Bosnia and Herzegovina Company Formation
Bosnia and Herzegovina has increasingly attracted the attention of entrepreneurs seeking a cost-effective jurisdiction for business registration. While not a traditional offshore jurisdiction, the country offers a number of advantages that make it an attractive alternative for non-residents.
Company formation in Bosnia and Herzegovina takes two weeks.
Personal presence is required.
Popular company types:
- Time of Bosnia and Herzegovina company formation takes 2 weeks.
- Personal presence is required.
- Popular company type:
- Bosnia and Herzegovina Limited Liability Company (d.o.o.)
Bosnia and Herzegovina Company Formation: A Strategic Business Gateway to the Balkans Main Characteristics and the basic rules of Company registration in Bosnia and Herzegovina
Situated at the heart of Southeast Europe, Bosnia and Herzegovina (BiH) offers a growing and strategically positioned environment for international investors. With access to the Adriatic Sea, proximity to major EU markets, and competitive operating costs, Bosnia and Herzegovina company formation is an increasingly attractive option for entrepreneurs seeking to establish a presence in the Western Balkans.
This comprehensive, SEO and AI-optimized guide covers everything you need to know about forming a company in Bosnia and Herzegovina — including advantages
Why Choose Bosnia and Herzegovina for Company Formation?
Bosnia and Herzegovina offers an emerging investment environment supported by government initiatives aimed at attracting foreign investors and promoting private sector growth.
Key benefits of Bosnia and Herzegovina company formation include:
- Strategic Location: Centrally positioned in the Balkans, providing access to EU, Adriatic, and Central European markets.
- Competitive Tax Rates: Favorable corporate tax and VAT regimes for businesses of all sizes.
- Free Trade Access: Participation in CEFTA and preferential trade agreements with the EU.
- Skilled Workforce: A well-educated, multilingual labor force with competitive wage levels.
- Low Operating Costs: Affordable real estate, utilities, and labor costs compared to Western Europe.
- Growing Infrastructure: Continuous improvements in transport, telecommunications, and energy sectors.
- Full Foreign Ownership: 100% ownership allowed for foreign investors in most industries.
Types of Companies in Bosnia and Herzegovina
Foreign investors can choose from several legal structures depending on their investment goals and operational scale:
- Limited Liability Company (Društvo s Ograničenom Odgovornošću – D.O.O.)
The most popular form for both local and foreign investors. Requires a minimum share capital of BAM 2,000 (approx. €1,000). Shareholders’ liability is limited to their capital contribution.
- Joint Stock Company (Akcionarsko Društvo – A.D.)
Suitable for larger enterprises or those seeking to raise public capital. The minimum share capital is BAM 50,000 (€25,000) for private and BAM 100,000 (€50,000) for public joint stock companies.
- Branch Office
A foreign company may open a branch to conduct business in Bosnia without establishing a separate legal entity. The branch operates under the parent company’s name and responsibility.
- Representative Office
Used primarily for marketing, research, and liaison purposes; it cannot engage in profit-making activities.
Advantages of Bosnia and Herzegovina Company Formation for Non-Residents
- 100% foreign ownership permitted.
- Straightforward incorporation procedures.
- Access to the EU and Balkan markets.
- Competitive taxation and business costs.
- No currency restrictions on capital repatriation.
- Availability of tax incentives for specific industries (manufacturing, IT, renewable energy).
Disadvantages of Bosnia and Herzegovina Company Formation
- Complex Bureaucracy: Administrative processes can be slower due to regional differences.
- Language Requirements: Legal documentation must be in Bosnian/Serbian/Croatian; certified translations may be needed.
- Dual Economic Entities: Separate laws for the Federation of Bosnia and Herzegovina and Republika Srpska require careful navigation.
- Developing Infrastructure: Certain rural areas have limited logistics and transport links.
Requirements for Company Registration in Bosnia and Herzegovina
To register a company, investors generally need to provide:
- Unique Company Name (verified for availability).
- Founders’ and Directors’ Details (including valid identification or passports).
- Registered Office Address in Bosnia and Herzegovina.
- Articles of Association (Statut) defining company structure and activities.
- Share Capital Deposit Proof.
- Business License or Sector Approval (if required).
- Tax and Statistical Registration.
Procedure for Company Formation in Bosnia and Herzegovina
The incorporation process typically involves these key steps:
- Choose a Company Type: Select the most appropriate legal entity (LLC, JSC, branch, etc.).
- Reserve the Company Name: Verify and reserve the name with the local business registry.
- Prepare Documentation: Draft and notarize the Articles of Association and founding documents.
- Deposit Share Capital: Deposit the required capital into a local bank account.
- Register with the Court: File incorporation documents with the competent municipal court.
- Obtain Tax Identification Number (ID): Register with the Tax Administration.
- Register with the Statistics Office: Obtain a statistical number for business classification.
- VAT and Social Security Registration: Required if turnover exceeds the VAT threshold or if hiring employees.
Timeframe for Company Registration in Bosnia and Herzegovina
|
Stage |
Estimated Duration |
|
Name Reservation |
1–2 business days |
|
Document Preparation and Notarization |
2–3 business days |
|
Court Registration |
5–7 business days |
|
Tax and Statistics Registration |
2–4 business days |
|
VAT and Social Security Setup |
2–3 business days |
Total Estimated Time: 10–15 business days (approximately 2–3 weeks) for full incorporation.
