By temporary stay – residence permit

Permanent residency permit can be issued to a foreign citizen that has continuously stayed in Serbia for a period longer than five years, based on temporary stay – residence permit, up until the date of request submitting.

To a foreign citizen who obtained a temporary residence permit for the purpose of a job, employment, education, and study, half of the time spent in Serbia is counted as the time required for authorization of permanent residency permit. Also, a foreigner who stays in Serbia with repeated absence from Serbia up to ten months or with a single absence up to six months within five years is considered to be continuously staying in Serbia.

By marriage with a Serbian citizen

A foreign citizen who has been married for at least three years to a Serbian citizen and who has been granted permanent residence in Serbia may be admitted to citizenship of the Republic of Serbia if he submits a signed statement that he or she considers Serbia to be his or her country.

The marital community of living in the territory of Serbia or common law marriage is considered marriage, as well.

As a juvenile

As a juvenile, who obtained temporary stay – residence permit, may obtain a permanent residence permit in Serbia, if one parent is Serbian citizen or foreign citizen that has already acquired a permanent residence permit and with the consent of another parent.

Submitting a request for a permanent residence permit

Request for the residence permit is to be submitted at writing-office of the Ministry of Interior Affairs.

When submitting a request for the approval of permanent residence, the following shall be enclosed:

1. A valid passport;
2. Proof that the foreigner has enough funds to live on his own in Serbia;
3. Proof that the foreigner possesses health insurance;
4. Registration of the address of the residence in the Republic of Serbia – address of the apartment where the applicant has registered in the process of obtaining a temporary residence permit;
5. Proof of payment of the prescribed administrative fee.

In addition to these documents, depending on the basis on which the foreigner was previously granted temporary residence in the Republic of Serbia, which is the basis for filing a request for permanent residence, one of the following documents is enclosed:

1. Proof of ownership of the immovable property -excerpt from real estate list and other;
2. Proof of working engagement in the Republic of Serbia;
3. Proof of the existence of a kinship with a Serbian citizen or a foreigner that has already obtained permanent residence permit – excerpt from the register of births;
4. Marriage certificate, not older than 6 months, and a birth certificate for a spouse, if the spouse is a citizen of the Republic of Serbia;
5. A document stating an existence a marriage with a foreigner who has been granted permanent residence, in accordance with the national legislation of the country where the marital union is established;
6. Evidence of free marital status for both partners and other evidence of the existence of an extra-marital community;
7. Proof of origin from the Republic of Serbia – birth certificate for the applicant and birth certificate for one or both parents of the applicant.

If you have any question or you need assistance regarding obtaining both temporary and permanent residence permit in Serbia, or maybe in some other European country feel free to contact Asst Office at any time.

Business contracts can be viewed as a legal document and as a promise between two or more people or companies. Generally, it is a written document or oral promise between two or more people or companies, offend referred to as Contractual Parties or simply Parties, who agreed on certain terms, rights, and obligations.

It is our belief that it is always better to put everything in writing and prevent any misunderstanding with your clients or business associates.

A contract may be used to define various transactions, such as the sale of land or goods, or the provision of business services. Whether you are a sole proprietor, digital nomad, freelancer, blogger or you manage a company, a contract is something you will undoubtedly come across. Therefore, there are several things you need to know before drafting and signing one.

Rights versus Obligation

When drafting or signing a contract be sure to stipulate and to carefully read what are the rights and obligations of each Party. You need to make sure that every Party knows when and what they should or should not do.

This means to stipulate things like payments, deadlines, exclusivity, the scope of work, confidentiality clause and any other specific term or condition that is important to you. Simply put, write what you give and what you get.

Even if some terms cannot be stipulated in the contract and will be stipulated additionally, the state in your contract when will be those terms stipulated and how will be stipulated – e.g. Annex to Contract. Small details are everything in business cooperation.

Define how will you solve misunderstandings

It is important to define what will happen if any Party breaches the contract. Contractual penalties or liquidated damages should be part of the contract upon a specific breach by one Party e.g. late performance. These can be stipulated as a hold of advance payment, payment of compensation or termination of a contract.

Additionally, you can stipulate that Parties will first try to settle the differences amicably and only if that does not give desired results Court or Arbitration proceeding will be in order.

Court and Arbitration Jurisdiction

Court Jurisdiction must be stipulated in the contract, especially if Parties are from different cities or countries. In the 21st century, contractual Parties are often from a different continent. To settle all problems among Parties it is substantially to define which Court will be competent.

