Obtaining a Forex license in Serbia

03.07.2024

For fast communication via telegram

Serbia is a propitious jurisdiction for conducting Forex undertakings. The land possesses a swiftly burgeoning economy, is an alluring abode to dwell, and likewise harbors magnificent vistas for commencing an enterprise. For procuring a forex warrant in Serbia, preparation is requisite.

Serbia: an attractive destination for running a forex business

Its propitious placement, propitious imposts circumstances, facile approach to adept labor and an exceedingly propitious affair milieu all render the realm a felicitous preference for investors pursuing expansion and opulence. Here are merely a few of the boons of this realm for entrepreneurs:

Opportune placement

Positioned centrally within the Balkan Peninsula, Serbia furnishes entrepreneurs with facile approach to pivotal European markets. Indigenous enterprises possess approach to a commerce market with over 1.1 billion conceivable consumers.

Alluring imposts circumstances and inducements:

Fiscal stimulants for precedence sectors: The polity fosters investment in informatics, fabrication, and sustainable vigour by affording innovators with a plethora of fiscal stimulants and subventions.
Subsistence taxation: the land proffers one of the minutest mercantile taxation rates in all of Europe, at merely 15%.
Facility of conducting commerce: Serbia has streamlined bureaucratic methodologies and enhanced lawful safeguards for commerce, rendering it simpler for innovators to conduct commerce.

Access to highly qualified personnel:

Exceedingly proficient manpower
The nation's mean remuneration is comparatively modest juxtaposed with alternative European nations, rendering it a lucrative choice for enterprises seeking to curtail labor expenditures.
Programming advancement in Serbia is markedly less expensive than in Occidental Europe or North America, rendering it economically captivating for informatics enterprises.

Favorable business environment and reforms:

Trade Reforms: The nation has already introduced a multitude of momentous reforms to ameliorate its commercial milieu and engender a more propitious ambiance for indigenous and transnational investors.
Diminished officious hindrances: The administration has streamlined officious methodologies, rendering commerce more facile.
Cerebral Asset Safeguarding: The caliber of cerebral asset safeguarding in the nation has been augmented, thereby fostering ingenuity.
Enhanced lawful safeguarding: Legal safeguarding for enterprises in Serbia has been fortified, auguring heightened investor assurance.

Renown:

Serbia possesses a renown for harboring a propitious business milieu and a limpid juridical system.

Polyglot milieu:

Various tongues are vocalized in Serbia, which may prove advantageous for conducting commerce with patrons from sundry nations.

Elucidated infrastructure and logistics:

Serbia has significantly invested in erecting contemporary infrastructure, encompassing thoroughfares, railways, and telecommunications. The nation is enmeshed within the principal conveyance grids of Europe, which ensures seamless commerce and efficient logistics. This unveils tremendous prospects for multinational enterprises operating in Serbia, as well as diminishing conveyance expenses and expediting the conveyance of commodities.

Government succor

The local government actively supports attracting foreign investment and creates propitious conditions for the activities of foreign companies. There are a number of government agencies and programs that assist investors with visa issues, regulatory compliance, and business development. Such comprehensive support evinces Serbia's interest in long-term cooperation with foreign partners.

Potent Innovation

Serbia has a dynamic system of innovation and entrepreneurship. The number of startups and technology companies is perpetually growing, creating a fecund environment for collaboration and partnership with international players. Investments in innovation unfurl new horizons for business development and the introduction of advanced technologies.

Variegated economy and growth potential

Serbia's economy is variegated, covering a wide gamut of industries such as manufacturing, agriculture, tourism and IT. The country has shown robust economic growth in recent years, affirming its potential for further prosperity. Investments in the Serbian economy are a remunerative investment in a promising future.

Serbia offers all the requisite conditions for successful business: developed infrastructure, government support, an innovative milieu, and a variegated economy.

Minuses obtaining a forex license in Serbia:

Compliance requirements: Acquisition of a forex sanction in Serbia may be protracted and intricate. Dealers must fulfill stringent prerequisites concerning pecuniary potency, peril oversight, anti-pecuniary crime, and patron safeguarding.
Competition: Forex broker market in Serbia is becoming increasingly contentious. Intermediaries with a Serbian authorization will necessitate vying with intermediaries from other jurisdictions who may possess diminished expenses or proffer more advantageous trading stipulations.
Political instability: Serbia possesses a chronicle of political vicissitude. This might pose a perilous element for forex purveyors who are contemplating conducting affairs within the nation. On the whole, procuring a forex accreditation in Serbia can entail myriad advantages and disadvantages. Purveyors ought to meticulously contemplate all facets ere determining whether this jurisdiction is apt for them.

Forms of companies in Serbia suitable for conducting forex activities

To conduct Forex activities, you must register as a joint stock company (JSC).

Joint stock company (AD):

One of the duo primary classifications of joint stock companies in Serbia.

Peculiar attributes of AD:

AD equities are liberally acquired and traded on the bourse. This renders ADs appropriate for investors desiring facile conversion of their investments into liquidity. Necessitates adherence to stricter divulgence and corporate stewardship requisites than alternative business modalities. This stems from ADs sourcing capital from a broad spectrum of investors, thereby necessitating heightened transparency and liability.

