(Official Gazetter n. 62/2013, 30/2018)

Amendments to the Law on factoring were adopted on the 19th April 2018 by the National Assembly of the Republic of Serbia and entered into force on the on the 28th April 2018.

Factoring financial services represent the sale of existing or future non due short-term monetary claims, arising under the contract of sale of goods or provision of services in the country and abroad. Innovation in the law shall regulate the exercise of factoring approval.

Innovations in the law regulate the approval of performing the factoring services by the competent authority. The provisions inserted the term “owner” with the term “the founder” of the company. Also, for founder who is a natural person, is anticipated that this person must not be sentenced to imprisonment for more than six (6) months, that against the person has not been initiated some criminal proceedings, and that against the person was not imposed a security measure of prohibition of performing occupation, activity or duty.

Furthermore, the legal entities, if they want to set up a factoring company, need to submit to the Ministry of Finance a certified copy of the decision or other act on registration of an entity in the register of which, according to regulations of the country’s seat of that legal entity responsible for keeping the register of business entities, the certificate of the competent authority that the legal person has not been convicted of a criminal offense and that a person has not a criminal record (article 7).

In this case also, the factoring companies are subject to a period of 6 (six) months, from the date of entry into force of the Law, to comply with the new provisions.