Bosnia and Herzegovina company registration

DOING BUSINESS IN BOSNIA AND HERZEGOVINA

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Bosnia and Herzegovina. Our services include i) Bosnia and Herzegovina company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

SummaryLLCFast solutionFree Zone companyPublic limited companyBranch officeRepresentative office
Best use of company?All products and servicesSign contracts nowGlobal tradingTo secure public fundingSpecific projectsMarketing & research
How soon can you invoice Clients/sign sales contracts?7 weeks4 weeks5 weeks8 weeks7 weeks6 weeks
How soon can you hire staff?8 weeks5 weeks6 weeks9 weeks8 weeks7 weeks
How soon can you sign a lease agreement?7 weeks4 weeks5 weeks8 weeks7 weeks6 weeks
How long to supply corporate bank account numbers?12 weeks8 weeks9 weeks13 weeks12 weeks13 weeks
How long to supply company registration/tax numbers?7 weeks4 weeks5 weeks8 weeks7 weeks6 weeks
Corporate tax rate on annual net profits?10%10%10%10%10%0%
Limited liability entity?YesYesYesYesNoNo
Government grants available?YesYesYesYesYesYes
Resident director/partner/manager/legal representative required?NoNoNoNoYesYes
Minimum paid up share capital?US$590US$590US$590US$29,000NoneNone
Can bid for Government contracts?YesYesYesYesYesNo
Corporate bank account location?Raiffeisen BankUnion BankFima BankUniCredit BankFima BankUnion Bank
Can secure trade finance?YesYesYesYesYesNo
VAT payable on sales to local customers?10%10%0%10%10%0%
Average total business set up engagement costs?€11,900TBDTBD€13,900€14,900€14,550
Average total engagement period?19 weeks8 weeks9 weeks18 weeks17 weeks16 weeks


See full table

Accounting and tax considerationsLLCFast solutionFree Zone companyPublic limited companyBranch officeRepresentative office
Statutory corporate tax payable?10%10%10%10%10%0%
Must file an annual tax return?YesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYes
Must appoint an auditor?NoNoNoYesNoNo
Access to double taxation treaties?YesYesYesYesYesNo
Withholding tax on payments to foreign shareholders?5%5%5%5%5%None
Company RegistrationLLCFast solutionFree Zone companyPublic limited companyBranch officeRepresentative office
Resident director/partner/manager/legal representative required?NoNoNoNoYesYes
Minimum number of shareholders/partners?1111Parent companyParent company
Minimum statutory paid up share capital?US$590US$590US$590US$29,000NoneNone
Security deposit to be kept with Government?NoNoNoNoNoNo
Shelf companies available?YesYesYesYesNoNo
Time to incorporate a new entity?19 weeks8 weeks9 weeks18 weeks17 weeks16 weeks
Can easily convert to a PLC?YesYesYesYesNoNo
Public register of shareholders and directors?YesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesNoNo
Business ConsiderationsLLCFast solutionFree Zone companyPublic limited companyBranch officeRepresentative office
Good entity for trademark registration?YesYesYesYesYesNo
Can secure an import and export license?YesYesYesYesYesNo
The entity will likely be regulated by?Municipal courtMunicipal courtMunicipal courtMunicipal courtMunicipal courtRegistrar of Foreign RO

Sponsorship by a local citizen required?No
Our Client needs to travel to Bosnia and Herzegovina for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Government approval required for foreign owners?No
Can be wholly foreign owned?Yes
Minimum number of directors/managers?1
Maximum shareholding for foreigners?100%
Legally tax exempt if properly structured?No
Group HQ tax incentives?No
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?No
Expatriate to local staff ratio?No
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of TRIPS?No
This country is a member of WIPO/ICSID?Yes
Average custom duties suffered, %?7.6
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)25
Minimum statutory monthly salary (US$)?US$212
Average monthly US$ salary for local skilled employees?US$505
US$ deposit interest rate? (1 year average)1.6
Overseas remittance currency controls?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages of Bosnia and Herzegovina company registration

      B&H business opportunities

    1. Our Clients may derive certain benefits when investing in Bosnia including:

      • A Bosnia limited liability company can be incorporated within 7 weeks with 1 director and shareholder, who can be of any nationality. The minimum paid-up share capital required is US$1,150 and our Clients do not need to travel to complete engagement;
      • Bosnia and Herzegovina has one of the most favorable tax systems in Europe with low corporate tax rates of 10% and VAT at 17%, one of the lowest rates in Europe;
      • Bosnian companies will be eligible for corporate tax exemption if i) the value of their annual exports exceed 30% of the total revenue and ii) investment of US$11 million is made in the project for a total 5 years, with the 1st year investment being at least US$2.2 million;
      • Bosnian resident companies in which people with special needs and disabilities form 50% of the total work force for a period of more than 1 year will be corporate income tax exempt for that year;
      • Companies which setup in Bosnia’s free zones will benefit from i) 100% corporate tax exemption ii) 100% VAT exemption and iii) 100% custom duty exemption on imports into the zones. Furthermore, these companies will be allowed to transfer capital and profits freely into and out of the zone;
      • Resident companies will benefit from 30% reduction in annual tax obligations if they invest more than 50% of their total annual profit purchasing production equipment. Furthermore, companies which hire new employees will be entitled to tax deductible expenses of twice the amount if the new employee has worked with the company for at least 1 year;
      • Bosnia and Herzegovina is signatory to 40 double tax treaties with different jurisdictions, ensuring reduction or complete exemption of withholding taxes on dividends, royalties or interests;
      • The Bosnia government has signed agreements on Promotion and Protection of Investments with several countries including the USA, United Kingdom, Canada, China, and Germany. Furthermore, through the European Union Investment Guarantee Trust Fund enacted by the Multilateral Investment Guarantee Agency (MIGA) the country has managed to insure foreign investors against risks of expropriation, transfer restrictions, war and civil interference and denial of justice.
  • Disadvantages of Bosnia and Herzegovina company registration

    1. To incorporate a Bosnia public limited company, the law requires the shareholder to have a minimum share capital of at least US$32,000;
    2. Getting a new electric connection for a new establishment in Bosnia can be quite expensive and time consuming. Entrepreneurs should expect to pay at least US$22,000 and wait almost 5 months for an electric line;
    3. The country’s legal system can be inefficient and entrepreneurs should expect to wait for up to or more than 2 years for courts to enforce legal contracts;
    4. Entrepreneurs looking to invest in the construction industry should expect to pay at least US$50,000 and wait for up to or more than 6 months for construction permits;
    5. Bosnia has a complex multi-tiered legal framework that is generally repetitive and contradictory. The country is divided into 2 entities, Federation of Bosnia and Herzegovina and Republic of Srpska, the federation of which is further divided into 10 cantons each with different governments and regulations;
    6. Entrepreneurs will find it difficult interacting with potential Clients or suppliers in the country since the official and business languages are Bosnian, Croatian and Serbian.

Tell us what you need - we’ll send you a customised proposal in 5 hours!

Company registration

  • Time to incorporate: Seven weeks
  • Cost to set up: €11,900
  • Minimum capital: US$1,150
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 10%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: d.o.o.

Contact us

For additional information on our company registration services in Bosnia and Herzegovina, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Olivia Stanciu, directly:
client relationship officer - Olivia
bh-cefta foreign trade chamber of bosnia and herzegovina bh-tax government of federation of B&H bh-foreign investment promotion agency bh-central bank