Serbian authorities order closure of thousands of companies

NEWS 30.05.2019 13:48
Source: N1

The Serbian Business Registers Agency (APR) has initiated mandatory closure proceedings in 7,500 companies which failed to file annual financial reports two years in a row.

The companies that are being shut down did not file financial reports for 2015 and 2016 by the end of the 2017 business year.  

The APR said it would launch the same proceedings for the remaining 15,500 companies which failed to file those reports in an effort to eleminate the companies which do not operate in line with the law. Those efforts are meant to increase legal security and raise transparency levels in the economy.  

The APR launches the proceedings by issuing an order for each individual company and publishing the order on its web site. The company name is deleted from the registry after a 90 day period. The companies can continue operating during up to the day that the order is published but only to fulfil existing contracts and pay debts including salaries without paying dividends and cannot dispose of its assets.  

Those companies are also prevented from re-registering to avoid the proceedings.