Statutory Obligations of LLCs in Serbia: A General Guide to Compliance

Introduction

Limited Liability Companies (LLCs) in Serbia are subject to certain statutory obligations that they must comply with in order to operate legally and avoid potential penalties or legal liabilities. These obligations cover a wide range of legal requirements, including those related to corporate governance, financial reporting, tax compliance, employment laws, and more. In this article, we will discuss the main statutory obligations of LLCs in Serbia and provide guidance on how to comply with them.

Corporate Governance

One of the main statutory obligations of LLCs in Serbia is to comply with corporate governance requirements. Under Serbian law, LLCs must have a management board or a director appointed to manage the company’s affairs. The management board or director must act in accordance with the company’s articles of association and the provisions of the Serbian Companies Act. The management board or director is also responsible for ensuring that the company complies with all relevant laws and regulations.

LLCs in Serbia are required to hold regular general meetings of shareholders, where important decisions regarding the company’s operations and finances are made. At these meetings, shareholders have the right to vote on matters such as the election of directors, the approval of financial statements, and changes to the company’s articles of association. LLCs must also keep accurate records of all meetings and resolutions passed by the shareholders.

Financial Reporting

LLCs in Serbia are required to prepare and file financial statements with the Serbian Business Registers Agency (SBRA) annually. The financial statements must be prepared in accordance with Serbian accounting standards and must include a balance sheet, income statement, cash flow statement, and notes to the financial statements. The financial statements must also be audited by an independent auditor, unless the company meets certain criteria for exemption.

In addition to the annual financial statements, LLCs in Serbia are also required to submit monthly and annual tax returns to the Tax Administration of the Republic of Serbia. The tax returns must include information on the company’s revenues, expenses, and taxes paid, as well as other relevant financial information.

LLCs must also maintain accurate and up-to-date accounting records, which must be kept in accordance with Serbian accounting standards. These records must include information on the company’s financial transactions, such as invoices, receipts, and payments made.

Tax Compliance

In addition to the tax reporting requirements mentioned above, LLCs in Serbia must also comply with other tax-related statutory obligations. For example, LLCs must register for Value Added Tax (VAT) if they meet certain criteria for registration. Once registered, LLCs must charge VAT on their sales and remit the collected VAT to the Tax Administration on a monthly basis.

LLCs in Serbia must also comply with withholding tax requirements. This means that they must withhold and remit taxes on payments made to non-residents, such as dividends, interest, and royalties. The withholding tax rates vary depending on the type of payment and the country of residence of the recipient.

Employment

LLCs in Serbia must comply with a range of employment-related statutory obligations. For example, they must register all employees with the relevant social security and health insurance authorities. They must also comply with minimum wage requirements, which are set by law and are revised annually.

LLCs must also provide employees with a range of benefits, such as paid annual leave, sick leave, and maternity leave. They must also ensure that their employees work in a safe and healthy environment, and provide appropriate training and protective equipment where necessary.

Conclusion

LLCs in Serbia are subject to a range of statutory obligations that they must comply with in order to operate legally and avoid potential penalties or legal liabilities. These obligations cover a range of areas, including corporate governance, financial reporting, tax compliance, and employment laws. To comply with these obligations, LLCs must ensure that they have adequate systems and processes in place to monitor and manage their compliance with the law. This may involve hiring professionals, such as lawyers or accountants, to provide advice and assistance on legal and regulatory matters. It may also involve implementing internal controls and procedures to ensure that the company’s operations are conducted in compliance with the law.

It is important for LLCs in Serbia to stay up-to-date with changes in the law and to adapt their practices and processes accordingly. This may involve attending training or seminars on legal and regulatory issues, or subscribing to relevant publications or newsletters.

In conclusion, LLCs in Serbia face a range of statutory obligations that they must comply with in order to operate legally and avoid potential penalties or legal liabilities. Compliance with these obligations requires a commitment to corporate governance, financial reporting, tax compliance, and employment laws, among other areas. By ensuring that they have adequate systems and processes in place to monitor and manage their compliance with the law, LLCs can minimize their legal and financial risks and focus on achieving their business objectives.