Starting a Company in BiH
Are you interested in establishing a company in Bosnia and Herzegovina (BiH)? Here’s a quick guide to setting up a company in the Federation of BiH (FBiH).
BiH consists of FBiH, Republika Srpska (RS), and the Brčko District (BD). Each of these administrative units has its own regulations regarding company formation. This text focuses on FBiH. If you plan to register a company in RS or BD, feel free to contact me for details.
Choosing the Legal Form
A limited liability company (LLC, in Bosnian: d.o.o.) is the most common business form. You can also choose a joint-stock company or a sole proprietorship (locally called an ‘obrt’). This guide focuses on incorporating a d.o.o. in FBiH.
How to register a d.o.o. in FBiH
You will need:
- an incorporation act and accompanying documentation (which can be prepared by an attorney)
- minimum share capital of BAM 1,000 (approx. EUR 510)
- payment of the share capital to a local bank.
Registration usually takes about one week from the submission of a complete application, but it can be shorter or longer depending on the specifics of the case. The company is officially registered once the court issues the decision.
Post-Registration Steps
After receiving the court decision, several additional steps must be completed, and these can also be handled by an attorney:
- creation of the company seal,
- obtaining ID numbers for non-resident founders or directors (if required),
- tax registration,
- registration with the Federal Statistical Office,
- opening a corporate bank account (the director must be present),
- purchasing and activating a fiscal cash register,
- VAT registration (voluntary or mandatory, depending on turnover exceeding BAM 100,000 or approx. EUR 51,130),
- obtaining municipal approvals (if applicable),
- notifying the competent inspection authority of the commencement of business operations.
These steps typically take an additional 1-2 months in total.
For legal guidance or help with company incorporation in BiH, contact me by email. I’ll guide you through the entire process.