Guide
An overview of the three Serbian legal forms (flat-rate sole trader, sole trader on business books, and an LLC) compared by liability, taxation, bookkeeping and capital, so you can pick the form that pays off best for you.
In Serbia many new owners pick a flat-rate (paušal) sole trader when costs are low and the activity is permitted, a sole trader on business books when real costs are high, and a d.o.o. (the Serbian LLC) when protecting personal assets, taking on partners or planning growth matters more than simplicity. It is your first real business decision and it is worth taking calmly, because the form sets how much tax you pay, how many books you keep and, most importantly, whether you risk personal assets if the business does not take off. The good news is that you are not locked in: many people start as flat-rate sole traders and later move to books or a d.o.o. as they grow. If you already know which form you want, we can form a company in Serbia for you and set the bookkeeping up from day one. Below we compare the three forms the way you actually experience them, through cost, risk and how you get your own money out, and our monthly bookkeeping prices show what each form costs to run.
Best for Freelancers and small, low-cost activities with turnover up to 6 million dinars a year.
Best for Entrepreneurs outgrowing the flat-rate or with significant deductible costs.
Best for Growing companies, with partners, investment or higher risk.
Capital divided into shares, suited to large companies and raising capital from investors. Limited shareholder liability, a statutory minimum capital of 3,000,000 dinars, the most complex administration and a mandatory audit.
Two or more partners doing business together, where all partners are liable without limit and jointly with their entire personal assets. Rarely used in practice.
At least one general partner liable with their entire assets and at least one limited partner liable only up to their contribution. Rarely used.
| What you compare | Flat-rate sole trader | Sole trader (books) | LLC (d.o.o.) |
|---|---|---|---|
| Setup fee (APR) | Around 2,500 dinars | Around 2,500 dinars | 8,000 dinars from 2026, plus notary certification |
| Turnover limit and VAT | Flat-rate up to 6,000,000 dinars a year, VAT at 8,000,000 over 12 months | No flat-rate limit, VAT at 8,000,000 over 12 months | No flat-rate limit, VAT at 8,000,000 over 12 months |
| How you take money out | Withdraw from the account freely, as personal income | Withdraw freely, with the option of a personal salary | Through salary, documented costs or a taxed dividend |
If your activity is allowed as flat-rate, your costs are low, and turnover stays under 6 million dinars a year, a flat-rate (paušal) sole trader is usually the cheapest and simplest. Switch to keeping books when your real costs are high, and to a d.o.o. when you need to protect personal assets, have partners, or plan bigger growth.
The flat-rate limit is 6,000,000 dinars of turnover in a calendar year. If you cross it, you lose flat-rate status and must move to keeping business books (or open a d.o.o.). A separate 8,000,000 dinar threshold triggers mandatory VAT registration. A raise to 8 million was proposed in June 2026 but has not been adopted, so 6 million still applies.
As a sole trader (flat-rate or keeping books) you are liable for business debts with all your personal assets, so in principle they can be reached. With a d.o.o. liability is limited to the company's assets, so the owner's personal property is in principle protected. This is the main reason people pick a d.o.o. for higher-risk work.
Flat-rate taxation is not allowed for, among others, wholesale and retail trade, hospitality/catering, financial intermediation and insurance, advertising and market research, and accounting services. Most IT and other service activities can be flat-rate. We check your activity code before you register.
Opening a sole trader (radnja) is cheaper and faster: the APR registration fee is around 2,500 dinars and it can often be done the same or next day. A d.o.o. costs more (APR fee 8,000 dinars from 2026, plus notary certification) and has a few more steps, but gives you limited liability.
Yes, the choice you make at the start is not for life. Many people begin as flat-rate sole traders, move to business books when they outgrow the limit or their real costs rise, and open a d.o.o. later on. What that first step looks like in practice is covered in our guide on moving from flat-rate to business books. We watch your turnover and tell you in good time when a change becomes cheaper or mandatory.
If you work on your own, your costs are low and your activity is eligible for flat-rate, a flat-rate sole trader is usually the cheapest start in Serbia. A d.o.o. makes sense once you work with partners, take on higher-risk jobs or plan growth and investors, because protecting personal assets is then worth more than simplicity. If most of your invoices go to a single client, read our guide on the independence test before you decide.
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