Register an Association in Serbia
An Association registered in Serbia will let you protect your assets and improve your personal information confidentiality level. It is possible to register an Association in Serbia without leaving the comfort of your home.
A Serbian Association: what it is and how it can be used
An Association established in Serbia is a healthy alternative to a holding registered in Switzerland, for example. It will provide for improved confidentiality of the beneficiaries’ financial information and a higher level of asset protection.
An Association in Serbia has the status of a legal entity. Thus, it has to be registered with the Serbian Registrar.
A Serbian Association is a freely established not-for-profit organization. An Association can unite local and foreign persons both natural and legal. The essential requirement is that all association members shall pursue common goals that do not violate the Serbian Constitution.
Several Associations can form a Federation. In addition, every Association can have its divisions (such as branches, affiliations, clubs, etc.) in any country of the world. These divisions are considered parts of the parent structure.
One of the specifics of the Serbian Association is that its constitutors are not regarded as beneficiaries by the local authorities nor banks. Only the President who manages the Association is regarded as its beneficiary. A Serbian citizen or a permanent resident can be appointed Association President.
Apart from that, Association constitutors can be replaced, added, or removed from the list. The procedures are the same as in any joint-stock company. These features provide for extraordinary flexibility in the business management.
An Association is entitled to use the full range of banking services. Banks in Serbia will gladly service associations registered in the country. The bank regards the Association President as its beneficiary and as far as everything else is concerned, this organization is treated as any traditional business company in Serbia.
Association constitutors’ legal risks are minimal and their commercial risks are limited by the activities of the hired director (president) as is the case with any other business company. The constitutors can supervise the director’s activities and replace him or her should such need arise.
Serbian Associations have the right to own other companies and legal entities, which is exactly what makes them an alternative to the classical holdings. Establishing a Charity Foundation together with an Association in Serbia, you will obtain the level of asset protection and information confidentiality hardly achievable with any other form of company ownership.
Associations in Serbia: the organizational structure
Let us look into the organizational structure of a Serbian Association and describe the conditions necessary for establishing one.
To start with, an Association in Serbia shall have minimum three constitutors, or founders. One of them shall be a citizen, a permanent resident, or a temporary resident of Serbia. Both private individuals and legal entities – local and foreign – can act as Association constitutors.
The two most important things to do when forming an Association in Serbia is put together a Memorandum of Association and By-Laws and appoint the Association President or Director.
The By-Laws shall indicate the goals that the Association is going to pursue. These goals can be local or global.
The Association is managed at two levels: by the General Meeting and by the President.
The General Meeting has the supreme level of authority. All the Association members or their representative shall gather at such Meetings.
The President is a physical person (or several persons) who is (are) Serbian citizen(s) or resident(s). The president is authorized to represent the Association in any matters including dealings and negotiations with banks. It is the President who is considered the Association beneficiary.
The Association is funded by members’ dues, voluntary contributions, gifts, interests, dividends, rental payments, and all other legal sources of income.
Private individuals who make contributions or gifts to the Association can obtain tax deductions.
When the Association receives funds, it has to pay the gift tax of 2.5%.
If the Association wants to conduct commercial activities (which is allowed by law), it has to pay the profit tax of 15% as any other business company in Serbia. However, certain conditions have to be met if the Association is to engage in commercial activities:
- The commercial activities shall be in line with the Association goals as described in the By-Laws;
- The commercial activities shall be specified in the By-Laws;
- The commercial activities are conducted to the extent that is needed to achieve the set goals but not to a larger extent.
Distribution of profits to Association constitutors, members, directors, employees, etc. is prohibited.
In other words, the Association assets can be used only for the goals indicated in the By-Laws. The goals, however, can be various.
It has to be borne in mind that an Association in Serbia is obliged to keep financial records as any other commercial company in the country.
Association in Serbia: the list of documents required for its registration
The following documents have to be supplied to the Serbian Registrar:
- Memorandum of Association;
- Association By-Laws with the goals clearly indicated;
- Minutes of the constitutional convention;
- Association President appointment decree;
- A copy of the President’s passport (if he or she is not a Serbian citizen, his or her foreign passport shall be provided together with the residence permit);
- An application form for Association registration in Serbia.
Association in Serbia: registration costs
The price of the Association registration service is 3200 EUR.
The price includes the following:
- Preparation of registration documents;
- Association registration proper;
- Payment of state registration duties;
- Full support in bank account opening for the Association.
Some additional expenses will have to be incurred:
- Translation into Serbian – 20 EUR per page;
- A Power of Attorney that will authorize our representative to register the Association with the Serbian authorities and open a bank account for it – 2200 EUR;
- Provision of a registered legal address and accountant services – from 200 EUR per month.
The procedure of registering an Association in Serbia
- If you are interested in establishing an Association in Serbia, you can learn more about this opportunity by writing to us to [email protected].
- When you have clarified all the details, you can decide to establish an Association with a bank account in Serbia.
- Then you have to cover the cost of our services and pay from 3200 EUR.
You can make a bank transfer, use your credit card, pay via Web Money, Western Union, or Money Gram services, or otherwise pay us in Bitcoins.
- Supply the full package of registration documents to us.
- On receipt of the payment and the documents, we will start registering an Association for you in Serbia.
- When the Association is established and the bank account is opened, you can fund it in any way you like thus making your Serbian Association fully functional.
Please do not hesitate to contact us at [email protected] if you have questions. Please use the same e-mail address to request the service. We will be glad to assist you in securing your assets and increasing your wealth.