The liquidation procedure of a civil association

The liquidation procedure of a civil association is generally similar to the liquidation of business companies, but it is somewhat simplified.

According to the Law on Associations, the general assembly of the association is required, within 15 days from the occurrence of the grounds for liquidation, to adopt a decision on liquidation and appoint a liquidator. The decision must be submitted to the registrar within 3 days and published in the “Official Gazette of the Republic of Serbia,” together with an invitation to creditors to submit their claims within 30 days.

The law also provides for a simplified liquidation procedure, which may be applied if, after the liquidation decision is adopted, the majority of the members of the assembly submit a statement to the registrar confirming that all tax obligations, obligations towards creditors, and obligations towards employees have been settled. In such a case, the association is deleted from the Register, along with the registration of data on the members of the assembly (personal names and residence, or company name and registered office).

Under the simplified procedure, the members of the assembly are jointly and severally liable for the association’s obligations for a period of three years from the date of its deletion from the Register.

With regard to financial reporting, there are no differences compared to business companies. In accordance with the Accounting Law, it is mandatory to prepare extraordinary financial statements (balance sheet and income statement) as of the day preceding the opening of the liquidation procedure, as well as as of the day preceding its closure.
It is important to note that upon termination of the association, its assets do not belong to its members. The statute may stipulate that the assets are transferred exclusively to a domestic non-profit legal entity established for the same or similar purposes.