Establishing business in Serbia

Establishing a Company in Serbia
Written for by attorney Marija Radovanovic Pavlovic
Dankovic Jagodnik Tomic Law Office

In our last text we mentioned that a foreign person in Serbia can resolve his/her status by obtaining a business visa. In addition, we  brought to the reader’s attention the fact that there are certain requirements which must be satisfied in order to obtain a business visa. The conditions which must be met for obtaining a business visa are: that the foreign person is sent by a “mother” company, for work with a “daughter” company in Serbia; that the foreign person is establishing a company in Serbia; if foreign person is hired in the capacity of a consultant on certain projects; if he/she is an investor or if there are other affairs which could be established as a valid grounds for obtaining a visa.

For those reasons we wish to explain the procedure of establishing a company in Serbia.

Initially, it is necessary to establish a name and activity code for the  company. In addition, it is also necessary to establish the founding capital for the company; The minimum amount of the founding capital must be 500 EUR.

The next step is composing the decision or contract of incorporation. The decision of incorporation must be composed in the Serbian language; if the founder of the company does not have a command of the Serbian language it must be translated by an authorized court translator into the language of the company’s founder. The decision of incorporation must be notarized in a competent court by the founder. In addition, signatures of the person/persons authorized to represent the company must be notarized in court.

After notarizing the decision and signatures in court, the founder is obliged to open a temporary bank account into which the founding capital of the company shall be paid. At this point of the procedure, the founder is not obligated to pay the entire amount of the founding capital. The founder is obliged to pay at least half of the amount up front and the remaining part of the capital may be paid within a time period of two years from the date of the company’s establishment.

Completed documentation, including the bank certificate (confirming that the founder paid the founding capital), a photocopy of the founder’s passport, the notarized decision of incorporation and signatures of authorized person(s), the registration form and proof of having paid the Agency’s taxes is filed with the Serbian Business Registers Agency. The procedure in the Agency lasts 5 working days. After receiving the administrative decision from the Agency, the founder of the newly established company is obliged to file a request for a Tax identification number with the Tax authorities. When the Tax number is received the Tax authorities form a tax file for the company based on certain documents which the founder produces.

That concludes the procedure of establishing a company in Serbia.  course it remains the founder’s responsibility to file tax applications and regulates obligations with the Republic of Serbia in a timely manner.

Since the founder of the company now has legitimate grounds for staying in the country, he/she can proceed with filing a business visa application.