Who is not allowed to start business in Serbia? – As of mid-2015, Registry of disqualified entities to be set up

By the middle of next year, Serbia will start implementing the regulation called “law on disqualified entities” which will put a temporary ban for a number of businessman to start new businesses due to misuse of the rights from their scope of responsibilities.

According to him, the law should solve the issue of limitation of rights to a certain number of people to whom the court set the measure of ban to operate their activities but some other governmental situations as well with respect to execution of specific criminal act or violation.

The ban would, he says, refer to companies whose business accounts have been blocked and the suggestion will be that the deadline is not more than 60 days. Obradovic reminded that in practice a number of people misuses this right, registers new business where it leaves current company in problems, opens a new one and transfers business to it.

When asked who the ban will refer to, Obradovic says the regulation will first of all refer to members of management board and legal representatives which means to those who have decision-making role in the company.

Timeline of this ban is defined with the legal penalty timeline or the length of a blockade, Obradovic said and added that new business cannot be set up as long as the penalty the court proscribed lasts or as long as account blockade lasts.

He outlined that this kind of data exchange between institution’s in Serbia does not exist today and said that a mutual violation database is to be set up.