Sole Trader

Sole Trader

Register as a sole trader quickly and easily

If you are starting your own business and looking for a simple and efficient way to begin, sole trader registration is often the most practical choice.

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Invoice

PF-2026/014
11.06.2026.
25.06.2026.
Sole Trader — Your Shop PIB: 123456789
Belgrade
Client Ltd. PIB: 987654321
Novi Sad
Description Qty. Price Amount
Consulting services 1 45.000 45.000
Documentation preparation 1 18.500 18.500
Subtotal63.500 RSD
VAT (20%)12.700 RSD
Total due76.200 RSD
Currency: RSD · Payment method: bank transfer Issued
01
Idea
→
02
KCM
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03
APR
→
04
Business Account
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05
Operations
→
06
Growth

Is a sole trader the right choice for you?

A sole trader is a natural person who carries out a business activity in their own name and for their own account. This business form is often chosen by consultants, IT professionals, craftsmen, healthcare workers, and various service providers.

Its key advantages are simpler business organization, lower administrative costs, and greater flexibility in making business decisions.

On the other hand, it is important to keep in mind that a sole trader is personally liable for all business obligations with their entire assets (personal and business). That is why the choice of legal form should be tailored to the type of activity, business risks, expected turnover, and development plans.

A sole trader is often a good choice when:
you are starting a business independently
you are providing a service
you want a simpler business organization
you need a quick and efficient start of operations
you need a quick and efficient way to suspend or close the activity

How does taxation of a sole trader work?

Choosing the legal form is just the first step. Equally important is choosing the right taxation model.

Depending on the type of activity, expected turnover, and business goals, a sole trader may operate as:

Taxation models:
Lump-sum taxpayer (paušalac)
Sole trader on personal salary
Sole trader keeping business books and paying tax on realized profit

Each model has its advantages, limitations, and tax implications.

Learn more about sole trader taxation →

What does the registration process look like?

The registration process typically follows these steps:

Business idea
→
Consultation with KCM team
→
Documentation preparation
→
Registration with the Business Registers Agency
→
Opening a business bank account
→
Start of operations
What is typically required to initiate registration:
Valid identification document
Shop name
Registered address
Activity code
Contact details

Depending on the type of activity, additional information or documentation may be required.

What do you get from KCM?

Our team guides you through the entire registration process and provides support even after incorporation.

Service includes:
01
Preparation of complete documentation
02
Registration with APR
03
Assistance with opening a business bank account
04
Tax registration
05
Fiscalization preparation
06
Post-registration support
Frequently Asked Questions

We've answered your questions

How long does sole trader registration take?
Sole trader registration with the APR usually takes 1–3 business days, provided the documentation is complete. Depending on the activity, additional steps with other institutions may be required.
Can I register as a sole trader if I am employed?
Yes, it is possible to be employed and register as a sole trader, subject to the provisions of the employment contract and the employer's internal rules. Before registration, we recommend checking whether the activity you plan does not conflict with your obligations to your employer.
How do I choose an activity code?
The activity code is chosen according to the Classification of Activities and must correspond to the actual business form. We help you select the appropriate code and assess the tax and administrative implications of that choice.
How can I exercise the right to maternity leave as a sole trader?
The right to maternity leave depends on the taxation model and status in the social insurance system. Sole traders who keep business books and regularly pay contributions may exercise this right — the details depend on the specific case.
Can I hire employees?
Yes, a sole trader can hire employees. In that case, obligations arise regarding pension, health, and unemployment insurance registration, salary payments, and record-keeping — for all of this you can count on our support.
Can I be in the VAT system and work as a sole trader?
Yes, a sole trader can be a VAT payer if they exceed the prescribed turnover threshold or voluntarily enter the system. Entering VAT brings additional administrative obligations but also certain advantages — we help you make an informed decision.

Not sure if a sole trader is the right choice?

The choice between a sole trader and other legal forms does not depend only on tax aspects. It is necessary to consider the activity, business risks, expected turnover, and development plans.

Schedule a consultation and we will help you make the decision that best fits your business model.

Free consultation →

Incorporation cost assessment

The service price depends on the type of activity and the specifics of each case.

Fees of competent authorities, administrative taxes, and other legally prescribed charges are not included in the service price.

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Important:

There is no universally best legal form. The choice between a sole trader and other forms of organization depends on the activity, business risks, expected turnover, and development plans.