Business associations play a key role in the economy of the Republic of Serbia, and their establishment, activities and legal framework are regulated by the Law on Associations and the Law on Business Companies. These associations gather a broad spectrum of legal entities that contribute to economic development and facilitate cooperation among entrepreneurs and business companies in achieving common goals.

Establishment and Legal Status of Business Associations

Business associations in the Republic of Serbia represent a special form of organization made up of multiple business companies or entrepreneurs aimed at achieving common goals. It is important to note that the purpose of achieving common goals is a distinctive feature, and the law precisely defines the nature of the associations, activities, and affairs. In other words, a business association cannot conduct profit-making activities but exists solely for the purpose of achieving joint objectives. Since these types of associations differ from others in legal commerce, their legal form is designated as a “business association” or “p.a.” or “pa” (short for “poslovno udruženje” in Serbian). A business association acquires legal personality through registration at the Agency for Business Registers, which means that from the moment of registration, it gains the ability to freely participate in legal commerce in accordance with the goals defined by its statute.

Membership in a business association is voluntary, and members can be both domestic and foreign business companies and entrepreneurs who share common interests with the association. The association may set special conditions for the admission of new members, usually defined by the statute or other internal acts. Also, members have the right to participate in the association’s activities, propose projects and initiatives, and use the services provided by the association.

Rights and Obligations of Business Associations

Business associations in Serbia have the right to:

Represent and advocate for the interests of their members before government bodies and institutions.

Give opinions on regulations and propose amendments to laws and other acts that impact the operations of their members.

Organize professional gatherings, seminars, workshops, and other forms of education for members.

Cooperate with similar associations and institutions in the country and abroad.

Implement projects of interest to members that contribute to business improvement, such as promoting domestic products, introducing new technologies, or developing markets.

The obligations of business associations include respecting the legal framework within which they operate, as well as the obligation for transparent operations and proper management of funds. The association is also required to regularly inform members about its work and decisions.

Although business associations are not profit-oriented, they can generate revenue from various sources, including membership fees, donations, sponsorships, as well as income from providing certain services. However, if they generate revenue through commercial activities, they may be subject to taxation in accordance with applicable tax regulations of the Republic of Serbia.

The management of finances in business associations must be transparent, and funds can only be used for purposes defined by the association’s statute. Otherwise, the competent authorities may take legal measures.

The Importance of Business Associations for the Economy

Business associations are an important mechanism for strengthening the competitiveness of domestic economic entities and the economy as a whole. Through joint efforts, companies and entrepreneurs can more easily overcome challenges, share experiences, and create stronger connections within the industry. These associations also often serve as a bridge between the private sector and the state, helping to shape policies that stimulate economic development. In other words, while unions and employer associations primarily work to improve relations and the position of employees and employers, business associations mainly serve to enhance the business climate and the position of economic entities in relation to the state.

Business associations in the Republic of Serbia play a key role in connecting business entities, improving the business environment, and promoting shared interests. The legal framework for their operation is clearly defined through the Law on Associations and the Law on Business Companies, but the success of these organizations depends on the active participation and cooperation of their members, as well as on the association’s ability to respond to the needs of the market and the economy.

Business Associations

In Republic of Serbia ownership rights to real estate are acquired through registration in the cadaster. Professional users, including lawyers, have a secure and efficient means of electronic communication and submission of requests in the form of electronic documents for property registration and issuance of real estate cadaster data.

Ownership rights to real estate are acquired through registration in the cadastre. A sale and purchase agreement for an apartment serves as merely the basis of acquisition (iustus titulus); however, the mode of acquisition (modus acquirendi) is essential, which involves registration in the cadastre. Various issues may arise if an apartment is not registered in the cadastre, as ownership is conferred only upon registration in the real estate cadastre.

The required documentation and procedure depend on each specific case. Primarily, it is necessary for the building in which the apartment is located to be registered in the real estate cadastre before the apartment itself can be registered. The procedure differs based on whether the building was constructed before regulations on building structures, whether the construction has building permit and inspection acceptance certificate, or if the construction was done illegally. For a new building with issued construction and inspection acceptance certificate, the competent authority in the unified procedure submits documents for the registration of the building in the real estate cadastre. However, for a building that is not considered a new construction, it is mandatory to obtain a certificate from the municipal department for construction works, which include apartment's square footage, room count, and floor level, for registering the apartment in the cadastre. If the competent authority is unable to issue such a certificate, information about the apartment can be registered based on the findings and opinions of a permanent court expert in the field of construction.

