The Chinese taking over Zelezara Smederevo on July 1 – New company named Hesteel Serbia Iron and Steel

(Photo: zelsd.rs)

It was officially registered in Serbia on June 14, five days prior to the visit of the Chinese president Xi Jinping and nearly two months after the signing of the agreement with Hesteel. The company's headquarters are in Belgrade, at 23 Majke Jevrosime St. It is registered for the sale of raw iron, steel and ferroalloys.

It's interesting to note that its founder with 100% of the capital and the only shareholder, the private company New Silkroad (Hong Kong) Holding co. Limited, was registered on May 26 this year in Hong Kong.

The registered financial capital is RSD 24,674,200, whereas the property of Zelezara has not yet been registered in the Serbian Business Registers Agency (SBRA). The administrative bodies of this company are the General Assembly and five Chinese directors who jointly operate in Serbia. They are, at the same time, the legal representatives of the company – Wang Lanyu, Li Yidong, Liu Jian, Song Sihai, Yang Guiqinq.

According to the founding act of the company, legal representatives shall be appointed and deposed from duty by the General Assembly. By the way, Hong Kong uses a territorial principle of taxation. Only the profit made in Hong Kong is taxed. Any profit made elsewhere is not subject to the Hong Kong profits tax. Thanks to this, if a Hong Kong company trades or operates outside of Hong Kong, it doesn't pay taxes. The Hong Kong companies which make profit there are currently paying 16% profits tax.