Rent-a-Company in Serbia: Easy Access to Banking Services Secured

When dealing with foreign companies, Internet entrepreneurs may at times face transactional issues. A rule of a thumb has it, to start a business like this you’ll have to incorporate a legal entity and open a bank account abroad. This option, however, does not happen to always be profitable in financial terms.  

If this is your case, an umbrella company (a.k.a. Rent-a-Company) in Serbia may be a potential way out. The latter will serve as an intermediary when dealing with foreign counterparties as well as issuing or paying invoices. In case of a Rent-a-Company, this is done on behalf of the latter, and not by you as a foreign contractor.

Let’s see how consulting, e-commerce, or IT entrepreneurs may profit from Rent-a-Company in Serbia. International Wealth will make it easier for you to realize how running your enterprise may become easier with the business model above.

Rent-a-Company in Serbia: introducing the concept

Understanding the Rent-a-Company business concept deeply is what it takes to fully realize all benefits thereof.

An umbrella company or Rent-a-Company in Serbia is a full-fledged business entity incorporated in Serbia by a different founder. It is not associated with the tenant (in our case, a foreign entrepreneur). 

Rent-a-Company business entities in Serbia mostly deal with invoicing their foreign partners, paying for the services provided, and receiving payments. In this scenario, a foreign “tenant” does not need to incorporate a separate legal entity abroad, they simply rent it. The foreign entrepreneur in question, be it either a foreign natural or legal person, is not involved in the transaction. They don’t need to either set up any separate business entities abroad to make international transactions or take care of any related banking issues. 

These are the things Rent-a-Company in Serbia is responsible for. In their turn, all that entrepreneurs, LLCs, foreign enterprises, or digital nomads need to do is pay for its services. Rent-a-Company takes on a legal person’s role by keeping the books, paying taxes, and acting on the foreign contractor’s behalf.

How it all works with Serbian umbrella companies

For a better understanding of Rent-a-Company in Serbia operating principles, let’s take a look at the example below.

Suppose, a foreign company or an overseas private contractor (digital nomad, IT pro, IT consultant, etc.) finds a customer in Germany, the US, France, the Maldives, or any other foreign jurisdiction and intends to provide services thereto. 

To make the transaction and render an invoice, any of the above shall have a corporate presence abroad or record the above in the books in their tax residence country. The option is not good for everyone. It all depends on where you come from. If your jurisdiction is say Russia, you won’t reap any benefits from Rent-a-Company in Serbia due to sanctions, banking limitations, and currency control pressures. With Rent-a-Company in Serbia, your financial load will be restructured due to extra administrative expenses. Where you only make a couple of such international contracts per month, it does not make any sense for you to incorporate a separate non-resident legal entity in Serbia.

The way out is obvious. You should employ the services of Rent-a-Company in Serbia (also known as an umbrella company) as the latter still enjoys collaborative relationships with both the sanctioned Russia and the Western economies. 

Take a look at the steps to take to resolve any possible business planning and banking issues via renting an umbrella company or Rent-a-Company in Serbia:

1. As a “tenant”, you rent an umbrella company (a.k.a. Rent-a-Company) in Serbia to contract with your foreign vendor. The name shown in all the documents you sign will be that of the Serbian legal entity and not yours.
2. Serbian umbrella company invoices your foreign contractor and accepts payments for the services provided on its account.
3. Profit received is distributed according to the services provided. You receive your share for the work performed, while the “landlord” enjoys their commissions.
4. You are not liable for any administrative procedures or related issues, with taxation, bookkeeping, reporting, dealing with banks, etc. among them. 
5. To get your money from the Serbian “landlord”, you will have to make an agreement with the above “landlord” (a.k.a. Rent-a-Company in Serbia) on your own behalf as either a natural person or a business entity and issue an invoice. You’ll get paid in your desired currency and the money will be credited to your bank account with any bank. You are welcome to use an e-wallet or a payment system of your choice to receive it.

