This person can be either a specially designated employee or the company’s owner who has obtained a residency permit in Serbia. Policies may change, so it is important to consult with experts like us to understand the current laws, but we can ensure your company is fully compliant.

When working with Serbian banks, it’s important to remember that until you establish a reliable relationship with the bank, your first transactions might raise questions. The bank is likely to contact you for clarification, and it’s critical to respond within 24 hours. Failure to provide the required information promptly may lead to a frozen transaction or even account closure. We recommend maintaining close contact with the bank during the first few months or using the services of our Serbian-based professionals, who can act as your point of contact and help resolve such situations.

Serbian branch of your offshore company: the registration process

A branch of a foreign company in Serbia operates as a separate administrative unit of the parent company. It has the right to conduct commercial activities. The registration process consists of several stages.

Document preparation

The parent company’s owner submits a set of documents for review. We are ready to handle most of the paperwork for you. The required information includes:

• Two copies of the Registration Certificate of the parent company, issued no later than three months prior to submission (with an apostille).
• Two copies of the Certificate of Incumbency (with an apostille) that contain information about the company owners, made no later than three months prior to submission.
• A Certificate of Good Standing to confirm the company’s legal capacity.
• A trust agreement (nominee services agreement) to confirm the identity of the ultimate company beneficiary.
• Completed forms provided by the Serbian business registry (APR) and documents for establishing the branch. We will prepare these and send them to you by email for completion.
• Copies of the passports of all company owners with indications of their places of residence.
• A notarized and apostilled signature sample, unless the notarization is conducted in Serbia.
• A limited Power of Attorney (which we will give you in English) to be notarized, apostilled, and sent to us.
• The resolution from the parent company to establish the branch. We will advise you on how to prepare this document in compliance with Serbian law.
• A statement from an authorized person confirming that the parent company is responsible for the obligations of the branch in Serbia (we will provide the form).
• Confirmation of an active bank account issued by any bank in the world (no older than one month) with stamps and signatures. This confirmation has to be submitted to the Serbian business registry when registering the branch.

All documents have to be translated into Serbian.

Bank account opening

Once the branch is successfully registered, you can open a bank account in Serbia to conduct financial operations in Europe with ease. Serbian banks have tightened requirements for non-residents. Do note, that since the summer of 2019, Serbia has participated in the exchange of banking information in accordance with the international CRS standard.

Tax responsibility

If the country where the parent company is registered has a double taxation agreement with Serbia, tax rates in Serbia can be minimal, sometimes close to zero. However, the offshore company branch has to file annual financial statements, as well as the balance sheet and profit and loss statement of the parent company.

Obtaining a legal address and acquiring accounting services

In the course of preparation, you’ll have to arrange for a legal address and accounting services. You can either use our company’s offer or hire your own accountant and rent an office.

If you choose to handle this on your own, we will not charge for these services, but we will not be responsible for interacting with government authorities in this case.

If you use our services, the payment is hourly (100-500 EUR, depending on the type of request).

Applying for a residency permit in Serbia

You can obtain a Serbian residency permit on the following legal grounds:

• Employment;
• Business formation;
• Real estate purchase;
• Studies and several other grounds.

A residency permit allows you to live freely in the country, open bank accounts, and access healthcare and educational services. Residency is granted for six months to three years, and residency permit renewal is quite possible.

One of the key advantages of obtaining residency in Serbia is the future possibility of applying for permanent residency (PR) and then citizenship. To qualify, you have to live in the country for at least three years for PR and five years for citizenship. Serbia also attracts foreigners with its low living costs and business-friendly tax system. The tax system makes it particularly appealing to entrepreneurs and investors.

The application document package contains several documents, including proof of financial solvency, health insurance, registration at an address in Serbia (the so-called ‘white carton’), and a clean criminal record. Serbia’s smooth residency acquisition process and favorable conditions make it a popular choice for those looking for long-term residence and business opportunities in Europe.

Step-by-step branch registration procedure for offshore companies in Serbia

Opening a branch of a foreign company in Serbia involves several formalities. The action plan includes the following steps:

If you have any further questions, please feel free to contact our experts for a more detailed consultation.