Choose the form of business organization depending on your goals and needs.

Entrepreneurs, companies (including limited liability companies, partnerships, limited partnerships), joint stock companies, branches of foreign companies, representative offices of foreign companies, cooperatives and cooperative associations, as well as non-governmental organizations are registered with theBusiness Registers Agency.

An entrepreneur is the most common form of business entity. An entrepreneur does not have the status of a legal entity, an entrepreneur is a natural person who registers with the Business Registers Agency to perform a certain activity in order to generate income.

Registration of an entrepreneur is cheaper and faster, the fees are lower, as well as the prescribed fines for the possible offenses. The entrepreneur can pay taxes and contributions at a flat rate (according to a pre-determined amount), and can also opt for the withdrawal of personal earnings. However, this form has its drawbacks, which are that the entrepreneur is responsible for all obligations arising in connection with the performance of the activity with their entire property. This means that if you cannot pay off your obligations and debts as an entrepreneur, it is possible that the debt can be collected from your personal assets.

The "flat rate" entrepreneur is the most common type of entrepreneur when starting a business. It is intended for those who are unable to keep business books, so the the Tax Administration, according to established criteria, determines the flat-rate amount of tax on self-employment income that must be paid. The decision of the Tax Administration determines a fixed amount of tax and contribution that is paid regardless of the business operations (it must be paid every month regardless of whether income is generated or not). You can roughly calculate the amount of taxes and contributions using the calculator.

The basic conditions that you must fulfil in order to be a "flat-rate entrepreneur" are that your turnover, i.e. the sum of all the invoices you have issued in one year, is less than six million dinars, and that you meet the independence criteria on an annual basis. You are obliged to keep the KPO - Business book on the realized turnover of flat-rate taxpayers electronically or in paper form. Important note - the request for flat-rate taxation can only be submitted when submitting the establishment registration application.

The limited liability company is the second most common form of business entity. It has the status of a legal entity and represents a company in which one or more members of the company have shares in the company's initial capital. The members of the company are not responsible for the obligations of the company, but the company is responsible only with its assets. Although doing business in the form of an LLC allows flexibility in management and member changes and reduced responsibility, since the member is only responsible for the amount of their capital, the establishment of an LLC is more expensive, business costs, taxes and fees are higher, and there is an obligation to keep double bookkeeping.

The amount of taxes and contributions can vary significantly, so it is advisable to hire a legal advisor or an accounting agency.