corporations <strong>and</strong> open held corporations. All companies must have a founding act that can havetwo forms:• The form <strong>of</strong> a Memor<strong>and</strong>um <strong>of</strong> association in case <strong>the</strong>re are more founders or• The form <strong>of</strong> a Decision in case <strong>of</strong> one founder.A company becomes legal entity when its data are entered into <strong>the</strong> Register in <strong>the</strong>Agency for Commercial Registers. Data about all commercial associations, <strong>the</strong>ir total number,as well as <strong>the</strong> results <strong>of</strong> <strong>the</strong>ir financial transactions can be found in <strong>the</strong> Agency.The Law does not prescribe minimal amount <strong>of</strong> share capital for entrepreneurs,partnerships <strong>and</strong> limited partnerships, so <strong>the</strong> founding costs are relatively low founding <strong>of</strong>entrepreneur with one founder, <strong>the</strong> simplest form <strong>of</strong> <strong>SME</strong>s. In <strong>the</strong> case <strong>of</strong> founding a limitedliability company or a corporation <strong>the</strong> Law prescribes minimal amounts <strong>of</strong> share capital sohigher amounts <strong>of</strong> initial financial resources are necessary in order to found <strong>the</strong>se legal forms<strong>of</strong> <strong>SME</strong>s. Minimal share capital for limited liability company amounts to Euro 500, for closedcorporation Euro 10,000, <strong>and</strong> for open held corporation Euro 25,000.That is to say that before establishing <strong>the</strong> 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 <strong>the</strong> most frequent <strong>and</strong> <strong>the</strong> mostpopular legal form – limited liability company. By enacting <strong>the</strong> Law in 2004 <strong>and</strong> founding <strong>the</strong>Agency for Commercial Registers in 2005 not only has <strong>the</strong> procedure <strong>of</strong> founding newcompanies been simplified in <strong>the</strong> Republic <strong>of</strong> Serbia, but <strong>the</strong> time needed has also beenconsiderably shortened. Depending on <strong>the</strong> required documents, particularly <strong>the</strong> abovementioned documents relating to particular approvals <strong>the</strong> time needed ranges from severaldays to no longer than one month. Table 13. summarizes <strong>the</strong> procedures <strong>and</strong> 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 <strong>and</strong> M4 1 day CSD 5 (form OP)Notarize <strong>the</strong> Memor<strong>and</strong>um <strong>of</strong> Association<strong>and</strong> lease contract at <strong>the</strong> Basic Court 1 day see commentsOpen a temporary bank account; payfounding deposit or its part <strong>and</strong> all o<strong>the</strong>rfees 1 day no chargeObtain <strong>the</strong> registration certificate BusinessRegisters Agency (SBRA)3 days5 Make Stamp <strong>and</strong> seal 1 day RSD 25006Obtain PIB â “ tax identification number at<strong>the</strong> Municipal Hall; certify <strong>the</strong> signatures (3copies) for opening bank account 6 days no charge7 Register with local tax authority 5 days no charge8910Open a permanent business account with<strong>the</strong> commercial bank1 day (less thanhalf a day)Register <strong>the</strong> employment contracts with<strong>the</strong> Employment Organization/Fund 1 day no chargeObtain certificate from <strong>the</strong> PIO Fund(pension fund) 2 days no charge11 Obtain certificate from <strong>the</strong> Health Fund 1 day no chargeRSD 5060(RSD 3600 + RSD 1460)RSD 400 (signature certification<strong>and</strong> republic tax)Source:http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=20658
3.4.4. <strong>SME</strong> SUPPORT INFRASTRUCTUREThe Council for <strong>Development</strong> <strong>of</strong> Small <strong>and</strong> Medium Enterprises <strong>and</strong><strong>Entrepreneurship</strong> was established by <strong>the</strong> decision <strong>of</strong> <strong>the</strong> Government <strong>of</strong> Republic <strong>of</strong> Serbia,No. 05-02-7692/2006 dated 17. August 2006. (Official Gazette No.69/06). The Council’s tasksare to discuss, monitor <strong>and</strong> analyses <strong>the</strong> situation in <strong>the</strong> field <strong>of</strong> small <strong>and</strong> medium enterprises<strong>and</strong> entrepreneurship, to give suggestions, opinions, initiatives <strong>and</strong> expert explanations oncreating <strong>and</strong> carrying <strong>the</strong> support policy for small <strong>and</strong> medium enterprises development <strong>and</strong>conditions improvement for foundation <strong>and</strong> operations <strong>of</strong> small <strong>and</strong> medium enterprises <strong>and</strong>entrepreneurship. The Council is also expected to follow <strong>and</strong> initiate <strong>the</strong> activities amongministries, that is, <strong>the</strong> Ministry <strong>and</strong> o<strong>the</strong>r organizations <strong>and</strong> institutions. The members <strong>of</strong> <strong>the</strong>Council are <strong>the</strong> appointed representatives <strong>of</strong> ministries <strong>of</strong>: economy, science <strong>and</strong> environment,labor, employment <strong>and</strong> social policy, finance, trade, tourism <strong>and</strong> services, education <strong>and</strong> sport,agriculture, forestry <strong>and</strong> waterpower as well as <strong>the</strong> representatives <strong>of</strong> Chamber <strong>of</strong> Commerce<strong>of</strong> Serbia <strong>and</strong> <strong>the</strong> Union <strong>of</strong> Serbian Employers.The Serbian Agency for <strong>the</strong> <strong>Development</strong> <strong>of</strong> Small <strong>and</strong> Medium-sizedEnterprises <strong>and</strong> <strong>Entrepreneurship</strong> was established by <strong>the</strong> Law <strong>of</strong> <strong>the</strong> Agency for<strong>Development</strong> <strong>of</strong> Small <strong>and</strong> Medium-sized Enterprises (Official Gazette 65/2001, as <strong>of</strong> 23November 2001) with <strong>the</strong> basic aim to support (assist, advise <strong>and</strong> protect) <strong>the</strong> development<strong>and</strong> interest <strong>of</strong> <strong>SME</strong> sector, which in long term should contribute to <strong>the</strong> harmonization <strong>of</strong>economic structure <strong>and</strong> faster economic development <strong>and</strong> <strong>of</strong> Serbia. The main goal <strong>of</strong> Agency isto support <strong>the</strong> regional economic development <strong>and</strong> change <strong>of</strong> Serbian economic structure inorder to:• Solve unemployment problems more efficiently;• Substitute import <strong>and</strong> intensifying <strong>SME</strong>s competitiveness;• Stimulate various forms <strong>of</strong> cooperation with big enterprises;• Introduce modern technologies <strong>and</strong> enhance innovations (entrepreneurs incubators,innovative centres);• Utilize business premises <strong>and</strong> equipment more economically;• Quality upgrade; automation <strong>and</strong> computerisation etc.According to <strong>the</strong> Article 7 <strong>of</strong> <strong>the</strong> Law <strong>the</strong> main activities <strong>and</strong> m<strong>and</strong>ate <strong>of</strong> Agency are:• Participation in <strong>the</strong> preparation <strong>of</strong> <strong>the</strong> strategy <strong>of</strong> development <strong>and</strong> proposal <strong>of</strong> <strong>the</strong>economic policy measures for <strong>the</strong> stimulation <strong>of</strong> <strong>the</strong> development <strong>of</strong> <strong>SME</strong>'s <strong>and</strong>entrepreneurs in cooperation with <strong>the</strong> competent ministry;• Preparation <strong>and</strong> performing <strong>the</strong> pr<strong>of</strong>essional assistance for <strong>the</strong> co-ordination <strong>of</strong> specialprograms <strong>and</strong> investment funds as well as for financial support for <strong>the</strong> stimulation <strong>of</strong>creation <strong>of</strong> new <strong>and</strong> development <strong>of</strong> existing <strong>SME</strong>s <strong>and</strong> entrepreneurs;• Performing <strong>the</strong> pr<strong>of</strong>essional assistance necessary for <strong>the</strong> realization <strong>of</strong> local <strong>and</strong> foreigninvestments in <strong>SME</strong>'s;• Performing pr<strong>of</strong>essional assistance necessary for improving <strong>the</strong> operation, <strong>the</strong>development <strong>of</strong> innovations as well as <strong>the</strong>ir application in <strong>SME</strong>s;• Creation <strong>of</strong> unique data base system <strong>of</strong> statistical data <strong>and</strong> information relevant for <strong>the</strong>development <strong>of</strong> <strong>SME</strong>'s <strong>and</strong> entrepreneurs;• Preparation <strong>and</strong> delivering programs <strong>of</strong> education <strong>of</strong> instructors <strong>and</strong> consultants for <strong>the</strong>development needs <strong>of</strong> <strong>SME</strong>'s <strong>and</strong> entrepreneurs;• Performing o<strong>the</strong>r services as provided by <strong>the</strong> law.The core activities <strong>of</strong> <strong>the</strong> Republic Agency include streng<strong>the</strong>ning <strong>of</strong> <strong>the</strong> Republic Network<strong>of</strong> technical support for <strong>SME</strong> development (which covers more than 80% <strong>of</strong> <strong>the</strong> territory <strong>of</strong> <strong>the</strong>Republic <strong>of</strong> Serbia), assistance <strong>and</strong> support in <strong>the</strong> establishment <strong>of</strong> new regional agencies <strong>and</strong>centers as centers for information, consulting <strong>and</strong> education, Realization <strong>of</strong> differenteducational processes for <strong>SME</strong> sector, initiating <strong>and</strong> organizing different events aimed at59
