Setting up a company in Serbia and its registration is the first and most important step if you have decided to start your own business. Before you start the procedure, you have to know the legal form of your company.
The legal forms of business entities in Serbia
According to the Companies law of the Republic of Serbia, there are several types of organizing legal persons (legal forms of business entities). The best one are:
- A limited liability company (best option, recommendation)
- An entrepreneur
1.1. A limited liability company
A limited liability company is a type of company that can have one or more founders and in which every member has a share in the share capital of that company. The share capital of the LLC is the sum of all the shares brought by the founders (money and non-money share) The height of share brought by founders and member does not have to be the same, but it can differ.
The founders of the LLC own a share in the share capital of the company. This means that only one member of the LLC can be the owner of the share, but there also can be more than one owner of the share in the share company. The minimal amount of share capital is 100 dinars.
The members of the LLC are responsible for the company’s commitment only in the height of their share or to the height of paid or brought share. They are not responsible for the commitment with their property, but they bear risk proportional to their share. Besides that, the members of the LLC can exercise their rights in the company, also proportional to their share (voting right, sharing profit). If it comes to abuse or damage by one or more members of the company, then they become responsible.
1.2 An entrepreneur
An entrepreneur is a physical person registered in the Business register agency for performing activities. The entrepreneur is registered as a form of the company by one physical person and it is set up to perform a business activity to make a profit (or gain)
Every unemployed person can be registered as an entrepreneur. Besides that, a person who has signed a labor contract can be registered as the entrepreneur ( the employed persons). In that case, it is set up as an entrepreneur from labor relations. For all the commitments or damage made, the entrepreneur answers with his personal property