Bear in mind that you can even stipulate International Arbitration to be competent. In case of any contract breaches or problems in cooperation between Parties, not all misunderstandings can be solved amicably. Court and Arbitrations should be used as a last resort when dealing with difficulties.

Be clear with exit terms

Although business cooperation can begin on grounds that suits all Parties, there comes a time when previously stipulated terms and conditions don’t work anymore. Therefore, your contract should contain details such as notice period and how one Party should notice other Party regarding contract termination.

These terms can also include compensation or competition or some other clause. By stipulating this you will avoid any unpleasant situations and possibly keep good relations with your clients or associates. Just because you are terminating this contract that does not mean you will never cooperate again.

Consult with Professionals

If you are not sure whether something should or shouldn’t be included in the Contract consult with professionals. This can be either an Attorney at Law, Lawyer or Legal consultant. If you want to know more about contracts or you need help with drafting, reviewing or translating one, Asst Office is here to provide you with the best solutions and pieces of advice.

Residence permit

In order to obtain the work permit a foreigner must, in the first place, obtain the approval for a temporary stay – residence permit.

Application for the residence permit is submitted to the Ministry of Interior Affairs with the following documents:

1. Proof that the foreigner has enough funds to live on his own in Serbia;
2. Proof that the foreigner possesses health insurance;
3. Proof of the purpose of the temporary stay in Serbia;
4. Proof that administrative fees are paid.

The Approval is issued in 30 days after the Application has been submitted. It is issued in the duration of one-year maximum (usually first two times resident permit is issued for a period of 6 months) and can be extended afterward. The Approval is issued in the travel document of the foreigner.

Once the temporary stay has been approved, the foreigner can initiate the procedure of obtaining the work permit.

Work permit

In case if the work permit is sought for employment, the application for issuance of the work permit is submitted by the Employer to the National Employment Agency. The application must be followed with the following documents:

1. Certificate of Incorporation of the Employer;
2. Travel document of the foreigner;
3. Approval for Temporary Stay;
4. Certificate issued by the Central Health Care Registers certifying that the Employer has not discharged any employees for the causes of technical, economic or other organizational changes on the workplace that the work permit is applied for;
5. Certificate issued by the National Employment Agency that for past one month prior to the application there have been no Serbian citizens eligible for the workplace that the work permit is applied for;
6. The proposition of the Employment Agreement in according to the law;
7. Excerpt from the Regulation on the Organisation and Systematisation of Works related to the work of the foreigner;
8. Diploma or another certificate on professional qualifications;
9. A certificate stating that the foreigner meets the requirements prescribed for the work that the foreigner applies to;
10. Proof that the administration fee has been paid.

The procedure may take up to 45 days, but usually, it is done in a shorter period.

In case if the work permit is sought for self – employment, the application for issuance of the work permit is submitted by the foreigner. An application must be followed with the following documents:

1. Proof of professional qualifications and qualifications for the job;
2. Proof of lease or ownership of business premises (contract or pre-contract);
3. Proof of available equipment needed for work;
4. Declarations on the type, duration and scope of work as well as the number and structure of employees;
5. Letter of Invitation;
6. Proof that the administration fees are paid.

One must begin with work no later than 90 days after obtaining a work permit.

Corporate income tax

The standard tax rate is 15 percent. Tax incentive is offered in the way of tax exemption from a corporate income tax for a period of time up to 10 years (proportionally to the level of investments) in the event that the company applying for tax exemption cumulatively secures the investment of app. 8,5 – 9 million € in its fixed assets, and, throughout the investment period, employment of minimum 100 employees for an indefinite term.

Withholding tax on dividends distribution

The standard tax rate for shareholders – legal persons is 20 percent, and for shareholders – individuals are 15 percent. Please note that Serbia disposes of a wide range of Double Tax Treaties (DTTs) including more than 50 countries – thus allowing more favorable tax treatment of dividend distribution, as well as avoidance of double taxation relevant to the various type of income.

