How to Register a Business in the US from Serbia

Step 1: Benefits of starting your US business from Serbia

Starting a US business from Serbia presents a unique set of advantages that can provide entrepreneurs with a competitive edge in the global marketplace. One of the primary benefits is the ability to tap into the vast and diverse US market without the need to relocate. This can save significant costs associated with moving and setting up operations in the United States. Moreover, running a US-based business from Serbia allows entrepreneurs to leverage Serbia's lower operational costs, such as more affordable office space, utilities, and labor, while still enjoying the prestige and opportunities that come with having a US business presence.

Additionally, the digital age has remarkably bridged geographical gaps, making it easier than ever to manage a business remotely. Entrepreneurs in Serbia can take advantage of various online tools and platforms designed to facilitate cross-border business operations, from customer relationship management to e-commerce solutions. Furthermore, Serbia has a robust and growing tech sector, which can be a valuable resource for building and maintaining the technological infrastructure needed for a US business. With high-speed internet and a skilled workforce, Serbian entrepreneurs can ensure efficient and effective business operations, helping them to compete globally while benefiting from the country's favorable business environment.

Step 2: How to start your US business from Serbia

Starting a US business from Serbia involves several key steps to ensure compliance with both US and Serbian regulations. First, it is essential to choose the type of business entity that best suits your needs, such as a limited liability company (LLC) or a corporation. The selection will depend on factors like liability protection, tax considerations, and administrative requirements. Research the specific criteria and benefits of each type to make an informed decision.

Once the business structure is selected, the next step is to register your business with the relevant US authorities. This typically involves choosing a state in which to incorporate, as each state has its own set of regulations and processing times. States such as Delaware, Nevada, and Wyoming are popular choices due to their favorable business climates. After selecting the state, you will need to file the necessary formation documents, which often includes Articles of Incorporation for a corporation or Articles of Organization for an LLC. Additionally, you will need to obtain an Employer Identification Number (EIN) from the IRS, which is crucial for tax reporting and opening a business bank account.

Finally, if you plan to operate your business from Serbia, you must consider additional factors such as international trade regulations, compliance with both countries' tax laws, and potential visa requirements for doing business in the US. Consulting with legal and financial experts who specialize in international business can provide valuable guidance and help navigate the complexities of starting a US business while based in Serbia.

Step 3: Opening a Business Bank Account

A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?

Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.

But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.

Furthermore, a business bank account can boost your credibility and project professionalism.

It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.

Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.

doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.

Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.

You may also want to consider working with a bank that specializes in small business banking.

Step 4: Understanding Your Compliance Requirements in Serbia

Understanding Compliance Requirements for Running a US Business in Serbia

Launching and managing a US business in Serbia requires careful navigation of a variety of legal and regulatory frameworks. To ensure smooth operations and avoid potential legal pitfalls, it's essential to understand the key compliance requirements. Below, we outline several critical considerations for US businesses operating in Serbia.

1. Business Registration

Before conducting any business activities, you must register your business with the Serbian Business Registers Agency (SBRA). This process involves submitting the necessary documentation, including business plans, copies of identification, and proof of initial capital.

• Choose a business structure (e.g., LLC, joint stock company, branch office)
• Obtain a tax identification number (TIN)
• Register with the relevant local authority

2. Tax Compliance

Understanding Serbia's tax system is critical for compliance. The primary taxes include corporate income tax, value-added tax (VAT), and social security contributions.

1. Corporate Income Tax: A flat rate of 15% on profits
2. VAT: Standard rate of 20%, reduced to 10% for specific goods and services
3. Social Security Contributions: Contributions must be made for health insurance, pension, and disability insurance

3. Employment Laws

Adhering to local employment laws is vital for compliance and maintaining positive employee relations. Key considerations include:

• Employment Contracts: Must be in written form and comply with Serbian labor legislation
• Working Conditions: Adherence to regulations on working hours, breaks, and overtime
• Termination: Follow legal procedures for terminating employment contracts

4. Financial Reporting and Auditing

Serbia mandates that businesses maintain accurate financial records and submit regular financial reports. Depending on the size and type of your business, you may also be required to conduct annual audits.

• Maintain proper bookkeeping
• Submit annual financial statements
• Engage with certified auditors as required

5. Regulatory Compliance

Depending on your industry, additional regulatory compliance may be required. For instance, businesses in sectors such as finance, healthcare, and energy must adhere to specific regulations.

• Obtain necessary licenses and permits
• Comply with industry-specific regulations
• Regularly update compliance practices to reflect changes in regulations

By understanding and adhering to these compliance requirements, US businesses can successfully operate in Serbia, mitigating risks and fostering growth in this dynamic market.

doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.

Step 5: Understanding Your Tax Obligations in Serbia

Understanding Tax Obligations for Running a US Business in Serbia

Establishing a US business operation in Serbia can be an attractive opportunity due to its strategic location and skilled workforce. However, understanding the tax obligations is crucial for compliance and optimizing your business operations. Here are the key considerations:

1. Corporate Income Tax

Serbia imposes a corporate income tax rate of 15%. This tax applies to the worldwide income of Serbian residents and the Serbian-sourced income of non-residents. Ensuring proper accounting for all income is essential to meeting your tax obligations.

2. Value Added Tax (VAT)

VAT in Serbia is levied at a standard rate of 20% on most goods and services, with a reduced rate of 10% for specific items such as basic foodstuffs and pharmaceuticals. US businesses must register for VAT if their taxable turnover exceeds specified thresholds. Proper invoicing and VAT returns are necessary to stay compliant.

3. Withholding Tax

Serbia requires withholding tax on certain payments to non-residents, including dividends (20%), interest (20%), and royalties (20%). However, these rates can be reduced or eliminated under applicable double tax treaties. It's crucial to review treaty provisions between the US and Serbia to avoid unnecessary tax burdens.

4. Personal Income Tax

If a US business employs individuals in Serbia, it must adhere to Serbian personal income tax regulations. Employees' income is subject to progressive tax rates ranging from 10% to 20%, depending on their income level. Social security contributions are also mandatory, split between employer and employee.

5. Double Taxation Avoidance

The US and Serbia have a double tax treaty that helps prevent double taxation of income. This treaty allows US businesses to claim tax credits or exemptions for taxes paid in Serbia, easing the overall tax burden. Consulting with tax professionals to navigate these treaties is highly recommended.

6. Transfer Pricing

Transfer pricing rules in Serbia require that transactions between related parties be conducted at arm's length. This means prices should reflect those that would be agreed upon by independent entities. Proper documentation and compliance with these rules are essential to avoid penalties and adjustments.

7. Tax Incentives

Serbia offers various tax incentives to encourage foreign investment, including tax holidays, investment incentives, and incentives for employing new workers. Leveraging these incentives can reduce your overall tax liability and enhance your business's profitability.

Understanding and adhering to Serbia's tax obligations is essential for US businesses looking to establish operations in the country. Engaging local tax advisors and professionals can help ensure compliance and maximize benefits from available tax incentives.

It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.

doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.

Step 6: How doola Can Assist

doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.

Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed. 

doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.

doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.

The doola Application

It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.

Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.

Forming the Company

doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent. 

You can also opt for our Total Compliance plan.

Getting Your IRS Tax ID (EIN)

After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing. 

For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.

Filing Your 83(b) Tax Election

Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.

We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.

Partner Perks and Discounts

doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.

doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.

Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.

Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.

Turn your entrepreneurship dream into reality today!

We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country