serbian private companies

Serbia company types

In Serbia it is possible to register different legal entities. Limited Liability Company (doo) is the most common form of entity in Serbia to start business.

There are also other forms available in Serbia like:

  • Private limited liability companies
  • Joint stock companies (open or closed),
  • General partnerships,
  • Limited partnership
  • Branches of the foreign companies

For start of business in Serbia the most used for is legal entity called Limited Liability Company (doo) because of simple procedure and low amount of required basic capital.

Limited liability company - D.O.O

This form of legal entity is wildly used for starting business in Serbia. Limited Liability Company is a form with up to 50 shareholders and basic capital of 500 EUR. All shareholders are liable for earnings and debts of the company. In document with name Articles of Incorporation are specified all details regarding corporation as: the name of the members and their residence address, the name of the company, the company’s main field of activity, the sum of the capital, each member contribution, an estimative formation cost. 

The shareholders contribution may be in cash, goods or in services and it’s not necessary to be equal and shares are transferable. Director of the company must submit yearly statements and also authorized auditor’s report in some cases.

Joint Stock Company (A.D.)

In Serbia are two types of joint stock (A.D): open or closed. Type is specified in the document Articles of Association with also other information: name of the members and their residence address, company name and activity, the amount of share capital, information regarding the shares, the estimative incorporation costs and if it’s necessary the date the company will cease to exist.

A closed joint stock company is limited to up to 100 shareholders and basic capital of at least 10,000 EUR. On the other hand open joint stock company may have more than 100 shareholders, but the minimum share capital must be 25,000 EUR. If not posted otherwise in the Articles of Association, the shares may be freely transferable. The dissolution causes are the same like in the case of a private limited liability company.

The general partnership in Serbia (O.D) is a legal entity based on an agreement between two or more persons willing to conduct business under the same name. Details are also defined in the Articles of Association. The member’s contribution must be equal and they are fully and equally liable for the debts and earnings.

The limited partnership (K.D) has no minimum share capital request just like the general partnership. It’s formed by two or more shareholders with different liability and contributions. In a limited partnership, one or more partners are fully liable for the losses and profits (general partners) and the rest of the partners are having limited liability based on their contribution (limited partners)

With a friendly economic environment and an advantageous taxes policy, Serbia is considered one of the most appealing countries from Europe for the investors so no matter what type of company is chosen, the success is granted.

If you have questions about Serbia, do not hesitate to contact us.