Bosnia and Herzegovina is an emerging wealth in the Balkans that is attracting the attention of transnational fiscal backers due to its significant area and commerce opportunities. If one begin a business in Bosnia and Herzegovina, one will have ingress to the domestic commerce of approximately 3.3 million people, as well as the European Union and Central and Eastern Europe, all of which the province has trade agreements with.
The opulence of Bosnia and Herzegovina is steadily expanding, with a predicted GDP of approximately US$21 billion and an average annual increasing rate of 3% in 2023. Despite a factuality that a territory has a convoluted political office with a League of Bosnia and Herzegovina and the Republika Srpska, it has a steady fiscal scheme, minute duty tarrif, and an assortment of sponsorship open doors.
Spreading out a business in Bosnia and Herzegovina appreciates bounty gains: favorable evaluation conditions, admission to qualified subject matter professionals, with minute operating bills.
Common types of legal entities in Bosnia and Herzegovina
|
Legal form |
Description |
Features |
|
Limited liability companies (doo) |
The most quotidian form for small with medium-category ventures (SMEs) in this jurisdiction is LLC (doo - drutvo s ogranienom odgovorno). For registering an LLC, the initial authorized money is 2,000 BAM (convertible marks), which is roughly equivalent to 1,000 euros. |
At least one founder and one manager are needed to start an establishment. A natural person or a statute body may serve as the founder; esse an inhabitant of Bosnia and Herzegovina isn't needed. |
|
Joint-stock companies (JSC) |
JSC (dd - dioniko drutvo) are for large ventureses that intend to issue shares to allure significant sponsorships. A JSC needs a starting authorized money of 50,000 BAM, which is roughly equivalent to 25,000 euros. |
At least one shareholder and one director are needed to start a venture. Shares can be public or private. Sponsors are not expected to be inhabitants of Bosnia and Herzegovina. |
|
Individual entrepreneurship |
Individual entrepreneurship, also known as "samostalni poduzetnik," is a good option for people who want to run their own company. To start a ventures, no underlying approved money is needed. |
The ventures owner bears full responsibility for the company's debts and has the ability to cover them with personal assets. Local administrative authorities handle registration. |
|
Representative offices and branches of transnational companies |
Transnational organizations can delegate workplaces and branches to advance their inclinations and complete ventures exercises. A representative office or branch does not need any initial authorized money to conduct ventures. |
A branch can carry out all types of ventures activities on par with a local ventures, whereas representative offices are prohibited from doing so. You must provide the parent company's constituent indentures to register a branch. |
Consider the requirements for each type of legal entity, such as the minimum amount of money that can be invested and the requirements for registration, if you want to start a business in Bosnia and Herzegovina.
Company registration process in Bosnia and Herzegovina
To start a business in Bosnia and Herzegovina, you really want to go through a few key stages, for example, picking a business name, planning constituent agreements, authentication, enrolling with the court, getting an ID number and enlisting with the duty specialists. These techniques might differ relying upon the kind of organization and area, yet the fundamental advances continue as before.
Picking a company name
The most quintessential phase during the time spent enrolling an organization in Bosnia and Herzegovina is picking an exceptional name for the organization. It shouldn't be the same as any other names. To check the uniqueness of the name, you really want to contact the organization vault. In addition, the name must reflect the company's statute form and adhere to established guidelines.
Consider the following when picking a name:
- The name should be in one of the authority dialects of the nation (Bosnian, Croatian or Serbian).
- Regarding the nature of the company's operations, the name should not be misleading.
- Without prior authorization, it is against the law to use terms associated with transnational organizations or government agencies.
In the wake of picking a name, you really want to present an application for its booking to the proper power. The reservation typically lasts for thirty days, during which time the company registration process must be finished.
Preparation of constituent indentures
When starting a business in Bosnia and Herzegovina, one quintessential step is to collect and execute constituent indentures. The memorandum of understanding and articles of association are examples of key indentures.
