Branch formation in Serbia

If you want to continue doing business with your old (offshore or onshore) entity, we offer a unique solution. A foreign company can operate in Serbia through the registration of its business in the Serbian business registry.

According to article 567 the branch of the company (hereinafter: the branch) is a separate organizational part of the company, through which the company performs activities in accordance with the law. The branch does not have the status of a legal person, and in legal transactions, it acts on behalf and for the account of the company. An enterprise shall be liable unlimited for the obligations towards third parties arising in the business of its branch.

Due to this, the branch can not become a subject of suit, bankruptcy and liquidation.

According to the procedures of the Serbian business register, the branch receives a new tax number. Thus, the organizational part of the offshore entity becomes a resident of Serbia. Bearing in mind the new, cautious approach of banks to non-resident entities, the “legalization of business” through the opening of the branch guarantees a calm attitude of banks to the branch – the new resident.

On the other hand, when opening non-resident accounts, banks insist on a clear structure of the legal entity. The experience with banks indicates the negative practice of working with trusts, so the clients are often forced to remove all nominal structures, which means almost complete change of the organizational structure of the company in order to increase the chances of opening an account. Such conditions often do not correspond to the needs, opportunities and priorities of clients.

At the moment, all banks offer the service of opening a non-resident account, but according to a number of Serbian bankers, this cumbersome operation often does not correspond to the interests of banks. In connection with this, the opening of a non-resident account becomes a long bureaucratic process (clients will have to wait for several months for the bank’s decision). Most importantly – by all criteria it is a process with an indefinite end.

On the other hand, after registering the business of an offshore entity in the Serbian business register, banks calmly refer to the new resident structure, and are ready to open its account immediately. In this case, the bank account can be opened in less than 3-4 days, in any bank.

It should be recalled that the Serbian branch can be opened without your presence – with a limited power of attorney in the name of our lawyer.

Furthermore, the owner of an appointed branch director of thr offshore entity is able to apply for a residence permit in Serbia, which allows him to enjoy the tax, organizational and other benefits of living in Serbia.

The branch of the company (hereinafter: the branch) is a separate organizational part of the company, through which the company performs activities in accordance with the law.

The branch does not have the status of a legal person, and in legal transactions, it acts on behalf and for the account of the company.

An enterprise shall be liable unlimited for the obligations towards third parties arising in the business of its branch.

Original text of the Article:

https://www.paragraf.rs/propisi/zakon_o_privrednim_drustvima.html