On 4 December 2025, the Law Amending the Law on Factoring (“Law”) was published in the Official Gazette of the Republic of Serbia, No. 109/2025. The Law revises the regulatory framework governing factoring, in particular with respect to supervisory competences, the scope of factoring participants, legal protection of receivables, and the introduction of digital invoice recording.
The amendments entered into force on 12 December 2025, except for the provisions relating to the competences of the Securities Commission (“Commission”) that shall be applicable as of June 13th, 2026, and the operation of the Central Factoring Register which shall apply once the Central Factoring Register becomes operational.
Key amendments and novelties:
- Expanded scope of factoring participants
In addition to companies and entrepreneurs, the Law now expressly recognizes cooperatives, registered agricultural holdings, business associations, institutions, and other legal entities performing activities for profit as eligible assignors in factoring transactions.
- Transfer of competences to the Commission
The Commission assumes responsibility for licensing, supervision, and enforcement, including supervision over entities performing factoring activities without authorization. These competences were previously exercised by the Ministry of Finance of the Republic of Serbia.
- Establishment of the Central Factoring Register
A single, centralized electronic register of invoices subject to factoring is introduced, interconnected with the electronic invoicing system, with the aim of preventing multiple assignments of the same receivable and enhancing transparency.
- Automatic transfer of ancillary rights and security interests
Upon assignment of a receivable to the factor, pledge rights, guarantees, interest, contractual penalties, and other ancillary rights are transferred automatically, without the need for separate transfer agreements, unless otherwise provided by law.
- Factoring agreement as an enforceable instrument
A notarized (solemnized) factoring agreement containing an explicit statement of consent to enforcement by the assignor (or by the factor in reverse factoring) may have the legal force of an enforceable instrument, in accordance with the Law on Enforcement and Security.
- Restriction on set-off (compensation)
During the term of the factoring agreement, the receivable may not be extinguished by set-off between the assignor and the debtor, unless otherwise agreed in the factoring agreement.
- Electronic documentation
Documentation accompanying a factoring agreement may be prepared in electronic form, subject to statutory exceptions applicable to receivables recorded in the Central Factoring Register.
- More precise regime for termination of authorization and sanctions
The Law clearly defines grounds for termination of authorization (including insolvency proceedings and supervisory measures), as well as misdemeanors related to non-compliance with registration and recourse obligations.
Key implementation deadlines
- The Central Factoring Register must be established within 18 months from the entry into force of the Law;
- Upon commencement of operation of the Central Factoring Register, a 30-day period will apply for obligated entities to register required data;
- The Commission must assume the competences conferred by the Law within 6 months from its entry into force;
- Existing factoring companies must align their operations with the Law within one year from its entry into force.
For additional information or consultations, the Tasić & Partners team is at your disposal.