From idea to citizens' association

From idea to associations citizens

Establish a non-profit organisation with expert support throughout the entire registration and business organisation process.

KCM provides support from the first consultation to registration, including documentation preparation, APR registration, tax registration, and accounting organisation.

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Citizens' association — establishment and registration
01
Idea
02
KCM
03
Founding acts
04
APR
05
Business Account
06
Start of operations
01
Your business idea
It all starts with an idea. You have decided to start your own business and are wondering what the right path to a legal business structure is.
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Target groups

Who is this service for?

The service is intended for:

Sports organisations
Cultural associations
Humanitarian organisations
Professional associations
Educational and scientific organisations
Environmental organisations
Civil society organisations
Other groups for whom joint organisation to achieve certain goals and interests is key

Legal definition

What is a citizens' association?

A citizens' association is a voluntary, non-governmental, and non-profit organisation established to promote the common or general goals and interests of its members or the wider community.

Unlike companies, the primary goal of an association is not profit and its distribution to members, but achieving the objectives for which the association was established.

The association has legal entity status and independently participates in legal transactions.

Non-profit
Legal entity
Donations
Grants
Commercial activity
KCM support

Commercial activity

Can an association carry out business activities?

Yes. A citizens' association can register and conduct business activity if the conditions prescribed by the Law on Associations are met.

Business activity must:

Be linked to the statutory objectives of the association
Be provided for in the association's statute
Be registered with the Business Registers Agency
Represent a smaller-scale activity that serves the achievement of the association's objectives
Profit earned from business activity cannot be distributed to members, founders, or representatives, but is used exclusively to achieve the association's objectives.

Model selection

When is a citizens' association a good choice?

A citizens' association is often an appropriate model when:

The organisation's goal is not profit for owners
Multiple persons wish to jointly implement certain projects
You plan to apply for grants and donations
You plan to organise sports, cultural, educational, or humanitarian activities
There is a need for formal organisation of a specific community or interest group
A citizens' association is not a substitute for a company or sole traders.

Fiscal Overview

How does taxation of citizens' associations work?

The tax treatment of associations differs from the tax treatment of companies.

When organising operations, it is necessary to assess:

Corporate income tax
Tax treatment of donations
Membership fees
Income from business activity
Projects funded by grants
VAT status
Payroll and other compensation
Proper organisation of financial operations is of particular importance for regulatory compliance and smooth functioning of the association.
Learn more about association taxation →

Documentation

What is required for registration?

What is typically required to initiate registration:

At least three founders
Association name
Association statute
Decision on establishment
Representative details
Registered address
Contact details
Depending on objectives and planned activities, additional data and documentation may be required.

KCM Service

What do you get from KCM?

Our team guides you through the entire registration procedure and provides support after the association is established.

Support during establishment
Preparation of complete founding documentation
Registration with APR
Tax registration
Accounting organisation
Payroll
Support in communication with institutions
Post-registration support

Process

What does the procedure look like?

1
Idea of starting an organisation
2
KCM consultation
3
Preparation of founding acts
4
APR
5
Business Account
6
Start of operations
Throughout the entire process, our team provides support and coordinates activities so that registration is as simple and efficient as possible.

Registration

What does the registration process look like?

The citizens' association registration process most commonly proceeds through the following steps:

Idea of starting an organisation
Consultation with KCM team
Preparation of founding acts
APR Registration
Opening a business bank account
Start of operations
Schedule a free consultation →
Ongoing support

Accounting and tax support for citizens' associations

In addition to registration, we provide ongoing accounting and tax support to citizens' associations.

Our goal is not just bookkeeping, but providing support that enables transparent and lawful operation of the organisation.

Learn more about accounting →

Financial overview

2026
RSD 4.250.000
RSD 2.180.000
RSD 890.000

What does the registration process look like?

The citizens' association registration process most commonly proceeds through the following steps:

Idea of starting an organisation
›
Consultation with KCM team
›
Preparation of founding acts
›
APR Registration
›
Opening a business bank account
›
Start of operations
To initiate the procedure, the following are most commonly required:
At least three founders
Association name
Association statute
Decision on establishment
Representative details
Registered address
Contact details

Depending on objectives and planned activities, additional data and documentation may be required.

What do you get from KCM?

Our team guides you through the entire registration procedure and provides support after the association is established.

Service includes:
01
Support during establishment
02
Preparation of complete founding documentation
03
Registration with APR
04
Tax registration
05
Accounting organisation
06
Payroll
07
Support in communication with institutions
08
Post-registration support
Frequently Asked Questions

We've answered your questions

How many founders are needed to establish an association?
At least three founders are required to establish a citizens' association; they may be natural or legal persons.
Does an association pay tax?
Associations may have certain tax obligations depending on the types of income they generate. Membership fees and donations are treated differently from income from commercial activity. For precise information, we recommend consulting our team.
Can an association generate income?
Yes. An association can generate income from membership fees, donations, grants, and from conducting business activity on a smaller scale. It is essential that all income is used exclusively to achieve the association's objectives.
Can an association be in the VAT system?
Yes, an association can be in the VAT system if its turnover exceeds the prescribed threshold or if it voluntarily joins the VAT system. This depends on the nature and scope of the association's activities.
Can an association carry out business activities?
Yes, an association may conduct business activity, but it must be of a smaller scale and in line with the association's objectives stated in the statute. Income from business activity cannot be distributed to founders or members.
Can we receive donations from abroad?
Yes. Associations can receive donations from abroad, but there are prescribed reporting and recording procedures that must be followed. Our team helps you properly organise financial tracking.
Can an association employ workers?
Yes. An association can establish employment relationships with individuals, pay salaries, and make all prescribed filings to competent authorities, like any other legal entity.
Do you provide support after registration?
Yes. We remain with you after establishment with complete accounting and tax support. Our goal is not just registration — but to be your long-term partner in the organisation's operations.

Not sure if an association is the right choice?

The choice between a citizens' association, sole trader, company, and other legal forms depends on the organisation's goals, funding method, and planned activities. Schedule a consultation and we will help you choose the organisational model that best suits your needs.

Free consultation →

Establish an association with the right support

Get expert advice, documentation preparation, and ongoing support throughout the entire process of establishing and operating the organisation.

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Important:

A citizens' association is a non-profit organisation. Although it may register and conduct business activity under conditions prescribed by law, earned profit cannot be distributed to members or founders, but is used exclusively to achieve the objectives for which the association was established.