Advantages of Setting Up a LLC in Serbia

Establishing a Limited Liability Company – LLC in Serbia offers numerous benefits for entrepreneurs and investors seeking to operate between East and West. Below are the key advantages:

1. Legal Status Without Sanctions

Serbia enjoys a unique legal position: it faces no sanctions from Western countries, while also maintaining a friendly status with Russia, as it has not imposed any sanctions on the Russian Federation. This positioning allows seamless business operations with countries affected by various international restrictions.

2. Multi-Currency International Transactions

Companies registered in Serbia can conduct international transactions using a broad range of currencies, including Russian rubles (RUB), Chinese yuan (CNY), Turkish lira (TLR), and Arab dirhams (AED), alongside traditional currencies like euros (EUR), US dollars (USD), Swiss francs (CHF), and British pounds (GBP).

3. Free Trade Agreements

Serbia has signed Free Trade Agreements (FTAs) with major trading partners, including the EU, Russia, China, Turkey, and other key markets. Most imported goods enter Serbia duty-free, and exports to these countries are exempt from customs duties, creating a highly favorable trade environment.

4. Visa-Free Business and Personal Travel

Serbia offers a visa-free regime with numerous countries, including the United States, EU, United Kingdom, China, and Russia. This simplifies the process of organizing business meetings and personal travel, including cases where individuals from different nationalities (e.g., French and Russian citizens) seek to marry but face visa restrictions in each other’s home countries.

5. Easy Residency and Banking Services

Obtaining temporary residence in Serbia is straightforward, as is acquiring a Serbian address and personal bank account. With a Serbian residence, individuals can receive payments in nearly all global currencies, facilitating business operations and daily transactions.

6. Competitive Tax Rates and Incentives

Once a company is registered, Serbia provides competitive tax rates and benefits through its Double Taxation Avoidance Agreements (DTTs). Entrepreneurs can optimize tax burdens and enhance their financial efficiency. Serbia’s personal income tax rate is 15%, and corporate profit tax is also 15%.

7. Free Trade Zones

Serbia operates 15 Free Trade Zones, allowing investors to work without customs duties and other import taxes for goods intended for free zone operations. Additionally, businesses within these zones are exempt from VAT on goods and services traded within the zones, leading to significant cost savings.

8. SEPA Payment System and No CRS Reporting

Serbia is part of SEPA (Single Euro Payments Area), enabling efficient EU transactions. Furthermore, Serbia is not part of the Common Reporting Standard (CRS), providing greater privacy and flexibility in financial transactions.

With these advantages, Serbia serves as an ideal hub for EU-based companies looking to expand their business, optimize taxes, and benefit from a strategic international position.

For more information about establishing an LLC in Serbia, or if you need our assistance with company formation, please contact us.