4 Key Considerations To Make Before Partnering With Companies From Serbia
Check Serbian Company Company Standing in Serbia Company Registration in Serbia Credibility of Company from Serbia Best Lawyers Belgrade
As you know, economic activity and corporate activities worldwide are more intertwined than ever.
The term “global economy” has become mainstream.
Companies are now targeting international customers.
If so, you may have found some good possibilities in Serbia.
Through partnerships or joint ventures, abroad enterprises’ client base and reputation are leveraged.
In order to cooperate and introduce new products and services in Serbia, foreign companies often approach Serbian enterprises.
Serbian firms also seek international markets.
This article will discuss important factors when working with a Serbian or a foreign company.
After reading it, you should be able to understand the key terms of the partnership or joint venture arrangement, the present standing of a partner company in Serbia, due diligence on the potential business partner, and the foreign jurisdiction’s law.
Partnership Type
Businesses can collaborate on one-time projects.
Businesses can also partner long-term.
In an investing partnership, one party invests funds and advises.
Your proposed conditions of engagement will determine each party’s obligations, so be unambiguous.
You must also define each party’s duties, earnings, and liabilities.
Ultimately, you want to minimize misunderstandings and commercial relationship breakdowns.
An international company approaches a Serbian Belgrade Company to market UEFA Euro 2024-related goods and services.
If so, this engagement may only last till the football competition.
Therefore, parties’ legal documents should reflect the transient nature of the commercial connection.
A Serbian Company’s Certificate of Good Standing
Many overseas companies asked us to verify a company’s validity or offer a certificate of good standing.
Before detailing how to check or verify, it’s crucial to note that a certificate of good standing is different from an excerpt from the Serbian Business Registers Agency on a specific firm registered in Serbia.
A certificate of good standing, common in Western economies like the US and UK, certifies that a firm is in existence, has not been dissolved or merged, and has paid all state-mandated business filings and taxes.
Therefore, the Serbian Official Excerpt from the Business Registers is only partially similar to the certificate of good standing.
It confirms that the observed company exists and has not been dissolved, but it does not indicate if filings were submitted or taxes were paid.
Therefore, deeper inspection is needed to fix these flaws.
In addition, you should consider several other aspects of your Serbian partner.
As an example, we check, produce, and present our clients with a written report that includes the following information on the observed target: (i) Contact and addresses (ii) Accounts and Blockages, (iii) Management and Employees Structure of ownership (v) Summary financial data, (vi) Liens, Pledges, or Mortgages (vii) Credit score (viii) Related individuals (ix) Finance and financial comparisons (x) (xi) Debtor and creditor enforcements (xii) Court disputes (xiii) (xiv) Issued bills of exchange or promissory notes Leasing, financial Land, Data about foreign trade transactions and history.
If you’d like to learn more about your possible partner, click here and fill out the form with the company’s information (preferably its official business name, tax id number or corporate number).
The above study may help you decrease risks and make an informed decision regarding your Serbian business venture.
If this information doesn’t meet your needs, we move on to due diligence.
Due Diligence
Despite professing to be fully operational, some businesses have committed fraud against international entities.
Thus, it’s crucial to perform due research on your partner.
So you know it’s legit.
In summary, numerous clients have requested legal, financial, and commercial due diligence.
Legal due diligence comprises investigating the company’s structure, directors, transactions, and exposure.
Financial due diligence can include evaluating sales data and profit and loss statements to verify the target entity’s performance.
Commercial due diligence can also reveal the subject entity’s growth goals and talent pool of industry specialists.
However, using local expertise for due diligence may assist contextualize the results.
Applicable Law
Varied countries have different business laws. These differences should be noted.
If a foreign company contacts A Belgrade Company to manufacture UEFA Euro Cup 2024 products in their country,
In that situation, the quality and safety standards of such goods may differ from Serbian laws.
Serbia’s free trade agreements with foreign nations and supranational unities and organizations depend on the origins of goods, which may be questioned while exporting to the host country.
Therefore, you must get legal counsel in Serbia regarding the evaluation of goods’ origin, packaging, and safety or care instructions to comply with local legislation.
To guarantee that the foreign entity understands Serbian law for such an engagement, the contract must specify the governing law.
Key Takeaways
When a foreign company wants to partner, it’s exciting. Consult a lawyer before signing any legal documents. Importantly, you want to thoroughly understand the dangers and important obligations of the prospective connection.
If you need help partnering with a foreign business and understanding essential elements of the partnership or joint venture arrangement, our experienced business lawyers may be able to help.
PS. What’s due diligence?
Due diligence involves examining all important aspects affecting a business’s future success and the risks involved in the proposed deal. If a Serbian company approaches you for a collaboration, you must perform due diligence.
Make sure it’s legit.
For more information on this or any other legal, tax, or business topic, feel free to write to us at office@statt.rs at any time or call us at phone number +381113281914 every working day from 08:30 to 16:30.