NEW: start a business in Bosnia and Herzegovina.

What do you need to know before starting a business in Bosnia and Herzegovina

In Bosnia, only 1 Convertible Mark (BAM) of shared capital is needed to start an LLC company (which is €0.5). The capital needs to be transferred to a designated bank account.

From the signature at the notary office that allows the constitution of the company to the final registration can take up to 20 days. The accountant needs to take care of the steps that follow articles of association: the registration at the Tax Administration Office that provides the company with the tax number and import and export customs code etc. It is important to keep in mind that foreign natural and legal persons can have a 100% partnership and are entitled to be directors of the company. Furthermore, foreign natural and legal persons have the possibility of opening subsidiaries, branches and representative offices in Bosnia and Herzegovina. On the other hand, foreigners employed in BIH are required to have a working visa.

The Shareholders General Meeting is, similar to the rest of Europe, is the company’s fundamental governing and decision-making mechanisms. All shareholders have a number of votes that is in proportion with their share.

A company is directed by one or more directors, their role is assigned in articles of association or in the statute for company representation and management: in BIH these roles are called Direktor (CEO) and Zamijenik Direktor (acting CEO).

A Supervisory board is necessary only when the company has more than 10 shareholders or in case the company’s capital is more than 1,000,000 BAM and there are at least two shareholders.

The VAT (PDV) rate is of 15%, while for all the factors contributing to the export production there is a possibility of monthly VAT reimbursement. The turnover tax is of 10%.

Starting a business in Bosnia and Herzegovina is an excellent opportunity for all foreign entrepreneurs.

For any further information write to us on info@taxofia.com