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Company formation in Bosnia and Herzegovina
Comprehensive assistance in company formation, including banking services
How to form a company in Bosnia and Herzegovina
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Bosnia and Herzegovina and opening a bank account in Bosnia and Herzegovina
2
Payment of services
Payment of our services for company formation in Bosnia and Herzegovina and/or bank account assistance in Bosnia and Herzegovina
3
Company formation
We register a new company in Bosnia and Herzegovina for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to forming a company in Bosnia and Herzegovina
Royalties withholding tax rate in Brčko District is 0%.
1. Founders of a company in Bosnia and Herzegovina can either be resident or non-resident in Bosnia and Herzegovina. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a director in Bosnia and Herzegovina. It is not required for companies in Bosnia and Herzegovina to have a resident indivdiual as one of their shareholders or directors.
3. One individual can be simultaneously a shareholder and a director in a company in Bosnia and Herzegovina if such company is registered as a d.o.o. (a limited liability company).
4. There is no requirement for creating substance in Bosnia and Herzegovina - no need to hire local employees or rent an office in order to establish a company in Bosnia and Herzegovina or to conduct business in Bosnia and Herzegovina.
5. Minimum share capital that is required to register a company in Bosnia and Herzegovina as a d.o.o. (a limited liability company) is BAM 2,000.
6. Information about company founders, shareholders and directors after a company is registered in Bosnia and Herzegovina is publicly available in the state corporate register.
7. A company in Bosnia and Herzegovina can be registered remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Sarajevo for 1 day in order to open a corporate bank account.
2. A resident or a non-resident individual can be a director in Bosnia and Herzegovina. It is not required for companies in Bosnia and Herzegovina to have a resident indivdiual as one of their shareholders or directors.
3. One individual can be simultaneously a shareholder and a director in a company in Bosnia and Herzegovina if such company is registered as a d.o.o. (a limited liability company).
4. There is no requirement for creating substance in Bosnia and Herzegovina - no need to hire local employees or rent an office in order to establish a company in Bosnia and Herzegovina or to conduct business in Bosnia and Herzegovina.
5. Minimum share capital that is required to register a company in Bosnia and Herzegovina as a d.o.o. (a limited liability company) is BAM 2,000.
6. Information about company founders, shareholders and directors after a company is registered in Bosnia and Herzegovina is publicly available in the state corporate register.
7. A company in Bosnia and Herzegovina can be registered remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Sarajevo for 1 day in order to open a corporate bank account.
Cost of services
Formation of a d.o.o.
Timeframe - 12 business days
Timeframe - 12 business days
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Advantages of forming a company in Bosnia and Herzegovina
Attractive business-environment
- Access to EU markets
- Stable economic growth
- Access to the Adriatic Sea allows to establish maritime trade with EU states, Turkey, Middle Eastern and North African states
- Highly-qualified workforce
- Low inflation
Stability and security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- One of the lowest corporate and personal income tax rates in Europe - 10%
- Royalties withholding tax rate in BrčkoDistrict is 0%
- Multiple double tax treaties
No strict foreign exchange controls
- Although foreign exchange controls are established in Bosnia and Herzegovina, individuals and business entities, either resident or non-resident in Bosnia and Herzegovina may open bank accounts in local banks in any currency
Ease of establishing and doing business
- Bosnia and Herzegovina
- Remote company formation in Bosnia and Herzegovina is available
More about Bosnia and Herzegovina
Bosnia and Herzegovina is located in Southern and Southeastern Europe in the Balkans. Bosnia and Herzegovina borders Croatia, Montenegro and Serbia and has access to the Adriatic Sea. Bosnia and Herzegovina has a territory of 51,129 square kilometers. The capital city of Bosnia and Herzegovina is Sarajevo, the largest city and the location of key government institutions.
Bosnia and Herzegovina has a population of 3,5 million people.
Bosnia and Herzegovina has a population of 3,5 million people.
Official currency of Bosnia and Herzegovina is The Bosnia-Herzegovina Convertible mark (BAM).
Bosnia and Herzegovina has a transitional upper middle income market economy. The economy of the country is dominated by the service sectorwith a moderately developed industrial and manufacturing sector with a small agricultural sector.
The GDP of Bosnia and Herzegovina grew by 7.1% in 2021 and amounted to USD 23.4 billion. Tertiary sector makes up almost 56% of the GDP of the country, followed by industry sector at 24.6%, agriculture at 5.7%.
