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Recognition and Enforcement of Foreign Arbitral Awards in Serbia

Foreign Arbitral Award Serbia
Vuk Vučković Attorney at Law - Legal Consultant

Although this subject may not be on top of your mind when talking about company formation or immigration, we believe that this subject is important when talking about business, entrepreneurship, and law. It is not that rare to see one company having disputes with another one. Therefore, it is our firm belief here at Asst Office that you will find this information helpful.

In principle, a domestic arbitral award is one rendered in an arbitration seated in Serbia, while a foreign arbitration award is one rendered in an arbitration seated abroad. A domestic arbitration award can be enforced directly in Serbia since it has the force of a final domestic court decision. However, a foreign arbitral award must first be recognized by the competent court in Serbia.

The recognition and enforcement of foreign arbitral awards in Serbia are governed by the Serbian Law on Arbitration. Serbia is also a signatory to the New York Convention on the Recognition and Enforcement of Arbitral Awards (the New York Convention) and the European Convention on International Commercial Arbitration of 1961.

Grounds for refusal of recognition under the Serbian Law on Arbitration correspond to those listed in Article V of the New York Convention, and they are not country-specific. There are two groups of reasons, one which courts examine ex officio and the other which courts examine only at a party’s request. Reciprocity is not a requirement for enforcement; thus, the country of origin should not be a concern from that aspect.

Recognition of a foreign arbitral award can be the subject matter of an independent proceeding, or it can be decided as a provisional/preliminary question in an enforcement proceeding.

  • The advantage of an independent proceeding is that once an arbitral award is recognized, it obtains the force of a domestic final court judgment. In other words, it has an effect on everyone and can be enforced in as many enforcement proceedings as necessary to recover the entire amount of the claim. There is no need to repeat the recognition process. The disadvantage is that this proceeding can take a significant amount of time if the appeal is lodged.
  • On the other hand, recognition of the foreign arbitral award as a provisional/preliminary question directly in the enforcement procedure can be faster than the independent proceeding. However, if recognition of an arbitral award is decided as a provisional question within the enforcement proceeding, then the recognition is effective only in such enforcement proceeding. In other words, if the lender does not manage to enforce the entire claim in one proceeding, it would have to go through the recognition process again.

If you need any assistance or additional information regarding this matter, feel free to contact us, and let our Legal team provide you with valuable advice.

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Can Sole Proprietor Transfer Business to Third Party?

Can Sole Proprietor Transfer its Store to Third Party?

A Sole Proprietor can transfer her /his business to third party only if conditions stated by the Serbian Company Law and The Law About the Registration Procedure at the Agency for Business Registers. Some of them refer to who can Sole Proprietor transfer his / her business to, and other refer to what steps need to be undertaken so that this procedure can be finished.

When does Sole Proprietor can transfer to third party?

Transfer of Sole Proprietors business is possible in two cases:

  1. Between spouses;
  2. From parents to children.

In other cases, the transfer of an entrepreneurial action is not possible, nor is it allowed.

What steps need to be undertaken for this procedure?

To make this transfer possible, it is necessary:

  • Make an Agreement on the Allocation of Life Assets;
  • Verify the contract with the Notary;
  • Submit an application for verification of data in the Business Registers Agency;
  • Pay a fee to the Business Registers Agency.

What is important to emphasize is that during the transfer of the Sole Proprietors business, the name change also occurs, so it is necessary to create a new stamp at the end of the procedure. Also, new Sole Proprietor can decide to operate without the stamp. The registration number and Tax Identification Number will not change on this occasion, and the number received when previous Sole Proprietor register will be transferred as well.

An individual who took over the business and became Sole Proprietor is responsible for all previously undertaken commitments of a previous Sole Proprietor action with all her/his property, including the property she/he acquires in connection with the performance of his business. 

If you need advice or assistance regarding the transfer of a Sole Proprietors business or you wish to register as Sole Proprietor, we are at your service.

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Temporary to Permanent Hiring – Why and How

Temporary to Permanent Hiring – Why and How

When a company is in the process of expanding its internal workforce there are many benefits to hiring temporary and temporary to permanent hires, also referred to as “temp to perm” employees. Temporary employees also referred to as Independent Contractors, and can be beneficial to a company when additional staff is needed for short term assignments, long term projects, freelance assignments, fulfilling staffing needs due to medical or maternity leave, or consulting positions.


Hiring through the temporary to permanent avenue also allows an employer to fully evaluate if a potential employee would be a positive and impactful addition to their team if given the opportunity to transition to a permanent role.

