Any foreign national registering a company in Serbia can qualify for legal residence in the country. After living and doing business in Serbia for 8 years, the foreigner can apply for citizenship by naturalization. This opportunity is attractive in view of the fact that Serbia may join the EU next year (at least, this is the plan). If this happens, your company will turn into an EU-based company with all the advantages that this status brings.
You can qualify for Serbian residence by establishing a sole proprietorship, a partnership, an LLC, or a corporation. It takes 5 days to register a company in Serbia and when the process is over, you are entitled to apply for an extendable residence permit. This document will give you access to European-class banking and medical services, among other things. You can also add your spouse, children, and other relatives to the application for residence. If you live in Serbia for more than 6 months, you will become a tax resident of the country. When you do, you will find that you don’t have to pay too much in taxes in Serbia.
Advantages of Serbian residence for foreign entrepreneurs
The main advantages of acquiring legal residence in Serbia include the following ones:
- Access to the European market;
- Comparatively low taxes in Serbia and multiple treaties on double taxation avoidance;
- State support to entrepreneurs (tax incentives, tax breaks, financial support, administrative support, etc.);
- Minimal investments are required to register a company in Serbia;
- An opportunity to obtain a permanent residence permit after 5 years and apply for citizenship of Serbia after 3 more years.
Requirements to foreign entrepreneurs wishing to establish legal residence in Serbia
The procedure of acquiring a Serbian residence permit is simple and transparent. Foreign nationals and foreign legal entities are entitled to establish companies in the country. Having a Serbian-registered company makes its foreign owner qualified for Serbian residence. Candidates for Serbian residence permits have to meet the following additional requirements:
- Be at least 18 years of age;
- Have a valid passport;
- Be solvent.
Legal grounds for obtaining Serbian residence by registering a company there
You can acquire legal residence in Serbia if you do one of the following things:
- Open a new company. A sole proprietorship will suffice. The required authorized capital is 1 euro for an LLC and about 25,000 for a corporation. You can pay a personal visit to the Commercial Register or apply for company formation online.
- Set up a branch of your foreign company in Serbia. This is a popular option that many companies registered in other countries make use of. In particular, for UK companies, branch registration in Serbia was a lifesaver when their national Government went to war with money launderers and tax evaders and started closing bank accounts in Great Britain by the thousand. Those who were fast enough were able to set up a branch in Serbia, open a bank account in the country, and transfer money from Great Britain to Serbia before their British bank account was closed. A company branch is not a separate legal entity in Serbia but it is a tax resident of the country anyway.
- Purchase a shelf company. If you are affluent enough, you can also buy an existing company in Serbia together with its premises, equipment, and staff. Legal assistance is readily available in the country and you can hire a lawyer who will make sure that the company has no debts and the deal is clean. You can also act via a trusted agent when purchasing a company in Serbia.
How to open a company in Serbia and obtain a residence permit
Citizens of many countries are free to enter Serbia without visas and stay there for 15 to 90 days depending on their country of origin. Thus, you should have enough time to register a company and obtain a residence permit. You will have to go through the following 4 stages:
- Register a company.
You have to decide on the type of company that you want to have in Serbia and its name. You also have to open a bank account and prepare the application documents. Companies are registered in the Commercial Register in Serbia and it would be wise to delegate this task to a local agent because dealing with governmental bodies in a foreign country might be a bit uncomfortable. - Register your temporary address in Serbia with the police authorities.
Even though many foreigners don’t need visas to enter Serbia, they have to register at an address in the country within 24 hours. If you stay at a hotel, the hotel administration will do it on your behalf. - Apply for a long-term residence permit.
You can apply to the Aliens Office or the police in person or you can file an online application. Make sure you submit the required documents including your passport, insurance policy, proof of address, and a bank statement to confirm your solvency. Besides, you will have to pay the state duty and supply the receipt. Your application will be processed within 30 days or less. - Obtain your residence permit.
When your application for residence is approved, you will get a sticker in your passport. The sticker will certify that you have a legal right to stay in Serbia. When it expires, you can extend it if you keep your Serbian company going and abide by the law.
Benefits that a Serbian residence permit brings to its holder
Holders of Serbian residence cards enjoy a wide range of advantages. The main of them include the following ones:
- An opportunity to obtain residence cards for their family members;
- Simplified procedures of acquiring visas to the USA, Canada, the Schengen zone and other European countries;
- Access to high-quality healthcare services covered by medical insurance;
- Access to European banks;
- An opportunity to extend the residence permit if the legal grounds for that are still in place.
Term and cost of acquiring a residence permit in Serbia
You are going to need less than a month to legalize your prolonged stay in Serbia. A company can be registered in the country within 5 days or less. As far as the processing of your application for residence is concerned, it has recently been reduced to three weeks. Serbian authorities welcome foreigners opening companies in the country.
The cost of acquiring Serbian residence is quite affordable too. If you are opening a new company in the country, your costs will amount to 200 to 300 euros only (various state duties and fees are payable). If you are buying an existing company, you will need legal support, however. Legal fees are going to amount to a few hundred euros.
Serbia is a pearl in the Balkans for immigrants indeed. The country is located in the middle of Europe, its nature is beautiful, the weather is nice, the people are friendly to foreigners, the cost of living is comparatively low, the quality of life is relatively high, and the relocation costs are quite affordable. This is a rare combination of positive characteristics indeed.
