Indian citizens sometimes open a firm in Serbia in order to get a temporary residence permit, but it is not a good idea
In our practice, the most questions about company formation in Serbia comes from Indian citizens. For more than 10 years since we started providing company formation for non-residents, we did not see a single company with Indian citizen as owner who opened a company, got residence permit and work permit, and continued working with the company. In most cases, such companies simply be abandoned, financial statements never be delivered. You probably want to avoid it.
We admit we are not provoding services regarding temporary residence permit application.
In past we always suggested through the email that it is pretty hard that temporary residence permit will be approved, but sometimes Indian citizens insisted we to open them a firm or to use our virtual office, and then they tried to get temporary residence permit in Serbia with help of the firm or advocate who is providing such services. As we wrote above, we did not see a single successful case in 10 years, so if you want to try, our suggestion is to find someone from your country who had success in it.
If you still want to try, our warm advice is to register entrepreneur, because you can put it on hold if your plan later change because on example you do not get temporary residence permit. If you open LLC and later want to close it, it lasts 4 months minimum and costs a lot more than putting entrepreneur on hold.
Procedure of registration of the company in Serbia with Indian ownership
When speaking about opening a firm in Serbia for Indian citizens, the procedure of registration is the same as for citizens of every other country.
Taxation for company (LLC) in Serbia with Indian ownership
Social security payments
When speaking about taxation, it is important to know that Serbia and India do not have social security agreement signed, which means that if owner/director of Serbian firm is Indian citizen, then company in Serbia is obligated to pay social contributions in Serbia for its owner/director, which means cost for it will be at least around 80 EUR/month. It is in case owner/director is not employed in the company and it is lowest cost option in cases when Indian citizen is owner/director of the LLC in Serbia.
India and Serbia have signed agreement about avoidance of double taxation.
In that agreement, dividend tax rate is defined on next way:
1) 5 percent of the gross amount of dividends if the beneficial owner is a company (excluding a partnership) that directly has at least 25 percent of the capital of the company that pays dividends;
2) 15 percent of the gross amount of dividends in all other cases.
Bank account opening for Serbian company when Indian individual or legal entity is owner of the company
Bank account opening in general is a little bit harder for companies with foreign ownership than for companies with domestic ownership, but in practice there were no problems to open bank account when owner is from India.
Our firm helps clients in bank account opening procedures and has a lot of expirience with bank account opening for companies with Indian ownership in Serbia.