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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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How To Register as a Sole Proprietor in Serbia

How To Register as a Sole Proprietor in Serbia

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.