Opening a sole trader business in Serbia (preduzetnik): flat-rate tax, APR registration, timelines and cost
The preduzetnik is the Serbian equivalent of a sole trader. How it is registered with the APR, who qualifies for the flat-rate tax, what it costs and what has to be done every month after registration.
Who a preduzetnik is and how they differ from a DOO
A sole trader (preduzetnik) is a natural person registered with the Business Registers Agency (APR) to carry out business activity. They receive a PIB (tax number) and a matični broj (registration number), open a business bank account and issue invoices, but are liable for their obligations with all of their personal property. That is the main difference from a DOO, where the founder's liability is limited to their contribution to the capital.
A foreigner can register as a preduzetnik without a residence permit and without a Serbian partner. The form suits freelancers, IT contractors and consultants with a single owner. If you are planning employees, investors or the sale of a stake, it is more sensible to set up a DOO straight away.
Registration with the APR on a single application; the decision takes up to 5 working days
There is no minimum capital and no founding act
The owner is liable for debts with personal property
A stake cannot be sold — the business is tied to the person
At registration the preduzetnik chooses how the tax will be calculated. The regime can be changed later, but the application to switch has to be filed within set deadlines, so the decision is best taken before filing with the APR.
Flat-rate tax (paušalno oporezivanje)
Tax and contributions are charged as a fixed amount set by a decision of the tax office, regardless of actual income. No accounting books have to be kept — only the book of turnover (KPO). It is the most popular regime among IT specialists and freelancers.
Actual income with bookkeeping (samooporezivanje)
Income minus expenses; the tax rate on self-employment income is 10%, plus pension and health insurance contributions. An accountant and double-entry bookkeeping are required. It suits you when turnover is above the flat-rate limit or expenses are high.
Actual income with a personal salary (lična zarada)
A variant of the previous regime: the entrepreneur assigns themselves a salary, on which they pay tax and contributions as an employee, while the remaining profit is taxed at 10%. It is often more favourable at higher income.
Flat-rate tax: the 6,000,000 RSD limit, calculation and restrictions
The paušal is available to a sole trader whose annual turnover does not exceed 6,000,000 RSD (about €51,000). If the limit is exceeded, the tax office moves them to bookkeeping from the following period. A flat-rate taxpayer cannot be registered for VAT: VAT registration automatically removes the right to the paušal.
The amount of the monthly payment is set by the Tax Administration (Poreska uprava) in a decision (rešenje). The base is the average salary in the municipality of registration multiplied by the coefficient of the type of activity; from it, income tax (10%) and pension and health insurance contributions are calculated. For a developer in Belgrade the total usually falls in the range of 35,000–55,000 RSD a month; in Novi Sad and smaller towns it is lower. The exact figure is shown by the tax office calculator on the ePorezi portal.
The paušal is not available for wholesale and retail trade, hotels and restaurants, financial intermediation, accounting services, advertising and marketing. The activity code (šifra delatnosti) is worth choosing together with an accountant — it determines both the right to the paušal and the size of the payment.
The independence test
If a preduzetnik works predominantly for a single client, the tax office applies the independence test with nine criteria: the client sets the working hours, provides the equipment, gives more than 70% of the income and so on. If five or more criteria are met, the income is reclassified as “other” income and taxed at 20% plus contributions. For IT contractors with a single client this is the main risk of the regime.
Registering a sole trader with the APR: step-by-step procedure
Registration goes through the single registration application (JRPPS) at the Business Registers Agency — on paper at any APR branch or electronically with a qualified electronic signature. For a foreigner without a Serbian ID it is usually simpler to file through a representative under a power of attorney.
1Obtain a foreigner's registration number (evidencijski broj za stranca, EBS) from the Ministry of Interior (MUP) — it is needed for the APR register and for the tax office.
2Choose the name, the main activity code and the address of registration (sedište) — a real address in Serbia at which the tax office can find you.
3Decide on the tax regime: the application for the paušal is ticked directly in the JRPPS form or filed with the tax office within 5 days of registration.
4Pay the APR fee and attach the receipt and a certified translation of the passport.
5File the application. The APR must issue a decision within 5 working days; in practice it takes 1–3 days.
6Receive the APR decision: it already states the matični broj and the PIB — they are assigned automatically, and at the same time you are registered with the pension and health insurance funds.
