Business Environment in Serbia and Trade Links with Turkey
Serbia offers an attractive business environment for foreign investors thanks to its strategic location between Europe and the Balkans, competitive tax system, and investment incentives. Although not a member of the European Union, it has strong commercial ties with the EU and is positioned as a regional logistics hub.
For Turkey-based companies, Serbia can be considered an investment location that offers cost advantages in the fields of manufacturing, construction, textiles, automotive supply industry, and logistics.
Country Overview
- Official Name: Republic of Serbia
- Capital: Belgrade
- Population: Approximately 6.6 million (2026 estimate)
- Official Language: Serbian
- Religion: Predominantly Orthodox Christianity
- Climate: Temperate continental climate
- Time Zone: UTC+01:00
- Country Code: +381
- Currency: Serbian Dinar (RSD)
How to Set Up a Company in Serbia?
Main Types of Companies
- Limited Liability Company
- Joint Stock Company
- Branch
- Representative Office
The limited liability company model, which has similar characteristics to the limited company structure in Turkey, is the most frequently preferred type of company by foreign investors.
Establishment Process
- Determining the company name
- Preparing the articles of association
- Appointing managers and partners
- Registration with the Business Registration Agency
- Tax registration
- Opening a bank account
The company establishment process in Serbia is generally fast, but bank compliance processes can be decisive in time planning.
Documents Required for Company Formation
For natural person partners:
- Passport copies
- Address verification documents
- Company formation documents
- Manager appointment information
For corporate partners:
- Company formation document
- Trade registry record sample
- Articles of association
- Board of directors decision
- Apostilled company documents
Document and translation processes may affect the time planning for structures in which Turkey-based companies are partners.
Is a Local Partner or Local Manager Required?
Foreign investors can own all of the shares in a company in Serbia. A local partner is not required. Although a local resident manager is not required, it may provide advantages in terms of banking processes and operational transactions.
Serbian Tax System and Tax Comparison with Turkey
Corporate Tax
- Serbia: 15
- Turkey: Different rates may apply depending on current legislation.
Value Added Tax
- Standard rate: 20
- Turkey: The standard VAT rate is applied at different levels.
Withholding Taxes
- Dividend payments: approximately 15% (may vary depending on agreements)
Tax advantages may be available for certain payments under the Turkey-Serbia Double Taxation Agreement. Financial structuring and transfer pricing planning should be evaluated during the establishment phase for Turkey-based companies.
Accounting System and Operational Compliance with Turkey
The accounting system in Serbia is compliant with international accounting standards. Tax returns and financial reporting are carried out regularly.
Legal Compliance Processes
- Annual financial reports
- Corporate tax returns
- VAT reporting
- Payroll reporting
System adaptation is possible for investors accustomed to accounting processes in Turkey; however, local practices may require detailed monitoring.
Bank Account Opening and Turkey-Affiliated Companies
Turkey-based groups should pay attention to the following issues when opening a bank account in Serbia:
- Transparency of the ultimate beneficiary structure
- Clarity of the business plan
- International financial compliance requirements
Banks may conduct detailed reviews of international structures.
Serbia Tax Residency Assessment
If the actual management of a company established in Serbia is conducted from Turkey, this may require assessment in terms of tax residency. Therefore:
- Where management decisions are made
- The actual place of business of the manager
- Intra-group contracts
such elements should be planned during the establishment phase.
Checklist for Starting a Company in Serbia
- Determining the legal address
- Completing the appointment of managers
- Tax registration
- Activating the bank account
- Establishing the accounting system
- Payroll and social security records
- Planning financial flows with Turkey
Social Security and Labor Legislation
Employers in Serbia are required to register their employees in the social security system. Employer and employee contribution rates are calculated based on salary.
Company Formation Timeframe in Serbia and Planning Perspective with Turkey
Average Durations
- Documentation preparation: 2–5 business days
- Company registration: 3–5 business days
- Bank compliance process: 7–15 business days
- Operational activation: 3–5 business days
Average total process: 2–4 weeks
Common Timing Mistakes Made by Investors
- Thinking that company formation alone is sufficient for operations
- Underestimating banking processes
- Evaluating tax planning after formation
- Not considering local regulatory differences
As the OzbekCPA team, we provide support in company formation, tax compliance, accounting organization, and corporate governance processes for investments to be structured between Turkey and Serbia. Contact us.
