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

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

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

The new practice, which features former ‘big four’ experience, already has over 20 team members
Speakers from companies including Uber and Stripe told the inaugural AI in Tax Forum to brace for impending changes to how advisers work
Authors from Khaitan & Co dissect a ‘welcome’ ruling, which found that the mere existence of a tax benefit would not, by itself, warrant a principal purpose test
Over two-thirds of survey respondents back the continuation of the UK’s digital services tax, research commissioned by the Fair Tax Foundation also found
Given the US/G7 pillar two deal, the OECD is in danger of being replaced by the UN as the leading global tax reform forum
Cinven’s latest investment follows its acquisition of a stake in Grant Thornton UK in December; in other news, a barrister listed by HMRC as a tax avoidance promoter has alleged harassment
CIT base narrowing measures remain more prevalent than increased CIT rates, the report also highlighted
ITR's parent company, LBG, will acquire The Lawyer, a leading news, intelligence and data-driven insight provider for the legal industry, from Centaur Media
KPMG UK’s Graeme Webster and KPMG Meijburg & Co’s Eduard Sporken outline the 20-year evolution of MAPAs, with DEMPE analyses becoming more prevalent and MAPA requirements growing stricter
Rishi Joshi, of the Institute of Chartered Accountants of India, warns of potential judicial overreach as assets are recharacterised to bypass a legislative exclusion
Gift this article