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If you are looking for a promising option for investment, as well as starting a business in 2021, then registering a company in Bosnia and Herzegovina, as well as opening a bank account in Bosnia and Herzegovina, can be a rather promising idea.

Bosnia and Herzegovina is an independent industrial state located in the southeastern part of Europe and occupying the western territories of the Balkan Peninsula.

The closest neighbors of the state are Montenegro, Serbia, and Croatia.

The country’s economy is based on the development of the following industries: mining (rock salt, coal), ferrous and non-ferrous metallurgy, chemical industry, textile industry, electronics, mechanical engineering, food industry, and tourism.

The capital of the state is Sarajevo. Largest cities: Zenica, Tuzla, Mostar, and others.

Official languages: Bosnian, Croatian, and Serbian. The population of the country is over 3.7 million people. The national currency is the Bosnian Mark (BAM), which is a CKB.

Bosnia and Herzegovina is a member of the UN, OSCE, Council of Europe, WTO, and other international organizations.

Key advantages of jurisdiction

In the annual ranking of Doing Business magazine, the state was ranked 37th in international trade and resolution of insolvency issues.

If you are going to register a company in Bosnia and Herzegovina, then we present to your attention the following list of key advantages of starting a business in this jurisdiction:

  • Competitive economy;
  • The constant social and political situation in the country;
  • Developed banking sector;
  • High level of interest in foreign investment;
  • The presence of a large number of profitable government programs aimed at the development of all types of business;
  • Modern highly developed infrastructure;
  • DTA agreements with over 40 countries.
  • Low inflation, attracting foreign investment annually,
  • Inexpensive, but at the same time highly qualified labor force, low tax costs in payment of wages,
  • Low taxation, no foreign exchange controls, no tax on some passive sources of income,
  • Possibility of obtaining a director’s visa or work permit,
  • The ability to register a company in a free economic zone and get even more tax benefits for the company.

Those wishing to open a company in Bosnia and Herzegovina in 2021 are advised to consider the following most-promising business niches: real estate, services, light industry, and IT.

Main types of business

Registration of a company in Bosnia and Herzegovina takes place in several stages, and the first of them is the choice of the most optimal form of economic activity. Especially in a given country, you will suggest the following list of OPF:

  • Limited Liability Company (D.O.O./LLC)
  • Joint Stock Company (D.D./JSC)
  • Limited Liability Partnership (K.D./LP)
  • Unlimited Liability Company (D.N.O.)
  • Representative Office (RO)
  • Branch (B).

Among the listed organizational and legal firms, the most popular among foreign entrepreneurs are the following: a limited liability company (D.O.O.) and a joint-stock company (D.D.).

Their main advantages are a simple and quick registration procedure, as well as convenient and favorable conditions for business development. If you want to register a company in Bosnia and Herzegovina, we recommend that you opt for one of these OPFs.


Before registering a company in Bosnia and Herzegovina, you will also need to study in detail the peculiarities of the tax system of this country. In Bosnia and Herzegovina, the following taxes apply:

  • Corporate tax rate: 10%;
  • Dividend tax: 0%;
  • Capital repatriation tax: 10%;
  • VAT: 17%;
  • Environment tax: 1%.

Businesses registered in Bosnia and Herzegovina pay tax on profits earned outside the country, while non-resident businesses pay tax on income earned at the source.

Regulator Requirements

  • To successfully open a company in Bosnia and Herzegovina, you will need to familiarize yourself in detail with the conditions of the local registrar, in particular:
  • Unique name (at the end, be sure to indicate the selected OPF in full or in the form of an abbreviation);
  • Number of directors/shareholders: from 1 or more (individual/legal entity). At least 1 person (employee/director must have resident status);
  • Number of founders: 1 or more;
  • Minimum share capital: 2 thousand BAM for D.O.O. and 4 million BAM for D.D .;
  • Obtaining a special visa for a non-resident director

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