Business associations

Business entities join business associations because, in this way, companies and entrepreneurs, especially micro, small and medium enterprises, can strengthen their position on the market, coordinate activities, reduce costs, master new knowledge and experience (know-how), improve products and services, acquire missing complementary advantages, promote their brands and business, and thus increase their competitiveness and innovation, which leads to market expansion and, ultimately, higher profits.

At the macro level, all this helps increase employment, entrepreneurship and self-employment, more balanced regional development, strengthening of the economic sector, export growth and economic progress.

Business associations are divided into two types:

  • business associations with legal status effect (business associations in the status sense) and
  • business associations without status-legal effect (business associations in the contractual sense).

Article 578 of the Law on Business Companies regulates business associations with status-legal effect, stipulating that a business association is a legal person established by two or more companies or sole traders to achieve common goals. Continue reading Business associations

Directors of limited liability companies, according to the Companies Act

According to the provisions of Article 218 of the Companies Act (“Official Gazette of RS”, no. 36/2011, 99/2011, 83/2014 – other laws, 5/2015, 44/2018, 95/2018, 91/2019 and 109/2021), the legal representatives of the limited liability company are the directors, and there is no possibility that the provisions of Article 218 of the Companies Act (“Official Gazette of RS”, no. 36/2011, 99/2011, 83/2014 – dr. law, 5/2015, 44/2018, 95/2018, 91/2019 and 109/2021) to be derogated or amended.

Companies Act (“Official Gazette of RS”, no. 36/2011, 99/2011, 83/2014 – other laws, 5/2015, 44/2018, 95/2018, 91/2019 and 109/2021) regulates many issues related to directors of a limited liability company such as the number of directors, appointment, representation, management, responsibility, reporting, remuneration, dismissal, resignation, etc.

Number of Directors

A limited liability company (further: company) may have one or more directors who are legal representatives of the company and are registered in the register of business entities per the registration act. Continue reading Directors of limited liability companies, according to the Companies Act

Motor vehicle rental service (Rent a car)

A motor vehicle rental service is considered to be the rental of a motor vehicle category A and B without a driver (rent a car).

The conditions for providing the service of renting a motor vehicle without a driver (rent a car) are regulated by the provisions of the Law on Tourism (“Official Gazette of RS”, No. 17/2019).

Providers of motor vehicle rental services (rent a car)

Renting a motor vehicle (rent a car) can be performed by a company, another legal entity or an entrepreneur if it is registered in the appropriate register.

An association that performs the activity of renting a motor vehicle (rent a car) shall be obliged to enter that activity in the appropriate register. Continue reading Motor vehicle rental service (Rent a car)