Bosnia and Herzegovina Company Formation

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Company Formation and Related Services



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Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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BridgeWest is specialized in special corporate structures designed for tax minimization. No matter where you want to incorporate your company, you will need to consider how you can legally minimize costs.

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Guide to Company Incorporation in Bosnia and Herzegovina

August 17, 2011, 2:13 pm


1. What is the minimum share capital for a Limited Liability Company in Bosnia and Herzegovina?


The minimum share capital needed for incorporating a Limited Liability Company (d.o.o.) in Bosnia and Herzegovina is 2,000 EUR, which has to be fully paid prior to registration.


2. What is the minimum share capital for a Joint Stock Corporation in Bosnia and Herzegovina?


A Joint Stock Corporation (d.d.) in Bosnia and Herzegovina can be open or closed. In order to incorporate an Open JSC, a minimum share capital of 25,000 EUR is required, quite the same as for establishing a Closed JSC.


3. Are there any special requirements for establishing a Limited Liability Company in Bosnia and Herzegovina?


The registration procedure for a Limited Liability Company (d.o.o.) in Bosnia and Herzegovina takes about 55 days.  Before applying for an identification number with the competent tax office, one has to have a notarized founding act, to obtain a proof of the payment of the initial capital and register with Municipal Courts. All companies are required to be registered with the Municipal Court Register in the FBiH (Federation of Bosnia and Herzegovina) and the Commercial Court Register in the RS (Republic of Srpska), the two main tax jurisdictions in Bosnia and Herzegovina. The location of the company determines which court has jurisdiction.

4. How can I register for VAT in Bosnia and Herzegovina?


The VAT registration is mandatory for the companies with an annual turnover above 50000 BAM. You can register through a VAT representative. The identification number from the tax office is definitely a must for the procedure to be completed. The tax rate is 17% but certain exemptions are granted, mostly on public, health, medical and financial services,


5. How can I open a bank account in Bosnia and Herzegovina?


In order to open a bank account in Bosnia and Herzegovina, you have to provide some information about the address, income and other details. You can apply for a bank account at the bank office or on the Internet (in some cases). Also the company certificate of incorporation is necessary, the specimen signature of the person authorized to perform financial operations and the proof of appointment of the company’s representative.


6. How can I recruit personnel in Bosnia and Herzegovina?


There are several specialized firms that a company can hire in order to find the best qualified personnel. Recruitment agencies are also available on websites. Newspapers or websites can also publish the announcement of employment on behalf of the company.

7. What is the average salary in Bosnia and Herzegovina?

The average monthly income in Bosnia and Herzegovina is 300-400 EUR.


8. What is the overall economic situation in Bosnia and Herzegovina?


Bosnia's private sector is growing, but foreign investment has dropped off dramatically since 2007. However, the country has received a substantial amount of foreign assistance and will have to prove its ability to implement an economic reform in order to come closer to the European Union. The government encourages foreign investment in order to promote employment.

The advantages are mostly offered by the extended double tax treaty which grants smaller or exempt tax on profits and on the withholding taxes on dividends, royalties and interests.

Bosnia and Herzegovina is also member of the Central European Free Trade Agreement since 2007, which allows the exports and imports of goods in advantageous conditions.




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Company Formation in Bosnia


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