The contract is the primary record that portrays the office, objectives and exercises of the organization. The following information must be included in the charter:
Name, address, and statutes of the company. The direction of the company's activities. The amount of authorized money and how it is paid out. The power and obligations of the initiators. The procedure for managing the company (appointing directors, setting up meetings, etc.).
Procedure for distributing profits and losses The charter must be written in the official language and signed by all initiators. If quintessential, it tends to be converted into different dialects for global exchange.
A Memorandum of Understanding is a contract that outlines the power and obligations of the initiators. It must include the following details:
Names and addresses of the initiators; the percentage of each founder's contribution to the authorized money; the procedure for making a contribution to the authorized money; the procedure for managing the company and distributing profits; the conditions for the initiators' exit and the transfer of shares; and the memorandum, which may need notarization.
Notarization of indentures
The constituent indentures must be notarized after being prepared. The notary verifies the indentures' compliance with the established conditions and the authenticity of the initiators' signatures. Authorization is a significant stage during the time spent organization enlistment in Bosnia and Herzegovina, guaranteeing the rule legitimacy of agreements.
Checking the accuracy and completeness of the indentures with the founders' identity card Certification of the founders' signatures Providing certified copies of the indentures for further registration
Registration in court
An application for company registration must be submitted to the court at its setting following notarization of indentures. Legal enlistment is an obligatory step for an organization to get rule status.
It typically takes 7 to 15 business days to register with the court after submitting an application and the approved constituent indentures, paying state duty, checking the indentures, and making a decision on registration.
The company receives an extract from the court register confirming its statute status after the procedure is completed.
Registration with the tax service
In the wake of getting a distinguishing proof number, the association should go through the enlistment technique with the duty specialists to get a tax identifier (TIN) and official citizen status. In Bosnia and Herzegovina, this cycle is obligatory for all types of business.
Tax registration stages
- Indentures to be delivered: An application, constituent indentures, and an extract from the court registry are all needed to obtain a NIN.
- Charge Enlistment: A company registers to pay income tax, ad valorem, and corporate income tax.
The company gets a tax ID when the process is finished, which it uses for all tax reports and payments.
In order to register a business in Bosnia and Herzegovina, each stage and condition must be strictly adhered to. To begin operations in this nation successfully, it is essential to take into account all statutory and statute conditions.
Contact our experts and get answers to your questions.
Opening a corporate bank account in Bosnia and Herzegovina
Procedure for opening a corporate bank account
The method for making a corporate fiscal balance in Bosnia and Herzegovina incorporates a few stages that should be finished to finish the cycle effectively. You must provide certain indentures and comply with all statutory conditions to open a corporate account.
In the initial step, pick the bank with the best terms for your business. It is vital to consider the bank's standing, nature of administration, ingressibility of web based banking and record support bills.
You will need to prepare the following set of indentures in order to open a corporate account:
The company's founding documents (charter, memorandum of understanding), an extract from the court registry confirming the company's registration, the company tax identification number (TIN), the personal indentures of managers and founders, and the decision regarding the appointment of managers (if applicable). Submit your application After collecting all of the indentures, you should apply for an account at the chosen bank. This should be possible face to face by visiting a bank office, or through a web-based stage, in the event that such help is ingressible.
The Bank really looks at the submitted agreements for consistence with resolution conditions and inward principles. Depending on the bank's complexity and organizational capacity, the verification process for opening a business account in Bosnia and Herzegovina can take anywhere from a few days to several weeks.
The agreement ought to be painstakingly examined to keep away from mistaken assumptions and conceivable secret bills.
The account is activated and ready for use after the agreement is signed and, if necessary, the initial deposit is made.
Recommended banks for opening a corporate account
While choosing to pick a fiscal foundation to open a corporate record in Bosnia and Herzegovina, there are a few vital variables to consider. The unwavering quality of the bank, the degree of client support, the ingressibility of different monetary items and administrations, as well as administration bills - this multitude of viewpoints assume a significant part in the dynamic cycle.
