Why should you open the bank account in Serbia?

May 6, 2021by Stefan0
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We represent a group of companies formed by private bankers with more than 30 years of combined international experience and with offices in Serbia and Switzerland. We are providing, banking, wealth management, fiduciary, immigration services, as well as accounting and family office services for our clients.

Certainly, we offer wide array of services for companies or individuals related with any jurisdiction or activity, even in case of offshore zones or activities such as crypto, gaming, etc.

Through our key corporate product, we have managed to open bank accounts even for clients form jurisdictions that are treated with high risk which enabled them to successfully continue doing business through branch accounts.

Serbia is the jurisdiction with most convenient and flexible banking system. Being that we are not part of CRS, clients find it even more convenient.  All the banks have e-banking service and quite simple requests for documentations. There are many benefits to opening the bank account through the branch office in Serbia such as:

1. Greater Level of Control

A branch office is not considered a separate legal entity which means that its activities are entirely managed by the parent company in terms of the decision-making process. The branch does not have the status of a legal entity, and in legal transactions, it acts on behalf and for the account of the company.

Due to this, the branch cannot become a subject of the suit, bankruptcy and liquidation.

2. Tax benefits

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From a taxation point of view, a branch office is often a better choice when compared to a subsidiary company.

  • Funds received on behalf of the main company are not subjected to taxation.
  • The Branch of the foreign company has its tax number and is treated as a resident.
  • Tax optimization and double taxation avoidance agreements with 64 countries.
  • Funds received on behalf of the main company are not subjected to taxation.

3. Easy Bank Account Opening

According to the Law on Foreign Exchange Operations, the foreign companies’ branches are residents and they operate via their resident bank accounts in Serbia.

After registering a Branch office in Serbia, bank calmly refers to the new structure as a resident and are ready to open it account immediately.

As of H2 2019, the banking sector in Serbia consists of 26 banks, with cumulative assets of EUR 32.4bn. Several European banking groups has its presence at the Serbian market: Banca Intes –Italy, Credit Agricole–France, Procredit Bank–Germany, RaiffeisenBank–Austria, Sberbank–Russia, Erste Bank–Austria, UnicreditBank –Italy, OTP Bank –Hungary, Eurobank–Greece, Bank of China –China, etc.

4. Residency in Serbia

A legal representative of the branch does not have to be Serbian resident but may apply for Serbian residency on this basis.

5. Cost-Effective Locations

  • Cost-effective setup and maintenance of the company
  • Easy visa and residency options for all nationalities

6. Serbian banks CRS free zone

CRS requires that banks and other financial institutions identify it’s customers’ tax residencies and report financial accounts held directly or indirectly by foreign tax residents to local tax authorities. It also requires tax authorities (in participating countries) to exchange this information. 104 countries accepted this standard and new participants join each year. Are there still countries where this set of rules does not apply? The answer is yes!

Serbia is still not one of 104 countries that signed the AEOI convention. It is not even on the list of countries that set a date to join.  Many companies found that solution in the form of a local Serbian company or by establishing a branch of an existing foreign company in Serbia. And for many of them Welcome to Serbia is the key part of the solution.

Stefan


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