In terms of foreign trade the largest exports of the country are furniture; bedding, mattressess, cushions, lamps and lighting fittings, illuminated signs, illuminated name-plates, prefabricated buildings, mineral fuels, mineral oils and products of their distillation, bituminous substances, mineral waxes, electrical machinery and equipment, iron and steel, wood, aluminium, footwear, inorganic chemicals.
Imports of Bosnia and Herzegovina consist of energy, electricity, petroleum oils, natural gas, structures intended for construction, coal, cars and vehicles, electric equipment, consumer goods, medicaments, copper.
Primary trading partners of Bosnia and Herzegovina are Germany, Serbia, Hungary, Croatia, Austria, Montenegro, Poland, Czech Republic, China, Poland, Turkey, Switzerland, Netherlands and Slovenia.
Bosnia and Herzegovina has a transitional upper middle income market economy. The economy of the country is dominated by the service sectorwith a moderately developed industrial and manufacturing sector with a small agricultural sector.
The GDP of Bosnia and Herzegovina grew by 7.1% in 2021 and amounted to USD 23.4 billion. Tertiary sector makes up almost 56% of the GDP of the country, followed by industry sector at 24.6%, agriculture at 5.7%.
In terms of foreign trade the largest exports of the country are furniture; bedding, mattressess, cushions, lamps and lighting fittings, illuminated signs, illuminated name-plates, prefabricated buildings, mineral fuels, mineral oils and products of their distillation, bituminous substances, mineral waxes, electrical machinery and equipment, iron and steel, wood, aluminium, footwear, inorganic chemicals.
Imports of Bosnia and Herzegovina consist of energy, electricity, petroleum oils, natural gas, structures intended for construction, coal, cars and vehicles, electric equipment, consumer goods, medicaments, copper.
Primary trading partners of Bosnia and Herzegovina are Germany, Serbia, Hungary, Croatia, Austria, Montenegro, Poland, Czech Republic, China, Poland, Turkey, Switzerland, Netherlands and Slovenia.
International business expands to Bosnia and Herzegovina and incorporates a company in Bosnia and Herzegovina primarily for:
Restricted for foreign entrepreneurs are the following sectors:
- industrial processing
- wholesale and retail trade
- energy generation and transmission equipment
- IT
- telecommunications equipment and services
- transport infrastructure
- construction equipment and services
- medical equipment.
Restricted for foreign entrepreneurs are the following sectors:
- defense industry
- television
- air transport
- postal services.
- Corporate income tax (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District)
- 10%. Tax returns are filed on an annual basis. Advance income tax payments are made on a monthly basis - Dividend withholding tax (Federation of Bosnia and Herzegovina) - 10%
- Dividend withholding tax (Republika Srpska) - 0%
- Dividend withholding tax (Brčko District) - 10%
- Interest withholding tax (Federation of Bosnia and Herzegovina) - 10%
- Interest withholding tax (Republika Srpska) - 10%
- Interest withholding tax (Brčko District) - 10%
- Royalties withholding tax (Federation of Bosnia and Herzegovina) - 10%
- Royalties withholding tax (Republika Srpska) - 10%
- Interest withholding tax (Brčko District) - 10%
- Capital gains tax (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District)
- 10% - VAT (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District) - Standard tax rate 17% or the reduced rate 0% or tax exempt. Tax returns are filed on a monthly or a quarterly basis.
- Personal income tax (Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District) - 10%.
Apart from such traditional business entity types as a limited liability company (Društvo s ograničenom odgovornošću - d.o.o.) and a public limited company (Dioničarsko društvo - d.d.), corporate law in Bosnia and Herzegovina offers to establish a business as:
1. Unlimited joint liability company (Društvo s neograničenom solidarnom odgovornošću - d.n.o.)
2. Limited partnership (Komanditno društvo - k.d.)
3. Branch office (Filijala)
To receive a detailed description of the company formation procedure in Bosnia and Herzegovina and information about documents necessary for company formation in Bosnia and Herzegovina please contact our experts.
1. Unlimited joint liability company (Društvo s neograničenom solidarnom odgovornošću - d.n.o.)
2. Limited partnership (Komanditno društvo - k.d.)
3. Branch office (Filijala)
To receive a detailed description of the company formation procedure in Bosnia and Herzegovina and information about documents necessary for company formation in Bosnia and Herzegovina please contact our experts.
Send a request for company formation in Bosnia and Herzegovina
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128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
