Closing a company in Serbia: Why you should act fast if yours is inactive!

If you own a company that is registered but not operating and hasn’t been closed, be aware that you may face not only significant consequences but also serious legal and financial risks. The following consequences may arise:

 1. Tax obligations: Even if the company is not operating, you are still obligated to submit tax declarations and fulfill your tax obligations. If you fail to submit declarations or pay taxes, you will face significant fines and the obligation to pay overdue debts. Ignoring these obligations can result in your company being listed among those with debts, which can negatively affect your reputation and business status.

 2. Insurance obligations: If you have employees or are required to pay social security contributions, such as health or pension insurance, even if the company is not operating, you must fulfill these obligations. Failure to meet these obligations may expose you to serious penalties and legal actions.

 3. Annual reports: Even if the company is not operating, you are still required to submit annual financial reports. Failure to submit these reports on time can lead to penalties, and this can affect your business license and register you as a company that does not meet legal standards.

 4. Risk of forced closure by authorities: If the relevant authorities notice that your company is not operating but has not been closed, they may initiate a procedure to close the company. This will involve serious administrative and legal consequences, including additional procedures and fines.

 5. Personal risk for the owner: If the company is not closed in time and outstanding obligations remain, the owner may become personally liable for the company’s debts, depending on the company’s legal form (e.g., whether it is registered as a limited liability company or sole proprietorship). This risk should not be ignored, as it could lead to personal bankruptcy in the worst case.

 6. Investigation by relevant authorities: If a client forcibly or unlawfully liquidates the company without following the proper legal procedure, the relevant authorities may initiate an investigation, which may include the police. This investigation could lead to serious legal consequences and additional sanctions against those responsible for such actions.

How to resolve this situation?

The best solution is to close the company in accordance with the law by submitting a request for deletion from the business registry. This way, you avoid unnecessary obligations, legal risks, and potential fines. If the company is not closed in time, you will not only be required to pay fees but also be exposed to additional fines, leading to significant financial and legal problems.