Corporate law
Virtual company seat in Serbia: How to set up a business in Serbia without renting a physical space – an office.
In this article you will find out how to lawfully set up a company in Serbia while avoiding unnecessary costs such as renting physical premises, as well as without the need to travel to Serbia immediately when establishing the company.
Serbia is a country which, due to low operating costs and tax liabilities, as well as a qualified workforce and a simple method of online company registration, has in recent years become a very attractive destination for starting a business on European soil. Particular interest in business in Serbia has been shown by digital nomads, IT experts, consultants, as well as owners of small and medium-sized businesses who conduct their work online. A question which is very often asked when considering opening a business in Serbia is – do I have to have a physical space – an office, in order to register a company?
The answer is NE. Thanks to the availability of the virtual office option, foreign founders can completely legally register a company, obtain an official business address and a mailbox, all in accordance with By Law on Business Companies and the Law on the Procedure of Registration with the Business Registers Agency, without needing to have a physically rented space to conduct business.
Are you planning to start a company in Serbia via a virtual office?
Setting up a company with the help of a virtual office requires careful management of the legal procedure, from choosing the service provider to submitting the application. Agency for Business Registers (APR). If you want the whole process to be simple, fast and error-free, our commercial lawyers are here to help you.
What is actually a virtual seat?
A virtual registered office is actually a service provided by business entities that allows you, as the founder of a company, to register your company's registered office at their address. This means that instead of renting physical space for the purpose of company registration, you register the company at the address of the virtual registered office provider. An agreement is concluded with the virtual registered office provider to regulate mutual rights and obligations.
A typical virtual office package usually includes:
- The address where you are permitted to register your company with the Business Registers Agency (APR);
- A postal box where you can receive your business mail;
- In certain packages, there is also the possibility of occasional use of the meeting room if agreed between the contracting parties;
We particularly note that this is not some circumvention of legal regulations, but a real and legal service used by many companies with both foreign and domestic founders who simply have no need for a physical office.
Why is this the ideal solution for foreigners?
If you are a foreigner intending to set up a company in Serbia, a virtual registered office makes this task significantly easier:
Your presence in Serbia is not necessary to start the procedure
Setting up a company can be done entirely through a commercial law lawyer – and without your presence. You only need to sign a special power of attorney for opening the company, which can be drawn up by your lawyer and, if necessary, notarised, translated and apostilled, depending on the country you come from. Based on the power of attorney, the lawyer signs the memorandum of association and submits the application to the Business Registers Agency (APR) using an electronic certificate. A virtual office serves as the basis for registering your registered office with the APR during this process. You can read more about company setup here.
Lower costs compared to office rental
Purchasing a physical space represents a much greater expense than a virtual office, for the reason that you have to pay rent for the space itself, potential deposits, utility costs and other expenses that a physical space brings with it. A virtual office is paid as a fixed service fee, which is multiple times lower, and is paid on a monthly or annual basis.
A professional image from the moment of registration
Business reputation is certainly a non-negligible aspect of any enterprise. Registering a virtual office is often a good choice from this perspective as well, because it provides you with the opportunity for your company to be registered at an attractive location in some of the larger cities, such as the capital city of Belgrade, or Novi Sad.
Flexibility
An increasing number of activities that can be performed remotely, such as IT services, consultancy activities, and other similar pursuits, make it possible to carry out work without the need for a physical office. Therefore, you and your team meet the requirements stipulated by the Companies Act for registering a company's registered office, yet the work can be done remotely – from home or from any part of the world.
What does the process look like, step by step
- Selecting a virtual seat, i.e., a virtual seat service provider, and signing a contract with them;
- Choosing a legal form for business registration – LLC or sole proprietorship. You can read more about this topic here;
- Signing of the necessary documentation and submission of the registration application to the Business Registers Agency;
- Opening a business bank account and starting operations.
Virtual office vs office rental
| Criterion | Virtual seat | Purchase of an office |
|---|---|---|
| Monthly cost | Low, fixed | High, variable (rent + utilities) |
| Physical attendance is required | No, except as necessary | Yes, regularly |
| Start-up time | A few days | Weeks (negotiations, contract, arrangement) |
| Suitable for remote/IT businesses | Yes | Not necessarily |
| Receipt and processing of mail | Included in the package | Independent organisation |
Why open a business in Serbia now?
Serbia is a country with a favourable geographical position, close to other European countries, which are EU member states. Favourable tax treatment and the ease of starting one's own business represent particular advantages that Serbia offers. It should be borne in mind that starting a new business is a step that often presents uncertainty. If the business does not go the desired way, a virtual office represents one less worry – there is no complicated process of terminating a lease agreement and moving out of a physical space.
For all those planning to direct their business towards Serbia and that region, or simply trying to cut costs to the greatest extent possible, a virtual office is the logical choice.
Conclusion
Starting a business in Serbia is nowadays much easier for foreigners – there are no complicated office rental procedures, need for relocation, or excessive costs of investing in premises. A virtual office is the solution if you want to choose a business address in a legal and simple way and embark on business ventures in Serbia.
If you are considering this step, a virtual office will save you money, time and energy, whilst opening up the possibility of starting a business in this region.
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