The most recent legal framework regulating the privatization process in the Republic of Serbia was adopted in 2014.
Certain changes have subsequently occurred in the sense that now the Ministry of Economy of the Republic of Serbia (“Ministry”) has a key role in the implementation of the process.
The Ministry inter alia implements the privatization process, controls the privatization process, sells public capital expressed in shares or stakes. The Ministry also performs other tasks in accordance with the Privatization Law (“Law”) and relevant secondary legislation.
As there are still more than seventy companies in the portfolio of the Ministry (http://www.priv.rs/vesti) it would be useful to revisit the models and methods of privatization. Also, it would be useful to be reminded of the meaning of the term “Large Subject of Privatization” and the purpose of a letter of intent.
Privatization models are as follows:
The method of sale of capital and/or assets is a public collection of bids with subsequent public bidding.
The capital of privatization entities expressed in shares may be sold:
Methods of privatization via transfer of capital free of charge shall include:
The method of privatization through strategic partnership implies a public collection of bids.
A combination of multiple methods and models may be applied in the privatization process for more efficient implementation of this procedure.
Within the scope of the first changes and amendments to the Law “Large Subject of Privatization” was introduces as a new term meaning a privatization entity whose business income for the business year preceding the initiation of the privatization procedure equals at least 50 billion dinars.
The Government prescribes the conditions, manner, and procedure of sale of the capital of big subjects of privatization by the method of the public collection of bids.
An invitation to potential participants in privatization processes to submit letters of interest is a procedure introduced by the Law in 2014. A letter of interest is expressed interest in a particular subject and model of privatization containing basic information on the interested buyer or strategic investor, with proposed indicative price, investment program, tentative plan of operations and number of full-time employees, as well as other relevant information set forth by a public Invitation.
Please contact us if you have any queries in relation to the privatization process in the Republic of Serbia.
National Assembly of the Republic of Serbia adopted amendments to the Law on Foreigners and the Law on the Employment of Foreigners, thereby introducing numerous changes. The laws entered into force on August 4, 2023, but their implementation was postponed to February 1, 2024.
From 17 May 2023, submission of application for registration of companies before the Serbian Business Registers’ Agency will be available only in electronic form, via specific user application. Starting from 17 May, electronic application for registration of companies in the SBRA will be mandatory, meaning that paper application will no longer be accepted from this date.
At the beginning of November 2022, the Serbian Competition Authority initiated several ex officio investigations against different market participants.