When registering a business, especially when registering Limited Liability Company or Joint Stock Company, the share capital is one of the most important parts of the process. This is also true when we talk about the share capital of the Serbian company. Due to complexity here we will resent basic information regarding share capital for Serbian Limited Liability Company.
What is minimum share capital for Limited Liability Company in Serbia?
The minimum share capital of a company is at least 100,00 RSD (around 0.87 EUR), unless a special law provides for a larger amount of share capital for companies performing certain activities. The members of the company are obliged to pay the registered founding capital within 5 years from the date of registration of the Founding Act. This means that you can register a company without previously paying share capital.
How can share capital be increased?
There are 5 different grounds on which the share capital of the Serbian Company can be increased:
- new contributions of existing members or members joining the company;
- converting reserves or profit of the company into share capital;
- converting of claims from the company into share capital;
- status changes that result in an increase in share capital;
- conversion of additional payments into share capital.
How can share capital of the Serbian Company be decreased?
The share capital of a limited liability company may be reduced, but not below the minimum share capital in following situations:
- to cover losses of the company;
- to create or increase the Company’s reserves to cover future losses or to increase its share capital from the Company’s net assets;
- in the cases referred to in Article 46, paragraph 3 and Art. 155 (withdrawal and cancellation of shares) and 159 (disposing of own share) of Company Law;
- in case of cancellation of the reserved own share.
The share capital of a company is considered to be a decreased on the day of registration in the Register of Business Entities.
What documents you need to submit depend on the legal ground on which share capital is being increased or decreased.
If you want to know more about how to increase or decrease share capital in Serbian company, what documents are needed to complete company formation process, what are state fees and how long procedures last, contact Asst Office and we will provide you with all necessary information.