If you are interested in expanding or moving your business to Serbia, the good news is that there is a multitude of options at the disposal of foreign nationals who wish to do business in Serbia, with each of them providing a unique set of features suitable for the variety of business plans.
In 2025, opening a branch office in Serbia has become one of the most practical ways for foreign companies to enter the market while keeping their main corporate structure abroad. Depending on your goals, you might:
establish a branch office in Serbia of your existing foreign company
set up a representative office
incorporate a separate Serbian company (e.g. LLC)
operate only via a non-resident bank account, or
combine a branch office in Serbia with other structures (subsidiary, holding, local partners).
Hence, foreign nationals can choose between:
establishing a company (subsidiary)
registering as an entrepreneur
opening a branch office in Serbia
establishing a representative office
operating via a non-resident bank account in Serbia.
We have already talked about how to establish a company or register as an entrepreneur in Serbia in our blog posts Company Formation in Serbia and Online Registration of Entrepreneurs.
In this blog post, we wanted to focus on other options for establishing your business presence in Serbia, which you might be willing to consider. That’s why we’ve decided to shed more light on the concepts of branch establishment, representative office establishment and opening a non-resident bank account in Serbia.
Branch Office in Serbia vs. Subsidiary vs. Representative Office
Before you decide which structure fits your expansion strategy, it helps to understand the basic differences:
A branch office in Serbia is not a separate legal entity – it is an extension of the foreign company, fully backed (and fully guaranteed) by the parent.
A subsidiary (e.g. Serbian LLC) is a separate Serbian company, with its own capital, governance bodies and liability shield.
A representative office is mostly for marketing, research and preparatory activities – it cannot independently trade goods or services like a branch office in Serbia can.
In practice, many companies first test the market through a representative office or a non-resident bank account and then move to opening a branch office in Serbia once they see sufficient traction and long-term plans on the Serbian market.
Branch Office in Serbia: What is a Branch of a Foreign Company?
A branch of a foreign company is a separate organizational unit of a foreign company in Serbia, through which the foreign company conducts its business, in accordance with the law.
Speaking of running a business, the prevailing business activity of a branch can differ from the parent company’s prevailing business activity.
The same goes for branch representatives, as they do not have to be the same person as the one representing the parent company.
The bottom line is, you may choose freely whether you wish to register a different or same prevailing business activity compared to the prevailing business activity of the parent company.[1] In addition, you may choose whom to appoint as the branch representative. However, under the Companies Act, the person registered as a branch representative is presumed to represent the parent company, as well.
Unlike a parent company itself, a branch office in Serbia is not a legal entity, but rather the parent company’s organizational unit which acts in the name and on behalf of the parent company. Moreover, the parent company is the one in charge of running the management of the branch.
Finally, the parent company’s liability is unlimited in terms of obligations of its branch towards third parties, resulting from the branch’s business. This is in line with the fact that the branch cannot have its own property, but rather uses the property of the parent company.
From a practical standpoint, choosing a branch office in Serbia is often best when:
you want to maintain a single global balance sheet,
you want clients to contract directly with your foreign company, and
you are comfortable with the parent company bearing full liability for operations in Serbia.
How to Establish a Branch Office in Serbia?
The branch is established via a decision on the establishment of the branch, enacted by the parent company’s assembly.
Following that, the application for registration needs to be filed to the Serbian Business Registers Agency, which then issues its decision on registration and registers the branch in the Business Register.
The parent company is not limited in terms of the number of branches it plans to register in Serbia, i.e., it can establish one or several branches.
The Business Registers Agency is also competent to register the changes of the registered information relating to the branch, as well as to register its termination.
In practice, the procedure of establishing a branch office in Serbia usually includes:
collecting excerpts from the foreign company register (with apostille/legalization, if needed)
preparing a decision on establishing a branch office in Serbia
appointing the Serbian branch representative
preparing translations by a sworn court translator
filing the registration application with APR (the Business Registers Agency)
opening a bank account for the branch office in Serbia once APR issues its decision.
Timelines can vary depending on jurisdiction of the parent company and documentation, but with proper preparation, setting up a branch office in Serbia is generally faster than full company formation.
