A private limited liability company in Serbia (društvo sa ograničenom odgovornošću) is a company based on a share capital of 500 Euros and with a maximum of 50 shareholders.
The first step for opening a D.O.O in Serbia is choosing a proper name, checking it via Internet on the Business Registers Agency and appointing a director. The name of the future company can be reserved by a prospective applicant by submitting a special application. The reservation is valid for 60 days and it can be transferred to another businessman or renewed if appropriate.
He/ she can be the founder or even a part-time worker if it’s specified in the Articles of Incorporation. An OP form with his/her signature as a company responsible must be certified.
When choosing the main activity domain of the D.O.O, the entrepreneur must consult the Law on classification of business activities and on the registry of categories. This is necessary because approvals need to be received from the competent authorities according to the field of activity.
At least half of the minimum share capital of 500 Euros must be deposited in a temporary bank account.
The Articles of Association containing the above information must be legalized.
The limited liability company is a widely used legal entity for starting a business in Serbia. There are several advantages of incorporating a D.O.O in Serbia:
• Time efficiency – it only takes three weeks to incorporate it;
• Share capital – a minimum amount of EUR 500;
• Directors – there is need for only one director, of any nationality;
• Shareholders – the basic requirements for starting a D.O.O in Serbia are two shareholders of any nationality;
• Taxes – Serbia is an attractive business environment since it promotes one of the lowest corporate tax rates in Europe (15%);
• Legislation – the Serbian authorities have adopted new measures for simplifying and advancing the process of company registration in Serbia by unifying the Register for all business entities.
Our company incorporation agents' experience and guidance through all the steps of forming a new company add to these advantages of choosing a D.O.O in Serbia.
A number of taxes must be paid before company registration and receiving the company identification number. These taxes must be paid at the Serbian Business Registers Agency and the Republic Statistical Office.
The registration process can be performed electronically, but the representative of the company has the obligation to submit the original documents within five days from the application.
Along with the registration form, the founder must deposit the following:
- an ID proof,
- the signed Articles of Incorporation,
- a proof from the bank certifying that the minimum share capital was deposited,
- a decision of the representative appointment,
- the authorized signature.
The founder must specify the way he/she wants to receive the Decision on Founding (in person or via Internet). The Decision is ready for collection in maximum five days if all the submitted data are correct.
A company seal must be used in every company’s activities, so the next step after receiving the Decision on Founding is making one.
After receiving the company seal, the representatives of the entity must apply for the local taxes. If there is only one director, the procedure will not take longer than three days, but in case there are more, all of them must be first verified.
The day the application is filed, an inspector is sent to the company’s office and verifies the Decision of Registration and the basis for using that location as headquarter.
After receiving the TIN (Taxpayer Identification Number), the D.O.O must open a permanent bank account, process that usually takes one day.
The last step in incorporating a limited liability company in Serbia is recording the workers’ contracts at the Employment Fund.