Limited liability company (d.o.o.). is commonly prefered for doing business in Serbia. In limited companies the shareholders have a limited liability, according to their shares and suitable for small and medium businesses is the private limited liability company in Serbia. The founders must have minimum share capital of 500 Euro and this type of entity cannot be formed by more than 50 shareholders. All shareholders in the limited company are liable for its earnings and debts. The major decisions of the Serbian D.O.O. are taken by the general meeting of the shareholders, while the daily decisions and the strict control on observing the articles of association are handled by a director.
Joint Stock Company (A.D.)
Closed joint stock companies share capital must be minimun 10.000 Euro and number of the shareholder can not exceed 100 persons.
Open joint stock company share capital must be minimun 25.000 Euro and number of the shareholder can be more than 100.. Open joint stock company’ s stocks can be registered with the Stock Exchange in order to increase the capital.
The Serbian general partnership
This type of company is incorporated two or more individuals or legal entities by a partnership agreement Share capital is not necessary to run this business and the capital is usually stipulated in the partnership agreement. The decisions are resolved by all the members
Foreign companies can open their branch offices in Serbia.
Tax in Serbia
Rate of the corporate tax in Serbia is 15%
VAT – Value added tax is 20% standard rate and 8% is the lower rate.