Managing a Sole Proprietorship in Serbia: Key Procedures After Registration

Obtaining an Extract from the Sole Proprietor Register (Izvod)

An extract from the register of sole proprietors is an official document confirming the status of your business. It is often required for various legal and administrative procedures, such as applying for a residence permit (boravak).

A significant advantage is that you can obtain this extract at any branch of the Serbian Business Registers Agency (SBRA) in Serbia, regardless of the city where your sole proprietorship was registered. The document can be ordered even for a temporarily suspended ('frozen') sole proprietorship. The extract is valid for 6 months.

Procedure for Obtaining an Extract: Documents and Algorithm

To obtain an extract from the register, you need to prepare a minimal set of documents and follow a simple algorithm. The procedure can be completed either offline at an SBRA branch or by submitting an application online.

1. Visit any convenient SBRA branch.
2. Bring the completed application form with you.
3. Receive the payment details on-site and pay the state fee.
4. Submit the application to the employee along with the payment receipt.
5. The extract is issued immediately after submitting the documents.

Changing the Personal Data of the Sole Proprietor

After obtaining a residence permit (boravak), it is recommended to update the data in the register by adding your foreigner identification number (Evidencioni broj za stranca, EBS). This is necessary for the proper functioning of Serbian e-government services, particularly for obtaining an electronic signature (ConsentID) and using the foreigner's ID card as a digital signature. This procedure also applies when changing a passport, first name, or last name.

It is crucial not to remove your foreign passport number from the register, as this can cause identification problems with the tax authority. It is also not recommended to make changes in December and January, as this is the period of tax recalculation, and updating data can lead to delays in receiving tax decisions.

Algorithm for Changing Personal Data and Important Nuances

When changing any registration data, including personal data, you must notify your bank within three calendar days from the moment the changes are made in the SBRA register. Otherwise, your account may be blocked. Some banks (e.g., Alta, Raiffeisen, Poštanska Štedionica) update the data automatically, but it is best to confirm this.

• Passport and a copy of it.
• A copy of the page with the visa sticker (nalepnica) or a printout of the data from the ID card.
• Paid fee of 890 dinars (or 1300 dinars if changing multiple fields).
• Completed forms: "Registraciona prijava promene podataka" and "Dodatak 09 - Lični podaci registrovanih lica".

1. Check for the data update in the online register (your 13-digit residence permit number should appear).
2. Notify the bank about the changes.
3. Obtain a new tax decision from the tax authority.
4. Be sure to send an email to kontakt.centar@purs.gov.rs with the decision from the SBRA attached to activate access to the ePorezi portal.

Changing the Legal Address

Changing the legal address is another standard procedure that can be done even for a 'frozen' sole proprietorship. It's important to remember that documents confirming the right to use the new address (e.g., a lease agreement) do not need to be submitted to the SBRA—the responsibility for the legality of the address lies with the entrepreneur.

If you operate under the simplified tax system (paušal), changing the city or municipality (opština) can lead to a significant tax increase (more than 10%). An exception is moving within certain central municipalities of Belgrade (e.g., from Novi Beograd to Stari Grad). If you change the city, you must also change the name of the sole proprietorship to include the new location.

Consequences of Changing the Legal Address

The procedure for changing the address at the SBRA is standard: submitting an application to the branch at the new registration location, paying the fee (890 dinars), and waiting for the decision. However, after this, a series of additional actions must be taken, especially when moving to another municipality or city:

• Notify the bank of the address change by providing the decision from the SBRA.
• Obtain a new tax decision.
• Re-submit the application for the environmental tax (eco-tax).
• Register at the Pension and Disability Insurance Fund (PIO) branch at the new address.
• Re-register for health insurance (zdravstvena kartica).

Suspension of Activities (Freezing/Unfreezing a Sole Proprietorship)

An entrepreneur has the right to temporarily suspend (freeze) the activities of their sole proprietorship for an indefinite period. During this time, tax accrual ceases, but certain rights and obligations remain.

• Receive payments on invoices issued before the date of suspension.
• Withdraw funds available in the account.

• Issue new invoices.
• Receive payments for services rendered during the suspension period.

It is important to remember that suspension does not release you from obligations to pay for virtual office services or bank account maintenance if stipulated in your contracts. An abandoned but not closed sole proprietorship with debts can lead to legal proceedings.

Procedure for Suspending and Resuming Activities

To suspend or resume a sole proprietorship, you need to submit an application to the SBRA and pay a fee of 890 dinars. The required forms are "Registraciona prijava promene podataka" and "Dodatak 06 - Prekid, odnosno nastavak obavljanja delatnosti".

After receiving the decision from the SBRA (up to 5 working days), you need to check the status in the online register. The suspension is confirmed by the presence of a date in the "Datum privremenog prekida" field. A status of "Aktivno" (Active) only means that the sole proprietorship has not been liquidated.

• Re-submit the application for the eco-tax, specifying the period of suspension/resumption.
• Obtain a new decision from the tax authority with the recalculated tax amount up to the day of suspension or from the moment of resumption.

How to Submit Any Application to the SBRA Online

Most applications to the SBRA can be submitted electronically through the official website apr.gov.rs. This method is available even for 'frozen' sole proprietorships and does not require prior entry of the residence permit number into the register if you have a valid electronic signature.

The ConsentID electronic signature is suitable for online submission. Using a foreigner's ID card as a digital signature is only possible after a qualified certificate has been installed on it, which is done in person at a branch of the Ministry of Internal Affairs (MUP).

1. Log in to the SBRA website using ConsentID.
2. Select the section for entrepreneurs ("preduzetnik").
3. Find the required service (e.g., changing data, suspension).
4. Fill out the electronic application form. Uploading scans of paper forms or a passport is not required.
5. Save the application and confirm it via the link in the email you will receive.
6. Pay the fee online with a bank card.
7. Sign the application with your electronic signature.

After successful submission, you will receive an application number which you can use to track its status. A notification about the decision will also be sent to your email.