The purpose of a holding company is to control the activities and the management of other companies. In this sense, a foreign investor can acquire shares and assets (mutual funds, investments, real estate, licenses, copyrights) of several companies in Serbia and benefit from a multitude of advantages among which we mention that there is no corporate income tax imposed.
There are many business persons who decide to set up holding companies, but if you want to know more about such legal entity and the requirements involved, we suggest you talk to one of our company formation agents in Serbia.
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Information about Serbian holding companies
Many entrepreneurs who want to expand their portfolios, activities and profits decide to create holding companies in Serbia. This is known as a legal entity and the registration process starts with the Serbian Business Registers Agency where all forms are submitted for approval. It is good to know that such business may be established as a private or a public limited company, being subject to about the same requirements of incorporation as for any legal entity in Serbia, in compliance with the Companies Act and the Commercial Code.
Our company incorporation specialists in Serbia are at your disposal with information about how you can set up a Serbian holding company. We mention that the company registration process in Serbia is subject to fewer formalities and allows local and foreign entrepreneurs to establish their operations in a fast manner.
What are the tax advantages for holding companies in Serbia?
Holding companies are beneficial from a taxation point of view. There are exemptions on capital duties and net worth taxes. Additionally, holding companies in Serbia are protected by the double taxation treaties signed with countries worldwide. It is good to know that the interest on the procurement of shares is normally tax deductible if specific requirements are respected. International investors should know that the incentives claimed by the holding company can be secured in certain circumstances.
Instead of having difficulties when establishing a Serbian holding company, you might want to talk to one of our company formation representatives in Serbia and find out how they can provide immediate support. There are no complex regulations when it comes to opening a company in Serbia, however, it is recommended to solicit assistance and guidance for a smooth company registration process.
How are the assets transferred through a holding company in Serbia?
Holding companies have numerous advantages and the international laws are also applicable to such structures established in Serbia, including for the transfer of assets. This means that the owners can issue the shares of the holding company and can fill out an operating agreement for 100% voting control and other related aspects.
Our team of accountants in Serbia is at your disposal with a series of services necessary for the company you own. Thus, they can deal with payroll, bookkeeping, preparation of annual financial statements, audits, and management of human resources. Each company is different, so the services can be customized. So discover our team of certified accountants if you own a company in this country or if you want to establish one.
Opening an LLC for a holding company in Serbia
A holding company in Serbia can run under the rules of a limited liability company or DOO as it is known. This is the preferred business structure of all, by both domestic and overseas investors. There are no complicated rules for LLCs to be established in Serbia, however, the most important ones are the following:
- A special application is needed when verifying and reserving the business name.
- Private limited liability companies in Serbia can be established with RSD 100 deposited in a Serbian bank account.
- The Articles of association and the Memorandum of Association are the company’s main documents, needed for formation.
- A legal representative will have to be appointed for your LLC in Serbia.
- The registration for taxes is normally the next thing to consider when the company is incorporated. The Serbian Tax Administration takes care of these aspects.
- The company seal is issued if the Decision on Founding is submitted.
The good thing to know about the limited liability company in Serbia is that there is a need of at least two shareholders to form such a structure. Once the LLC is opened in Serbia you should follow the next steps for establishing the holding company.
How does a holding company make money?
Buying and selling stocks, offering services to the companies they control and the dividends from owned companies are three different ways through which holding companies generate profits in Serbia. Holding companies in Serbia can be involved in the business of selling goods and services on the market, so this is another way of making money. Overall, holding companies are preferred for business in Serbia and are among the choices of international investors who want to look towards even more appealing ways of doing business. If you would like to know more about taxes in Serbia and about the VAT registration, feel free to talk to us.
Why think of establishing a holding company in Serbia?
There are varied start-up considerations when choosing to establish a holding company in Serbia, and among these, the need of creating a corporate entity and to develop a business plan which will define the procurement approach. As a first step, shaping the sector of business development will have to be in immediate attention to any entrepreneur looking for investment opportunities in Serbia.
Even if a holding company in Serbia keeps the properties of other enterprises, it merely upholds oversight volumes and consequently does not dynamically contribute in controlling the daily operations of the business. It is important to know that holding companies have complete protection in front of losses, meaning that, for example, if a subsidiary company goes insolvent, its creditors will not lawfully chase the holding companies for payments.
