Directors of Serbian Companies
Directors of Serbian CompaniesUpdated on Tuesday 01st October 2019
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International entrepreneurs wanting to start the operations in Serbia will have to observe the applicable laws in this country and also the rules regarding the attributes and responsibilities of a company director. Support and legal advice for starting a business in Serbia can be provided in a professional manner by our Serbian lawyers who can also offer information about the obligations and tasks of a board of managers in a company. They can act on behalf of your company with a power of attorney.
Main duties of a company director in Serbia
A director has special duties in a company in Serbia and among these, varied administrative tasks, dealing with customers and providers, signing contracts and paying attention to the ways in which the employees take care of the daily activities. It is important to note that the Company Law in Serbia provides complete information about the duties of company directors in Serbia and about the ways in which they are appointed in the firm. Below is information about the responsibilities of directors of Serbian companies:
- Managers of a firm are in charge of their employees and the ways they handle the tasks.
- Directors must respect the rules and regulations imposed by the supervisory board of the firm.
- The contracts in a company enter the attention of directors.
- The financial transactions in the firm need to be verified by one of the directors in the company.
- Directors must mediate any conflict that might arise in the company.
According to Article 72 of the Company Law in Serbia, company directors must not reveal the company’s business secrets. This duty is also regulated by the company’s internal policies, and the founding act of the business. Comprehensive legal advice in this direction can be provided by our lawyers in Serbia who can help foreign entrepreneurs establish their business presence in the country from scratch.
Can a company director be implicated in other businesses too?
No, it is strictly forbidden to company directors to implicate in other businesses besides the ones for which they are appointed, as stated by Article 75 of the Company Act. They cannot have shares or interests in other companies and cannot reveal the business secrets to another entity or competitor in Serbia.
Other responsibilities of company directors in Serbia
The managers of a firm in Serbia must align with the legal obligations in the firm and respect the business direction of the company. Besides that, all the decisions of the company owners must be implemented by the directors in the firm in Serbia. Also, all the employment aspects need to be handled by the managers of the company who must solve all the employee problems or conflicts that might arise in the firm.
Can managers be removed from the company in Serbia?
Yes, if the responsibilities of a director of a Serbian company are not properly handled and if the company results are below expectations, the owners can decide on removing and replacing the board of managers at any time, respecting the regulations mentioned by the Company Act in Serbia and by the internal rules. The board of directors of a company in Serbia needs to be informed in time about the decision of dismissal and that because the owners will have to look for new managers and implement the new board.
Making investments in Serbia
The business environment in Serbia is quite generous and attract international entrepreneurs in a large number every year. The advantages of starting a business in Serbia are extremely appealing and among these, the favorable tax regime, the stable economy, the easy ways of incorporating a company and the multitude of business opportunities in most of the important sectors in the country. The authorities are completely aware of the importance of foreign investments so it was normal to simplify the business direction and implement free trade zones. Such zones come with a series of tax exemptions such as no VAT. Below you can find facts, statistics and information about the business, investments and economy in Serbia, helping you understand better why you can open a company in this country:
- • USD 4.1 billion was the FDI inflow for Serbia in 2018, as reported by the “2019 World Investment Report” provided by UNCTAD (the United Nations Conference on Trade and Development);
- • USD 39.8 billion was the total FDI stock in Serbia for 2018, representing 78.6% of the country’s GDP;
- • according to 2019 World Bank Doing Business” report, Serbia ranks 48th out of 190 economies in the world;
- • the improved business climate stood at the base of the increased foreign investments in Serbia.
If you would like to know more about how to open a company in Serbia and about the responsibilities of directors in a firm, feel free to contact our law firm in Serbia.