Prerequisites for establishing AD in Serbia:

Smallest sanctioned capital: 3,000,000 dinars (approx. €25 612).
Quantity of co-partners: at the minimum, a duo.
Constituent parchments: charter and determination on inception.
Enrollment in the Register of Business Entities of Serbia.

Advantages of AD:

Facilitate of amassing assets: ADs can amass assets from a vast array of investors, which can aid them in funding their expansion and advancement.
Constrained liability: AD stockholders possess constrained liability for the enterprise's commitments. This signifies that they do not jeopardize forfeiting more than the sum they contributed in the enterprise.
Augmented Fluidity: AD equities are freely acquired and traded on the exchange, rendering them more fluid than equities of alternative varieties of enterprises.

Disadvantages of AD:

More exacting revelation and corporate stewardship requisites: ADs are liable to more exacting revelation and corporate stewardship requisites than other configurations of enterprise. This may encompass supplementary expenditures and administrative encumbrance.
Intricacy of fabricating and administering: The procedure of fabricating and administering AD can be intricate and time-consuming.

In general, AD can be an appealing manifestation of commerce for companies that desire to augment capital from a diverse array of stakeholders and possess the facility to conveniently transmute their allotments into currency. Nevertheless, it is imperative to contemplate the augmented revelation and corporate stewardship prerequisites, alongside the intricacy of fabricating and administering an AD, prior to electing to establish an AD.

Limited liability company (DOO):

This is a prevalent form of transacting in Serbia.

DOO is akin to d.o.o. in certain respects, but possess a multitude of pivotal disparities:

Analogies:

Registration: DOOs are inscribed in the Ledger of Mercantile Entities of Serbia.
Constituent documents: Articles and decree on formation.
Liability: DOO stakeholders, akin to d.o.o. stakeholders, possess circumscribed liability for the company's encumbrances.
Governance: DOO is administered by an overseer (executive or council of directors).

Differences:

Minimum Sanctioned Endowment: DOOs do not possess a minimum sanctioned endowment stipulation.
Equities: DOOs do not allocate equities. Instead, DOO affiliates hold equities in the enterprise's equity endowment.

The endeavor of engendering a DOO is comparatively elementary and can be consummated within a handful of sennights.

Boons of DOO:

Facility of inception and administration: A DOO is simpler to establish and oversee than other varieties of enterprises in Serbia.
There are no minimum sanctioned capital stipulations, which results in reduced commencement expenses.
Adaptability: distinguished by a malleable proprietorship and governance framework.
Limited Liability: DOO stakeholders possess constrained liability for the corporation's encumbrances.

Disadvantages of DOO:

Limited Liquidity: DOO equities cannot be unrestrictedly procured and traded on a bourse, rendering them less aqueous than equities of certain other varieties of corporations.

Criterion	Joint Stock Company (AD)	Limited Liability Company (DOO)
Authorized capital	3,000,000 dinars (about €25,612)	1 dinar (approximately €1)
Participants	Shareholders	One or more founders
Management	General Meeting of Shareholders, Supervisory Board, Executive Director	Founders' Meeting, Managing Director
Responsibility	Limited (within the limits of the deposit)	Limited (within the limits of the deposit)
Registration	More complex and lengthy procedure	Easier and faster procedure
Information disclosure	Required to publish financial statements	Not required to publish financial statements
Suitable for Forex activities	Yes	Yes

Irrespective of the selected modality of enterprise, corporations desiring to engage in foreign exchange operations in Serbia must procure a forex authorization from the National Bank.

Taxation of Forex business in Serbia

Forex intermediaries in Serbia are beholden to the ensuing levies:

Enterprise profit duty:

The customary enterprise profit duty rate in Serbia is 15%.

Value added tax (VAT):

Forex intermediaries in Serbia are absolved from VAT.

Serbian fiscal enactments can be intricate and currency exchange intermediaries are counseled to seek the expertise of a fiscal consultant to acquire particulars of their fiscal duties. Information on levies pertinent to currency exchange intermediaries.

Requirements for obtaining a forex license in Serbia

To procure a forex intermediary license, one must fulfill a plethora of stipulations decreed by the People's Bank of Serbia.

Stipulations can be classified into two categories:

Universal stipulations:

The intermediary must be inscribed as a joint stock company (JSC)in Serbia. The minimum sanctioned capital for Forex intermediaries is €500,000. Principal intermediary personnel must possess suitable credentials and expertise. An intermediary must retain precise and comprehensive chronicles of its pecuniary dealings and adhere to reportage stipulations. It is imperative to experience a yearly scrutiny by an autonomous audit corporation. The intermediary must enact AML protocols such as patron identification and substantiation, and transaction scrutiny. Furthermore, it is requisite to possess a tangible office in Serbia.