Electronic counter for property registration in the cadastre: innovations in serbian administration

The introduction of the digital era into administrative processes is inevitable, and the latest amendments to the laws on the procedure of registration in the real estate cadastre and infrastructure in Serbia reflect this trend. These changes bring significant innovations for all stakeholders in the real estate market, from citizens to professionals. Primarily, the Republic Geodetic Authority has streamlined the business process of document submission and application filing for registration in the real estate cadastre by introducing the eCounter information system. The law stipulates that only authorized professional users of the eCounter system are exclusively eligible for submitting requests for registration in the real estate cadastre. Professional users, including lawyers with a concluded access and usage agreement for the eCounter system, have a secure and efficient means of electronic communication and submission of requests in the form of electronic documents for property registration and issuance of real estate cadastre data. The Electronic Counter for property registration contributes to efficiency, transparency, and process acceleration, reducing bureaucracy and enabling faster access to information.

One of the key changes is that an increasing amount of data will be accessible in digital format, enhancing both efficiency and transparency. Moreover, the new law introduces a system of a unique property identification number, facilitating searches and reducing the possibility of errors.

This innovation not only expedites processes but also enhances transparency and facilitates record-keeping for real estate. The Electronic Counter represents a crucial step toward a modern, efficient administration that reflects the needs of citizens in the digital age.

If you need to register your property in the real estate cadastre, we are at your disposal to provide expert support and legal services tailored to your specific need.

Guide to property registration in the cadaster via e-counter

A digital nomad visa represents a specific type of visa that allows individuals to travel and reside in various countries while working remotely. This type of visa has gained popularity among modern professionals who seek to leverage the flexibility of remote work and explore the world.

Digital nomad viza predstavlja specifičnu vrstu vize koja omogućava pojedincima da putuju i borave u različitim zemljama dok rade na daljinu. Ova vrsta vize je postala popularna među modernim profesionalcima koji žele da iskoriste fleksibilnost rada na daljinu i istraže svet.

Unlike traditional work visas that require employer sponsorship, digital nomad visas are specially designed for individuals who earn their income remotely. These visas are legally recognized and provide protection for remote workers, granting them the freedom to live and work in a foreign country without the fear of legal consequences. However, with this freedom come unique legal challenges that must be overcome. In this blog, we will explore how a digital nomad visa can empower remote workers by providing a legal framework for living and working in other countries.

Digital nomads are modern individuals who perform work online, whether they are self-employed (freelancers) or employed in remote positions that do not require a physical presence at a workplace. Their activities are related to computer-based tasks such as web design, graphic design, programming, marketing, dropshipping, cryptocurrencies, social media, and more. Therefore, they seek a comfortable place to settle and work. Key criteria when choosing a country to apply for a visa include internet speed, cost of living, visa application process, visa duration, and potential tax benefits. Additionally, personal preferences, geographical  location, climate, safety, and the overall environment also play a significant role in the decision-making process.

This is a hybrid type of visa that combines a work visa with a residence permit because individuals can only earn income through remote work, they are not allowed to be employed in the host country, but they are allowed to live alone or with their family during the visa's validity period. This, of course, is subject to meeting specific conditions regarding net income, bank account balance, healthcare coverage, and additional financial means for each family member living with them. Family members are also not granted the right to employment in the host country but are eligible for residence.

This way of working has seen significant growth after the global COVID-19 pandemic, as countries aim to attract a larger number of digital nomads with the benefits they offer, in return contributing to their economy, multiculturalism, and the emergence of new business ideas (start-ups). Digital nomads have the opportunity to travel, work from different parts of the world, and increase their income.

Understanding Legal Challenges for Remote Workers

With the increasing popularity of remote work, remote workers face various legal challenges. One of the most significant barriers is the lack of recognition and protection in foreign countries. Without the appropriate visa or work permit, remote workers may face deportation or other legal consequences. Additionally, tax obligations can become complex and confusing when working across borders. These challenges can create a sense of insecurity and instability for remote workers, hindering their ability to fully embrace the digital nomadic lifestyle.