Unicredit Bank is one of the nation's largest banks and provides numerous business services. The bank offers credit products, liquidity management, transnational transfers, and the possibility of opening and maintaining corporate accounts. Additionally, this bank's competitive rates and ease of Internet banking make it appealing to business owners.
Raiffeisen Bank is renowned for its elevated degree of administration and assortment of fiscal items for corporate clients. At the point when you open a corporate record with Raiffeisen Bank Bosnia and Herzegovina , you will approach internet banking, credits and exhortation, as well as positive circumstances for global installments and worldwide trade exchanges. Additionally, the bank provides specialized business services.
This is a subsidiary of the transnational Erste group, provides its corporate customers with a comprehensive array of services, including account opening, lending, and asset management. Cutthroat record bills and ideal business conditions in Bosnia and Herzegovina pursue this bank an appealing decision for some organizations.
NLB Bank provides services for corporate account opening, lending, liquidity management, and international payments to small and medium-sized businesses. This bank is particularly appealing to entrepreneurs looking for a dependable business partner due to its easy ingress to international exchange transactions and online banking.
Intesa Sanpaolo, one of the main banks in the locale, offers an extensive variety of business administrations, including opening and keeping up with corporate records, credit items, resource the executives and worldwide installments. Because of its low interest rates and excellent customer service, the bank is a great option for businesses.
Opening a record for a business in Bosnia and Herzegovina needs cautious readiness and considering every one of the subtleties. Your company's account opening will be successful and secure if you pick the right bank and collect the necessary indentures. Dependability, nature of administration, ingressibility of monetary items and sensible bills are immensely significant elements to consider while pursuing a choice.
Taxes in Bosnia and Herzegovina
Corporate income tax
Businesses in Bosnia and Herzegovina are subject to income tax. The expense rate is 10%, which is one of the most reduced in the locale, making organization enrollment in Bosnia and Herzegovina alluring to global backers.
The difference between the company's tax accounting-recorded income and bills is used to calculate the tax base. All bills must be fiscally justified and supported by appropriate documentation.
The primary parts of corporate personal duty include:
- Rate: 10% tax year: schedule year
- Cutoff time for documenting the statement: until the 31st of March in the year following the reporting year.
- Deadline: Annually up until March 31. All company income, including operating activity, fiscal, rental, and other income, is taken into account when calculating taxable profit.
Bills that diminish available benefit incorporate bills of unrefined substances and supplies, compensation, devaluation, interest on credits and other monetarily legitimized bills.
Value Added Tax (VAT)
On the sale of goods and the provision of services, a tax called value added tax (VAT) is imposed. If a company's annual revenue exceeds the set limit, ad valorem registration is needed when registering a business in Bosnia and Herzegovina.
Principal parts of VAT:
- Basic rate of VAT: 17%
- Diminished VAT rate: 0% (applies to commodities of merchandise and certain administrations)
- Edge for obligatory enrollment: 100,000 BAM (roughly 25,000 euros)
- VAT is charged at all phases of the creation and offer of labor and products, with charge paid at past stages offset against the assessment payable, subsequently staying away from twofold tax collection.
Organizations enlisted for VAT must:
Keep VAT records and file tax returns on a monthly or quarterly basis. You must pay VAT by the 10th of each month following the reporting period.
Other taxes and bills
While setting up a business in Bosnia and Herzegovina , notwithstanding benefit duty, VAT and individual personal expense, it is quintessential to consider different charges and bills that apply to different sorts of exercises and exchanges.
In some areas of Bosnia and Herzegovina, there is a property tax whose rates vary depending on the type and setting of the property. For instance, the real estate tax rate in the Republika Srpska ranges from 0.05 to 0.50 percent of the property's commerce value.