Additionally, holding companies also let persons protect their private assets and that because these possessions are theoretically retained by the corporation, and not by the individuals, who are subsequently safeguarded from debt liabilities, lawsuits, and other related stakes. If you believe it is time to take the business to a whole new level and complete your portfolio with other opportunities too, you can consider opening a holding company in Serbia and benefits from a series of advantages. Here are some facts and numbers about the business in Serbia:
- • Serbia is a huge electrical machinery exporter, registering exports of more than $2,000,000.
- • There are more than 998,000 companies registered in Serbia.
- • 26.1% represents the total contribution tax rate on profits in Serbia.
- • the corporate income tax is set at 15% rate in Serbia, one of the lowest in Europe.
The benefits of a holding company in Serbia
There are many reasons why foreign investors decide to acquire small businesses and develop all sorts of activities operating under these entities. Holding companies may represent the key to success in Serbia because they come with benefits like the following:
- • the personal assets of the foreign investor are protected;
- • there is no corporate tax on profits;
- • the double tax treaties and their conditions are available for holding companies;
- • there are full control and ownership of acquired companies;
- • a board of directors can manage the activities of the holding company.
FAQ about Serbian holding companies
1. What is the main purpose of a holding company in Serbia?
A holding company in Serbia controls the operations and the management of other companies if the investor buys shares and assets like real estate, mutual funds, etc. The registration of a holding company in Serbia can be overseen by one of our company formation agents in Serbia.
2. Who can open holding companies in Serbia?
International entrepreneurs interested in expanding the portfolio can set up holding companies with minimal requirements and efforts. It is important to ask for support if interested in a holding company in Serbia, in order to avoid any possible problems in matters of registration with the authorities.
3. Where do I register a holding company in Serbia?
The registration of a holding company in Serbia starts with the Serbian Business Registers Agency. This institution accepts the documents for holding company registration, as long as they are created in respect of the Company Act in Serbia.
4. Is an operating agreement necessary for holding companies in Serbia?
An operating agreement for a holding company in Serbia ensures that you have 100% voting control, plus other rules and regulations imposed. If you need to know more about an operating agreement for a Serbian holding company, please discuss it with one of our specialists in Serbia.
5. Is the limited liability company a proper structure for a holding company in Serbia?
Yes, holding companies in Serbia can run under the rules of a limited liability company, whether private or public. An LLC in Serbia must have a legal representative who can be appointed at the time the holding company is registered. One of our agents can represent your LLC in Serbia.
6. How does a holding company make profits in Serbia?
Holding companies in Serbia generate profits through stocks sell and purchase, control of dividends of companies they own, to give some examples. Making money through holding companies in Serbia is quite advantageous for foreign entrepreneurs in Serbia.
7. Are holding companies protected against losses?
Yes, holding companies come with a great advantage, such as, not being liable for any losses. Please discuss with our company formation agents in Serbia and find out how you can register this entity.
8. Are holding companies protected by the double taxation agreements signed by Serbia?
Yes, holding companies have other benefits too, and these are protected by the double taxation treaties signed by Serbia with countries worldwide.
9. Is a holding company considered a legal entity?
Yes, holding companies are legal entities in Serbia and can be registered by respecting a few important requirements.
10. Who can manage the activities of a holding company in Serbia?
A holding company in Serbia can be managed by a board of directors appointed by the owners. If you believe it is time to register a Serbian holding company, please do not hesitate to get in touch with our company formation agents in Serbia.
Protecting the personal assets
Another reason why entrepreneurs decide on registering holding companies in Serbia is related to personal assets. These entities benefit from complete protection because the assets are carried by a corporation instead of an individual. This is a great advantage in front of entrepreneurs who want to expand their portfolios in Serbia without thinking their assets can be compromised. Serbian holding companies are quite beneficial and can be easily registered with the help of our specialists in company formation in Serbia.
Choosing our specialists in Serbia
Holding companies must be registered in respect with the provisions of the Company Act and Commercial Code in Serbia. This is where the support of a dedicated team of specialists in company formation in Serbia can intervene and help foreign entrepreneurs benefit from a smooth registration process, as they properly collaborate with the local authorities.
While working with us, our clients benefit from full support in terms of company formation, tax registration, licenses and permit approvals, and many more. It is important to have the support of a dedicated team of specialists who know the legislation and who can work with professionalism, transparency, proficiency, and confidence. Plus, if there is no interest in creating a whole accounting department for your company in Serbia you can hire the services of an accounting firm in Serbia. All the benefits of such services can be considered with one of our specialists in Serbia.
For any inquiries you might have about the Serbian holding companies, please feel free to contact our team of company formation in Serbia.