How to Recognize a Branch Office in Serbia
Just as the distinction between the companies is made by looking at their business names, in order to recognize a branch, you will need to pay (close) attention to the business name. Namely, the business name of the branch is the same as the parent company’s business name, along with the indication that it is a branch and an indication of the address of the branch. The branch can also have its own name, in addition to the parent company’s business name.
Furthermore, each branch distinguishes itself from other branches by its own unique identification number and tax identification number.
From a client’s perspective, an invoice issued by a branch office in Serbia will show:
the full legal name of the parent company,
the branch designation and address in Serbia, and
the unique Serbian registration and tax numbers for that particular branch office in Serbia.
Bank Accounts of a Branch Office in Serbia
According to the Law on Foreign Exchange Operations, the foreign companies’ branches are residents and they operate via their own resident bank accounts in Serbia.
For a branch to transfer the funds from its resident bank account to a foreign country, it is required to first submit the certificate issued by a competent authority stating that it has no unsettled tax obligations per that transaction.
On the other hand, in order to receive funds, a branch can get bank loans and loans from its parent company, with the repayment period longer than one year. Those funds are used by depositing the amount of those loans into the branch’s bank account.
When planning a branch office in Serbia, it is therefore important to align:
internal group financing (intercompany loans)
profit repatriation policies, and
local banking requirements and KYC procedures.
Bookkeeping Obligations for a Branch Office in Serbia
Given that the Law on Accounting is applicable to branches of foreign companies, these entities are required to do bookkeeping in accordance with the provisions of the Law. Furthermore, branches of foreign companies must file annual financial reports to the Business Registers Agency.
In addition, as the Law on Foreign Exchange Operations treats branches of foreign companies as residents, they are required to file reports to the National Bank of Serbia under the Decision on obligatory reporting in relation to the business’ conduct with foreign countries.
In other words, even though a branch office in Serbia is not a separate legal entity, from an accounting and reporting perspective it is treated as a full-fledged local business unit, with its own:
chart of accounts,
financial statements, and
reporting duties toward tax and regulatory authorities.
Foreign Trade Performed Through a Branch Office in Serbia
A branch can carry out the activities of import and export of goods and services, without limitations, in accordance with the Law on Foreign Trade Operations and the Law on Foreign Exchange Operations.
For many international companies, this is a key reason to opt for a branch office in Serbia instead of a representative office – only the branch can fully participate in trade, sign commercial contracts and invoice customers in Serbia under the parent’s brand.
Value Added Tax (VAT) and a Branch Office in Serbia
Finally, due to the applicability of the norms of the Value Added Tax (VAT) Law to branches of foreign companies, branches are obliged to file the application for registration as VAT taxpayers to the competent tax authority, in case their turnover exceeded RSD 8,000000 (dinars) in the previous 12 months.
Depending on your business model, it might be advisable to register a branch office in Serbia for VAT even earlier (voluntarily), for example if:
you expect larger B2B turnover, or
your clients require a VAT-registered counterparty.
What is a Representative Office?
A representative office is the parent company’s separate organizational unit that can perform preliminary and preparatory actions with the aim of concluding legal transactions for the parent company. The representative office is not a legal entity and is authorized to conclude legal transactions only in the course of its current business operations.
Compared to a branch office in Serbia, a representative office is limited: it does not perform full commercial activity and usually serves for marketing, liaison and market research. For companies that are not yet ready for full-scale operations, this can be a first step, with the option to later convert sthe trategy into opening a branch office in Serbia or a subsidiary.
How to Establish a Representative Office?
Just like in the case of a branch, the parent company is liable for obligations towards third parties which occur in the course of its representative office’s business.
A representative office is established by the decision of a parent company’s competent authority.
The process of registration of the branch office and representative office of the parent companies are quite alike. Namely, following the enactment of this decision, the representative office needs to be registered in the Business Registers Agency. This is done by filing an application for registration to the Agency, after which the Agency issues a Decision on registration of the representative office and registers it in the Business Register.
