Opening a company - how to start the establishment process?
At the very beginning, you will encounter questions such as “What is needed to open a company?”, “How to open a company?”, “Do I need an agency to open a company?”. Start your company: Get started with the tips and steps that we provide in the following text.
Safe steps towards starting your own business in Serbia begin with the establishment of a company and registration in the APR. After defining the business idea, which includes market research, identification of the target audience, competition analysis, and assessment of the required resources, the choice of legal form follows. The decision on the legal form of your entity is crucial before starting the process itself – whether you decide on LLC or entrepreneurial status.
Companies are independent business entities established to perform business activities and make a profit. There are two basic types: capital companies and economic companies of individuals.
Capital companies: Here the owners (members or shareholders) have limited liability for the company’s obligations. This means that they are not liable for their personal property, but only for the property they have contributed to society.
- Limited liability company (LLC)
- Stock company
Economic companies of individuals: Owners are unlimitedly liable for the company’s debts and obligations, including their personal assets.
- Partnership company
- Limited partnership company
An entrepreneur, on the other hand, is not a company but an individual registered to perform business activities for the purpose of making a profit.
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How to open a company?
When you have chosen the legal form for your future company, the next question is:
How to proceed further? How to start the process of opening a company?
Before the registration itself, it is important to define the company’s activity and choose the address where the company will register. Then, it is necessary to submit an application for registration to the Agency for Business Registers (APR). After submitting the application, a response is awaited, which usually takes several days. It is crucial that the application is properly and completely filled out in order for the process to run smoothly.
Documentation required?
Each legal form requires specific documentation for establishment, but there are several key documents that are required regardless of the form:
1. Founding act notarized.
2. OP form – it is required to open a business account in the bank and is also notarized.
3. Proof of paid APR fee.
4. Completed application for enrollment in APR – the application must be correct and complete.
5. Identity card for the identification of the founder of the company.
Should you immediately enter the VAT system?
Value added tax – VAT, is a tax that is paid at each stage of the sale of goods or services. When establishing an entrepreneurial company, VAT is not paid if the annual turnover does not exceed eight million dinars. However, if the turnover is higher, the company becomes liable for VAT and must pay it. The standard rate of VAT is 20%, while there is also a special rate of 10% for certain categories of products or services.
It is important to understand that the regulations and deadlines for entering the VAT system are strict and must be absolutely respected. New small businesses are often put off entering this system because of the high tax rates. However, it is important to know that there are tax benefits that can be beneficial to entrepreneurs. The decision to enter the VAT system is individual, but if the annual turnover is less than eight million dinars, the company can choose whether to enter the system or not. After exceeding that figure, registration for VAT becomes mandatory.
If you need to open an entrepreneur, visit the next page:
If you need to open a limited liability company, visit the next page: