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

Conditions for registration of communal activity as the predominant activity of a business entity

The provisions of the Law on Communal Activities (“Official Gazette of RS”, no. 88/2011, 104/2016 and 95/2018) define communal activities and regulate the general conditions and manner of their performance.

The provisions of Article 2, paragraph 3 of the Law on Communal Activities (“Official Gazette of RS”, no. 88/2011, 104/2016 and 95/2018) stipulate that communal activities are:

  1. supply of drinking water
  2. purification and removal of atmospheric and wastewater
  3. production, distribution and supply of thermal energy
  4. municipal waste management
  5. urban and suburban passenger transport
  6. management of cemeteries and burials
  7. funeral activity
  8. management of public parking lots
  9. provision of public lighting
  10. market management
  11. maintenance of streets and roads
  12. maintenance of cleanliness on surfaces of public use
  13. maintenance of public green areas
  14. chimney sweep services
  15. animal hygiene activity.

Continue reading Conditions for registration of communal activity as the predominant activity of a business entity

Loss of Sole Trader Capacity and Continuation of Performance of Activity by Heirs

The status and position of sole traders are regulated only by the provisions of the Companies Act (“Official Gazette of RS”, No. 36/2011, 99/2011, 83/2014 – other Law, 5/2015, 44/2018, 95/2018, 91/2019 and 109/2021) (from now on: the Law).

Article 91, paragraph 1 of the Law stipulates a general rule that a sole trader shall lose the capacity of a sole trader by deletion from the business entities register. Deleting sole traders from the business entities register has a constitutive effect and acts pro futuro.

Deletion of a sole trader shall be executed due to cessation of business operations. Sole trader shall stop doing business by notice of unregistering or by operation of law. Sole trader may not unregister at a date earlier of the day of filing the application on cessation of business operations with the competent registration authority.

Deletion from the register may not be done retroactively.

Continue reading Loss of Sole Trader Capacity and Continuation of Performance of Activity by Heirs