Over the course of their contract, an employer will be able to determine if the temporarily hired employee is a team player, what their communication style is, the breadth and depth of their work ethic, and if they can express themselves in a professional manner.

When searching for temporary employees one would seek candidates that have relevant experience and transferable skills that fall within the necessary parameters of the company and have demonstrated consistency and passion for their field. In order to find the highest quality candidates, possible temporary candidates must be recruited and interviewed as if they were being vetted for permanent positions. This process includes complete background and reference checks, drug testing, and verification of work permits.

The Interview

During the interview process it is important to be upfront about the duration of the assignment and if there is any possibility of transitioning to permanent status, and to inquire as to why the candidate is open to a temporary position and if they are interested in a full- time position in the future. Once they have been hired it is imperative that they are also on board as if they are permanent employees, so that they are able to be fully integrated into the company culture and the employer’s expectations have been clearly communicated.

Partnering with a recruiting agency is the most efficient method to recruit and hire temporary employees. An agency will be able to fill the position in a timely manner, pre-screen applicants to streamline the interviewing process for the company’s human resources department, provide testing if the position requires specific technical skills, asses if the candidate has the appropriate linguistic skills for the position, and the agency will be the party that is paying the temporary employee and overseeing any tax obligations.

Utilizing the expertise of a hiring agency is especially important for international companies looking to hire temporary or contract workers. Recruiting agencies will have a vibrant database of pre-screened, qualified candidates that will be available to fill these positions quickly and efficiently, reducing the number of interviews needed to assess an applicant.

Agencies will also be able to help companies navigate and execute the work visa application process and which type of visa is appropriate based on the duration of the assignment or if the assignment is extended for longer than originally expected. It is a sound investment for the long-term growth and staffing needs of your company to build a relationship with a recruiting agency.

In case you need to recruit and hire temporary or permanent employees do not hesitate to contact Asst Office and let us take care of finding suitable staff for your company’s needs.

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What is The Visegrad Group and How It Works

What is The Visegrad Group and How It Works
Prof. Dr. Jelena Šogorov Vučković Legal & Banking Consultant

Founded on 15th February 1991, the Visegrad Group (also known as the “Visegrad Four” or simply “V4”) represents the efforts of the Central European countries Poland, Hungary, Slovakia, and the Czech Republic to work together and become members of the European Union (EU). 

Although they achieved this mutual goal and became EU members, V4 members continued their cooperation in several fields, such as culture, environment, internal security, defense, science, and education. Furthermore, the members of the Visegrad Group are intensifying their cooperation in the fields of justice, transportation, tourism, energy, and information technologies.

Since V4 is not an institutionalized organization, all of the above stated is realized through periodical meetings of its representatives at various levels – from the highest-level political summits to expert and diplomatic meetings, to the activities of the non-governmental associations in the region, think-tanks and research bodies, cultural institutions or numerous networks of individuals.

Also, V4 organized platform known as International Visegrad Fund in the year 2000 with the aim of supporting the development of cooperation in culture, scientific exchange, research, education, exchange of students and development of cross-border cooperation and promotion of tourism—represents the civic dimension of V4 cooperation.

Besides cooperating on achieving goals in the mentioned fields, V4 members are also working hard and are dedicated to extending cooperation with other regional bodies and single countries, where their priorities are the Benelux Countries (Belgium, Netherlands, and Luxembourg), the countries of the Nordic Council of Ministers (Denmark, Finland, Iceland, Norway, and Sweden), countries within the EU’s Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine) and the Western Balkans (North Macedonia, Montenegro, Serbia, Albania and Bosnia and Herzegovina).

On the other side, countries like Germany, Austria, and Ukraine represent the most important economic and strategic partners of the Group.

Looking at the Human Development Report it is notable that all V4 members are high ranked countries where Poland is ranked as a 33rd country in the world, Czechia 27th, Slovakia 38th and Hungary 45th.

In addition to this World Bank Report – Doing Business 2019 ranked Hungary 53rd, Poland 33rd, Slovakia 42nd and Czech Republic 35th country in the world regarding ease of doing business.

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5 Things To Know Before Signing a Business Contract

5 Things To Know Before Signing a Business Contract
Milan Šogorov Attorney at Law - Legal Consultant

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.

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What Can You Do Through Power of Attorney

What can you do through Power of Attorney

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.

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Legal Entity: Acting as a Director or Legal Representative of Other Legal Entity

Acting as Director or Legal Representative of other Legal Entity

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.

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Contents of the Memorandum of Association

Contents of the Memorandum of Association
Vuk Vučković Attorney at Law - Legal Consultant

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.