Bosnia and Herzegovina company registration

DOING BUSINESS IN BOSNIA AND HERZEGOVINA IN 2022

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

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.

Summary LLC Fast solution Free Zone company Public limited company Branch office Representative office
Best use of company? All products and services Client to fast close local deal Global trading To secure public funding Specific projects Marketing & research
How soon to invoice Clients? 7 weeks 4 weeks 5 weeks 8 weeks 7 weeks 6 weeks
How soon can you hire staff? 8 weeks 5 weeks 6 weeks 9 weeks 8 weeks 7 weeks
How soon can you sign a lease agreement? 7 weeks 4 weeks 5 weeks 8 weeks 7 weeks 6 weeks
How long to supply corporate bank a/c? 12 weeks 8 weeks 9 weeks 13 weeks 12 weeks 13 weeks
How long to supply co. reg / tax numbers? 7 weeks 4 weeks 5 weeks 8 weeks 7 weeks 6 weeks
Corporate tax rate on annual net profits? 10% 10% 10% 10% 10% 0%
Limited liability entity? Yes Yes Yes Yes No No
Government grants available? Yes Yes Yes Yes Yes Yes
Res. director/partner/ legal rep. required? No No No No Yes Yes
Minimum paid up share capital? US$590 US$590 US$590 US$29,000 None None
Can bid for Government contracts? Yes Yes Yes Yes Yes No
Corporate bank account location? Raiffeisen Bank Union Bank Fima Bank UniCredit Bank Fima Bank Union Bank
Can secure trade finance? Yes Yes Yes Yes Yes No
VAT payable on sales to local customers? 10% 10% 0% 10% 10% 0%
Average total business set up costs? €11,900 TBD TBD €13,900 €14,900 €14,550
Average total engagement period? 19 weeks 8 weeks 9 weeks 18 weeks 17 weeks 16 weeks


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Accounting and tax considerations LLC Fast solution Free Zone company Public limited company Branch office Representative office
Statutory corporate tax payable? 10% 10% 10% 10% 10% 0%
Must file an annual tax return? Yes Yes Yes Yes Yes Yes
Must file annual financial statements? Yes Yes Yes Yes Yes Yes
Must appoint an auditor? No No No Yes No No
Access to double taxation treaties? Yes Yes Yes Yes Yes No
WH tax on payments to foreign s/holders? 5% 5% 5% 5% 5% None
Company Registration LLC Fast solution Free Zone company Public limited company Branch office Representative office
Res. director/partner/ legal rep. required? No No No No Yes Yes
Min. number of shareholders/partners? 1 1 1 1 Parent company Parent company
Minimum statutory paid up share capital? US$590 US$590 US$590 US$29,000 None None
Security deposit kept with government? No No No No No No
Shelf companies available? Yes Yes Yes Yes No No
Time to incorporate a new entity? 19 weeks 8 weeks 9 weeks 18 weeks 17 weeks 16 weeks
Can easily convert to a PLC? Yes Yes Yes Yes No No
Public register of s/holders and directors? Yes Yes Yes Yes No No
Can have preference shareholders? Yes Yes Yes Yes No No
Business Considerations LLC Fast solution Free Zone company Public limited company Branch office Representative office
Good entity for trademark registration? Yes Yes Yes Yes Yes No
Can secure an import and export license? Yes Yes Yes Yes Yes No
The entity will likely be regulated by? Municipal court Municipal court Municipal court Municipal court Municipal court Registrar of Foreign RO

Sponsorship by a local citizen required? No
Our Client must travel to Bosnia and Herzegovina? No
Temp. 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? No
S/holder/director docs attested/translated? Yes
Foreign director needs personal tax no.? 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 is included in my cust. 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
Govt foreign investment approval required? No
Average monthly office rent? (US$/sq m) 25
Minimum statutory monthly salary (US$)? US$212
Average US$ salary for local skilled staff? 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

Bosnia and Herzegovina business setup summary

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;
    2. Bosnia is rich in natural resources including large expanses of arable lands with fertile soil, forests, huge deposits of valuable minerals including manganese, silver, lead, copper, iron ore, chromium, and coal. Therefore, it is an attractive destination for agricultural, manufacturing and other related industries.
  • 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;
    7. Bosnia has been ranked poorly in the 103rd position (out of 137 countries) for its global competitiveness in the Global Competitiveness Index 2017-2018 edition. This is largely due to the i) inefficient government bureaucracy along with widespread corruption, ii) nation’s insufficient capacity to innovate and iii) poor supply of infrastructural facilities.

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Contact us

For additional information on our company registration services in Bosnia and Herzegovina, please contact our in-house country expert, Ms. Janyl Irsalieva, directly:
Consultant at HC - janyl
  • Ms. Janyl Irsalieva
  • Client Relationship Officer
  • Contact me!
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