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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:

1. an incorporation act and accompanying documentation (which can be prepared by an attorney)
2. minimum share capital of BAM 1,000 (approx. EUR 510)
3. 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.

Are you interested in obtaining a work and temporary residence permit in Bosnia and Herzegovina?

Great. I’m here to provide you with summarized information on the procedure and documents needed, as well as my legal assistance if you wish to apply for the permits.

A. Work Permit

Issuance procedure

Work permits are issued at the entity level by the competent employment agency in either the Federation of Bosnia and Herzegovina (FB&H) or the Republic of Srpska (RS). The employer (natural or legal person) applies for the work permit for the foreigner it wishes to hire.

Work permits are issued in accordance with the adopted annual quota of the approved number of work permits. For the employer’s directors, a work permit can be issued regardless of the annual quota.

Work permit is normally issued within 30 days or more from the submission of a complete request. The permit corresponds to the position for which the foreigner is being hired. Its maximum validity period is one year, and it can be extended for successive periods of one year.

Documents needed:

1. request on a prescribed form (applicable for both FB&H and RS);
2. passport (FB&H and RS);
3. translation of a school degree – diploma of the foreigner in one of the official languages of Bosnia and Herzegovina (B&H) with nostrification (applicable for FB&H only);
4. relevant excerpt or resolution on entry of the employer (FB&H and RS);
5. employer’s ID & statistics certificate (FB&H only);
6. solvency certificate for the employer (FB&H only);
7. certificate on paid taxes and contributions for all employees (FB&H only);
8. arguments justifying employment of the foreigner (FB&H and RS);
9. proof of paid administrative fees;
10. working capacity certificate of the foreigner (RS only);
11. other documents, if requested.

B. Temporary Residence Permit

Issuance procedure

Residence permits are issued at the state level by the Service for Foreigners. The application for a temporary residence permit is submitted personally by the foreigner requesting the permit.

The issuance of the temporary residence permit may take up to 60 days or longer in exceptional cases. The foreigner to whom the permit is issued needs to take over the resolution on the approved temporary residence together with the passport approval sticker from the Service for Foreigners in person.

The maximum validity period of residence permit is one year, and it can be extended for successive periods of one year.

Documents needed:

1. request on a prescribed form;
2. photograph;
3. passport, with the page containing a stamp of the last entry in B&H and the page with the long stay visa (VISA D), if required;
4. proof of registration of foreigner’s stay (white card);
5. work permit;
6. confirmations on paid taxes and indirect taxes;
7. resolution on entry of the employer in the official registry;
8. medical certificate;
9. confirmation that the foreigner is not prosecuted or sentenced for any criminal offence;
10. proof of provided housing in B&H;
11. proof of paid administrative fee;
12. other documents, if requested.

After obtaining both the work and temporary residence permits, the employer may conclude an employment agreement with the foreigner.