7Open a business bank account using the APR decision and your passport; the flat-rate tax decision arrives in the electronic mailbox on ePorezi within 48 hours of registration.
The APR does not require a lease agreement at registration, but the tax office checks the address when issuing decisions and when registering for VAT: it must be real, with access to the mail.
A foreign passport and its certified translation into Serbian (by a court interpreter)
A completed JRPPS application with the chosen tax regime
The receipt for the APR fee
A power of attorney for a representative, if you are not filing in person
A permit or licence — only for regulated types of activity (medicine, transport, security and the like)
A foreigner's registration number (EBS) from the MUP
Timelines and official costs
State costs for registration are low; the main item is the monthly tax and contributions after the start. Reference figures for 2026 in dinars:
Official and related costs
APR fee for registering a sole trader
electronic filing is cheaper
1,500–1,600 RSD
Certified translation of the passport
per page
1,500–3,000 RSD
Qualified electronic certificate
free at the MUP with a Serbian ID, paid at a commercial certification authority
by decision of the tax office, depends on the activity code and the municipality
35,000–55,000 RSD
Indicative; the APR tariffs and the flat-rate decision are worth checking before filing.
Duties after registration
A flat-rate taxpayer receives payment from abroad through an account with a Serbian bank; on the first transfers the bank asks for a contract or an invoice. Expenses do not reduce the tax, while the contributions give full health insurance in Serbia.
Pay the flat-rate tax and contributions monthly, by the 15th of the following month, according to the tax office decision
Keep the book of turnover (KPO) — record every invoice issued
Issue invoices with the PIB, matični broj, address and account number; for transactions with the public sector — through the electronic invoicing system (SEF)
Watch the limit of 6,000,000 RSD and the VAT threshold of 8,000,000 RSD over 12 months
Notify the APR of a change of address or activity, or of a suspension
The preduzetnik and the residence permit
Registration as a sole trader is a lawful ground for temporary residence (privremeni boravak) on the basis of self-employment. The MUP checks that the business is active: taxes and contributions paid, a real address, receipts on the account. The permit is issued for a period of up to 3 years; after 3 years of continuous residence you can apply for permanent residence.
You will also need a residential lease agreement, health insurance and proof of funds. The procedure is set out on the page about residence through business; there is a separate service to support the application.
Questions and answers about sole traders in Serbia
Can a foreigner open a sole trader business in Serbia without a residence permit?
Yes. A foreign passport, a foreigner's registration number from the MUP and an address in Serbia are enough. A residence permit is not required — on the contrary, the registered business becomes the ground for obtaining one.
How much does it cost to open a sole trader business in Serbia?
The APR fee is about 1,500–1,600 RSD. Together with the passport translation and the electronic certificate, costs rarely exceed 10,000 RSD. The main item is the monthly flat-rate payment or income tax after the start.
What is the flat-rate tax and who is it suitable for?
It is a fixed amount of tax and contributions set by a decision of the tax office and independent of actual income. It suits entrepreneurs with turnover of up to 6,000,000 RSD a year and a type of activity that is not excluded: developers, designers, consultants.
How long does registering a sole trader take?
By law the APR issues a decision within 5 working days; usually a sole trader is registered in 1–3 working days. Opening a bank account takes a few more days.
Does a preduzetnik need an accountant?
On the paušal it is not obligatory: no books are kept and payments follow the tax office decision. With bookkeeping an accountant is needed from the first month.
Can payments from foreign clients be received on a sole trader account?
Yes, foreign-currency receipts are credited to the entrepreneur's account with a Serbian bank. The bank may ask for a contract or an invoice as the grounds for the payment.
When is it better to set up a DOO instead of a sole trader?
If turnover will exceed 6,000,000 RSD, if partners or employees appear, if limited liability is needed, or if you work with one large client and risk failing the independence test. A DOO is registered in the same 5 working days with capital from 100 RSD.
How WarmShell helps
We provide what no sole trader can be registered or served by the tax office without: a real address in Belgrade or Novi Sad with mail handling — a virtual office from €35 a month or a physical office with a workplace from €80 a month. Monthly bookkeeping can be added separately for €70 a month. Write to us with questions about support with registration — we reply in Russian.