Bosnia and Herzegovina is a country located on the Balkan Peninsula in South-Eastern Europe. The country, known for its natural beauty and diverse history, has shown continuous economic growth, making it a promising land for entrepreneurs and business enthusiasts. One of the foremost steps in establishing a business in Bosnia and Herzegovina is registering your business name, a process which requires knowledge of the local legal framework.
Understanding the Bosnian Market
Bosnia and Herzegovina is composed of two entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS). Each entity has its own laws and regulations regarding company registration. In general, FBiH has a more complex framework due to the region’s decentralized government structure, while RS has a simpler and more business-friendly approach.
Company Types in Bosnia and Herzegovina
The three main types of businesses in Bosnia and Herzegovina are Sole Proprietor (individual private business), General Partnership, and Limited Liability Company. The most popular among these is the Limited Liability Company due to its simple structure and lower business risks.
Steps to Registering a Business Name
Step 1: Choosing a unique business name
Interested parties must come up with a unique name for their business. Checks for name uniqueness can be made at the local court’s commercial departments in either entity.
Step 2: Obtain a bank certification
After deciding on a business name, the second step is to deposit your founding capital (minimum 1,000 BAM) in a temporary bank account. The bank will then issue a certificate confirming that the necessary amount has been deposited.
Step 3: Register your business
To officially register your business, an application form must be submitted to the local court’s commercial divisions in either entity. In FBiH, the Federation Administration for Geodesic and Real Property Affairs will handle the registration, while the Republika Srpska handles similar procedures through its own One-Stop Shop System.
Step 4: Register with the relevant tax authorities
Once the court has confirmed your business registration, the next step is to register your business with the entity and state tax authorities. This will enable you to obtain the relevant tax numbers for your business.
Step 5: Other Registrations
There may be other specific registrations and permissions needed depending on the nature of your business. For instance, if you’re in the import/export trade, you would need to register with the Indirect Taxation Authority.
Final Thoughts
Establishing a business in Bosnia and Herzegovina can be a lucrative venture due to favourable economic growth, strategic geographical position, and beneficial trade agreements. But it is crucial to navigate the registration process effectively and comprehensively. With careful planning and thorough understanding of the business environment, one can successfully establish a business in this dynamic country. Consulting a local lawyer or a professional consultancy firm can be extremely helpful in this process.
Suggested related links:
Government of Bosnia and Herzegovina
Federation of Bosnia and Herzegovina Government
Tax Administration of the Federation of Bosnia and Herzegovina
Investment-Development Bank of Republika Srpska
Foreign Trade Chamber of Bosnia and Herzegovina
Chamber of Commerce and Industry of Republic of Srpska
Agency for Intermediary, IT and Financial Services (APIF) – Republic of Srpska