The amount of monthly operating expenses of doing business in Serbia depends on several factors. This text will present calculations for the most common legal forms in the initial phase of business, after establishment. In the later stages, the costs may vary, but the fixed costs that will be presented in this text are universal and unchanging up to a certain point in the business.
Serbia is specific in that it offers the possibility of establishing an entrepreneur who is considered a natural person by law, whose establishment costs are low, the establishment procedures are uncomplicated and fast, and the contribution costs are designed so that the state has encouraged the establishment of this type of company, which is considered the carrier of economic development. The legislator also provided the possibility for the legal form of a company with unlimited liability to be established with a minimum founding contribution of one euro, i.e. 100 dinars, without the obligation to pay the founding contribution at the time of establishment. These provisions do not apply to joint stock companies, whose founding procedure is somewhat more complicated, and the minimum founding contribution is significantly higher.
Monthly business expenses of an entrepreneur
There are two forms of entrepreneurs. The establishment procedure for both types of entrepreneurs is simple and fast, and the establishment costs are extremely low. If you decide to establish a company in this legal form, you will need a work permit if you are a non-resident of Serbia. Three to five working days are required for establishment, which is the legal deadline for the Agency for Business Registers to respond to the attached documentation. The cost of fees for the establishment of an entrepreneur is 1,600 dinars, plus the costs of sending documentation, if the entrepreneur immediately starts performing activities, while any subsequent change in the status of the entrepreneur is paid additionally. The fees for one change amount to 800 dinars, plus the costs of sending documentation. If a non-resident establishes a company in this legal form, it is necessary to prepare an electronic card at the certification body, the costs of which are 3,500 dinars in the case of the Serbian Chamber of Commerce, or 5,500 and 6,000 dinars in the case of the Post of Serbia and Halcom. It is also possible for residents to obtain an electronic certificate free of charge at police stations throughout the country (if the resident has an ID card with a chip).
In addition to the costs of establishing an entrepreneur in order to do a business in Serbia, it is necessary to calculate the costs of mandatory contributions, which may vary depending on the place of registration, that is, the activity the entrepreneur is engaged in. Contribution costs range from 16,000 dinars to 50,000 dinars for the most profitable activities, in case the entrepreneurial unit is established in Belgrade municipalities with the highest amounts of average monthly earnings. Bookkeeping costs can also vary and can range from a few thousand dinars in rural areas of Serbia to a few tens of thousands of dinars, depending on the volume of work, the activity the entrepreneur is engaged in, as well as the location.
The last administrative cost is related to the payment of the environmental tax. All business entities are exempt from paying the tax in the first year of operation, while every subsequent year it is necessary to pay the annual tax amount of only a few thousand dinars. The amount depends on the activity and the municipality where the economic activity is performed. Under activity, it is considered that there are activities such as bakeries, grills and carrying out truck transport of goods, which generate a greater amount of pollution and, accordingly, pay a slightly higher amount of tax.
The detailed cost amounts of your business in Serbia are shown in the recapitulation below, while the amounts have been converted into Euros:
- Establishment costs (15 euros, excluding attorney’s fees for establishment)
- Contribution costs (150 – 400 euros)
- Signature creation costs (0 – 50 euros)
- Bookkeeping costs (>80 euros)
It should be noted that for some specific activities, as well as for a larger volume of work, if the entrepreneur has more than ten employees, it is necessary to count more bookkeeping costs, but also to secure permits for the performance of activities from the competent authorities, to collect appropriate licenses and certificates or to have at least one employee of a specific profession required by law (accountant, doctor, engineer, agronomist, traffic engineer, customs agent, etc.).
Monthly operating costs of a limited liability company
The operating costs of a limited liability company are slightly higher than the operating costs of an entrepreneur. Limited liability companies are usually entities with a higher turnover, more employees, very often more strictly controlled by the state and very often they are in the VAT system, which makes keeping business books more difficult and expensive.
Fees for establishing a business in Serbia in this legal form amount to 5,900 dinars, while for each status change it is necessary to pay fees in the amount of 3,100 dinars. Changes may refer to a change of activity code, change of owner, granting of power of attorney, change of name or seat. If it is a non-resident who is not able to provide office space in the initial phase of business and does not have an address, our office is able to rent you office space. The market price for this type of service ranges from around 20 to 30 euros per month, but it is often included in the bookkeeping service.
The establishment procedure is identical to that of an entrepreneur, with the same legal deadlines, but it is necessary to submit a signed “Deed of Incorporation” to the Agency for Business Registers during the establishment. The costs of monthly contributions are slightly lower compared to an entrepreneur and for 2024 they amount to about 14,000 dinars, or about 120 euros. These are contributions that are submitted on the minimum legal basis. It is certainly possible to pay higher contribution amounts if the client wishes.
As in the case of entrepreneurs, it is necessary to obtain an electronic certificate, while the procedure for obtaining the certificate is explained in detail in the previous text. The costs of keeping business books are higher and can vary depending on the activity, the number of employees, whether the business entity is in the VAT system, as well as the specifics of the client, and they start from 20,000 dinars.
The following recapitulation shows in more detail the monthly amount of business expenses for a limited liability company, and the amounts are expressed in euros:
- Establishment costs (50 euros, excluding attorney’s fees for establishment)
- Contribution costs (120 euros)
- Signature creation costs (0 – 50 euros)
- Bookkeeping costs (>150 euros)
Other legal forms besides those mentioned are not frequent and typical for the territory of the Republic of Serbia, we primarily mean the limited partnership, while the form of the joint stock company is reserved for very large economic subjects and in itself is rare in any legislation.
The cost of the founding role for a limited liability company is not considered in this calculation, considering its legal minimum amount of 100 dinars, and as already stated, it is not necessary to pay at the time of establishment. The annual cost for the environmental tax is the same as for entrepreneurs.