Attorney Dragana Djordjevic » "Law on Business Companies" (5)

Conditions and methods of financing foreign business

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Financing of foreign business in Serbia is most often realized in the following forms:

  1. financing through direct investments (founders’ investments, subordinated loans and credits, additional payments, etc.)
  2. foreign currency lending in the country
  3. taking loans and borrowings from abroad
  4. contracting factoring transactions.

Direct investments

By the Law on Foreign Currency Transactions (“Official Herald of the Republic of Serbia”, Nos. 62/2006, 31/2011, 119/2012, 139/2014 and 30/2018 – further: Law on Foreign Currency Transactions) capital investments were defined as transactions between residents and non-residents and the purpose of which is the transfer of capital. One of the capital investments regulated by the Law on Foreign Currency Transactions shall be direct investments. Continue reading Conditions and methods of financing foreign business →

Specifics of branch operations in Serbia

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A foreign company branch office is a separate organizational unit of a company in the territory of the Republic of Serbia through which the company performs activity in accordance with the law.

A foreign legal entity may permanently perform activities on the territory of the Republic of Serbia through a branch established and registered following the regulations of the Republic of Serbia. The following rules regulate the registration and operation of a component of a foreign legal entity:

  1. Companies Act
  2. The Law on the Registration Procedure in the Business Registers Agency
  3. Foreign Trade Act
  4. Law on Foreign Currency Transaction
  5. Law on Payment Operations
  6. Law on Accounting
  7. other bylaws adopted based on the said laws.

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Company’s division plan

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The provisions of the Companies Act (“Off. Herald of RS”, Nos. 36/2011, 99/2011, 83/2014 – other law, 5/2015, 44/2018 and 95/2018) regulated the implementation procedure of status changes of the division and the spin-off.

Status change division and spin-off may involve one or several companies of the same or different legal form. They may not apply to a company in liquidation or bankruptcy unless the status change is conducted to measure reorganization following the bankruptcy act.

Division

A company may divide by simultaneously transferring all of its assets and obligations to:

  • Two or more newly incorporated companies (the division by incorporation) or
  • Two or more existing companies (the division by acquisition) or
  • One or more newly incorporated companies and one or more existing companies (the mixed division).

Continue reading Company’s division plan →