Serbia has signed DTTs with the following countries:

1. Albania
2. Greece
3. Pakistan
4. Armenia
5. Hungary
6. Poland
7. Austria
8. India
9. Qatar
10. Azerbaijan
11. Iran
12. Romania
13. Belgium
14. Ireland
15. Russia
16. Belorussia
17. Italy
18. Republic of Korea
19. Bosnia and Herzegovina
20. Kazakhstan
21. Slovak Republic
22. Bulgaria
23. Kuwait
24. Slovenia
25. Canada
26. Latvia
27. Spain
28. China
29. Libya
30. Sri Lanka
31. Croatia
32. Lithuania
33. Sweden
34. Cyprus
35. Luxembourg
36. Switzerland
37. Czech Republic
38. Macedonia
39. Tunisia
40. Denmark
41. Malaysia
42. Turkey
43. Egypt
44. Malta
45. Ukraine
46. Estonia
47. Moldova
48. United Arab Emirates
49. Finland
50. Montenegro
51. United Kingdom
52. France
53. Netherlands
54. Vietnam
55. Georgia
56. North Korea
57. Germany
58. Norway

Withholding tax on royalties, interest, lease of real estates and other assets in the Republic of Serbia
The standard tax rate is 20 percent. More favorable tax regime may be applied based on DTT, if applicable. This also refers to services rendered in Serbia by non-resident to a Serbian resident.

Value Added Tax (VAT)

The standard tax rate is 20 percent, and it is applicable to trade of goods and services on the Serbian territory, as well as for importation of goods into Serbian territory. VAT registration threshold amounts to 8 million RSD (app. 65.000,00€) in a period of 12 months.

Personal Income Tax

The Personal Income Tax rate in Serbia is 10 percent. Additional contributions are shared between employee and employer, where contributions paid by an employee are rated at 19.90 percent: 14 percent state pension fund, 5.15 percent state health fund, 0.75 percent unemployment fund.

Additional contributions by the employer are rated at 17.90 percent: 12 percent state pension fund, 5,15 percent state health fund, 0.75 percent unemployment. This sets the total Social Security Rate at 37.80 percent.

Also, the tax burden for employers can be reduced through a variety of financial and tax incentives. The tax loss stated in the tax return can be carried forward and offset against future profits over a period of up to 5 years.

If a taxpayer already paid tax on the profit generated abroad, he is entitled to a Corporate Profit Tax/Personal Income Tax credit in Serbia to the already paid amount, and vice versa (provided there is a Double Taxation Treaty with the country of residence of the taxpayer).

Serbia and Turkey have Double Taxation Treaty assuring 5 – 10 percent tax rate for dividends distribution and other interesting advantages.

Annual Income Tax

Annual income tax for higher salaries is rated at 10 percent and is set for annual income above the threefold of the average annual salary in Serbia, while the rate of 15 percent is set for the annual income above the amount of 6 times average annual salary in Serbia.

In general, Serbia is rated 48 among 190 economies in the ease of doing business, according to the latest World bank annual ratings.

Most marketers and business owners already know that in order to increase traffic to your website you absolutely need SEO. It can even be said that SEO is the key factor in getting your site seen among others.

If your website and content, of course, are not optimized for both mobile and desktop users, believe it or not, your business might suffer.

What most people don’t know is that there are many numerous benefits besides increased traffic. Let’s take a look at some of them:

Organic search

Organic search is probably the most important thing when it comes to SEO. After all, what good is your site if it doesn’t have visitors and customers who don’t complete a conversion.

Everybody knows that Google owns the most significant portion of the search market – much larger than Bing, DuckDuckGo, Yahoo, etc. That doesn’t mean that you should forget about the other search engines and that they don’t contribute to your website’s visibility. It just means that you must follow Google’s guidelines more carefully.

Being a highly trusted source of information according to Google will definitely get you more traffic and organic visits!

Trust

Trust. Credibility. That’s what Google wants. And, of course, that’s how you want your customers to see you, right? As a credible source of information and/or products/services.

In order to establish that authority you simply must:

• Create a quality backlink profile
• Optimize on-page elements

All of that takes patience and effort, so don’t expect to see the results in a couple of days or even months. This is a process that takes long, but it pays off.

User Experience

If the visitors can’t find what they’re looking for – your website is bad and you should feel bad. Google now knows how to interpret positive user experience, so make your website user-friendly.

Of course, also avoid stuffing your site with keywords. Treat Google’s crawlers just like another person visiting your website. Offer your users a simple solution. Let them find out whatever they want through a few clicks.

SEO is cheap

There are many companies that offer SEO services, and most of the time it seems like you’re paying for nothing, right? You give the money to someone and nothing happens. Well, as it has been said earlier – you must be patient. In the grand scheme of things and SEO definitely brings more than what you’re paying for. If executed perfectly you’ll have a strong, relevant website that’ll “hold water” for years to come. That, of course, means more customers for you.

