A foreigner who forms a company in Serbia and wants to stay beyond the tourist visa period faces one central question: how to legalise their residence and work. The answer is not intuitive, because Serbian law does not formally recognise company formation as a standalone ground for residence. And yet, a Serbia residence permit by company formation is both possible and confirmed by daily practice.
In recent years, the growth of the IT sector, the simplification of company registration procedures, and a range of tax benefits have collectively driven growing numbers of foreigners to choose Serbia as their business base. According to the Global Startup Ecosystem Index 2022 by StartupBlink, Serbia ranked 52nd among the best countries for founding a startup, reflecting a real trend of foreign founders relocating here.
This guide explains the entire procedure: from company formation to obtaining the Unified Permit, with specific attention to the key distinction between the status of founder and managing director.
(Ministry of Interior of the Republic of Serbia)
Contents
- Legal basis: why company formation gives the right to residence
- The Unified Permit for temporary residence and work
- Company formation in Serbia: the first step
- Steps after company formation
- Submitting the unified permit application
- Obtaining the Unified Permit
- Founder vs. managing director: key differences
- Labour market test
- What changes if I register as an entrepreneur?
- Frequently asked questions
Legal Basis: Why Company Formation Gives the Right to Residence
Serbian law recognises temporary residence for foreigners only on the basis of employment. Company formation as such is not a listed legal ground. However, the status of founder and/or shareholder in a Serbian company does represent a valid basis for applying for temporary residence, because the founder's name appears in the SBRA database, proving a business connection to a domestic entity.
The practical consequence: a foreigner who forms a company may apply for the Unified Permit on the basis of self-employment, while a foreigner registered as managing director applies on the basis of employment. Both routes lead to the same result but go through different procedures before the Foreigners Administration and the National Bureau of Employment.
The Unified Permit for Temporary Residence and Work
Before 1 February 2024, a residence permit and a work permit were two separate procedures. A foreigner first had to obtain temporary residence, and only then apply for a work permit. The entire process was significantly longer and administratively burdensome.
With the introduction of the Unified Permit, these two procedures were merged into a single application submitted to the Ministry of Interior, on which the National Bureau of Employment (NBE) also decides jointly. The result is one permit covering both residence and work in Serbia.
Every foreigner who wishes to legally live and work in Serbia must hold a Unified Permit that includes:
- Temporary residence permit – issued on the basis of employment in both scenarios (founder and managing director).
- Work permit – the type differs depending on the nature of the business engagement in the company.
Company Formation in Serbia: The First Step
We have written in detail about the process of company formation in Serbia, so here we provide only the points most relevant to the residence permit.
A founding act is required, containing all mandatory information prescribed by law. If you are the sole founder, the act takes the form of a decision; if you are forming the company with another founder, it takes the form of an agreement. The founder's signature on the founding act must be electronic, meaning the founder must personally come to Serbia to collect their qualified electronic certificate from an authorised body. If that is not feasible before the process begins, the solution is to authorise an attorney in Serbia to sign the founding act under a Power of Attorney signed and properly legalised in the founder's country of residence, accompanied by a certified Serbian translation.
Attorneys at law are the only persons authorised to convert documentation into electronic form for registration purposes. For foreigners who cannot travel to Serbia in the near term, online company formation is the most practical route.
Steps After Company Formation
After the company is registered with the SBRA, the following steps must be completed before or alongside the Unified Permit application:
- opening of business bank accounts,
- depositing the company's share capital,
- obtaining the electronic signature,
- registration of the ultimate beneficial owner(s) of the company.
At the same time, documentation collection for the Unified Permit can begin in parallel to save time. The documentation list is extensive and assembly takes time.
Submitting the Unified Permit Application
The application for the Unified Permit is submitted to the Ministry of Interior through the Foreigners Administration. The foreigner's physical presence in Serbia is not required at the time of submission, which is a practical advantage for those still in the planning phase of relocation.
The documentation lists to be submitted to the Ministry of Interior and the NBE are long, and the exact list depends on the type of business engagement (founder or managing director). Because of the complexity of this stage, professional assistance from an immigration lawyer is almost always necessary.
Obtaining the Unified Permit
After the NBE approves the employment component, the competent authority issues the Unified Permit to the foreigner. From that point, the foreigner may officially and legally reside and work in Serbia.
