South East Europe

Starting a Business in

Uzice, Serbia - South East Europe

Below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

The information appearing on this page was collected as part of the Doing Business subnational project in South East Europe. Download this Doing Business report or explore other cities and topics.

No. Procedure Time to Complete Associated Costs
1 Notarize the memorandum of association and lease contract at the Basic Court

The notarization cost depends on the amount of capital and the value of the lease. The promoters must notarize at least four copies of the memorandum of association and the lease contract. As of July 2009, the Law on Court Taxes established a new fee schedule based on the incorporation contract value (start-up capital): a. Incorporation contract value of up to RSD 10,000: RSD 980; b. From RSD 10,001 to RSD 100,000: RSD 980 plus 1% of contract value; c. From RSD 100,001 to RSD 1,000,000: RSD 2,900 plus 0.5% of contract value; d. Over RSD 1,000,000: RSD 12,600 plus 0.25% of contract value; Note that the fee will not exceed RSD 39,000. In addition, the promoter will be assessed miscellaneous fees to notarize the lease contract and the memorandum of association: a. Notarization request: RSD 70 (applies to one or several documents); b. Notarization of signature specimen with competent court: RSD 160 per signature; c. Signature verification of proxy (power of attorney): RSD 560.
1 day RSD 22,503 (see comments)
2 Open a temporary bank account; pay founding deposit or its part and all other fees

The founding deposit is paid to a temporary account at one of the commercial banks. The decision or contract of incorporation must be submitted to the chosen bank to open a temporary bank account. At least half of the initial capital is payable in advance, and the rest is due within 2 years of registration. After registration is completed, the funds are transferred to a company Giro-account, which may be used for business transactions. The company must obtain a payment slip from the bank.
1 day No cost
3 Apply and obtain the registration certificate, tax identification number and certify the signatures (three copies) for opening bank account at the Serbian Business Registers Agency (SBRA)

Under the Business Registration Law (effective July 2004), the company registration was transferred from the commercial courts to the Serbian Business Registers Agency (SBRA). Instead of two separate procedures, the SBRA now issues the registration number and code of the Republic Statistical Agency (RSA) simultaneously with the Registration Certificate. The Registry also administers the registration with the tax authority and issues the Tax Identification Number (TIN) as well as the registration for pension fund (PIO Fund) and Health Fund. Unlike in Belgrade, in other cities entrepreneurs still have to obtain confirmations from the Pension Fund and the Health Fund. The company can obtain all forms on-line. The required forms for the establishment of a company are: a. Company registration request and application form (downloaded from the SBRA website—www. apr.gov.rs—free of charge); b. Request for opening an account and request for transfer of money from a temporary bank account to a company permanent account (requests are obtained from a commercial bank free of charge); c. Tax identification number (TIN) application form—Form JRPPS-2 (downloaded from the SBRA website free of charge); d. Registration of lease questionnaire (obtained from the Tax Administration free of charge); e. VAT Form (downloaded from the Tax Administration website—www.poreskauprava.gov.rs—free of charge); f. Health Fund form OPD and Form M (obtained from the Post Office). To register a company, the applicant must also submit additional documents: a. Set of registration forms; b. Contract of incorporation (deed on establishment) or decision on the company founding with authenticated signatures of founder(s) that are notarized; c. Decision of founders on appointment of the director; d. Information on the founder(s) (i.e. registration documents if the founder is a legal entity or identity number and proof of registered residence if the founder is a physical person). If the documents are in a foreign language, they must be translated into Serbian by an authorized court translator (fee is about RSD 800 per page); e. Certified signature on the OP form of the director (or deputy director or other authorized person); f. Evidence of payment of the administrative fee; g. Bank confirmation that the capital has been deposited to a temporary bank account or certified statement from the founder that the financial capital has been secured; h. Power of attorney if an attorney-at-law files the registration. SBRA examines the request to determine whether it complies with current legislation and whether these documents are attached. The Registry publishes the company registration on the Internet.
1 day RSD 5,750 (RSD 4,000 for application form + RSD 1,750 for the registration number and the code of the Republic Statistical Agency)
4 Open a permanent business account with the commercial bank

The documentation for setting up a permanent business account with the commercial bank varies from bank to bank. The following documents are generally submitted: a. Original or certified copy of the company’s registration with the SBRA (evidence of the company identification number and other relevant data); b. Application for opening the permanent account; c. Contract for depositing funds; d. Tax Identification Number (residents only); e. The bank-provided specimen card for legal entities (original); f. Copy of identification cards of the founders; g. Copy of incorporation deed. At this point, the founders convert the personal bank account into the company’s bank account and deposit the minimum capital. Although the law allows for in-kind contributions (labor, machinery, or other assets), in practice, the founders are required to deposit the full amount in cash. The new Law on the Prevention of Money Laundering and Financing of Terrorism ("Zakon o sprecavanju pranja novca i finansiranju terorizma" Official Gazette of the RS", No. 20/2009 and 72/2009) provides that, in order to open a permanent account, the relevant bank must verify the chain of ownership of a company, as well as all persons and entities holding 25% or more of the capital of the company's shareholders/members.
1 day No cost
5 Make stamp and seal

Cost depends on number of words, design, etc. The stamp maker must have a copy of the registration decision.
1 day RSD 2,500
6 Register with local tax authority

Upon receiving the Tax Identification Number, the company's representative must register with the local tax authority by submitting the following documents: a. SBRA Registration Certificate (copy); b. Tax Identification Number Certificate (copy); c. Employment contract of the general manager or company founder; d. Completed VAT registration form. Note that according to the amendment to the Law on Value Added Tax adopted on June 30, 2007, the total (generated or projected) turnover which will oblige a company to submit a completed VAT registration form is increased from RSD 2 million (approx. EUR 20,000) to RSD 4 million (approx. EUR 40,000); e. Certified OP form; f. Statement on employed workers; g. Certified lists of taxpayer real estate, motor vehicles, and aircrafts; h. List of all stores and numbers of fiscal cash registers; i. Agreement concluded with the bookkeeping agency; j. Copy of the agreement on opening of permanent bank account and a copy of specimen card. Depending on the local tax authority, some or all of the above documents must be submitted to the tax authority no later than 10–15 days after obtaining the Personal Tax Number.
7 days No cost
7 Register the employment contracts with the Employment Organization/Fund

Company founders must submit and certify the following: a. Application for insurance (the new Form M1); b. Application for insurance and establishment of employment (the old Form M1); c. Application on vacancy for working place along with the employee's medical-care booklet (Form E1); d. Application for establishing or terminating employment (Form E3); e. Application on beginning/ending/changing the terms of the payers of the contributions (Form ROD 1); f. Employees’ identity cards and employment contracts; g. Copy of the SBRA Registration Certificate.
1 day No cost
8 Obtain confirmation from Pension Fund

In order to obtain confirmation from Pension Fund, founders must submit the following documents: a. Application for insurance (Form M1); b. Application for personal taxpayer’s number of contribution payers (Form M4); c. Form E1, E3 and employment contract. If request to obtain confirmation from Pension Fund is not submitted within 8 days from the start of employment, it is also necessary to submit a statement that explains reasons for late submission. The personal taxpayer’s number will be issued within 24 hours and it is necessary to come to the Pension Fund twice.
2 days No cost
9 Obtain confirmation from Health Fund

In order to obtain confirmation from Health Fund, company will have to submit the following documents: a. Employees’ identity and health cards and employment contracts; b. Application of insurance and Application for establishing employment (M1 and M2); c. Application on beginning/ending/changing the terms of the payers of the contributions (ROD 1); d. List of all issued health cards in the company.
1 day No cost
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