Serbian d.o.o. or sole trader: what should a foreigner register?
Most foreigners who write to us end up with a d.o.o., and there are good reasons for that. Here is how it compares with a sole trader (preduzetnik) and a branch of your foreign company.
My short answer: if you are setting up from abroad, want a Serbian bank account for the business or plan to get residence through it, register a d.o.o. A sole trader makes sense for someone who already lives here and works alone. A branch makes sense only when a foreign parent company really needs a presence in Serbia under its own name.
| d.o.o. | Sole trader | Branch | |
|---|---|---|---|
| Separate legal person | Yes | No, it is you | No, part of the parent |
| Who answers for debts | The company, with its assets | You, with everything you own | The foreign parent |
| Minimum capital | RSD 100 | None | None |
| Tax on profit | 15% corporate income tax, then 15% on dividends paid to a resident | 10% on profit, or a fixed monthly amount for some activities | 15% on the branch's profit |
| Books | Double entry, licensed accountant | Simpler for flat-rate taxpayers | Double entry, licensed accountant |
| Documents from abroad | Your passport and a power of attorney | Your passport and a power of attorney | The parent's register excerpt, articles and decisions, apostilled and translated |
| Basis for residence | The usual route | Possible, less common | Possible for staff sent by the parent |
General rates for 2026. Social contributions and tax treaties change the final number, so we check your case before you decide.
Why the d.o.o. wins for most people
Liability is the first reason. If a client sues the company or a supplier isn't paid, the claim is against the company, not your flat in Milan or your savings in Dubai. With a sole trader there is no such wall.
The second reason is banks. A Serbian bank opening an account for a d.o.o. sees a company in the APR register with a clear owner and director. That is a file compliance teams handle every day. A sole trader owned by someone who lives abroad raises more questions.
The third is residence. When residence is part of the plan, the d.o.o. is the basis the police and the embassies see most often, and the file is easier to explain. We register it by power of attorney, usually about 5 working days after your originals arrive, for €370. See company registration in Serbia.
When a sole trader is the better choice
If you already live in Serbia, work alone, invoice a few clients and don't need a company account abroad, a sole trader can cost less to run. Some activities can be taxed at a fixed monthly amount set by the Tax Administration instead of on actual profit, as long as turnover stays under the legal limit.
One warning for freelancers. If most of your income comes from one client who controls your hours and your work, Serbian law can treat the arrangement as employment for tax purposes. It is called the independence test, and it catches people who think of themselves as freelancers but in practice work like staff. We check it before you register, not after the first tax assessment.
Not sure which form fits? Tell us what you do and who pays you. The first written reply is free.
The branch option, briefly
A branch (ogranak) is your foreign company working in Serbia. It is not a new company, so the parent answers for its debts and its paperwork. To register one we need the parent's documents, apostilled and translated by a Serbian court interpreter, and the bank will want to understand the whole group. It is a reasonable choice for an established foreign company that wants to show its own name on Serbian contracts. For a founder starting out, it is usually more paper for less protection.
What to decide before you register
- Who owns the company, and in what shares. A foreigner can own 100% and be the only director.
- Whether you will be employed by the company as director or not. It changes your monthly costs and matters for residence.
- The registered address: your own flat with the owner's consent, or our virtual office in Belgrade.
- Where you are tax resident today, and whether that will change. See Serbian tax residency.
General information, not legal or tax advice for your case. Rules and rates change; we confirm the current position before every engagement.
Frequently asked questions
Can a foreigner register a sole trader (preduzetnik) in Serbia?
Yes, it is possible. In practice it suits people who already live in Serbia, because the sole trader is you personally: your own tax registration, your own contributions and your own liability. If you are setting up from abroad, a d.o.o. is usually simpler.
What is the minimum capital for a d.o.o.?
RSD 100, so less than one euro. Capital is not what makes a d.o.o. expensive or cheap; the running costs are the accountant and, depending on how you are engaged, contributions on your pay as director.
Is a branch of my foreign company cheaper than a new d.o.o.?
Rarely in practice. A branch needs apostilled and translated documents of the parent company, keeps its own books in Serbia and leaves the parent liable for everything the branch does. Banks also look through it to the parent and its owners.
Can I change from a sole trader to a d.o.o. later?
Yes. You register a d.o.o. and close the sole trader, and the business moves into the new company. It is cleaner to choose correctly at the start, especially if a residence permit depends on it.
Tell us what you are planning
A few lines are enough. Every message is read by our lawyer, and the first written reply is free.
- You send the form. WhatsApp opens with your message already written. This website stores nothing.
- We reply, usually the same business day. If something is missing we ask four things: citizenship, where you live and pay tax now, what the business or income is, and when you want to start.
- You get a written plan with fixed fees before any work begins. If we think a bank is unlikely to say yes, or Serbia is the wrong choice for you, you hear it then.
Belgrade, Monday to Friday, 9:00 to 18:00 CET