A digital nomad visa offers many advantages for remote workers. First, it provides legal security, eliminating the fear of deportation or legal consequences. This allows remote workers to fully focus on their work and embrace the digital nomadic lifestyle without constant worries about being on the wrong side of the law. Furthermore, a digital nomad visa can provide access to essential services such as healthcare and banking, which are challenging to obtain without a registered residence. Finally, a digital nomad visa can open up new opportunities for networking and collaboration with like-minded individuals in the country that issues the digital nomad visa, enriching the professional and personal lives of remote workers.

Countries that have recognized this trend and decided to attract digital nomads by offering special visas have taken steps to enact legal regulations and streamline the application process (such as Spain, Greece, Cyprus, the Czech Republic, Portugal, Barbados, Costa Rica, Bermuda, and the Cayman Islands). These visas typically allow stays in the country for a specified period, usually ranging from a few months to one year, with the possibility of extensions. Often, a common requirement is that the individual must be employed by a foreign employer or earn the majority of their income through remote work (for example, in Spain, it is not allowed for income from a domestic employer to exceed 20% of the total monthly income). While the concept of digital nomad visas is relatively new, several countries have recognized the potential benefits of attracting remote workers. For example, Estonia launched its digital nomad visa program in 2020, allowing remote workers to live and work in the country for up to 12 months. Other countries, such as Barbados, Bermuda, and Croatia, have also introduced similar visa programs to attract digital nomads. These countries understand the economic value that remote workers can bring and have simplified the application process to make obtaining residence easier.

The requirements for obtaining digital nomad visas vary depending on the country. However, there are common criteria that remote workers typically need to meet. Applicants typically need to provide proof of income demonstrating a stable source of remote income. They may also be required to have health insurance coverage and provide a valid passport with at least six months of validity. In some cases, applicants for a digital nomad visa may be required to submit a detailed travel plan or explain their reasons for choosing that particular country. By meeting these requirements, remote workers can increase their chances of obtaining a digital nomad visa.

Once remote workers have chosen the country where they want to apply for a digital nomad visa, the application process can begin. The first step is to gather all necessary documents, including proof of income, health insurance, and a valid passport. It is important to thoroughly research the specific requirements of the chosen country to ensure that all necessary documents are provided. After the documents are in order, the application can be submitted to the relevant government agency or embassy. It is recommended to apply well in advance of the desired start date to allow time for the processing of the application. After the application is submitted, remote workers must be prepared to provide additional information or attend interviews as requested by the visa-issuing authorities. Navigating the legal process of obtaining a digital nomad visa can be complex and daunting. Seeking professional assistance, such as hiring an immigration and foreigner's law attorney, can be helpful in ensuring a successful application. Legal Framework in the Republic of Serbia The Republic of Serbia aims to regulate the issue of digital nomads, making their activities and residence legal and documented through residence registration. In this regard, the Law on Personal Income Tax, specifically Article 9b, stipulates the following: "Exempt from taxation is the income of a non-resident taxpayer who spends a maximum of 90 days in the territory of the Republic within a 12-month period that starts or ends in the respective tax year, if such income is earned from a non-resident principal who does not conduct business or activities in the territory of the Republic". Unfortunately, digital nomad visas have not yet been implemented in the Republic of Serbia, but there is hope that the legislator will include this visa in the legal framework in the near future.

The digital nomadic way of life offers numerous opportunities for remote workers, but it also comes with unique legal challenges. A digital nomad visa is a valuable tool that can motivate remote workers by providing legal security for living and working in foreign countries. By understanding the advantages of the digital nomadic lifestyle, as well as the countries that offer it and the application process, remote workers can navigate the legal process with confidence. Although the journey may be complex, the rewards of obtaining a digital nomad visa are priceless. Therefore, if you are a remote worker dreaming of living and working in foreign countries, explore the possibilities that the digital nomadic lifestyle can offer. Lawyers with expertise in labor, tax, immigration law, and foreigner&#39;s law can provide valuable assistance in resolving any uncertainties and offering expert legal support to ensure quality and uninterrupted work and residence.

Navigation through the Legal Process: How a Digital Nomad Visa Can Empower Remote Workers

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MTC is a law office based in Belgrade that offers an intelligent and pragmatic approach,  providing a highly specialized service tailored to meet your individual needs. Our team consisting of experienced lawyers and experts from different legal fields is ready to answer all your requests and legal questions, with maximum dedication and commitment to each specific case.

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Guide to property registration in the cadaster via e-counter

Navigation through the Legal Process: How a Digital Nomad Visa Can Empower Remote Workers