Following the decision on establishing the company, it can be said that the decision on who will be the company’s managing director is the second most important decision when starting a business. Although each step in the company formation procedure requires absolute attention and planning, about which you can read more in the blog post Company formation in Serbia in 7 steps, the appointment of the director, as well as their authorization, is of strategic importance, besides having the formal one.
Management’s decisions determine the course of your business, hence despite the quality of the business idea or the situation in the market, such decisions are the key to business success or failure.
Therefore, every company should give close and thoughtful attention when deciding who will be the director.
Quite often companies are looking for someone who has “soft skills” in a certain field, especially when it comes to the specific industries, which are oriented towards the international or specific foreign market. In this situation, it is not unusual that the Serbian market does not offer an adequate candidate who will be willing to join a company as a managing director. Therefore, companies often decide to hire a foreign citizen as a managing director.
Therefore, some of the main questions are: Can I freely choose whether the managing director will be a domestic or foreign citizen? What are the pros and cons of the choice?
The answer to the first question is yes. Generally, Serbian law does not distinguish between domestic and foreign citizens in this regard. Before answering the second question, let’s see on which basis the managing director can be hired.