This you have to know before you decide to register your company in Serbia.
One of the first and most important questions when starting any business is choosing the legal form of the future company through which the business will be conducted. This choice, which may seem harmless initially, depends on the business, further business development, and making a profit. Therefore, you should act very carefully and pay special attention to the choice of legal form. In most cases, the choice of legal form depends on the nature of the undertaking and the needs.
The Most Common Legal Forms of the Company
The two most common legal forms of business entities, both in the legislation and practice of the Republic of Serbia and observing international law, are companies (legal entities) and entrepreneurs (natural persons).
Characteristics of the Company
A company is a legal entity established by legal and/or natural persons to perform a certain economic activity to gain profit. Therefore, a company can be founded by both natural and legal persons. Although there are four different forms of companies (partnership, limited partnership, limited liability company, and joint-stock company), they all have common features without which the company can not even exist in legal transactions, namely the founding act, registration, business name, seat and national affiliation of the company, activity, and existence of representatives.
In the first place, therefore, the will to establish a company is necessary. Freely expressed will is an essential element of the founding act, which takes the form of a decision or a founding agreement. The founding act will take the form of a founding act when the company is founded by one person and a contract if the company is founded by several people who want to operate and earn by the joint venture. In any case, the deed of incorporation must be in writing.
The second characteristic is registration – entry in the register of business entities with the Serbian Business Registers Agency, from which moment the company acquires subjectivity, i.e., the status of a legal entity, and from that moment, it exists in legal transactions and makes a profit. The data that are registered are obligatory and optional, and the registration procedure itself is initiated by submitting an application to the Agency by the person who wants to establish the company.
The name of your company can determine its future. It should be simple, striking, and should represent what you offer to the world. So choose wisely! Keep it short and easy to remember – too complicated and too long a name complicates every next step. Avoid using your own name – with the exception of celebrities, the full name of the owner limits the further growth and expansion of the company’s business. Use keywords from your industry – when you include words that describe your business on behalf of the company, you will be more visible among potential customers and partners. Distinguish yourself from the competition – the name of the pattern that competitors have will make it harder for you to stand out and break into the market. Consult family and friends – do your loved ones think that the name you have given to the company represents you in the best light? Align the name with modern requirements – Your name must be free to use on the Internet and social networks.
The individual feature of each company is certainly its seat, i.e., the place from where the company is actually managed and from which it performs its activities. It may seem like an issue that is less important, but the company’s headquarters is a mandatory part of the business name. It depends on the nationality of your company, as well as all your obligations to the state.
When you start a company, you usually have a vision of what the company will do, what activities it will have, and what goals you will achieve through the company. This activity represents the activity of the company, another obligatory common characteristic of all forms of society. The activity can be reflected in the form of production, trade in goods, and provision of services and represents your free will, so be careful when choosing what your company will do.
And the last, but not the least important feature is certainly the existence of representatives of the company. The company, as a legal entity, cannot have its own will but realizes it through its representatives. In practice, this person is usually the director of the company, but each company can have several representatives who will enter into legal relations and represent your company.
Advice from Your Consultant
Finally, advice from your consultant – think carefully about whether your idea can be realized in the form of an Association because although there are certain limitations, they have certain legal benefits that other legal forms of organization do not have.
Before starting a business, think carefully and analyze all costs. In addition to the initial costs of registration, and the cost of equipment, you must take into account the inevitable costs of taxes and contributions for all employees and owners.
In the early stages of business, due to investments and other liabilities, income may be less than expenses. Therefore, every beginner, no matter how profitable the idea and expectations are high, must be prepared for possible losses in the beginning.
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