Strategies of the Development of Entrepreneurship and SME

corporations and open held corporations. All companies must have a founding act that can havetwo forms:• The form of a Memorandum of association in case there are more founders or• The form of a Decision in case of one founder.A company becomes legal entity when its data are entered into the Register in theAgency for Commercial Registers. Data about all commercial associations, their total number,as well as the results of their financial transactions can be found in the Agency.The Law does not prescribe minimal amount of share capital for entrepreneurs,partnerships and limited partnerships, so the founding costs are relatively low founding ofentrepreneur with one founder, the simplest form of SMEs. In the case of founding a limitedliability company or a corporation the Law prescribes minimal amounts of share capital sohigher amounts of initial financial resources are necessary in order to found these legal formsof SMEs. Minimal share capital for limited liability company amounts to Euro 500, for closedcorporation Euro 10,000, and for open held corporation Euro 25,000.That is to say that before establishing the Agency for Commercial Registers, companyfounding was effectuated in commercial courts. Minimum time needed for registration was 51days on average, while USD 5,000 were required for founding the most frequent and the mostpopular legal form – limited liability company. By enacting the Law in 2004 and founding theAgency for Commercial Registers in 2005 not only has the procedure of founding newcompanies been simplified in the Republic of Serbia, but the time needed has also beenconsiderably shortened. Depending on the required documents, particularly the abovementioned documents relating to particular approvals the time needed ranges from severaldays to no longer than one month. Table 13. summarizes the procedures and costs associatedwith setting up a business in Serbia.Table 13.No:1234ProcedureTime tocomplete:Cost to complete:Obtain registration forms, form RJR-1,form OP, forms M1 and M4 1 day CSD 5 (form OP)Notarize the Memorandum of Associationand lease contract at the Basic Court 1 day see commentsOpen a temporary bank account; payfounding deposit or its part and all otherfees 1 day no chargeObtain the registration certificate BusinessRegisters Agency (SBRA)3 days5 Make Stamp and seal 1 day RSD 25006Obtain PIB â “ tax identification number atthe Municipal Hall; certify the signatures (3copies) for opening bank account 6 days no charge7 Register with local tax authority 5 days no charge8910Open a permanent business account withthe commercial bank1 day (less thanhalf a day)Register the employment contracts withthe Employment Organization/Fund 1 day no chargeObtain certificate from the PIO Fund(pension fund) 2 days no charge11 Obtain certificate from the Health Fund 1 day no chargeRSD 5060(RSD 3600 + RSD 1460)RSD 400 (signature certificationand republic tax)Source:http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=20658