Bosnia and Herzegovina: Business registration reforms in Bosnia and Herzegovina (Republic of Srpska Entity)

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bosnia and Herzegovina: Business registration reforms in Bosnia and Herzegovina (Republic of Srpska Entity)

topic.jpg

Dajana Topic, Eurofast Global

The government of the Bosnian entity Republic of Srpska (RS) has adopted a set of laws, which constitute a legal framework for the implementation of the reform of business registration. This way the RS government tends to create the legal requirements for establishment of new companies with easier and low cost procedure. These changes are significant incentives for creating a more competitive business environment, so more companies recognise Bosnia and Herzegovina (BiH) as a valuable place for doing a business.

The package of new measures significantly reduces the cost of starting a business. Some of the major incentives that the amendments stipulate are following:

  • Minimum capital requirement was reduced from KM2,000 ($1,300) to KM1;

  • For a limited company (one shareholder) with the minimum capital requirement, instead of the notary processing of the incorporation documents, the notary signature verification will suffice, which significantly reduces the costs of start-ups at the notary;

  • The registration process of the craft and entrepreneurial activities is significantly simplified and will be carried out faster and at lower cost as the amendments to the Law on Administrative Taxes carries a maximum administrative fee of KM30 for the registration of business activity at the local level;

  • The amendments to the Law on Court Taxes relieve the founder of the first company registration of the court taxes, as well as of the costs of publication in the Official Gazette;

  • The newly formed companies are released of court taxes for all other court decisions too, which are directly related to the founding act, regardless of whether the founder is a foreign or domestic person; and

  • Taxes for the Certificates of Incorporation or other public records kept by the court, if issued at the request of the businessman, will significantly reduce.

A new concept of business registration has also been introduced, through the introduction of a one stop shop system, that's ultimate goal is the introduction of electronic submission of the application for the registration of companies by email.

Namely, commercial courts in the RS will continue to be responsible for the registration of companies and all other entities which are subject to the registration in the register, but the number of the days for the issuance of the Certificate of Incorporation will reduce to three days (from two weeks).

It is necessary that throughout the process of this kind of reforms BiH makes a big step forward to be more competitive in the region.

Above listed measures will have a positive impact on foreign investments, but other steps towards a simpler registration procedure and generally healthier business environment should be undertaken as well. The concept of registering a company within three working days will be effective as of January 1 2014 and it is expected that will certainly help to attract more investors.

Dajana Topic (dajana.topic@eurofast.eu)

Eurofast Global, Banja Luka Office

Tel: +387 51 340 680

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Heads of tax need to push their teams forward as strategic business advisers to add value across the organisation, says Sandy Markwick
Scott Bessent reportedly felt undermined by Musk naming Gary Shapley as acting IRS commissioner; in other news, Baker Tilly will combine with a top 15 US firm
The promise of nine years’ tax certainty and a ‘rational and pragmatic’ government process makes APAs a no-brainer, Indian tax advisers tell ITR
Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Australia’s conservative opposition will repeal controversial tax agent reporting rules if elected in the country’s May general election
Shapley would be the fourth person to hold the job this year; in other news, UK tax advisory firm MHA raised fewer funds than expected from its London IPO
The US needs to be involved in pillar one for there to be more international acceptance of the project, Michael Masciangelo says
The UK regulator is investigating EY’s auditing of the national postal service as it relates to the high-profile Horizon scandal, which saw hundreds wrongfully convicted
Gift this article