Serbia Info
Joined: 20 Apr 2007
Posts: 13
Home Country: serbia
|
 Posted: Mon May 14, 2007 4:26 am Post subject: DOING BUSINESS IN SERBIA / SERBIA BUSINESS GUIDE |
 |
|
DOING BUSINESS IN SERBIA
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Private Limited Company
Minimum Capital Requirement: 32,438
City: Belgrade
Registration Requirements:
Procedure 1. Buy registration forms, form RJR-1, form OP, forms M1 and M4 at the paper shop
Time to complete: 1 day
Cost to complete: CSD 5 (form OP) + CSD 20 (forms M1, M4) + CSD 20 (forms E1, E3) + CSD 10 (form ROD1) +CSD 10 (form OU).
Comment: The forms can also be obtained online.
Procedure 2. Notarise the Memorandum of Association and lease contract at the Basic Court
Time to complete: 1 day
Cost to complete: see comments
Comment: Cost depends on the amount of capital and the value of the lease. At least 4 copies should be notarised with the Municipal Court, as the court will keep at least one copy, one copy will be filed later with the Commercial Court, and the filer will want to retain at least 2 originals. The cost of such certification varies depending on the value of the incorporation contract.
The Law on Court Taxes as of July 2005 establishes the following costs:
1. Up to 10,000 CSD value - 650 CSD;
2. from 10,001 to 100,000 CSD value - 650 CSD increased for 1% of
contract value;
3. from 100,001 to 1,000,000 CSD value - 1950 CSD increased for 0.5%
of contract value;
4. over 1,000,000 CSD - 8450 CSD increased for 0.25% of contract value, but not more than 26,000 CSD."
In addition, there is a fee for request for notarization in the value of CSD 32.5. In case of notarisation of several documents only one request fee should be paid. The price for notarization of the signatures specimen with a competent court is CSD 65.
For every signature verification, CSD 65; For every proxy (power of attorney) signature verification, CSD 325 The previous practice of requesting the court clerk to come to the business premises to certify a document against payment of the additional tax was revoked by a decision of the Constitutional Court of Serbia which found it to be unconstitutional.
Procedure 3. Open a temporary bank account; pay founding deposit or its part and all other fees
Time to complete: 1 day
Cost to complete: no charge
Comment: In order to open a temporary account, the decision or contract of incorporation must be submitted to the chosen bank. At least half of the initial capital is payable in advance, the rest within in a period of 2 years from the after registration. The founding deposit is paid to a temporary account at one of the commercial banks. After the completion of registration, the funds are transferred to a Giro-account of the enterprise and may be used in business transactions. Obtain the payment slip from the bank.
Procedure 4. Obtain the registration certificate Business Registers Agency (SBRA)
Time to complete: 3 days
Cost to complete: CSD 4,090 (CSD 3600 + CSD1,270)
Comment: Under the Business Registration Law, which came into effect from July 2004, the company registration is transferred from the Commercial Courts to the Serbian Business Registers Agency (SBRA). The time of registration is in maximum 10 days. From November 1, 2005, the time limit was reduced to 5 days. In practice, the agency issues the certificate in 3 days.
The payment of CSD 3600 is paid for registration application on the account of the competent Commercial Court. The amount of CSD 1,270 has to be paid for obtaining the registration number and code of Republic Statistical Agency. Instead of two separate proceedings, now the Agency issues the number and code of Republic Statistical Agency simultaneously with the registration certificate.
The following documents need to be submitted:
* Set of forms for registration
* Contract of incorporation (Deed on Establishment) or Decision on the company founding with authentic signatures of founder(s) notarised by the Municipal Court;
* Decision on appointment of the director by the founders.
* Information on the founder(s) (i.e. registration documents, if the founder is a legal entity or ID No. and proof of registered residence, if the founder is a physical person. If such documents are in a foreign language, they must be translated into Serbian by an authorised court translator which (approximate costs CSD 500 per page.)
* Certified signature of the director on the OP form (or deputy director or other authorised person
* Evidence of payment of the administrative fee;
* Optionally, power of attorney if filling is made by an attorney at law.
The court will examine if the request complies with currant legislation and whether the following documents are attached to it.
The requirement to submit the statute of the company upon registration has been abolished. In addition, the assessment of the contribution in kind by the authorised appraisers is not required anymore (submission of an agreement between the founders on the value of contibution in kind has subsituted the aforemantioned requirement). The registry at that point publishes the registration in the Internet.
Procedure 5. Make Stamp and seal
Time to complete: 1 day
Cost to complete: CSD 2500
Comment: The procedure takes from 1 to 2 days.
It costs between CSD 1500 to 4,000, depending on the number of words, design, etc. In order to make a stamp, the copy of the registration ruling must be submitted to the stamp-maker
Procedure 6. Obtain PIB - tax identification number at the Municipal Hall; Certify the signatures (3 copies) for opening bank account
Time to complete: 6 days
Cost to complete: no charge (included in the following procedure)
Comment: A completed, signed and stamped PIB form, copy of the registration ruling, copy of the statistic ruling must be submitted to the tax authorities of the municipality where the company's seat is registered. RUJP Office has a seat in every Municipal Hall. One needs to submit copy of the registration certificate from the Agency.
