# Drop Srbija v2 — Legal Entity

# Drop Srbija v2 — Legal Entity

**Decision:** ALAI Tech d.o.o. (D9)  
**Date:** 2026-04-16  
**Status:** CEO Approved (Incorporation Pending)

## Entity Structure

Drop Srbija operates as a **product line under ALAI Tech d.o.o.**, not as a separate legal entity.

### Corporate Hierarchy

```
ALAI Holding AS (Norway, org.nr 932 516 136)
    └── ALAI Tech d.o.o. (Serbia, PIB TBD)
            ├── Drop Srbija (product brand)
            ├── Bilko (product brand)
            └── Tok (product brand)
```

### Legal Name vs Trade Names

- **Legal Entity:** ALAI Tech d.o.o.
- **Trade Names:** Drop Srbija, Bilko, Tok
- **Customer-Facing Brand:** "Drop" (app name), "powered by ALAI Tech d.o.o." (fine print)

## Rationale (D9)

**Context:** Early Drop Srbija documentation referenced "Drop Srbija d.o.o." as a separate entity. This implied separate incorporation per product line.

**Decision:** Single Serbian subsidiary for all ALAI Serbian operations.

**Why:**

1. **Corporate Simplicity:** One entity, not 3+ separate d.o.o.s
2. **Cost Efficiency:** One incorporation, one tax filing, one audit (vs 3x overhead)
3. **Capital Pooling:** EUR 125,000 NBS PI license capital serves all products
4. **Regulatory Efficiency:** Single NBS/Poverenik/APML relationship
5. **Brand Architecture:** Legal entity = ALAI Tech, product brands = Drop/Bilko/Tok

**Alternatives Rejected:**

- **Separate d.o.o. per product:** 3x costs, fragmented capital, premature optimization
- **Norwegian parent operates directly:** Not viable for regulated payment services (NBS requires Serbian entity)

## Entity Details (Pending Incorporation)

| Field | Value |
|-------|-------|
| **Legal Name** | ALAI Tech d.o.o. |
| **Parent Company** | ALAI Holding AS (Norway) |
| **Country** | Serbia |
| **City** | Belgrade (registered address TBD) |
| **Capital** | EUR 125,000 (NBS PI license requirement) |
| **PIB** | TBD (post-incorporation) |
| **Matični Broj** | TBD (post-incorporation) |
| **Product Lines** | Drop Srbija, Bilko, Tok |

## Regulatory Implications

### Payment Institution License

ALAI Tech d.o.o. will apply for **Payment Institution (PI) license** from NBS in Year 2 (after agent model Year 1 proves market fit).

- **Year 1 Strategy:** Registered agent under Article 24 of Law on Payment Services (via bank partner)
- **Year 2 Trigger:** 10,000+ MAU + RSD 100M+ monthly volume + profitability
- **PI License Timeline:** 9-14 months from NBS application submission

### Agent Registration (Year 1)

ALAI Tech d.o.o. will register as an **agent of a licensed bank** (target: Raiffeisen Banka or BPS) for Drop Srbija Year 1 launch.

- **Registration Time:** 2-3 months
- **Capital Requirement:** None (bank partner holds capital)
- **Fee Structure:** 0.3-0.5% per transaction to bank partner

### Data Controller

ALAI Tech d.o.o. is the **data controller** under ZZPL (Serbian GDPR equivalent):

- Privacy Policy references ALAI Tech d.o.o.
- User data processing agreements signed by ALAI Tech d.o.o.
- DPO appointment: TBD (can be external consultant)

## Legal Documents Updated (2026-04-16)

All legal documents updated in commit `07b6550` to reference ALAI Tech d.o.o.:

1. **NBS PI License Application Package** — Applicant: ALAI Tech d.o.o.
2. **Privacy Policy** — Data Controller: ALAI Tech d.o.o.
3. **Framework Contract** — Service Provider: ALAI Tech d.o.o.
4. **DPIA** — Controller: ALAI Tech d.o.o.
5. **Incident Notification Template** — Reporting Entity: ALAI Tech d.o.o.

See: `~/ALAI/products/DropSrbija/legal/` (pending Lexicon final review)

## Next Steps (CEO Required)

### 1. Incorporate ALAI Tech d.o.o.

**Timeline:** 4-6 weeks  
**Cost:** ~EUR 1,500 (incorporation fees + notary)

**Requirements:**

- [ ] Registered address in Belgrade (office lease or virtual office)
- [ ] Serbian lawyer (srpski advokat) engagement
- [ ] EUR 125,000 capital deposit (can be delayed to Year 2 if agent model Year 1)
- [ ] Statute (društveni ugovor) drafted
- [ ] Registration with Serbian Business Registers Agency (APR)
- [ ] PIB (tax ID) registration
- [ ] Bank account opening (Serbian bank)

### 2. Engage Serbian Lawyer

**Role:**

- Draft statute (društveni ugovor)
- Handle APR registration
- Advise on NBS agent registration (Year 1)
- Advise on NBS PI license application (Year 2)
- Review all legal documents (contracts, privacy policy, terms of service)

**Estimated Cost:** EUR 3,000-5,000 (incorporation + Year 1 support)

### 3. Register Agent Status

**After incorporation:**

- Engage bank partner (Raiffeisen P1, BPS fallback)
- Submit agent registration to NBS (under Article 24)
- Obtain certificate of agent status
- Publish agent status on Drop Srbija website (regulatory requirement)

## Consequences

✅ **Pros:**

- Reduced incorporation and ongoing costs vs separate entities per product
- Simplified corporate structure
- Easier capital management (PI license serves all products)
- Single NBS/Poverenik/APML relationship

❌ **Cons:**

- All Serbian products share liability under one entity
- Reputational risk: if one product fails, impacts others
- Must maintain strong compliance (one NBS audit covers all products)

⚠️ **Mitigation:**

- Strong governance (Lexicon reviews all legal changes)
- Separate brand identities (Drop vs Bilko vs Tok)
- Insurance coverage (E&O, D&O)

---

**Decision Log:** [05-decision-log.md](./05-decision-log.md#d9-legal-entity-consolidation--alai-tech-doo)  
**Lexicon Review:** Pending final sign-off  
**Next Action:** CEO engagement of Serbian lawyer (srpski advokat)