Have you ever heard about Serbian associations? These are great instruments that will help you protect your assets in a reliable way and provide a high level of privacy for beneficial owners. We will discuss the peculiarities of the Association’s structure later on, and you will see that it is very flexible. Local banks are happy to provide services to the duly formed Association. If this is exactly what you need, you can read a more detailed article on association registration for asset protection or explore other reliable asset protection methods on a trusted portal – or even book a free session with an expert to discuss your needs.

Registering an Association in Serbia

A Serbian association is a peculiar form of relationship that is recorded in the Serbian register and acquires the status of a legal entity following that. However, you are under no obligation to enter it into the register (this is a voluntary step).

Any association is formed on a free and voluntary basis, and it is meant to be a non-profit organization. The Association members are local and foreign individuals or legal entities that set goals to be jointly reached. The goals to be achieved should be allowed by the Serbian Constitution.

If the association you set up decides to make one common organization with other associations (local or foreign ones), this organization will be called a federation.

Associations have the right to set up separate parts in other countries called a department, a group, a branch, or a club, but this part will not be regarded as a separate legal entity.

The structure of the Serbian Association helps beneficial owners take advantage of a high level of privacy.

The Association’s essential feature is its unique setup procedure and legal relations with founders: the Serbian authorities and banks will not consider them beneficial owners. You will appoint a President for the Association who will actually manage its affairs, and this is the person who will be considered a beneficial owner by the local banks. You can appoint a local to this position or a non-resident who has a residence permit.

There are no limitations when it comes to changing the Association founders: you are free to amend the list of founders by adding, deleting, or replacing any member. This is a simple process realized in the same way as in any joint-stock company, and it helps you change the structure without any restrictions and benefit from almost absolute flexibility in management.

The local banks provide complete support to the Association under the local and international regulators applicable to the banking sector. Banks will consider the manager to be a beneficial owner, and they will not require any additional information or subject founders to any KYC procedures. The Serbian Association has the same status as any local company.

The Association founders enjoy full protection from any legal risks, while any possible commercial risks are restricted by the activities of the Managing Director elected by the members. The founder has the right to keep an attentive eye on the President’s activities and replace him or her at any time (like any other commercial director).

The Serbian Association can be the owner of other legal entities, which makes it a perfect alternative to holding companies in Liechtenstein, Switzerland, and other top jurisdictions where tax incentives are available in full. The Association can be the holder of a foundation, giving its founders a radically new level of protection.

How to Register a Serbian Association

Let’s look at some peculiarities of the process:

• You will need at least 3 founders to register a Serbian Association, with one of them being a temporary/permanent resident of Serbia. This position is available to legally capable individuals and legal entities that reside in Serbia and beyond.
• You will need to make up a Constituent Act and the Articles of Association and select a person who will represent the Association during the Foundation Meeting.
• The Articles of Association must contain the main goals to be achieved by the Association.
• There are two main governing bodies in the Association: the Association President and the Association Assembly.
• The President is an individual (or several individuals) that have the authority to represent the Association.
• The Assembly is the supreme body that includes all members of the Association.
• The Association can function at the expense of donations, membership fees, gifts in cash or in kind, dividends, interest on deposit, rent, and generate income in other ways that are permitted by law.
• Natural persons or legal entities that contribute to the Association may be exempted from some tax liabilities under the local laws.
• If the Association receives funds, it is liable for a 2.5% gift tax.
• The Association has the right to carry out business activities in Serbia, but it will have to pay a standard 15% income tax in this case. There are three requirements the Association has to meet to conduct business activities in the country: its operations have to be directly related to the goals set out in the Articles of Association and listed in the Articles of Association, and the scope of such business activities cannot exceed the one required to achieve the aims set.
• The profits obtained from business operations cannot be distributed among founders, employees, management bodies, and Association members. Neither can any assets owned by the Association be transferred to employees, directors, members, or founders.
• The Association is required to duly keep financial records like any other local company.
• The Association is liable for its obligations with all assets in its possession.
• The assets owned by the Association may only be used for the purposes set out in its Articles of Association.

Documents

Here is a package of documents you will need to register a Serbian Association:

• Registration application
• Personal documents submitted by the individual elected to be the Association President (it can be a residence permit, a Serbian passport, or a passport of any other country).
• A document that evidences the election of the Association President.
• Minutes of Constituent Assembly.
• Articles of Association (original).
• Constituent Act.

You can click on the above link to find out the costs required to set up an Association in Serbia and the main steps you will have to take. Do not hesitate to ask questions using the live chat. We wish you to enjoy bulletproof protection of your assets in Serbia!