The above approach works best for entrepreneurs who only make a couple of transactions with various foreign contractors a month. Where the matter concerns trade, banking, financial services, import or export activities, or investments, it will be of little to no use. Rent-a-Company in Serbia is a business structure of choice for SMEs in IT and consulting or for freelance entrepreneurs. In rarer cases, e-commerce or trade companies and entrepreneurs may benefit from dealing through it as well.

International business deals made easy with Rent-a-Company services in Serbia 

Benefits for “tenants” of Rent-a-Company in Serbia are apparent:

• no business registration obligations abroad
• payments shall be made under issued invoices only as provided for under the agreement with the “landlord”
• all banking issues like making out invoices to subcontractors, opening bank accounts, bookkeeping, or reporting to tax and regulatory authorities shall be resolved by Rent-a-Company
• no VAT obligations.

Banking transactions via Rent-a-Company in Serbia: general principles

The importance of financials can’t be underestimated, as with sanctions imposed on Russia and other issues involved, many entrepreneurs face serious issues with their banking, including, inter alia, where they need to open bank accounts abroad.

Here’s what banking procedures look like for you when employing Rent-a-Company in Serbia:

1. You rent a company in Serbia to do the following:
   1. invoice your foreign contractors on your behalf
   2. receive money from them for services provided
   3. transfer money to the account stipulated by you.
2. Here’s what you shall do to obtain money for the services rendered to a foreign contractor via Rent-a-Company in Serbia:
   1. open a private or a corporate account with any bank, including the ones abroad
   2. make a counter contract with Rent-a-Company in Serbia
   3. invoice the Rent-a-Company in Serbia
   4. get your money
   5. pay taxes as provided for under the laws of your tax residence country for all the transactions made.
3. If, except for rendering services to your business partners and counterparties abroad,  you also pay any invoices, Rent-a-Company in Serbia may stand you in good stead. Feel free to both issue invoices for services provided by you and pay analogous invoices rendered by foreign companies. The procedure looks as follows:
   1. Rent-a-Company in Serbia collects its invoices, the money gets credited to its corresponding account and sits therein till it is time to distribute the profits
   2. it makes an agreement with a foreign company (possibly in a different country), and the latter renders services and issues an invoice therefor to you
   3. money you receive from the contractor is used to pay invoices for the services provided to you, and the remaining balance is transferred to your account with any bank you choose. 

Service exports are not subject to VAT in Serbia.

Benefits of Rent-a-Company in Serbia for your banking operations

Currently, global business is on the upswing. Yet, with the political crisis, sanctions, and tax implications thereof for banking and companies’ future, many entrepreneurs get skittish. In a situation like this, Rent-a-Company in Serbia that acts as a go-between to connect foreign businessmen and contractors willing to render services to them may be your beacon of light, as a way to seamlessly resolve issues bothering you and enjoy the profits.

Here are just a couple of Rent-a-Company benefits for business planning purposes and your banking. They are as priceless as the jurisdiction itself, with its multiple business development and expansion opportunities:

• Although an EU accession state, Serbia hasn’t yet joined the European Union and is not part of the EU’s single market. Thus, no VAT is paid on services rendered outside Serbia.
• Maintaining collaborative relationships with China, Russia, and EU countries, Serbia is a favorable jurisdiction to expand your business on a global scale.
• Serbia enjoys an excellent business reputation, which is vitally important, especially as regards partner network expansion. Ample banking opportunities and seamless bank account access add to the jurisdiction’s appeal.
• Serbian tax blacklist is the only disadvantage of the jurisdiction, however, not an absolute one. Working with the countries on the list via Rent-a-Company in Serbia is possible, although banking may be challenging at times. Thus, you will not succeed with making any outgoing payments the above tax havens via Rent-a-Company in Serbia, while receiving money therefrom on any accounts you made out is a total breeze.
• Please, keep in mind that not every business will benefit from Rent-a-Company in Serbia. It is not the best option for long-term asset holding, including, inter alia, real estate and machinery. For IT pros, digital nomads, and consultants, however, a Serbian umbrella company is an ideal and the most profitable way to enter into contracts with foreign counterparties and do banking in Serbia.