Visibility

Being on the second page of SERPs (Search Engine Result Pages) gets you absolutely nothing. It’s like your business does not exist. You might think that I’m a little harsh here, but ask yourself when was the last time you clicked to see what’s on the second page of Google. See? I’m right. If you’re not on the first page, you need to be.

Implementing various SEO and digital marketing strategies can only be good for your brand. Don’t wait anymore. Optimize your website and grow your site and company.

A Power of Attorney or PoA is a legal document that gives one person or company authorization to make certain decisions or undertake specific actions on behalf and for the account of another person or company. Although in most cases PoA is given to Attorney at Law, other forms of PoA are known, as well.

Function of PoA

There are lots of different reasons why people make out a PoA. In most cases, PoA is given to Attorney at Law to make legal decisions or undertake legal action before Courts and other Government authorities. In other cases, people use a PoA to allow a principal to handle their financial affairs or to run a business on their behalf and for their account, either permanently or for a period.

What would we like to do for you through PoA?

When you decide to start a business in Serbia or some other country, you can authorize AsstOffice to reserve a business name for your company before Business Registers Agency, to draft Memorandum of Association, as well as to sign and before Public Notary certificate all Contracts, Decisions and other necessary documents regarding establishment and registration of the company, and in order to protect your interests undertake all legal actions in accordance with the Law, as well as to submit a Registration Forms, Amendments to the Registration Forms, and to take the Decision on Registration from Serbian Business Registers Agency.

Besides, this you can authorize AsstOffice to sign Contract on Dedicated Deposit and open a temporary bank account for paying prescribed share capital and sign Contract on Opening and Maintaining the Dinar and Foreign Currency bank account for your company.

Additionally, through PoA AsstOffice can manage a legal entity and therefore be empowered to act as Director or Legal Representative of the other legal entity, in this case, your company.

Furthermore, you can authorize AsstOffice to hire third parties, like one of our associates, to complete a specific task or undertake a particular action.

Durable Power

Duration of PoA can be temporary, for example, to do a particular task like recruitment and selection of candidates to employ in the company, or permanent like when you authorize AsstOffice to do accounting.

What is important is that you can revoke PoA when there is a need for that kind of action. Your security must always be at first place, and when you are signing a PoA be sure that all is stipulated in such a way that can not hurt you or your business.

If you have any questions or doubts regarding Power of Attorney feel free to contact us at any time.

According to Serbian Company Law, one legal entity can be a member of another legal entity. Furthermore, it is allowed that one legal entity is registered as a legal representative of another legal entity. In addition to this that other legal entity must have at least one legal representative who is an individual.

In practice, this means that you can register your company in Serbia, register yourself as a legal representative and director of the company and agree that AsstOffice is also registered as a legal representative. By doing so, you will have full control of your company, but it will be easier for you to manage the company and to fulfill all the requirements towards government administration such as Tax Administration, Business Registers Administration and other. AsstOffice will not be authorized to make any changes or to make any payments without your permission. The scope of AsstOffice authorization is stated in the Agreement between your company, on one side, and AsstOffice on the other side, as well as in the Memorandum of Association and Registration Forms.

This type of service represents a part of legal entity management and is considered to be quite effective and usual when incorporating and operating a company in a new country, region or new market. It is representatives job to inform you about business climate, culture and customs, and to adapt your business model to requirements of the new market. Knowledge of legal and tax system is a necessity if you tend to succeed in your venture.

All of the above stated serves so that your focus is solely on business activity and give us the opportunity to do the administration work for you. This will make running a company much easier and more efficient.

One more benefit is that you can operate your business without even coming to Serbia. From company formation and opening a bank account to managing legal entity, everything can be stipulated and arranged through the Power of Attorney and Contracts.

Every Memorandum of Association, regardless of whether it is Decision or Agreement on Establishment of Limited Liability Company, in accordance with Company Law, must include following elements that governs:

Personal names and place of residence of Company members

This information is stated in your passport, and when registering a company, you should provide us with a copy of valid passport so that we can include this information when drafting a Memorandum of Association.

Company’s registered name and registered office

Each company must have its business seat address. This address is also included in your company’s business name. AsstOffice can provide you with this address or assist you with finding a suitable office space if you need one. Also, if you are digital nomad or freelancer we can provide you with the virtual address so that you fulfill legal obligation when registering a company without even being in Serbia.

