The cost of establishing a company and starting a business in the countries of the region varies depending on the level of administrative fees, the minimum share capital, and tax burdens.
Although all countries formally support entrepreneurship, in practice there are significant differences in the complexity of procedures and the level of financial obligations.
While some states offer symbolic entry costs and straightforward registration, others require higher initial capital and have more complex administrative requirements. Tax policies also vary – from fixed and lower rates to progressive and higher tax burdens.
In terms of overall costs, Serbia ranks as a competitive option in the region, with some of the lowest company formation expenses and a moderate tax policy, which can be an advantage for new entrepreneurs and small businesses.
Lawyer Katarina Tomić Isailović from the law firm Karanović & Partners explained to Biznis.rs that the cost of setting up a company in the region varies significantly depending on local regulations and administrative requirements.
“In Republika Srpska, the minimum share capital is a symbolic 0.5 euros, and total registration costs range from 100 to 250 euros, depending on the number of founders and the required translations. In the Federation of Bosnia and Herzegovina, the minimum capital is 512 euros, while administrative costs are around 80–100 euros. In North Macedonia, the minimum share capital for a limited liability company is 5,000 euros, which can be in cash or in kind. Additionally, it is possible to establish a simplified limited liability company with a capital of just one euro. Although registration with the Central Register itself is free, there are administrative costs (translations, certifications, legal fees, post-registration procedure fees, and so on) that vary depending on the situation, but are generally relatively low: a total of 100 to 200 euros, without additional licences,” she noted.
Regarding other countries in the region, she pointed out that in Montenegro, the nominal cost of incorporation is about 50 euros, but in practice, for foreign founders, the total costs (translations, apostilles, notaries) can be significantly higher and are difficult to estimate accurately in advance.
“In Croatia, the minimum share capital for a limited liability company is 2,500 euros. Notary services and registration cost an additional 455 euros, while translations are about 35 euros per page. The total cost of incorporation usually exceeds 900 euros, without additional services. In Slovenia, the minimum capital is the highest in the region, at 7,500 euros, and remains at the company’s disposal. Administrative fees, translations, and notary services can range from 700 to 2,500 euros, depending on the complexity of the process and the engagement of legal counsel,” added Katarina Tomić Isailović.
Taxes and contributions
When it comes to tax burdens, there are significant differences among the countries in the region, both in corporate tax rates and contributions, as well as in the taxation of wages.
“In Montenegro, North Macedonia, and Bosnia and Herzegovina, corporate tax is set at 10 per cent. Croatia applies a differentiated model: a 10 per cent rate applies to companies with an annual income of up to one million euros, while a rate of 18 per cent applies to higher incomes. In Slovenia, corporate tax is the highest in the region and can reach up to 22 per cent, depending on the level of profit achieved,” the lawyer points out.
As for income tax, in North Macedonia and the Federation of Bosnia and Herzegovina, the rate is 10 per cent, while in Republika Srpska it is slightly lower, at eight per cent. Montenegro applies a tax rate of up to 15 per cent, depending on the level of gross salary.
“Croatia and Slovenia have progressive taxation systems, with rates in Croatia ranging from 15 to 35 per cent, while in Slovenia they reach up to 50 per cent for the highest incomes. Contributions for mandatory social insurance (pension, health, unemployment) are not uniformly defined across all countries, but in most cases the total burden exceeds 30–35 per cent of the gross salary, with varying distribution between employer and employee,” explains a lawyer from Karanović & Partners.
Serbia in the middle
Compared to its neighbours, Serbia sits in the middle when it comes to overall business costs. The country offers a low entry barrier in terms of company formation, while tax rates are moderate, and contributions are notable.
“Setting up a limited liability company in Serbia is among the cheapest in the region. The administrative fee at the Business Registers Agency is around 6,000 dinars (a little over 50 euros), while the cost of document certification by a notary is about 1,200 dinars (ten euros). The minimum share capital is symbolic: only 100 dinars, which practically removes any financial barrier to entering the market,” explains lawyer Katarina Tomić Isailović from Karanović & Partners, adding that the tax system is straightforward:
“Corporate tax is 15 per cent, which is above the rate in most neighbouring countries but still competitive. Income tax is proportional and amounts to 10 per cent. As for contributions, the total burden on salaries reaches around 31 per cent of the gross amount that represents the employer’s total cost. Serbia also offers special regimes, such as lump-sum taxation, which are particularly attractive to entrepreneurs, small businesses, and freelancers. This further increases the flexibility of the fiscal framework and its adaptability to the needs of micro and small enterprises.”
(Biznis.rs, 11.08.2025)
https://biznis.rs/vesti/srbija/koliko-kosta-otvaranje-firme-u-regionu-i-gde-je-srbija-na-toj-listi/