Employers are obligated to make contributions to social safety, which include contributions to health insurance, pensions, and social insurance. Social contributions make up about 33% of wages in total, with the employer contributing 23% and employees withholding 10%.
Depending on the type of goods and their country of origin, customs duties may be assessed when goods are imported into Bosnia and Herzegovina. Normal traditions obligation rates range from 0% to 15%.
A few exercises might be dependent upon ecological bills, which are demanded for the utilization of regular assets and contamination. The measures of these bills rely upon the nature and extent of the movement.
Financial accounting and reporting procedures
Starting a business in Bosnia and Herzegovina requires strict adherence to financial accounting, legal, and reporting frameworks. The financial system in Bosnia and Herzegovina is governed by the Law on Financial Accounting and Auditing (Zakon o računovodstvu i reviziji), which sets out regulations for maintaining standards, preparing annual reports, and conducting audits. Companies are obligated to maintain accounting records in accordance with the International Financial Reporting Standards (IFRS) or national standards based on them. When initiating a business in Bosnia and Herzegovina, it is essential to comply with these accounting and reporting requirements.
Maintaining fiscal records
Keeping monetary records is a necessary piece of the most common way of beginning a business in Bosnia and Herzegovina. All organizations are expected to utilize the twofold passage technique and record their money exchanges on a gathering premise. All of the company's income, bills, assets, liabilities, equity changes, and other fiscal transactions must be reflected in the fiscal statements.
Fiscal records must be kept in the state language and in the national currency (convertible mark, BAM) as needed by the Law on Financial Accounting and Audit. Organizations might involve worldwide money for the purpose of bookkeeping if necessary by their activities, yet reports should be ready in homegrown cash. Every single critical arrangement and bookkeeping books should be saved for no less than a decade.
Financial accounting includes:
- All fiscal transactions are recorded in the accounts books.
- Preparing fiscal indentures like payrolls, invoices, and reconciliations.
- Arrangement of month to month and quarterly monetary reports and break accounting reports.
- Ensuring that the accounting policies of the company adhere to both national and international standards.
Annual reporting and audit
Companies registered in Bosnia and Herzegovina are needed to submit annual reports as part of the reporting procedure. Fiscal statements, which include a balance sheet, cash flow statement, and notes, must be prepared and presented annually by businesses.
Yearly fiscal explanations should be ready and endorsed by the administration of the organization and supported by the regular gathering of investors or members. The cutoff time for submitting yearly records is a half year after the finish of the fiscal year, which ordinarily concurs with the schedule year.
A review of yearly reports is obligatory for all enormous and medium-sized associations, as well concerning organizations whose offers are recorded on the stock trade. The review is completed by a free review firm, which should be enrolled and authorized to lead reviews in Bosnia and Herzegovina . A review incorporates surveying the dependability of fiscal articulations, really looking at consistency with bookkeeping approaches and guidelines, and examining the monetary state of the organization.
Permits and licenses
In order to start a business in Bosnia and Herzegovina, you need to follow a lot of laws, like getting the right licenses and permits for certain kinds of activities. Laying out an organization in Bosnia and Herzegovina needs the planning of all quintessential agreements to guarantee the rule activity of the organization.
Overview of licenses needed for various activities
|
Kind of activity |
License name |
License issuing authority |
Validity |
bill (EUR) |
|
Catering |
Food license |
Ministry of Health |
3 years |
600 |
|
Construction works |
Construction license |
Ministry of Construction |
5 years |
1,000 |
|
Educational services |
Training license |
Ministry of Education |
3 years |
500 |
|
Transport services |
Transport license |
Ministry of transportation |
5 years |
750 |
|
Medical services |
Medical license |
Ministry of Health |
5 years |
1,500 |
|
Fiscal services |
License for fin. services |
Central Bank of Bosnia |
5 years |
5,000 |
Process for obtaining licenses and permits
In order to register a business in Bosnia and Herzegovina, a number of steps are needed to obtain licenses and permits. Application, document review, inspections, and a final decision are the fundamental steps for each type of license.
