DOO (LLC) - Registration

## What is DOO?

DOO (društvo sa ograničenom odgovornošću) is the Serbian equivalent of an LLC (Limited Liability Company). It is a separate legal entity where the liability of the founders is limited to their contribution to the authorized capital. This format is convenient if there are several co-founders, a hired team, or work with common clients, which is difficult to implement in the case of a sole entrepreneur (preduzetnik).

## When to choose DOO over sole entrepreneurship

- There are two or more co-founders who need common clients (sole entrepreneurs do not have co-owners).
- It is planned to form a team, attract external investments, or sell a share in the business.
- It is required to limit personal liability: the company is liable for debts, not personal property.

If you work alone and your income does not exceed approximately **6 million RSD** per year, it is usually simpler and cheaper to formalize a lump-sum sole entrepreneurship (see the article "Pašušalaц").

## Authorized capital

The minimum size is a symbolic **100 RSD**. It can be contributed within five years from the date of registration. The liability of the founders is limited to their contribution to the capital.

## Taxes (2026)

- **Corporate income tax (porez na dobit)** - 15% of net profit (income minus expenses) based on the results of the year.
- **Profit withdrawal**:
* Through **dividends** - an additional 15% tax on dividends. In total, with corporate income tax, it turns out to be approximately **28%**. There is no tax on "excess income".
* Through **director's salary** - social contributions + personal income tax ≈ **46%**, but there is a ceiling for contributions ( **732,820 RSD/month** in 2026); above it, contributions do not grow.
- **Director-founder**, working in their DOO, is obliged to pay social contributions at least from the minimum basis (**51,297 RSD/month** in 2026 ≈ **160 €/month**) even with zero turnover.

## PDV (VAT)

Registration in the PDV system is mandatory when the turnover exceeds **8,000,000 RSD** for any 365 days (sliding window). Services to foreign clients are not included in this threshold. The standard rate is **20%**, a preferential rate is **10%**. You can register voluntarily, but then you must stay in the system for at least two years.

## Registration - step by step

1. Prepare the **founding act (osnivački akt)** and the decision on establishment.
2. Register the company in the **APR** (Agency of Business Registers) - online or offline.
3. Open a business account in a Serbian bank.
4. Within 15 days after registration, submit information about **beneficial owners**.
5. Within 15 days, submit an **application to Poreska uprava** to determine advances on corporate income tax.
6. Hire an accountant - the law requires double-entry bookkeeping (dvojno knjigovodstvo).

Usually, the process takes about **2.5 weeks**. Closing a company through liquidation requires a minimum of **120 days** by law, in practice - **4-6 months**.

## Obligations and nuances

- Keep double-entry bookkeeping and submit an **annual financial report to APR** (by June 30).
- You can withdraw money from the account only in the form of salary, dividends, or documented business expenses.
- It is possible to hire employees, write off business expenses, and engage in retail sales (with a fiscal cash register).
- For the Russian tax authority, DOO is considered a business, not a sole entrepreneurship, so participation must be declared.

## Required documents

- Founder's foreign passport
- Founding act
- Legal address (can be formalized by a rental agreement for part of the premises)
- Beli картон

> **Important:** Information on taxes and mandatory contributions is relevant for 2026; changes in legislation may affect the figures.