October 23, 2009

The Law on Associations

Recently, the National Assembly of the Republic of Serbia adopted the new Law on Associations, which will be applied as of October 23, 2009 (the “New Law”) and will replace the old Law on Associations (the “Old Law”).

The New Law defines an association as a voluntary and non-governmental non-profit organization, established by several (at least three) founders - natural persons or legal entities (out of which at least one must have place of residence or seat on the Serbian territory).

The association acquires the status of legal entity through its registration in the Registry of Associations kept with the Business Registry Agency (the "Agency") [pursuant to the Old Law, this was within the competence of the Ministry for Public Administration]. The relevant Rules which regulate the registration procedure in detail have also been rendered.

Unlike the Old Law, the New Law provides for establishment of representative offices of foreign associations. They are also registered with the Agency in the procedure regulated under the above mentioned Rules. The associations established under the Old Law are required to harmonize their statutes and other internal by-laws with the provisions of the New Law within eighteen (18) months and to reregister with the Agency.

Foreign associations which commenced their activities in Serbia prior to rendering of the New Law are also required to harmonize their activities with the New Law and to submit an application for registration in the relevant registry within three months.