Stipulations for pursuit:

A forex broker must utilize trustworthy and impregnable commerce platforms. It is imperative to proffer commerce solely in those pecuniary utensils that are sanctioned by statute. A changer must possess sturdy jeopardy governance mechanisms in situ to safeguard its patrons and its pecuniary means. Patron safeguard stipulations ought to also be adhered to, such as upholding distinct accounts for patrons and corporate means and furnishing patrons with thorough and precise intelligence concerning commerce stipulations.

Moreover, in supplement to these requisites, the National Bank might additionally levy supplementary requisites on intermediaries contingent on their particular circumstances. The procedure of acquiring a forex permit in Serbia can be protracted and intricate. It is advised that you liaise with a proficient advocate specializing in Forex regulation for aid in acquiring a permit.

Any questions?

Contact our specialists

Set of documents for obtaining a forex license in Serbia

Package of documents for obtaining a forex license in Serbia from the National Bank may change, so you need to contact for the current list.

However, as a rule, the set of documents includes:

Application, which must be completed in Serbian and signed by an authorized representative of the company. The statement must contain information about the company, its shareholders, management, activities and financial position.
Charter of the company, which must comply with the requirements of Serbian company legislation. It will contain information about the name of the company, its goals, share capital, management structure, etc.
A commerce blueprint that delineates the firm's commerce paradigm, its aim market, rivalrous tactics, and pecuniary forecasts. The Folk's Treasury of Serbia will assess the commerce blueprint to ensure that the firm has a feasible commerce paradigm and can triumphantly conduct forex activities.
Monetary Data: The corporation must furnish monetary data such as equilibrium sheets, revenue statements, and cash flow forecasts. This data will be utilized to evaluate the company's monetary stance and its capacity to fulfill its commitments.
Details regarding credentials and expertise: the firm must furnish details concerning the qualifications and expertise of its personnel who will engage in forex operations. This could encompass CVs, certifications, and other pertinent records.
Data regarding peril supervision measures: the intermediary must furnish data concerning its jeopardy supervision measures that it will utilize to safeguard its patrons and its finances. This might encompass particulars regarding hazard supervision protocols, oversight procedures, and hazard supervision frameworks.
Additional documents: the People's Bank of Serbia may require the company to provide additional documents, such as letters from auditors, police certificates, etc.

Process obtaining a forex license in Serbia

The procedure of acquiring a forex permit in Serbia can be protracted and intricate. It comprises several phases:

Aggregation of manuscripts

Formulate a business scheme that delineates your enterprise model, target demographic, rivalrous tactics, and pecuniary forecasts. A roster of all requisite records can be procured from the National Bank of Serbia. It is advised that you consult with a seasoned advocate specializing in Forex regulation. We are perpetually prepared to assist you.

Submitting an application:

Apply for a forex license. This application must be completed in Serbian and signed by an authorized representative of the company. Pay the state fee for filing the application.

Consideration of the application:

The National Bank will review your application and request any additional documents. Can conduct interviews with representatives of your company. The application review process may take several months.

Acquiring an authorization:

If thy petition is sanctioned, thou shalt be granted a foreign exchange charter. The charter shall endure for 5 years.

Compliance:

Once you acquire a currency permit, you will be obligated to adhere to all relevant statutes and rules governing currency commerce in Serbia. This encompasses requisites for funds, disclosure, hazard administration, etc. The National Bank of Serbia will oversee your operations and may enforce penalties if you do not conform.

It's a complicated process, but it can be done

a profitable investment for forex brokers who want to expand their activities and enter the business markets of Europe.

Residence permit in Serbia for entrepreneurs: advantages, conditions and registration

Serbia is attracting more and more foreign entrepreneurs with the opportunity to obtain a residence permit (residence permit) in Serbia. Here are several options:

Residence permit based on company registration:

The most common option for entrepreneurs. Requires registration of a company in the country and payment of a minimum authorized capital, the amount of which depends on the chosen form of ownership of the company.

Residence permit based on investments:

Suitable for entrepreneurs wishing to invest in the Serbian economy. The minimum investment amount is 250,000 euros. Investments can be made in real estate, business projects or government bonds.

The process of obtaining a residence permit:

Submitting an application:
- The application for a residence permit is submitted to the Serbian Consulate in your country or to the Serbian Office for Foreigners if you are already in the country.
Consideration of the application:
- The authorized body will consider your application and make a decision on issuing a residence permit.
Obtaining a residence permit:
- If approved, you will be issued a residence permit card.

The validity of a residence permit for entrepreneurs is 1 year with the possibility of extension. To renew a residence permit, you must provide a report on the activities of the company or investment project. After 5 years of permanent residence in Serbia, residence permit holders can apply for citizenship.

Obtaining a Forex license in Serbia using YB CASE

YB CASE is a consulting company that helps Forex brokers obtain a license in Serbia. We provide companies with comprehensive support in obtaining a forex license in Serbia. Many years of experience and high qualifications of our lawyers give us the opportunity to provide companies with the best solutions. We will help you calculate risks, prepare for inspections and obtain legal permission to conduct forex activities in the country. If you would like a consultation, please contact us at any time. With our support, it will be easier for you to obtain a license and enter new business markets.

Our services include the following: