How to Open a Brokerage Account in Serbia

Brokerage Account in Serbia

More and more savers are turning to brokerage accounts as they look for ways to maximize their emergency funds in an environment where traditional savings accounts are offering interest rates of just 0.09% on average.

Before opening a brokerage account in Serbia, you’ll need to do some research to figure out which one is right for you. First, look into your options at financial companies like Erste Bank, OTP Bank, Raiffeisen Bank and others. You can also look into online brokers like BDD Tradewind 24 AD.

Once you’ve opened an account, which is free, you’ll transfer funds to it to buy investments.

The most important thing to watch out for: fees. There are a variety of fees associated with a brokerage account, just like any investment account, which will largely depend on the broker that manages the account. Major fees to consider include the account maintenance fee, which is a monthly, quarterly or annual fee charged by some brokers, and commissions, which represent the fees paid to a broker to execute a trade.

How to Apply for a Brokerage Account as Non-residents of Serbia

If a client, natural or legal person, is not a resident of the Republic of Serbia, the list of documentation to be submitted differs from the documentation submitted by residents.

1) In terms of a natural person of a non-resident, the following shall be submitted:

• Certified photocopy of the client’s personal document – ID card and passport;
• Photocopy of a tax power of attorney;
• Photocopy of a personal document of the tax representative (and the original for inspection);
• Decision of the Tax Administration on the obtained TIN.

If the Agreement is concluded through a proxy, the non-resident client is obliged to submit the following:

• Certified photocopy of the client’s document – identity card and passport of a foreign natural person;
• Photocopy of a tax power of attorney;
• Photocopy of a personal document of the tax representative (and the original for inspection);
• Decision of the Tax Administration on the obtained TIN;
• Power of attorney for concluding the Agreement and conducting securities trading (original or certified photocopy in a foreign language and original of a translation made by a certified court interpreter);
• Certified photocopy of a personal document (identity card and passport) of the person to whom the power of attorney was given;
• It is necessary that the competent authority in your country (court or notary) certifies the power of attorney, as well as the general power of attorney for representation (in some countries, in addition to notarization, it is necessary to perform additional certification, which means that the court or other competent authority, e.g. the ministry puts an apostille stamp on a document certified by a notary);

Note: To open a special banking on behalf of a non-resident natural person, the authorized person needs a copy of the tax power of attorney and general power of attorney (for the bank), because the foreign person is the future owner of shares. Also, one copy of the general power of attorney is required for the Tax Administration due to the tax return on behalf of a foreign natural person.

2) In terms of a non-resident legal entity, the list of documents to be submitted looks like this:

• Excerpt from the register of companies or other appropriate registers from which the legal form of the organization is visible, as well as its seat, address and representative – not older than 3 months (original or certified documentation for inspection and photocopied documents together with the original of the translation made by a court interpreter);
• Translation of registration documents, stamped by a certified court interpreter;
• Certified photocopy of a personal document of the representative of the legal entity (identity card or passport) and the previous owner or owners;
• Proof of appointment of the tax representative (decision and certified power of attorney given to a person who is a citizen of the Republic of Serbia);
• Photocopy of a personal document of the tax representative (and the original for inspection);
• Decision of the Tax Administration on the obtained TIN;
• Statement of the responsible person confirming the accuracy and validity of the documents;

Note: If one of the owners of the legal entity concluding the contract is another legal entity with a share of more than 25%, an excerpt from the register (not older than 3 months) is required for that legal entity, up to the ultimate owner-individual with a participation of over 25% and an identification document for that person (beneficial owner).

If the Agreement is concluded through a proxy, the non-resident legal entity is obliged to submit the following:

• If you want to conclude the Agreement with Brokerage Company through a proxy (a person who is not a representative of a foreign legal entity), you need a power of attorney to conclude the Agreement and trade in financial instruments (original or certified photocopy in a foreign language and original of a translation made by a certified court interpreter), as well as a certified photocopy of a personal document (identity card or passport) of the person to whom the power of attorney was given;

Notes:

• In order to open a dedicated bank account on behalf of a non-resident legal entity, the authorized person needs a copy of the tax power of attorney and general power of attorney (for the bank), because the foreign person is the future owner of shares. Also, one copy of the general power of attorney is required for the Tax Administration due to the tax return on behalf of the foreign legal entity.
• Complete documentation is certified in the country of origin by a notary or court, while in some countries, additional certification is required on top of the notarization, which means that the court or other competent authority (e.g. ministry) puts apostille stamp on the notarized document. After that, the court interpreter translates and verifies the documentation.

Welcome to Serbia team will help you to open a brokerage account in Serbia and navigate your way through the various documentation.

Please contact us for more information.