Business entities in Bosnia and Herzegovina in 2023

Since 2003, Healy Consultants assists our Clients with the most optimum corporate structure for business in Bosnia and Herzegovina. There are several ways of doing business in the country, the most common being the setting up of a limited liability company (d.o.o.). Alternatively, entrepreneurs may choose to establish a public limited company (d.d.), a branch office or a representative office, depending on their business needs.

The limited liability company (d.o.o.)

The LLC (d.o.o.) is the most common legal entity used by entrepreneurs setting up businesses in Bosnia and Herzegovina. This entity requires only 1 director and 1 shareholder, who can be of any nationality and may not be resident in the country. A US$1,150 minimum paid-up share capital will berequired to complete the incorporation process.

The public limited company (d.d.)

This Bosnia business setup requires at least 1 shareholder who can either be an individual or a corporate body to be incorporated. The shareholder can be of any nationality and may not be resident in the country. This entity will require a minimum share capital of $29,000 if the company issues shares to the public.

Branch Office

The Bosnia business setup can engage in commercial activities like any other legal entity although the scope of operations for a Branch office is defined by the parent company. The branch must appoint at least 1 Bosnia resident individual of any nationality, to act as the company’s representative in the country.

The Bosnia and Herzegovina representative office

Foreign legal entities may establish representative offices in Bosnia and Herzegovina by registering the entity with the Ministry of Foreign Trade and Economic Relations. This entity is not considered a legal entity and is not allowed to conduct any commercial activities within Bosnia and Herzegovina. A representative office may only conduct market research and engage in promotional activities for their parent company.

Comparison table between Bosnia and Herzegovina business entities

	LLC	PLC	Branch office	Rep office
Also known as	d.o.o.	d.d.	poslovnica	predstavnistvo
How long to set the company up?	7 weeks	8 weeks	7 weeks	6 weeks
How long to open company bank account?	5 weeks	5 weeks	5 weeks	5 weeks
Legal liability?	Limited	Limited	Unlimited	Unlimited
Wholly foreign owned?	Yes	Yes	Yes	Yes
Minimum share capital?	US$1,150	US$29,000	US$1	US$1
File annual tax return?	Yes	Yes	Yes	No
Tax registration certificate required?	Yes	Yes	Yes	No
Recommended corporate bank account?	Raiffeisen Bank	UniCredit Bank	FIMA Bank	Union Bank
Does our Client need to travel?	No	No	No	No
Resident director required?	No	No	No	No
Resident shareholder required?	No	No	No	No
Minimum directors allowed?	1	1	1	1
Minimum shareholders?	1	1	1	1
Tax identification code (TIN) needed?	Yes	Yes	Yes	No
Bosnia and Herzegovina resident company secretary required?	No	No	No	No
Corporate shareholders allowed?	Yes	Yes	Yes	Yes
Corporate director(s) allowed?	Yes	Yes	Yes	Yes
Bosnia and Herzegovina corporate tax rate?	10%	10%	10%	0%
Annual financial statements required?	Yes	Yes	Yes	No
Statutory audit required?	No	No	No	No
Regulated by?	Ministry of Finance	Ministry of Finance	Ministry of Finance	Ministry of Finance
Allowed to issue sales invoices?	Yes	Yes	Yes	No
Allowed to sign contracts?	Yes	Yes	Yes	No
Allowed to import and export goods?	Yes	Yes	Yes	No
Can rent an office space in Bosnia and Herzegovina?	Yes	Yes	Yes	Yes
Can buy Bosnia and Herzegovina property?	Yes	Yes	Yes	No
Can own equity in other Bosnia and Herzegovina companies?	Yes	Yes	Yes	No
Total Bosnia and Herzegovina business setup costs in Yr. 1	€11,900	€13,900	€14,900	€14,550
Subsequent annual costs (incl. accounting and tax fee)	€2,300	€2,300	€2,300	€2,300
Sample engagement invoice	View invoice PDF	View invoice PDF	View invoice PDF	View invoice PDF