Corporate Bank Account in Serbia for Foreign Companies: Key Steps and Nuances

These days, opening bank accounts abroad for non-residents has become quite a challenging task. European banks are increasingly refusing this service to foreign citizens from countries outside the EU. A non-resident who has registered a company in Serbia can approach a local bank to open a corporate account. Let’s explore the specifics of opening an account for a company in a Serbian bank.

What are the challenges of opening an account in a foreign bank for non-residents?

Financial institutions in European countries have set a range of requirements for applicants. Before approving or denying an account opening request, banks conduct thorough checks on the applicant. Typically, if a foreign citizen tries to navigate the process alone, without understanding the ins and outs of opening an account in a Serbian bank, they often face rejection.

To avoid such pitfalls, it’s wise to consult with specialists from our company. We offer support services when opening an account in a foreign bank. Our experts can help you grasp the nuances of the process, provide qualified advice, and guide you through every step of opening an account in a Serbian bank.

Why do foreign entrepreneurs choose Serbian banks?

The Serbian banking system, alongside financial institutions in other European countries, has consistently demonstrated a high level of stability. Local banks adhere strictly to international standards of financial security and risk management.

10 reasons to open a foreign company in Serbia

Businesspeople and investors from various countries establish companies in Serbia for several reasons:

1. Attractive tax conditions make Serbia a favorable jurisdiction for foreign companies. Non-residents pay corporate tax only on profits derived from Serbian sources at a rate of 15%. A capital gains tax of 20% applies only when selling real estate, assets, shares, or stakes in companies. However, this tax can be avoided if the proceeds from the sale are reinvested in new assets or if profits don’t exceed a certain threshold.
2. Low costs for starting and maintaining a company.
3. Government support for businesses. Various programs have been developed in the country to support companies in their early stages—grant provisions, staff training, and consultations. New entrepreneurs may also benefit from various exemptions on mandatory fees and taxes.
4. A developed IT infrastructure.
5. A stable economic situation.
6. Compliance with international KYC and AML standards.
7. Established trade relations with most EU countries, the Middle East, as well as the USA, Russia, and China.
8. The possibility of obtaining residency in Serbia and living in a European country.
9. Low cost of banking operations compared to banks in other European countries.
10. Access to international markets—opportunities to operate globally thanks to the country’s advantageous geographical location.

To support small and medium-sized businesses, financial organizations in Serbia have developed attractive lending schemes. Registering a company and actively conducting business in this jurisdiction allows its founder to obtain residency and live in a European country without visas or other restrictions.

Opening an account in a Serbian bank when registering a company

A corporate account in a local bank is one of the essential requirements when registering a foreign company in Serbia. Without it, a legal entity cannot conduct business activities: making financial transactions, paying tax obligations, or managing internal operations. For instance, you won’t be able to pay employee salaries, purchase raw materials, or make mandatory social contributions. The available currencies for financial transactions include euros, US dollars, Swiss francs, and Serbian dinars.

Please note that all Serbian banks impose a restriction: a company wishing to open a corporate account must not engage with legal entities registered in countries listed on the FATF blacklist and those compiled by other international organizations.

What should you consider when opening a bank account in Serbia?

Some financial institutions in Serbia won’t service companies involved in gambling and cryptocurrency. These lines of business are deemed high-risk.

If a foreign citizen owning a Serbian company does not obtain residency, they may encounter difficulties when opening an account. Local banks won’t have information about the non-resident, leading to more thorough and detailed checks of their identity.

In addition to the main set of documents, banks may require non-residents to provide various additional information (at the discretion of the financial institution’s security service). The account opening process will involve lengthy procedures for detailed checks of all information, which in turn will extend the decision-making period. For company owners without residency, the KYC procedure requires personal presence.

If the bank suspects, as a result of its checks, that the applicant is high-risk and may be linked to money laundering, terrorist financing, or other financial crimes, an additional detailed comprehensive check (the so-called ‘enhanced due diligence’) will be initiated.

Even if the bank approves the corporate account opening request, it will continuously monitor the company’s financial operations. This is part of the KYC procedure. If there are doubts about the legality of any transaction, the security service will initiate an audit to ensure that the legal entity’s activities comply with the laws of the republic.

Banks pay particular attention to the activities of companies associated with gambling and cryptocurrency. If you want to become a client of a Serbian bank remotely, you’ll need the services of a trusted representative. This specialist will represent your interests in the Serbian bank. A power of attorney will need to be arranged for this purpose.

Please contact Offshore Pro experts: we’re here to help you with any questions that arise. We operate on an all-inclusive basis: clients receive not just a company in Serbia and a bank account but a ready-made “turnkey” business solution. The cost of the service starts at 11,500 EUR. The overall time required to implement the project is from 7 days.

Documents required for opening a corporate bank account in Serbia

To open a corporate account in a Serbian bank, the company owner must provide the following notarized documents translated into Serbian:

• The articles of association and company bylaws.
• Documents confirming the registration of the legal entity in Serbia, issued by the Serbian Business Registry Agency (SBRA).
• A document confirming the physical address of the company, such as a lease agreement.
• A document confirming the company’s registration with the tax authority of the Ministry of Finance.
• An extract from the commercial register (should not be issued more than 30-90 days before the application).
• Information about the key figures of the company (director’s and founder’s passports).
• A power of attorney for authorized persons representing the company’s interests.
• Information describing the company’s business activities and a business plan.
• An application from the company owner or authorized person to open the account.

Additional documents may also be required. For instance, proof of the legal origin of funds or information about the beneficial owners of the legal entity might be necessary.

Document requirements can vary depending on the bank’s corporate policy. Before submitting documents, applicants should ensure they meet the financial institution’s requirements, that all information is current, and that there are no errors or inaccuracies.

If the bank approves the application, the company owner will receive detailed instructions on how to conduct transactions abroad in permissible currencies. After the account is opened, the legal entity owner can apply for a Visa/DINA plastic card.

Submitting an application to the bank

The bank may require the applicant’s personal presence when submitting the application. Generally, a personal visit is needed to:

• Sign the service agreement with the bank and other accompanying documentation.
• Undergo identification. Both the company director and the individuals authorized to manage the account must be present. Their identities will be verified, as well as the legitimacy of their actions on behalf of the legal entity.
• Discuss cooperation terms: transaction fees, account usage rules, and other important details.
• Provide additional information. The bank may ask the applicant for extra details or documents. It’s best to do this in person to avoid delays in the application review process.

Each Serbian bank has its own requirements regarding the applicant’s presence. These depend on the financial institution’s corporate policy and can be either more or less stringent.

In conclusion

The Serbian government is keen to attract foreign investment, which is why local banks offer the possibility of opening an account remotely through authorized representatives. Our company’s specialists are ready to assist you with the remote opening of a corporate account, preparing the necessary documents, and registering a company in this jurisdiction.

Foreign citizens holding Serbian residency find it much easier to open a corporate account for their company. Registering a business in Serbia is one way to obtain residency in this country. Want to learn more? Reach out to the experts at Offshore Pro.