Bosnia and Herzegovina company registration

Bosnia and Herzegovina company registration

DOING BUSINESS IN BOSNIA AND HERZEGOVINA

Since 2003, Healy Consultants 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.

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  • Advantages and disadvantages

    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.

Company registration

  • Time to incorporate: Seven weeks
  • Cost to set up: €10,900
  • 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, , directly:
client relationship officer - Pardeep
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