Serbia is a highly recommendable jurisdiction for your business for many reasons: an advantageous geographical location between the East and the West (which makes it an important logistics route), pro-business laws, taxes that are lower than elsewhere in Europe, an excellent banking system, and much more. There are some pleasant details, too, like low utility bills (and this is important if you rent a local office or use any production facilities). As for banking, you can expect European-quality services at much lower prices (though the situation may change when the country joins the European Union, which is scheduled for 2025).
If you need more information on Serbia before making a decision, please visit our portal to read a more detailed article on how to open up a business branch in Serbia and use other links to discover the country. You can also book a free session with our expert to discuss your needs and find the best option in your situation (we always offer a customized product that will suit your needs best of all, not just the one available in the market). And if you need our assistance in any administrative issues, we will be ready to help you online or on-site via our local office in Belgrade!
Reasons to Set Up a Serbian Branch
You may decide to open a branch in Serbia due to all the reasons described above. However, there is one more situation in which the use of a Serbian branch will be an optimal solution.
The relations between banks in many countries and offshore companies are not getting any better. Banks often refuse to accept invoices from offshore companies and want them to prove that they have economic substance in the country of incorporation. European banks are especially picky in this respect, so a quick fix is needed. A branch in Serbia can solve the problem: you set it up, comply with all the substance requirements, and open a European account for it. Following that, you simply use the account for the needs of your offshore company without any issues or restrictions!
We will provide all the support you need, and you will get your Serbian business branch in just a few days! Opening an account is a longer process, though: you will need to wait for 1-2 weeks at best, but sometimes it takes several months.
Serbian Branch: Main Benefits and Features
If you set up a business branch in Serbia, you will be able to combine the benefits of an onshore and offshore jurisdiction. Let’s look at the conditions offered:
- Opening a branch in Serbia does not mean that your offshore company will have to amend any incorporation documents, change management structure, shareholders, or ownership.
- A Serbian branch is not a separate legal entity, so all transactions will be carried out on behalf of your offshore company (which is ultimately liable for all the debts).
- Opening a branch in Serbia does not mean that your offshore company will have to amend any incorporation documents, change management structure, shareholders, or ownership.
- The branch will have the same name as the offshore company, but it will be able to get a Serbian trade name for promotion, its own TIN, and legal address.
- Your branch will not be able to carry out operations using a foreign bank account, but it will easily open a non-resident account in Serbia on behalf of the offshore company. The company will be able to engage in any activities using the branch (even if these are absolutely different), which means that you can start a new business line in Serbia.
- The Serbian branch can be used for internal treasury management as the assets and payments moved to it from the head office are not taxable.
- The business branch you set up in Serbia will be considered a local tax resident and will have to keep its own accounting records. It will only be taxed on the profits it makes. If the annual income exceeds a certain threshold, the branch will have to be registered as a VAT taxpayer. Serbia is a party to numerous double taxation treaties, so you will avoid double taxation.
- If you need to close your Serbian branch one day, you will not have to meet any liquidation requirements as the assets are formally owned by the parent company.
Serbia vs Other European Solutions
This scheme can be used in any European country, of course. However, the difference will be considerable:
- You will still have to pay taxes, and they are much lower in Serbia than in the rest of Europe.
- You will also need to incur more expenses in Europe when it comes to the costs of branch setup and operation.
- Serbia remains politically neutral, steers clear of any discrimination, and appreciates the contributions of non-resident investors to the national economy.
Still have any questions? Do not hesitate to click on the link and contact us!
Registration and Maintenance Costs
The cost of a business branch registration in Serbia plus opening a bank account costs at least 4,500 euros plus tax. Here are the services that are included in the price:
- Receiving a TIN
- Payment of state duties
- Serbian branch registration
- Any assistance you will need during your visit to Belgrade
- Translation of documents
You may also need any additional services that we will discuss separately.
Steps Required to Set up a Serbian Branch
- First of all, get in touch with us using the above link to discuss your situation and make sure that the scheme we offer matches your goals.
- Pay for our services using cryptocurrency, bank transfer, Western Union, or any other convenient method.
- Collect a package of documents in accordance with our recommendations and submit it to us (if you want to know an approximate list of documents you will need, please click on the above link to find out). We will check them thoroughly and proceed to the branch and account opening.
- Get your fully functional business branch in Serbia and a corporate account that you will be able to use without any restrictions!
We understand that it may be hard to run a branch from afar – especially if you don’t know the local language. With that in mind, we offer concierge services to our customers – please read the longer article to discover this unique offer!
Our experts are looking forward to meeting you!
