Guide
Cooperative (zadruga)
A cooperative (zadruga) is a voluntary association of at least five members that operates as a legal entity to pursue shared economic, social and cultural interests, registers with the Business Registers Agency (APR), keeps double-entry books and is subject to mandatory cooperative audit.
A cooperative (zadruga) is a form of organisation in which people (members) voluntarily join and contribute their membership stakes so they can achieve together what is hard to achieve alone, for example a better price, joint purchasing, sales or services. There are several types, such as agricultural, farming, housing, student-youth and social cooperatives, but they all share the same logic: members are owners and users at the same time. A cooperative is a legal entity, operates under the Law on Cooperatives and carries the same real accounting and tax obligations as a company, so it is important to set it up correctly from the start.
What you should know
- A cooperative is founded by at least five business-capable natural persons who adopt the founding act and cooperative rules, and its operations are funded through the members' membership stakes.
- A cooperative is a legal entity and registers with the Business Registers Agency (APR), after which it receives a company ID number and tax ID (PIB).
- A cooperative keeps double-entry books and files annual financial statements, just like any other company.
- The law requires a mandatory cooperative audit; the regular audit is carried out at least once every two years by a licensed audit union (revizijski savez) authorised by the competent ministry, which is a feature specific to cooperatives.
- A cooperative is taxed as a company (corporate profit tax), with the option to distribute the earned profit to members in proportion to their participation and in line with the cooperative rules.
How we handle it
- 01 Initial consultation We help you choose the right type of cooperative and explain the obligations, so you know what you are getting into before founding it.
- 02 Founding and registration We assist with the founding act, cooperative rules and membership stakes, and prepare the registration application for the APR.
- 03 Setting up bookkeeping We set up double-entry bookkeeping, records of membership stakes and members, and the cooperative's tax system.
- 04 Ongoing accounting We keep the books, calculate taxes and salaries, and file financial statements within the legal deadlines.
- 05 Audit and advice We prepare the cooperative for the mandatory cooperative audit and advise on distributing profit to members.
Company formation
We register your company with APR and handle all tax and banking obligations.
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