As a result of the negotiations between the Business Registers Agency with the Tax Administration, the number of days required is 3 days. By the end of 2005, this function should be undertaken by the Business Registers Agency.
Procedure 7. Open a permanent business account with the commercial bank
Time to complete: 1 day (less than half a day)
Cost to complete: CSD 400 (signature certification and republic tax)
Procedure 8. Register the employment contracts with the Employment Organisation/Fund
Time to complete: 1 day
Cost to complete: no charge
Comment: Submit and certify forms M1 new (application for insurance) and M1 old (application of insurance and application for establishing the working relation), E1 (application on vacancy for working place) and E3 (application for establishing or ending of working relation) and ROD 1 (application on beginning/ending/changing the terms of the payers of the contributions) and worker's id card and employment contract.
Procedure 9. Obtain certificate from the PIO Fund (pension fund)
Time to complete: 2 days
Cost to complete: no charge
Comment: Submit forms M1 (used for reporting the insurance for the employee) and M4 (used for obtaining a registry number of the taxpayer and payment of contribution), E1, E3 and employment contract for inspection. If this application is not submitted within 8 days from commencement of employment, a Statement on Lateness must be submitted, explaining the reasons for the delay. The registry number is issued within 24 hours and requires two visits to the Fund. If this application is not submitted within 8 days from commencement of employment, a Statement on Lateness must be submitted, explaining the reasons for the delay. The registry number is issued within 24 hours and requires two visits to the Fund.
Procedure 10. Obtain certificate from the Health Fund
Time to complete: 1 day
Cost to complete: no charge
Comment: Submit medical examination record (medical ID card), forms M1/M2 (application for health insurance) and ROD 1 (application on beginning/ending/changing the terms of the payers of the contributions), list of issued medical ID cards in the company and employment record card.
FORMS OF BUSINESS ORGANISATION
1. Limited liability company
2. Joint stock company
In addition to the limited liability company and joint stock company, general and limited partnerships may also be formed. The minimum required capital for founding a limited liability company is €500 and the maximum number of shareholders is 50. A joint stock company may be open (more than 100 shareholders) or closed (up to 100 shareholders). The minimum required founding capital is €25,000 for an open joint stock company and €10,000 for a closed joint stock company.
TAXATION
Corporate tax
Main rate: 10%
Resident companies are taxed on their worldwide income; non-resident companies are taxed on income sourced in Serbia. A company that is registered in Serbia, or that has its management and control there, is deemed to be resident for tax purposes. Dividends received from resident companies are exempt from withholding tax. A tax credit is available for foreign tax paid on dividends. Capital gains realised from the disposal of shares, securities and real estate are taxed as income. Disposal of equipment does not give rise to capital gains/losses.
Individual tax
10–20%
Resident individuals pay tax on their worldwide income; non-residents are taxed only on income sourced in Serbia. Personal income taxation is carried out on two levels: tax is withheld when the income is paid at the rate of 14% (salary) or 20% (tax on other income); a 10% annual income tax is levied on worldwide income earned by tax residents on the portion of income exceeding four times the average annual salary (Serbian nationals) or ten times the average annual salary (foreign nationals).
Capital gains
Company gains taxed as income
Capital gains of companies are taxed as income. Gains of individuals are taxed at 20%.
Indirect tax
VAT standard rate: 18%
Value-added tax (VAT) applies to most transactions at a standard rate of 18%. Exports are zero-rated. A lower 8% rate applies to basic foods, some medicines, fertilisers, public utilities and hotel accommodations. Exemptions include banking, financial and insurance services, medical services, education, and the supply of land and buildings (apart from the first supply).
Tax administration and compliance
Tax year: Corporations and individuals: calendar year
Monthly advance tax payments are due, based on the result of the previous year. Tax returns must be filed by March 10th following the year-end. Employment income of individuals is taxed by withholding. Individual tax returns are due by March 15th. An assessment of final tax is raised on the basis of the information in the tax return.
Additional tax information
Withholding taxes Dividends, Interest, Royalties 20%.
Tax treaties: Serbia continues to honour double-taxation treaties signed by the former Yugoslavia. Certain treaties have been renegotiated and some new treaties have been concluded.
Dividends: Income from dividends received from residents is not included in taxable income. Income from dividends received by individuals based on their shareholding is subject to 20% tax on income from capital, the tax being levied on 50% of dividends.
Revenue protection: There are transfer-pricing and thin-capitalisation rules. For thin-capitalisation purposes, the debt/equity ratio is 4:1. There are no anti-haven (CFC) rules.
Groups: Consolidation is possible for resident 75% groups.
Incentives: Newly established entities in underdeveloped regions; investment in fixed assets; employment of new workers.
Other taxes: Customs and excise duties, Inheritance and gift tax, Real estate tax, Tax on gambling and lottery winnings, Tax on transfer of immovable property. |
|
Register
Log in
FAQ
Search
Memberlist