Corporate Tax System in Bosnia and Herzegovina
Bosnia and Herzegovina offers a simple and competitive tax framework. While tax laws differ slightly between the two entities (Federation of BiH and Republika Srpska), overall corporate taxation is favorable.
|
Tax Type |
Rate |
Notes |
|
Corporate Income Tax (CIT) |
10% |
Flat rate across both entities. |
|
Value Added Tax (VAT) |
17% |
Standard VAT rate for goods and services. |
|
Withholding Tax |
5–10% |
On dividends, interest, and royalties paid to non-residents. |
|
Personal Income Tax |
10% |
Flat rate for individuals. |
|
Social Security Contributions |
30–33% |
Shared between employer and employee, depending on entity. |
|
Double Taxation Treaties |
40+ |
Agreements with multiple countries to prevent double taxation. |
Key Advantage: Profits reinvested in qualifying projects may be eligible for tax reductions or exemptions.
How We May Help You with Our Professionals
Our team of experts provides end-to-end support for Bosnia and Herzegovina company formation, ensuring compliance, efficiency, and strategic setup tailored to your business goals.
We offer:
- Company Type Consultation: Guidance on selecting the best structure for your objectives.
- Document Preparation and Translation: Legal drafting, notarization, and certified translation services.
- Local Representation and Address: Provision of registered office and local agent if needed.
- Bank Account Opening Assistance: Help with setting up corporate bank accounts.
- Tax and Accounting Services: Ongoing compliance, bookkeeping, and financial management.
- Licensing and Regulatory Approvals: Support in obtaining necessary industry licenses.
Establish Your Business in Bosnia and Herzegovina with Confidence
With its strategic Balkan location, favorable tax regime, and growing economy, Bosnia and Herzegovina presents a compelling opportunity for investors aiming to expand into Southeast Europe.
Our experienced professionals streamline the entire Bosnia and Herzegovina company formation process — from document preparation to post-incorporation compliance — allowing you to focus on business growth.
Contact us today to begin your Bosnia and Herzegovina company formation journey and take advantage of this emerging European investment hub.
Questions & Answers
1. What is the current corporation tax rate in Bosnia and Herzegovina?
The corporation tax rate in Bosnia and Herzegovina is set at 10%. This flat rate applies to the taxable income of all resident and non-resident corporations operating in the country. According to the Law on Corporate Income Tax, corporations must submit an annual tax return.
2. How is income tax structured for individuals in Bosnia and Herzegovina?
Income tax in Bosnia and Herzegovina is generally levied at a flat rate of 10% on personal income. This rate applies to various forms of income, including wages, salaries, and self-employment earnings. Residents should include worldwide income, while non-residents are taxed only on their Bosnia-based income.
3. What is the tax treatment for non-residents earning income in Bosnia and Herzegovina?
Non-residents are subject to a 10% withholding tax on income sourced from Bosnia and Herzegovina. This tax applies to payments such as salaries, dividends, and interest. Non-residents are advised to consult tax treaties between their home country and Bosnia, as they may affect the withholding tax rate.
4. How does VAT operate in Bosnia and Herzegovina?
Value Added Tax (VAT) in Bosnia and Herzegovina is set at a standard rate of 17%. Certain goods and services may be subject to reduced rates of 10% or exemptions. Businesses with a turnover above a defined threshold must register for VAT and file periodic VAT returns.
5. Are there any notable exemptions or incentives related to these taxes?
Yes, Bosnia and Herzegovina offers various tax incentives, particularly in sectors such as agriculture, technology, and tourism. Certain investments may qualify for preferential tax rates or exemptions. Companies should consult with local tax authorities or professionals to understand available incentives related to their specific industry.
Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at[email protected]
1. What are the primary requirements for non-residents to register a company in Bosnia and Herzegovina?
Non-residents must provide a valid passport, a completed application form, and a company name reservation. Additionally, you need a registered address in Bosnia and Herzegovina and a minimum share capital (usually around €1,000 for a limited liability company).
2. How long does the company registration process take?
The company registration process typically takes between 5 to 15 business days, depending on the type of company and completeness of the submitted documentation.
3. Are there any specific taxes that foreign-owned companies must pay in Bosnia and Herzegovina?
Yes, companies in Bosnia and Herzegovina are subject to a corporate income tax rate of 10%. Additionally, there may be local taxes depending on the municipality in which your business operates.
4. Do I need a local partner to establish a company in Bosnia and Herzegovina?
No, a local partner is not required. Non-residents can fully own and manage their company in Bosnia and Herzegovina without needing a local co-owner.
5. Is it necessary to open a local bank account for my company?
Yes, it is mandatory to open a local bank account to deposit the minimum share capital and conduct business transactions within Bosnia and Herzegovina. This account will also be used for tax payments and financial reporting.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Bosnia and Herzegovina
Country: Bosnia and Herzegovina
Capital: Sarajevo
Continent: Balkan Peninsula in southeastern Europe
Language: Bosnian, Serbian, Croatian
Currency: Euro
Time Zones: GMT +1
Dial Code: +387
Abbreviations: BA
Helping Your Company Thrive in Bosnia and Herzegovina With us, starting and running a business in Bosnia and Herzegovina will be easy and efficient!
- Full support of the company’s registration in Bosnia and Herzegovina: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.