10 Oct 2018

Corporate Stamps Are History

A year ago, we wrote that the use of corporate stamps during payment services was abolished. Now, this process has come to an end.

Although the Corporate Act of Serbia from 2012 explicitly states that companies are not obliged to use their corporate stamps when conducting their day-to-day business operations, the practical application of this rule had not yet been enforced. Difficulties occurred primarily in dealing with the banking sector, as commercial banks continued to demand from their clients the use of corporate stamps in order to verify payment orders and other relevant documents.

Such practice terminated exactly one year ago, on the 1st of October 2017, when new instructions issued by the National Bank of Serbia came into force, and commercial banks did cease to demand corporate stamps to verify company’s documents, except in cases when their clients explicitly expressed the wish to use corporate stamps when dealing with their banks.

The previously mentioned amendments have greatly eased the business operations of companies, nevertheless, the use of corporate stamp has not been truly eradicated yet, and corporate stamps are still being demanded for certain administrative procedures.

At last, the coming into force of the amendments of the Corporate Act on the 1st of October 2018, ensured the abolishment of the obligation to use corporate stamps, since, as prescribed by law, companies cannot be obliged, by any special act, to use their corporate stamp in their business correspondence or on any other corporate document.

Furthermore, the aforementioned amendments to the Corporate Act forth the provisions of the Associations Act and the Endowments and Foundations Act which provide the obligation to companies to possess and use corporate stamps, which means that the obligation to use corporate stamps has gone into history.

In relation to that, during a recent exhibition of stamps and e-commerce conference, the Prime Minister Ana Brnabić reminded the public that corporate stamps are no longer required to be used by companies and if a denial of rights occurs due to a requirement of commercial banks to use such stamps, such requirements may be reported on the following e-mail address ukidanje.pecata@gov.rs or by calling a call center that is to be established for such purpose.

It is clear that the Government of Serbia has taken a clear stance into moving corporate stamps where they truly belong – in the past. The words of Prime Minister Brnabić underline the commitment of the Government to ensure the application of the law and decrease administrative burdens in Serbia in order to be in line with European standards, much to the satisfaction of companies from all over the country.