Submitting an application with needed indentures is the first step in registering a business in Bosnia and Herzegovina. Such agreements include:
- Constituent arrangements of the association (sanction, notice of understanding)
- Data about the pioneers and originators behind the association
- State obligation installment receipts
After all documentation has been arranged, the application is submitted to the proper government office giving the permit. For instance, to get a permit to give catering administrations, an application is submitted to the Service of Wellbeing. The application should incorporate all fundamental data about the organization, depict the kind of movement and append every needed agreement.
At this stage, government offices check whether the submitted arrangements consent to rule conditions. The survey incorporates evaluating the precision and fulfillment of the information given, as well as the organization's consistence with the circumstances for getting a permit. This cycle can take from a little while to a while relying upon the kind of permit.
On-site inspections and audits are needed for some activities. For instance, to get a permit to sort out open cooking, overseers from the Service of Wellbeing really look at the state of the kitchen, consistence with sterile guidelines and different circumstances. To ensure that the business complies with statutory and safety standards, inspections are needed.
The final decision is made when the government decides to issue a license after all checks and inspections have been completed. The company gets a license and can do certain things if the decision is in its favor. Licenses are given for a particular period (for instance, one or five years), after which they should be recharged.
In order to register a business in Bosnia and Herzegovina, all regulations and procedures must be strictly followed. Getting licenses and permits is a vital stage to working legitimately in a nation, and inability to consent to these circumstances can bring about serious resolution results, including fines and suspension of the firm.
Conclusion
Beginning a business in Bosnia and Herzegovina opens up expansive possibilities for global patrons and business people because of various elements, for example, a profitable geological area, great duty conditions and admittance to business sectors in Europe and Asia. In order to start a business in this country, you must strictly follow all laws and get the permits and licenses you need to do legal things.
A comprehensive set of fiscal, legal, and reporting regulations must be strictly adhered to when registering a company in Bosnia and Herzegovina. The interaction includes conforming to the Law on Monetary Bookkeeping and Evaluating, which directs norms for keeping up with exact records, planning yearly fiscal summaries, and leading reviews. In order to guarantee compliance and operational legitimacy within the country's regulatory framework, businesses must strictly adhere to these requirements.
There are several major stages to the registration process: from picking a name and getting ready constituent arrangements to getting a distinguishing proof number and enlistment with the expense specialists. The process of getting a permit and a license, which includes collecting and submitting indentures, carrying out inspections, and obtaining final approval from government agencies, deserves particular attention.
Subsequent to finishing all phases of enlistment and getting the quintessential grants, the organization can start its exercises, consenting to all legal and keeping up with the trust of patrons, clients and government specialists.
Our experts are prepared to give all the essential data and offer complete help during the time spent enrolling your organization in Bosnia and Herzegovina . In the "Contacts" section, pick the most convenient method of communication.
FAQ
- A finished application facility.
- A contract or act of founding.
- Confirmation of character for all pioneers, (for example, travel papers or ID cards).
- A rundown of the administration board individuals and their assent.
Depending on the completeness of the application and the efficiency of the local registry office, the process typically takes between two and four weeks.
The most common types of bills are those for registration, notarization, and possibly a statute. Depending on the complexity of the registration and professional services utilized, anticipate spending between 500 and 1,500 BAM.
There are no residency conditions for company directors in Bosnia and Herzegovina, no. Directors may be individuals from other countries.
Yes, every business in Bosnia and Herzegovina must have a registered local address.
Yes, an international company can open a branch in Bosnia and Herzegovina. To do so, the branch must be registered with the appropriate court or registry and adhere to local business regulations.
You can visit the neighborhood Office of Trade, talk with nearby resolution and bookkeeping firms, or contact the applicable government division liable for business enlistment.
