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Serbian Holding Company

Updated on Tuesday 25th June 2019

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Serbian-Holding-Company.jpgThe purpose of a holding company is to control the activities and the management of other companies. In this sense, a foreign investor can acquire shares and assets (mutual funds, investments, real estate, licenses, copyrights) of several companies in Serbia and benefit from a multitude of advantages among which we mention that there is no corporate income tax imposed. There are many business persons who decide to set up holding companies, but if you want to know more about such legal entity and the requirements involved, we suggest you talk to one of our company formation agents in Serbia.
 

Information about Serbian holding companies

 
Many entrepreneurs who want to expand their portfolios, activities and profits decide to create holding companies in Serbia. This is known as a legal entity and the registration process starts with the Serbian Business Registers Agency where all forms are submitted for approval. It is good to know that such business may be established as a private or a public limited company, being subject to about the same requirements of incorporation as for any legal entity in Serbia, in compliance with the Companies Act and the Commercial Code. Our company incorporation specialists in Serbia are at your disposal with information about how you can set up a Serbian holding company. We mention that the company registration process in Serbia is subject to fewer formalities and allows local and foreign entrepreneurs to establish their operations in a fast manner.
 

What are the tax advantages for holding companies in Serbia?

 
Holding companies are beneficial from a taxation point of view. There are exemptions on capital duties and net worth taxes. Additionally, holding companies in Serbia are protected by the double taxation treaties signed with countries worldwide. It is good to know that the interest on the procurement of shares is normally tax deductible if specific requirements are respected. International investors should know that the incentives claimed by the holding company can be secured in certain circumstances. Instead of having difficulties when establishing a Serbian holding company, you might want to talk to one of our company formation representatives in Serbia and find out how they can provide immediate support. There are no complex regulations when it comes to opening a company in Serbia, however, it is recommended to solicit assistance and guidance for a smooth company registration process.
 

How are the assets transferred through a holding company in Serbia?

 
Holding companies have numerous advantages and the international laws are also applicable to such structures established in Serbia, including for the transfer of assets. This means that the owners can issue the shares of the holding company and can fill out an operating agreement for 100% voting control and other related aspects. 
 

Opening an LLC for a holding company in Serbia

 
A holding company in Serbia can run under the rules of a limited liability company or DOO as it is known. This is the preferred business structure of all, by both domestic and overseas investors. There are no complicated rules for LLCs to be established in Serbia, however, the most important ones are the following:
 
  1. A special application is needed when verifying and reserving the business name.
  2. Private limited liability companies in Serbia can be established with RSD 100 deposited in a Serbian bank account.
  3. The Articles of association and the Memorandum of Association are the company’s main documents, needed for formation.
  4. A legal representative will have to be appointed for your LLC in Serbia.
  5. The registration for taxes is normally the next thing to consider when the company is incorporated. The Serbian Tax Administration takes care of these aspects.
  6. The company seal is issued if the Decision on Founding is submitted.
 
The good thing to know about the limited liability company in Serbia is that there is a need of at least two shareholders to form such a structure. Once the LLC is opened I Serbia you should follow the next steps for establishing the holding company. 
 

How does a holding company make money?

 
Buying and selling stocks, offering services to the companies they control and the dividends from owned companies are three different ways through which holding companies generate profits in Serbia. Holding companies in Serbia can be involved in the business of selling goods and services on the market, so this is another way of making money. Overall, holding companies are preferred for business in Serbia and are among the choices of international investors who want to look towards to even more appealing ways of doing business. 
 

Why think of establishing a holding company in Serbia?

 
There are varied start-up considerations when choosing to establish a holding company in Serbia, and among these, the need of creating a corporate entity and to develop a business plan which will define the procurement approach. As a first step, shaping the sector of business development will have to be in immediate attention to any entrepreneur looking for investment opportunities in Serbia.
 
Even if a holding company in Serbia keeps the properties of other enterprises, it merely upholds oversight volumes and consequently does not dynamically contribute in controlling the daily operations of the business. It is important to know that holding companies have complete protection in front of losses, meaning that, for example, if a subsidiary company goes insolvent, its creditors will not lawfully chase the holding companies for payments.
 
Additionally, holding companies also let persons protect their private assets and that because these possessions are theoretically retained by the corporation, and not by the individuals, who are subsequently safeguarded from debt liabilities, lawsuits, and other related stakes. If you believe it is time to take the business to a whole new level and complete your portfolio with other opportunities too, you can consider opening a holding company in Serbia and benefits from a series of advantages. Here are some facts and numbers about the business in Serbia:
 
  • Serbia is a huge electrical machinery exporter, registereing exports of more than $2,000,000.
  • There are more than 998,000 companies registered in Serbia.
  • 26.1% represents the total contribution tax rate on profits in Serbia.
  • the corporate income tax is set at 15% rate in Serbia, one of the lowest in Europe.
 

The benefits of a holding company in Serbia

 
There are many reasons why foreign investors decide to acquire small businesses and develop all sorts of activities operating under these entities. Holding companies may represent the key to success in Serbia because they come with benefits like the following:
 
  • •    the personal assets of the foreign investor are protected;
  • •    there is no corporate tax on profits;
  • •    the double tax treaties and their conditions are available for holding companies;
  • •    there are full control and ownership of acquired companies;
  • •    a board of directors can manage the activities of the holding company.
 
For any inquiries you might have about the Serbian holding companies, please feel free to contact our team of company formation in Serbia.
 
 
 

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Call us now at +381 62 330 664  to set up an appointment with our company formation specialists in Belgrade, Serbia. Alternatively you can incorporate your company without traveling to Serbia.

As a Law Office Ristic & Partners client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Serbia.

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Mihai Cuc, Partner of
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www.romanianlawoffice.com

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