- Page 4 and 5:
1. SME DECLARATION AND WORKING GROU
- Page 6 and 7:
While comparing the BSEC and EU doc
- Page 8 and 9: cooperation with the United Nations
- Page 10 and 11: GENERAL ASSESSMENT OF THE BSEC WG O
- Page 12 and 13: “Armenia's new law introduces a n
- Page 14 and 15: (iii)Share of the labor force of SM
- Page 16 and 17: The following data represents some
- Page 18 and 19: RankDocuments for export(number)Tra
- Page 20 and 21: • Industrial zones/Business incub
- Page 22 and 23: 3.1.4. FINANCING SMEsProf. Dr. Sela
- Page 24 and 25: • the loan is secured with movabl
- Page 26 and 27: 3.1.4.3. Mutual and loan guarantee
- Page 28 and 29: introduction of e-signatures, only
- Page 30 and 31: The Code of Conduct for Civil Serva
- Page 32 and 33: Trading Across Borders Enforcing Co
- Page 34 and 35: as with all non-governmental organi
- Page 36 and 37: Bulgarian SMEs obtain additional ca
- Page 38 and 39: • Project BG 2004/016-711.11.04 -
- Page 40 and 41: usiness is not approaching them oft
- Page 42 and 43: • Romanian citizens are recognize
- Page 44 and 45: The preparatory project of the NDP
- Page 46 and 47: • To support participation in eco
- Page 48 and 49: In 2004, the National Institute of
- Page 50 and 51: Incubators host on average 11 SME,
- Page 52 and 53: Programs. The program is implemente
- Page 54 and 55: development instrument is extremely
- Page 56 and 57: accounting standards, including med
- Page 60 and 61: promoting SME sector, cooperation w
- Page 62 and 63: • for unemployed (micro credit)
- Page 64 and 65: are private pension funds, broker h
- Page 66 and 67: very early steps of its democratic
- Page 68 and 69: Another negative factor that is mor
- Page 70 and 71: economy. The so called in the organ
- Page 72 and 73: Federal funds, private capital, esp
- Page 74 and 75: 4.3. MOLDOVATable 14.Dimensions Neg
- Page 76 and 77: Related andsupportingindustriesDome
- Page 78 and 79: Technological:Internetaccessibility
- Page 80 and 81: Domesticdemand• Still not many pe
- Page 82 and 83: international investments• Govern
- Page 84 and 85: 3. Hamel, G., Prahalad, C.K. (1994)
- Page 86 and 87: 5.2 DEVELOPMENT OF THE SME SECTOR I
- Page 88 and 89: General Characteristic of SME Devel
- Page 90 and 91: Index of SME Development in Armenia
- Page 92 and 93: The same problem exists in getting
- Page 94 and 95: SME support infrastructure in Armen
- Page 96 and 97: 5 million was provided by UNDP and
- Page 98 and 99: 5.3 DEVELOPMENT OF THE SME SECTOR I
- Page 100 and 101: Diagram 1. The number of small ente
- Page 102 and 103: The privatization process of object
- Page 104 and 105: 13.Cabinet Provision on “Distribu
- Page 106 and 107: 5.3.3. SME support infrastructure i
- Page 108 and 109:
The role of the state in technical
- Page 110 and 111:
General situation of credit marketT
- Page 112 and 113:
After creation and starting impleme
- Page 114 and 115:
At the meantime, small enterprise s
- Page 116 and 117:
Table. 32.Ease of businessDoingBusi
- Page 118 and 119:
people who start small businesses t
- Page 120 and 121:
are salaried and the medium - sized
- Page 122 and 123:
Technology Foresight in Greece 2001
- Page 124 and 125:
Greek VC market started to develop
- Page 126 and 127:
In the area of bankruptcy and restr
- Page 128 and 129:
enterprises. According to TURKSTAT,
- Page 130 and 131:
small size enterprise or micro ente
- Page 132 and 133:
industrial enterprises. Undersecret
- Page 134 and 135:
individuals, rather than well struc
- Page 136 and 137:
7. SUGGESTIONS FOR THE SME DEVELOPM
- Page 138 and 139:
Annex 1.MAP OF THE BLACK SEA COUNTR
- Page 140 and 141:
17-18 June 2005 1 st Moscow Interna
- Page 142 and 143:
ARMENIASTRENGTHS• Application of
- Page 144 and 145:
BULGARIASTRENGHT• Flexibility and
- Page 146 and 147:
GREECESTRENGHT• They have a vital
- Page 148 and 149:
ROMANIASTRENGHTWEAKNESS• Stabilis
- Page 150 and 151:
REPUBLIC OF SERBIASTRENGHT• Longe
- Page 152 and 153:
UKRAINESTRENGTHS• Well educated l
- Page 154 and 155:
In compliance with the Resolution m
- Page 156 and 157:
1. Please provide definition of SME
- Page 158 and 159:
7. Did you establish a dedicated bo
- Page 160:
11. Do you have any suggestions for