Conditions and methods of financing foreign business

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

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.

Continue reading Specifics of branch operations in Serbia

Capital transactions according to Law on foreign currency transactions

According to the provisions of Law on Foreign Currency Transactions (“Official Herald of the Republic of Serbia”, Nos. 62/2006, 31/2011, 119/2012, 139/2014 and 30/2018) capital transactions shall be transactions between residents and non-residents and the purpose of which is the transfer of capital.

Capital transactions shall be the following:

  • Direct investments
  • Investments in real estate
  • Transactions with securities
  • Transactions with financial derivatives
  • Transactions with investment and voluntary pension funds
  • Credit facility operations
  • Guarantee transactions
  • Deposit operations
  • Operations based on insurance contract in line with the law governing insurance
  • Unilateral transfers of means of payment (personal and physical). Continue reading Capital transactions according to Law on foreign currency transactions