Setting up a company in Bosnia and Herzegovina implies a series of well-structured procedures. An entrepreneur must register for tax purposes, insurance, health and in order to obtain the certificate of function and registering the company with Municipal Court is mandatory. Opening a company in Bosnia and Herzegovina implies understanding the particularities of doing business according to the chosen region where the company will be based.
Types of companies in Bosnia and Herzegovina
The types of companies that can be incorporated in the Federation of Bosnia and Herzegovina are the following:
– unlimited joint liability company: founded by at least two members with each member being able to and obliged to manage the company. They both have unlimited liability; there is no mandatory minimum contribution when founding the company.
– limited liability company: as the name suggests, the liability of the members is limited in this case and it can be established by one or more investors; this type of company has a minimum share capital of approximately 1,000 EUR and partners much each make a minimum contribution.
– joint stock company: these shares similarities with the limited liability company (in terms of member’s limited liability) but it is designed to fit the needs of larger businesses as it a more significant minimum share capital (approximately 25,000 EUR).
limited partnership: founded by two or more members out of which one has unlimited liability for the debts and obligations of the business; the general partners are the one who manages the business.
Registering limited liability and joint stock companies in Bosnia
The founders of the Bosniak companies must purchase regulated forms at a stationery shop or at court and complete them. The articles of association, charters, bank account, information on the legal address and capital and data on members and managing board are required along with the application for registration with the Municipal Court. After the issuance of the registration certificate, the Municipal Court informs the Official Gazette and the companies are automatically registered for membership in the chambers of the economy at state, entity, canton and regional levels. The registration at the Municipal Court takes around 10 days.
Setting up a company in Bosnia and Herzegovina from abroad
The state of Bosnia Herzegovina has a complex tax system but represents a rather attractive environment for foreign investors, ensuring a non-discriminatory treatment for foreigners. A company can be set up in Bosnia and Herzegovina by assigning a representative who will carry out the establishment procedures. However, the company must have a local residence, and certain restrictions on the repatriation of the company’s capital apply, depending on the characteristics of each company. If a branch is opened, it must be represented by an authorized individual invested with a power of attorney. Many foreign companies prefer to open a limited liability company instead of a branch because the foreign company carries all the liability for its branch’s actions and also must provide the capital.
Foreign companies can also establish their presence in the country by opening a branch. This is an extension of the parent company that will act as an office that performs the same business activities (with the parent company defining the scope of this office). The branch remains dependent on the parent company and the foreign legal entity is liable for its branch’s activities in Bosnia.
The time needed to open a company in Bosnia and Herzegovina
The process of setting up a company in Bosnia and Herzegovina can be rather complex and almost every procedure is completed in more than a week. Small steps, as opening a bank account, buying company stamp etc. are finished in no more than a day. Registering the company with the Bosnian Municipal Court can take up to 15 days, as other procedures. The entire procedure can take up to two months to be established. In most cases, the actual procedure can take up between 30 and 45 days.
How we can help you
If you are considering forming a business or you need expert help with company registration in Bosnia and Herzegovina, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.
Please use our Company Formation Wizard if you would like to set up your registered company in Bosnia and Herzegovina or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at firstname.lastname@example.org