Starting a Business in Bosnia and Herzegovina: A Step-by-Step Guide for Foreigners

Choosing the Business Entity / Legal Structure

In Bosnia and Herzegovina, you can either start a sole proprietorship (Obrt) or a capital company, usually a limited liability company (d.o.o.). Sole proprietorships are ideal for self-employed activities, while a d.o.o. can be founded by one or more shareholders.

Company Registration

Step 1: Registration with the Court

• Preparation of the founding act: A notary or lawyer prepares the documents, which include a founding decision or partnership agreement, depending on the number of founders.
• Filing with the court: You need a rented business space, a (registered) company name, a managing director, and a minimum capital of 1,000 KM, with contributions from each shareholder no less than 100 KM.
• Duration: Approximately 10 days. (It may take longer in some cases, so be patient).

Step 2: Create the Company Stamp

After successfully registering with the court, you need to create a company stamp that must match the details in the court decision. (This usually takes just a few hours and costs around 50 KM.)

Step 3: Choose an Accountant

Accounting must be handled by a certified accountant whom you select. Your accountant will assist you significantly in the next steps of establishing your business.

Step 4: Register with the Tax Authority

• Fill out forms PPL1 and RPO1 to obtain a (tax) identification number and a “business classification”.
• Duration: 1 day.

Step 5: Open a Bank Account

You can open the company’s bank account with a bank of your choice and even at multiple banks. However, one bank account must be designated as the “primary account.”

• Documents for the bank: Application form, signature specimen, a copy of the court decision, tax identification number, business classification, a copy of your passport, and proof of residence registration.
• Duration: A few days (often depends on the bank).

Step 6: Register the Managing Director and Employees

• Work permit: A work permit is required for foreign managing directors.
• Submit form JS 3100 to the local tax office.

As a managing director, you are not required to be an employee, provided that the company has at least one employee.

Step 7: Register the Business Premises with the Municipality

• Obtain an operating permit from the municipality where the business will be located.
• Submit the applications and provide proof that the minimum requirements for business activities are met.
• Duration: 2-3 days (often depends on the municipality).

Step 8: Fiscalization

• Set up a fiscal cash register system: Contract with an authorized IT service provider and obtain the necessary equipment.
• Duration: Depends on the availability of the service provider and delivery time of the equipment.

Final Step: Start Operating Your Business in Bosnia and Herzegovina

• Start business operations: Once all legal and administrative steps are completed, you can begin selling goods, producing, or offering services. Once your turnover reaches 100,000 KM, you must register for VAT.

You will receive help from a notary/lawyer during the founding act itself. For other steps, such as registration with the tax office, your accountant will be crucial.