Open Subsidiary Versus Branch in Serbia

Subsidiaries and branches are the type of entities that can be chosen by international companies wanting to establish the business operations in Serbia. Each structure has specific features and characteristics, so it is quite easy to determine which entity suits most the business needs. Below we have gathered information and details about branches and subsidiaries, in order for foreign entrepreneurs to select the appropriate business form, helped by our Serbian lawyers in legal matters.

The characteristics of subsidiaries in Serbia

A subsidiary is a legal independent structure and an extension of a foreign company which is 100% flexible. Such a structure can have a different name from the parent company and more than that, it can also develop other activities. Below you can find a few important features about subsidiaries in Serbia that can be easily established in 2026:

• the minimum share capital of a subsidiary in Serbia is owned by the company from abroad.
• a local bank account needs to be opened for future financial operations of the subsidiary in Serbia – any currency is accepted.
• VAT registration is mandatory once turnover exceeds RSD 8 million in 12 months (voluntary below that).
• the employment contracts need to the signed before any activity of the business.
• the company needs to be registered with the Pension and Health Funds in Serbia.
• a company seal is no longer mandatory (since 2018); the company can start activities once registered. 

Here is an infographic about the differences between subsidiaries and branches in Serbia:

What are the characteristics of branches in Serbia?

Branches in Serbia are entities that are entirely dependent on the parent company from abroad, and they can be easily established if the conditions for incorporation are respected. Here is important information about branches in Serbia:

• a declaration stating the intention to open a branch in Serbia needs to be issued by the parent company;
• it is also needed to open a bank account and fund it as needed – a branch has no share capital of its own;
• the registration for tax purposes is obligatory, just like for any kind of company;
• abranch in Serbia will only develop the activities of the company from abroad.

Whether you are interested in opening a branch or a subsidiary in Serbia in 2026, it is required to solicit the legal assistance of our lawyers in Serbia. The experience of our team in this field will prove helpful, particularly if you do not have a clear picture about the local laws and regulations. You can also ask them to help you obtain the EORI number for your company in Serbia.

Pros and cons of branches and subsidiaries in Serbia

A subsidiary is a type of structure that can be expensive if we consider the amount of money that needs to be invested by the parent company. This is where a feasibility report is needed at the time the foreign entrepreneurs decide on a subsidiary. On the other hand, a subsidiary is preferred due to the possibility of entering new markets in any country.

More than that, subsidiaries of international companies can develop and implement other operations besides the ones already established. In the case of branches, these have a simple incorporation process; there is no need to register a minimum share capital, and the taxation is made on the local profits. However, branches are not separate legal entities because the liabilities are entirely connected to the parent company. In terms of accounting, a branch needs to respect and align with the foreign corporation, compared to subsidiarie,s for which the parent company deals with most of the accounting aspects.

Regardless of the type of structure you select for establishing your operations in Serbia, do not hesitate to get in touch with our team of lawyers in Serbia and solicit legal advice and assistance throughout the entire registration process. Support in business formation, license and permits, visa matters, mergers, and acquisitions can be obtained from our team.

Serbia’s economy in a few lines

We present you with some interesting data about the economic direction of Serbia that might help you when opening a branch or a subsidiary here:

• Serbia recorded an economic growth of 2.0% in 2025.
• More than USD 100 billion was the nominal GDP of Serbia in 2025.
• Serbia recorded an inflation rate of almost 3.8% in 2025.
• Serbia’s exports grew by almost 8% in 2025, while imports grew by about 7%.
• Overall, the retail trade sector of Serbia expanded by almost 4.2% in 2025.
• One of the strongest drivers of Serbia was the manufacturing sector in 2025. It supported the country’s economic growth in 2025 by almost 1.2%.
• Major investments are expected in Serbia in 2026, especially long-term projects in this country.
• According to specialized platforms, the Serbian economy is expected to grow by almost 3.5% in 2026.

FAQ about branches and subsidiaries in Serbia

Here are some frequently asked questions about branches and subsidiaries in Serbia:

Choosing our lawyers in Serbia

Opening a company in Serbia in 2026 is a straightforward process that requires fewer formalities, yet complete attention is required in this matter. A team of lawyers in Serbia can help investors start a business in a fast manner, regardless of the selected structure. Large companies can decide on branches or subsidiaries, depending on the business needs and more.

Knowing the legislation is important, so our dedicated advisors can provide assistance in business formation. Our customers rely on professionalism, proficiency, transparency, and complete support right from the beginning of our collaboration. Tax advice, debt collection, business incorporation, accounting, legal consulting, and support for immigration issues are among the legal services provided by our Serbian attorneys.

No matter if you choose to set up a branch or a subsidiary in Serbia in 2026, it is suggested to have the legal support of our law firm in Serbia, so feel free to contact us at any time.