The steps before and after company formation in Serbia

1. The steps before company registration in Serbia

1.1 Choosing the company’s name

The business name must include the name of the company, the location of the main company and the legal form of the company in Serbia. Also, there are certain additional elements written by the Law that the business name must contain. 

It is recommended to check first the business register website in Belgrade about the availability of the chosen name. If the name is free, then it is recommended to reserve it. All of this must be done by the Law and its guidelines and boundaries. 

1.2. The activity code

One of the things that must be done before company formation in Serbia is choosing the activity code – the core activity of the company. The core activity of some company is its dominant or leading activity and the one that brings the biggest profit.  Of course, every company has certain additional activities and sometimes one of them becomes the leading one. In that case, the core activity must be changed.

1.3. The Memorandum of association

The company’s general legal act is known as the Memorandum of association and it is created by the founder(s) of the company. The Memorandum contains all the general things about the management, business, things related to business relations etc. The Memorandum has to be certified at the notary and include:

  • The name and the main office of the company,
  • The activity code,
  • The total amount of share capital,
  • The value of money share and the description of non-money share,
  • The individual share of every member in the total share capital,
  • The time of payment of money share or bringing the non-money share,
  • The data about the members of the company,
  • Length and termination of the business of the LLC,
  • Authorisations for persons who represent the company,
  • The organs of the LLC and their jurisdictions.

1.4. A virtual office

One of the options that can save a certain amount of money in the beginning is choosing to have a virtual office. In that way, the owners won’t have to pay for the rent and additional expenses for the business office. This is recommended for new and smaller companies that offer certain services. It is better to rent this kind of office than something in an expensive and exclusive location.  

2. The steps after company formation in Serbia

2.1. The company’s stamp

After company formation in Serbia, it is necessary to make a stamp. It can be made, but it doesn’t have to be used on documents like invoices, memos, forms, contracts, applications etc. This obligation was canceled in 2017., but the stamp still has to be used on certain documents. 

2.2. Opening a bank account

Before opening a bank account it is important to get the information about all the services that a certain bank offers. After that, these documents must be submitted to open a bank account: 

  • An application for opening a bank account,
  • A decision or a resolution about acceptance of registration application from the BRA,
  • A form with certified signatures of persons authorized for representation, 
  • The identity proof,
  • A card with deposited signatures of the bank,
  • The bank’s additional documentation (a draft model of the contract).

2.3. Applying in the Tax administration 

It is necessary to submit the tax return in the Tax administration office to become a new taxpayer. The authorized accountant must submit the application (electronically or in person) within the 15 days from company formation or the date when the Decision of registration is issued by the BRA. 

2.4. A qualified electronic signature

Every company needs a digital signature to work on electronic services for submitting, signing and certifying documents electronically. To get it, the company must apply for the electronic signature on the ID to the authorized police station.  If the owner is a domestic citizen, the electronic signature is issued for free. 

2.5. Entering the VAT system

One of the last steps after company formation in Serbia is the decision about entering the VAT system. Every company should calculate its range of business, yearly profit, include all the expenses etc.  If the profit is more than 8 000 000 dinars in a year the company is obliged to pay the VAT.