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Corporate law · Employment law · Contract law

Transition from entrepreneur to DOO in Serbia

When the business outgrows the scope of the entrepreneurial activity, the transition to limited liability company (LLC) becomes a logical step. However, it is important to know that this process does not boil down to a simple change of form.

Why do entrepreneurs most often switch to LLC?

  • limitation of personal liability;
  • greater trust of clients and partners;
  • easier business expansion;
  • clearer ownership and management structure.

What does the step-by-step process look like?

01

Decision making

A decision is made on continuation of activity in the form of LLC, which is the legal basis for deleting a sole trader and establishing a company.

02

Establishment of a LLC

A limited liability company (DOO) is established in the standard way – memorandum of association, director, share capital (minimum 100 RSD) and registration with the Business Registers Agency (APR).

03

Tax receipts

The entrepreneur must obtain certificates confirming that they have no outstanding tax liabilities (national and local).

04

Application to APR

A single application is submitted, which deletes the entrepreneur and establishes a DOO.If the documentation is in order, the procedure takes a few working days.

Costs and fees

During the transfer procedure, the following are paid:

  • fee for deleting an entrepreneur;
  • fee for establishing an LLC and publication of the founding act.

The total costs are slightly higher than standard LLC incorporation, but they are still relatively low.

What happens after registration?

  • opening a DOO business account;
  • registration of employees and tax obligations;
  • VAT registration (if required);
  • new fiscalization, if there was a cash register.

Most common mistakes

  • outdated tax certificates;
  • incomplete documentation;
  • inconsistent contracts with clients;
  • untimely closing of the entrepreneur.

Do you need legal support?

PM Law Firm can carry out the entire procedure of converting from a sole trader to a limited liability company (LLC) – quickly, without risk and with complete legal certainty.

Lawyer

Important: continuation through a newly established LLC 5 days Contact us How to establish a company in Serbia How to become a lump-sum entrepreneur Change of registered office of a company

Dimitrije Mijailovic
Lawyer, PM Lawyers

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