Guide
Associations and foundations
Associations and foundations are non-profit organisations registered with the Business Registers Agency (APR) that keep proper books and file annual financial statements just like companies.
An association is an organisation set up by at least three founders to pursue a shared or general goal (sport, culture, humanitarian work), while an endowment or foundation is property that a founder sets aside to achieve a publicly beneficial purpose. Although non-profit, both are legal entities entered in the APR register and carry accounting and tax duties, so they must keep proper books. Accurate records matter because donors and the state expect every dinar to be spent for its intended purpose and transparently.
What you should know
- Associations and foundations register with the APR and keep books under the double-entry system, in line with the Law on Accounting and the rulebook for non-profit organisations.
- An annual financial statement is filed with the APR every year, and an organisation that was not active submits a statement of inactivity.
- Non-profits may carry out economic (taxable) activity connected to their statutory goals, but any surplus (profit) goes back into the organisation rather than to the founders.
- Donations, membership fees, project funds and earmarked (grant) money must be tracked separately, because donors receive a report on how every dinar was spent.
- Employees are paid salaries with taxes and contributions, associates can be engaged under contracts outside employment, and taxable activity above the turnover threshold brings the organisation into the VAT system.
| Feature | Association | Endowment or foundation |
|---|---|---|
| What it is | Organisation set up to pursue a goal | Property set aside for a goal |
| Founders | At least three founders | A founder sets aside property |
| Goal | Shared or general goal (sport, culture, humanitarian work) | Publicly beneficial purpose |
| Status and duties | Legal entity, entered in APR, keeps books | Legal entity, entered in APR, keeps books |
How we handle it
- 01 Setting up bookkeeping We set up double-entry bookkeeping and a chart of accounts tailored to your organisation's goals and funding sources, in line with the rules for non-profit organisations.
- 02 Recording income We book donations, membership fees and project funds separately by source, so you always know how much money is available for which purpose.
- 03 Donor reporting We prepare earmarked (grant) reports showing how funds were spent, exactly as donors and contracts require.
- 04 Salaries and contracts We calculate employee salaries and fees under contracts outside employment, with all taxes, contributions and filings.
- 05 Annual statement We compile and file the annual financial statement with the APR and track any VAT and corporate income tax obligations.
Frequently asked questions
How many founders are needed to set up an association?
An association is set up by at least three founders to pursue a shared or general goal, such as sport, culture or humanitarian work.
Does an association or foundation have to keep books and file statements?
Yes. Associations and foundations register with the APR and keep double-entry books, filing an annual financial statement with the APR each year; an organisation that was not active submits a statement of inactivity.
Can a non-profit carry out taxable activity and make a profit?
It may carry out economic (taxable) activity connected to its statutory goals, but any surplus goes back into the organisation rather than to the founders, and activity above the turnover threshold brings it into the VAT system.
How to start a company
A guide to starting a company in Serbia: choosing a legal form, APR registration and first obligations.
Read moreSole trader, flat-rate or LLC: which to choose
An overview of the three Serbian legal forms (flat-rate sole trader, sole trader on business books, and an LLC) compared by liability, taxation, bookkeeping and capital, so you can pick the form that pays off best for you.
Read moreOpening a company in Serbia for foreigners
Foreign nationals and companies can set up a business in Serbia on the same terms as locals, and we run the whole process from choosing the form to registration and banking, remotely if needed.
Read moreReady to hand your books to the experts?
Book a free 30-minute consultation. No obligations, just a clear plan for your finances.