Any person who earns sufficient capital at some point in life starts thinking of reliable asset protection. There are different dangers for those who have money, including unscrupulous creditors or relatives, ex-spouses willing to get the lion’s share after a divorce, or authorities that want you to pay as many taxes as possible or suddenly change laws. Keeping all the funds in your home country is not a good solution as they will not be sufficiently protected, and the first principle of safety is diversification (as you probably know). And that’s where different foreign structures come in useful! A Serbian association is one of them, and we are going to look at it in more detail in this post.

If you want to find out more, please visit our portal devoted entirely to Serbia. You will also be able to discover a lot about Serbia, including business registration, opening a personal or corporate bank account, relocation and obtaining a residence permit (and later a passport), lifestyle, taxes, and so on. Serbia is a very popular destination for investors, so do not hesitate to learn more about it. Use a live chat on the portal (during office hours) to contact our expert, ask questions, and schedule a free preliminary meeting to discuss your needs and preferences and find a customized solution. We will offer the best one to suit your situation, not just any available option!

Serbian Association: Details
If you ask any person what the safest banks in the world are, most people would mention Swiss institutions, and they will be right: if you need security and ultimate confidentiality, you can opt for Switzerland – if you are eligible, of course. Swiss banks set the requirements that are not so easy to meet as they can afford to be picky! However, Serbia is a good alternative to Switzerland if its demands are too much for you: privacy and safety provided by Serbian Associations are comparable to Swiss banks.

A Serbian Association has to be registered by the local Registrar as it is a legal entity. It can be set up remotely, which is an important factor for busy people! In fact, you establish a non-profit organization that unites individuals and legal entities residing in Serbia or abroad. One of the main requirements is a common goal to pursue and compliance with Serbian laws.

Structurally, you may unite a few Associations to form a Federation. Each Association can have smaller subordinated units outside Serbia (affiliated units, clubs, branches, and so on), and these will be considered parts of the principal structure.

A Serbian Association has only one beneficiary, and it is the President who actually runs the Association. He or she needs to be a Serbian citizen/permanent resident to be appointed to the position. No other Serbian Association constitutors are considered to be beneficiaries by the banks or local authorities.

The organization is managed in a very flexible way as its constitutors can be removed, replaced, or added to the list at any moment of time – in the same way this procedure is carried out in joint-stock companies.

Serbian Associations can use a full range of local banking services (by the way, Serbian banking is highly recommendable!). The organization’s President will be regarded as the beneficiary, and the banks will regard the Association in all other respects as any ordinary company registered in Serbia.

The legal risks of contributors are minimized, while their commercial risks depend on the activities carried out by the Association President like in any other company. The latter’s activity is supervised by the constitutors who can replace him or her if they are dissatisfied with management.

A Serbian Association can play the role of a holding company as it can own other legal entities, which is a feature that many entrepreneurs appreciate. If you want to have the strongest asset protection and information confidentiality possible, you can form a charity foundation in Serbia in addition to the Association.
Organizational Structure of a Serbian Association

Here are the features to be taken into account before you set up an association in Serbia:

● At least three founders (constitutors) will be required.

● One of the constitutors must be a Serbian citizen or a permanent/temporary resident.

● You can engage an individual or a legal entity from abroad or from Serbia to act as a founder.

● You will need to elaborate a Memorandum of Association and By-Laws.

● You will have to appoint the Director (also called the Association President).

● The By-Laws are required to indicate the local or global goals to be reached by the Association.

● The Association is governed by two bodies: the President and the General Meeting.

● The President is an individual (or several individuals) who resides in Serbia and/or has a Serbian citizenship. He or she represents the Association in any matters, including negotiating with banks.

● The General Meeting is composed of all Association members or their representatives, and it has the supreme level of authority.

● The Association that obtains funds is required to pay the 2.5% of gift tax.

● The individuals who contribute funds or gifts to the Association are entitled to tax deductions.

● The Association receives funds in the form of voluntary contributions, members’ dues, dividends, interests, gifts, rental payments, and so on.

● The Association that wishes to carry out financial activities is required to pay an income tax of 15% (which is a standard rate for Serbian companies).

● The Serbian Association that wants to carry out commercial activities has to keep them in line with the goals described in the By-Laws, and the extent of such activities must not exceed the one required to achieve the goals.

● The Association cannot distribute profits received to its employees, directors, members, or founders as they are only allowed to use to reach the above goals.

● All Serbian commercial companies are required to keep financial records, and the Association is no exception.

Serbian Association Establishment: Procedure

Waste no time and take these simple steps:

● Follow the above link to get in touch with us and discuss all the details.

● Pay the cost of our services using any convenient method (we will set up an association remotely and open a bank account for you).

● Provide all the required documents to us.

● Fund the Association as soon as it has been registered to make it operational.

You can also contact us to discuss other available asset protection instruments.