What is a flat-rate business?

A flat-rate business is a sole proprietorship whose owner — a paušalni preduzetnik (flat-rate entrepreneur) — pays tax on a presumptive (flat-rate) income instead of actual income. The Poreska uprava (Tax Administration) sets the monthly base in an official assessment decision; tax and contributions are paid monthly, no later than the 15th of the month for the previous month.

Who can be a flat-rate entrepreneur?

Flat-rate taxation is available to entrepreneurs who:

Are registered as sole proprietors (not a DOO — limited liability company)
Are not VAT payers
Have annual revenue not exceeding 6.000.000 RSD (calendar year)
Are not in the VAT system

Registration steps

1. Choosing your business activity

Before registering, choose the activity code (SKD classification) that matches your work. The code directly affects the amount of flat-rate tax — some activities carry a higher coefficient.

2. Filing the application with APR

The application is filed with APR (the Business Registers Agency):

Online via the APR portal (eRegistracija) — recommended
In person at the competent tax office

Required documents:

ID card
Residence/registered office address
Chosen activity code
Payment of the administrative fee (~3.000 RSD)

3. Obtaining a PIB and registration number

After the application is approved (usually 1–3 business days), APR assigns:

PIB (tax identification number) — for tax obligations
MB (company registration number) — for business transactions
Rešenje (registration decision)

4. Opening a business bank account

Open a business account at the bank of your choice. You will need:

The registration decision
ID card
PIB and registration number

5. Registering with the Tax Administration

Within 15 days of registration, register with the Poreska uprava so it can determine your flat-rate tax. You file a request for the determination of flat-rate income.

Registration costs

Item	Amount
APR fee	~3.000 RSD
Account opening	0–2.000 RSD
Company stamp (optional)	500–1.500 RSD

Note

Since 2023, a company stamp is no longer a legal requirement for entrepreneurs, but some banks and state institutions still ask for it.

Registering a Flat-Rate Business — Step by Step