Business in SerbiaLaw

Law on the Central Record of Real Owners

At the Fifth Session of the First Regular Session in 2018, the National Assembly of the Republic of Serbia adopted the Law on the Central Record of Real Owners published in the Official Gazette of the Republic of Serbia no. 41/2018 (hereinafter: the “Law”), May 31, 2018, entered into force on June 8, 2018.

The authorized persons in legal entities are obliged to record the data in the Central Record of the real owners by 31st January 2019. It is mandatory to register all persons who have 25% or more ownership in a legal entity, persons who directly or indirectly have a predominant influence on the business activities and decision-making, persons who indirectly provides or secures funds to the entity. Exceptionally, if the actual owner cannot be determined as prescribed, the actual owner will be the registered representative or registered as the member of the corporative bodies of such entity.

The Law applies to:
• private companies;
• cooperatives;
• branches of foreign companies;
• associations other than political parties, trade unions, sports organizations, churches, religious communities;
• foundations and endowments;
• institutions;
• representative offices of foreign companies, associations, foundations and endowments.

Legal entity who does not register the data within the deadline can be fined for a misdemeanor with a fine ranging from 500,000.00 to 2,000,000.00 rsd and authorized representative in the range from 50,000.00 to 150,000.00 rsd.
The Law prescribes criminal responsibility of a person who hides or false data with a prison sentence in duration from three months to five years.