Foreign Trade
Since the Company Law limits the activities of a representative office to those of a preliminary and preparatory character for the parent company, a representative office is thus restricted in the process of trade of goods and services.
If your primary goal is active trading, invoicing clients and hiring a local team, then a branch office in Serbia or a subsidiary will typically be more appropriate than a representative office.
Accounting and Reporting Obligations
The representative offices of the parent company that do not perform business activities on the territory of Serbia are not legally obliged to submit annual financial reports to the Business Registers Agency.
In addition, in terms of the Law on Foreign Exchange Operations, representative offices are considered as non-residents. Therefore, they are not obliged to file a DI-1 report to the National Bank of Serbia, since the Decision on obligation of reporting in business with foreign countries does not apply to non-residents.
Non-Resident Bank Account of a Parent Company
Representative offices cannot open their own bank accounts in Serbia. Instead, the non-resident bank account of a parent company in Serbia is used for the operations of a representative office.
This is another practical difference compared to a branch office in Serbia, which has its own resident bank accounts and therefore much wider operational flexibility.
Non-Resident Bank Accounts of Foreign Nationals
Finally, if one merely wishes to perform their business activities without the need to establish one of the previously mentioned legal forms, operating via their personal non-resident bank account(s) is the way to go.
The Law on Foreign Exchange Operations recognizes the following categories of the natural persons as Serbian residents:
a) A natural person with residence in Serbia
b) A foreign natural person who acquired a temporary residence permit in Serbia, and possibly a work permit, too, who has lived in Serbia for more than a year.
On the other hand, natural persons who do not fall under categories a) and b) are treated as non-residents in terms of the Law on Foreign Exchange Operations.
Non-Resident Bank Account Opening
Non-resident natural persons can open their non-resident bank account in Serbia, both personal dinar and foreign currency bank accounts.
In order to do so, they need to submit a request for the opening of a bank account in the bank of their choice, along with completing the accompanying bank forms. Moreover, a framework agreement on payment services is concluded between the bank and the account holder (a natural person), which regulates the conditions for the opening, maintaining and closing of the bank account.
Many investors use this structure in combination with a branch office in Serbia: the personal non-resident account covers private needs, while the branch’s resident accounts are used strictly for business operations.
Transactions to a Foreign Country and Vice Versa
Primarily, non-residents may transfer money from their bank accounts in a foreign country to their personal bank accounts in Serbia.
Secondly, in order to transfer the money from a non-resident bank account to a foreign country, non-residents are firstly obliged to submit the certificate issued by a competent tax authority certifying that they have fulfilled their tax obligations arising from that transfer.
Temporary Residence, or the Unified Permit
Moreover, non-residents who wish to apply for a temporary residence, or the unified permit in Serbia, are required to submit proof of means of support during the planned stay, along with the application. This can be a confirmation of income, an employment contract, a bank account statement, etc. The purpose of this requirement is to show the Serbian authorities that the foreigner, who is planning to live and work in Serbia, is financially independent to take care of himself/herself for the period for which they are applying for a temporary residence, or for the unified permit.
If you plan to manage a branch office in Serbia personally, it is very common to base your temporary residence or unified permit on your role in the branch or on your ownership in the parent or local company.
Real Estate Purchase
Speaking of a temporary residence permit, being the owner of real estate in Serbia is one of the legal grounds determined by the Law on Foreigners, based on which foreign nationals can apply for a temporary residence permit. Per that fact, non-residents may freely perform payments in order to acquire real estate in Serbia, in accordance with the Law on Foundations of Property Law Relations.
Obtaining and Transferring Company Shares
In addition to real estate ownership, being a shareholder in a company registered in Serbia represents one of the ways to obtain a temporary residence permit in Serbia. Besides the new company formation in Serbia, foreign nationals can also acquire the shares of an already existing company. Thus, the Foreign exchange law provides that non-residents may perform and receive payments for the purpose of obtainment or sale of Serbian company’s shares, which will not be considered as a direct investment.
For groups that already own Serbian companies, opening a branch office in Serbia can be part of a broader structuring – for example, one entity acts as a local operating company, while the branch performs regional or specialized functions under the foreign parent.