Company’s predominant business activity

Every company needs to have registered at least one predominant business activity. Predominant business activity codes can be found in Activity Register. A company, apart from having predominant business activity, can also register additional business activities.

Total amount of the company’s share capital

A minimum amount of company’s share capital, monetary on non-monetary, according to Serbian Company Law is 100,00 RSD for LLC and 3.000.000,00 RSD for Joint Stock Company. Exemption of this rule can be found in stated Law and refer to specific business activities.

Amount of contributions in money and/or monetary value and description of contributions in kind made by each company member

Each company member contributes to the company either through monetary or non-monetary contributions. Non-monetary contributions are stated by the Serbian Law as things and rights.

Time when such contributions were paid in and/or made to the company’s share capital

In most cases
contributions are paid at the moment of company formation and registration, but some exemptions are noted in practice.

Equity interest of each company member in the total share capital expressed as a percentage.

Percentage of share capital owned by each company member depends on the amount of paid and/or made contributions of those members.

Designation of company bodies and their respective competencies

Company governance can be organized as one-tier or two-tier corporate governance. In case the governance is organized as one-tier, company’s bodies are:

• General Assembly
• One or more representatives, in most cases Director(s)

If the governance is organized as two-tier, company’s bodies are:

• General Assembly
• Supervisory board
• One or more representatives, in most cases Director(s)

Representation of the Company

In most cases a company is being represented by its Director, but other representatives can be stated in Memorandum of Association, as well. All representatives must be registered in the Business Registers Agency. AsstOffice offers you the possibility to act as Director or representative of your legal entity.

The duration and termination of the company

The company can be established for a fixed or indefinite period of time. This information must also be stated in the Business Registers Agency Registration Forms.

In essence, a foreigner will meet this requirement if they display the minimum needed amount at their non-resident bank account in Serbia. This amount is obtained by multiplying number 6 – because the residence permit is usually issued for a period of 6 months – by the average monthly salary in Serbia. The idea is clear – this rule puts the foreigner into the position of an employee in Serbia, who is assumed to be able to finance their life from these earnings.

Another option is for a foreigner to have a certain amount of euros in their account, which is calculated when you multiply the number of days spent in Serbia by 50 – since it is considered that 50 euros per day represent absolutely sufficient funds per diem in the account. It should be taken into account that this option requires significantly more funds in the account than the first option.

It is in both Serbia’s and the foreigner’s interest not only to be financially secured during the stay but to have the health insurance as well. For this purpose, when submitting a request for temporary residence, a foreigner should also provide proof in the form of a health booklet, private health insurance policy or health insurance from the home country with a special code that is valid in Serbia.

It takes about 3 weeks for getting residence permit after application.

Choose the Appropriate Name

In accordance with Serbian Law, the business name of the Sole Proprietor must contain the name and surname of the Sole Proprietor, the label “preduzetnik” or “pr” (in Serbian) and the place where the Sole Proprietor is situated. It may also include the name, as well as the subject of the business of Sole Proprietor. Also, the name of the Sole Proprietor must be different from the name of another Sole Proprietor with the same subject of business, so that it does not cause confusion about the identity of another Sole Proprietor. Regarding registered address, AsstOffice offers you Virtual Office Service. We advise you to check the availability of the wanted business name and, if it is available, to reserve it. Reservation is valid for 60 days.

Choose Predominant Business Activity

Even though no specific document refers to this matter, we find it very important that you define what business activity you want to do. This activity will be stated in the Registration Form. If apart from the predominant activity, you want to indicate in the business name other activities that you do, you can add a precise or less precise description of these other activities in addition to the description of the predominant activity.

Prepare Registration Forms and submit the Paperwork to Business Registers Agency

Business Register Agency is organized as One Stop Shop for registration as Sole Proprietor in Serbia. Before you submit Registration Forms, it is necessary to pay prescribed state fees and to submit Proof of Payment. Together with Registration Forms and Proof of Payment for state fees, a copy of valid Passport and Permission, Consent or other Act of the competent authority, if this is stipulated as a condition for registration by Law. It takes 3 to 5 days for them to make Decision on Registration of the Sole Proprietor.

Open a Bank Account

After you receive the approved Decision on Registration of the Sole Proprietor, you can choose a bank and open a bank account as Sole Proprietor. Whether you need help with choosing the business name, preparing Registration Forms or helping you select a bank that suits your business need AsstOffice is at your service.