Bosnia and Herzegovina consists of the Federation of Bosnia and Herzegovina, Brčko District and Republika Srpska. Each of the three constituent parts has its own legislation and government.
Handled by relevantly authorized courts and tax authorities, company registration in Bosnia and Herzegovina involves several stages and results in obtaining permission to conduct business.
Tax rates
Registering a company in Bosnia and Herzegovina requires in-depth knowledge of the country’s taxation system. So, let’s take a closer look at what taxes entrepreneurs in Bosnia and Herzegovina are required to pay:
- corporate tax rate in Bosnia and Herzegovina - 10%;
- environmental tax – 1% (paid at the end of the fiscal year);
- dividend tax for individuals – 0% (regardless of residence);
- WHT on dividends – 0-10%,
- WHT on interest – 10%,
- WHT on royalties – 10%.
The country has signed the DTAA with 40 countries, including the Russian Federation, Ukraine, Azerbaijan, Moldova and Belarus.
Registration process
Registering a company in Bosnia and Herzegovina remotely requires its director to obtain a work permit and visa. If they do not plan to live in Bosnia and Herzegovina, they will be issued a special visa under a simplified procedure (the same procedure applies to the company’s accountant).
The company must have at least 1 official employee on its staff. The director and employee can be the same person.
Legal forms
You can open a company in Bosnia and Herzegovina by choosing one of the below legal forms:
- Dioničko društvo, (d.d.) – JSC;
- Društvo s ograničenom odgovornošću (d.o.o.) – LLC;
- Društvo s neograničenom solidarnom odgovornošću (d.n.o.) – Company with unlimited liability;
- Komanditno društvo (k.d.) – LP.
Bank account
Non-residents can open a bank account in Bosnia and Herzegovina. They are issued a card linked to a specific account and connected to an electronic banking system. Non-resident accounts must not be reported to the Central Bank and are not subject to control by government agencies.
The minimum share capital of 2 000 EUR is paid immediately upon opening of a company (for LLCs).
How to set up a company in Bosnia and Herzegovina?
If you need to set up a company in Bosnia and Herzegovina remotely and open a corporate account in a bank of Bosnia and Herzegovina, please consider contacting YB Case.
Our team of experts are always ready to assist you with opening a business in this jurisdiction, as well as provide advice on all registration-related matters.
To sign up for a consultation, please use the contact form on our website.