The permit is time-limited and must be renewed. Renewal conditions, deadlines, and any changes to the engagement (for example, transitioning from founder to managing director or vice versa) require specific attention, as each change may affect the grounds and type of the permit.
Founder vs. Managing Director: Key Differences
The distinction between founder and managing director has direct consequences on the type of Unified Permit and the documentation required. A practical example illustrates this clearly.
Two founders sign the founding act of a Serbian company and each acquire 50% of the shares. Founder Mike wants to be the Managing Director. Founder Anne does not want to be registered as Managing Director. They also engage Nicole as an additional Managing Director who is not a founder.
| Person | Status | Basis for residence | Work permit type | Labour market test |
|---|---|---|---|---|
| Mike | Founder + Managing Director | Employment | Self-employment | No |
| Anne | Founder (no directorship) | Employment | Self-employment | No |
| Nicole | Managing Director (not a founder) | Employment | Employment | Yes |
The fact that Mike is both founder and Managing Director makes no difference to the legal ground for residence or the type of work permit. A founder receives the same basis and permit type regardless of whether they are also the Managing Director.
Important note on the managing director: the Managing Director does not have to be engaged under an employment contract. They may also be engaged through an Agreement on the rights and obligations of the Managing Director without establishing an employment relationship. From the perspective of foreigners' rights, the type of contract (employment or management agreement) is irrelevant to determining the basis of the Unified Permit.
Labour Market Test
The Labour Market Test is conducted by the NBE to check whether there are unemployed Serbian citizens registered in the NBE's records who meet the conditions for the open position. The purpose is to ensure that domestic workers have priority over foreigners seeking to work in Serbia.
If such candidates exist and meet the requirements, the NBE's approval for the foreigner for that particular position cannot be issued and the permit cannot be obtained. The test applies exclusively to managing directors who are not founders of the company. For founders applying for self-employment, this step does not exist.
What Changes if I Register as an Entrepreneur?
Not much. The same procedure that applies to a founder who did not establish employment in the company (self-employment) applies to entrepreneurs as well. Whether to register as an entrepreneur or form an LLC depends on business goals and strategy. The simplicity of the registration process is the entrepreneur route's main advantage, as the online registration of entrepreneurs in Serbia confirms in practice.
For details on the differences between the entrepreneur form and an LLC in the context of foreigners' rights and the residence permit, we recommend consulting a lawyer specialising in foreigners' rights in Serbia.
Frequently Asked Questions – Serbia Residence Permit by Company Formation
Does a foreigner have to be physically in Serbia to apply for the Unified Permit?
No. Physical presence in Serbia is not required when submitting the Unified Permit application. The application is filed with the Foreigners Administration of the Ministry of Interior. The same principle applies to company formation when a Power of Attorney is granted to an authorised attorney. For more information on the rights of foreigners in Serbia and the procedure, we recommend a consultation with a specialist.
How long does it take to obtain the Unified Permit in Serbia?
The statutory deadline for deciding on a Unified Permit application is 30 days from the date a complete application is properly submitted. In practice, duration varies depending on the workload of the Foreigners Administration and the NBE. Assembling the documentation, which is extensive, is typically the factor that extends the overall timeline. Preparation should start as early as possible, in parallel with company formation.
Does a company founder need to sign an employment contract to obtain a Serbia residence permit?
No. A founder may apply for the Unified Permit for self-employment without concluding an employment contract. It is sufficient to be visible in the SBRA database as a founder or shareholder of the company. This is one of the key advantages of founder status compared to the status of a managing director who is not a founder, since it bypasses the labour market test. Details on work permits for foreigners in Serbia are covered in a separate article.
What is the Labour Market Test and who needs to pass it?
The Labour Market Test is an assessment by the NBE to determine whether there are unemployed Serbian citizens in the NBE's records who meet the conditions for the position a foreigner is applying for. The test applies exclusively to managing directors who are not founders of the company. Founders applying for self-employment are not subject to the test. If the NBE finds a suitable domestic candidate for a managing director position, the permit for the foreigner for that position cannot be issued.
Can a foreigner work in Serbia as an entrepreneur instead of forming an LLC?
Yes. An entrepreneur and an LLC founder follow the same procedure for obtaining the Unified Permit on the basis of self-employment. The difference lies in the legal form, tax treatment, and business liability structure, not in the permit procedure itself. Online registration of entrepreneurs in Serbia is faster and simpler than forming an LLC, which is a practical advantage for foreigners who want to legalise their status quickly.
