Company formation in Bosnia and Herzegovina
The formation of a company in Bosnia and Herzegovina follows a series of procedures.
The entrepreneur must register for tax purposes, insurance, health care and to obtain a certificate of function and company registration in the municipal court.
Foreign investors can find a friendly economic environment and are not discriminated against they have the same rights as local entrepreneurs.
Preliminary activities prior to the registration of a limited liability company and joint-stock companies in Bosnia.
Before registration company in Poland, a company founding deed should be prepared, authenticated by a notary public and delivered to the municipal office.
The Notary Act requires that documents regarding the registration of a company in Bosnia be certified by a notary public.
It is also important that the founders of the company open a bank account and deposit the minimum required capital to obtain a bank certificate.
The minimum share capital that must be made to set up a company in Bosnia is 2.000 BAM for a limited liability company.
A joint-stock company must deposit the share capital at least in the amount of 50.000 BAM.
Incorporation of limited liability companies and joint-stock companies in Bosnia
The founders of the company in Bosnia must purchase (in the court or store) registration forms and fill them.
The statute, bank account, company address, capital amount and shareholder and board information should be provided together with the application for registration in the municipal court.
After issuing the registration certificate, the city court informs about it in the official court newspaper.
Companies are automatically registered for membership in chambers of commerce: regional and national.
Registration in the municipal court takes about 10 days.
After issuing the registration certificate, the next step in creating a Bosnian company is to submit the required documents and pay a fee for collecting the company stamp.
After receiving the company stamp, the company must apply for a municipal approval for future operations.
This process takes about 10 days.
After receiving the certificate, establishing LLC company in Bosnia and Herzegovina involves sending a notification to the supervising office regarding the start of operations.
Applying for the company's identification number at the tax administration in Bosnia
The founders of the company must submit a photocopy of court registration documents and a contract for renting the premises and a copy of the director's identity card.
The procedure can take up to 15 days.
Registration of employees in an insurance company for pensions and medical care
An important process in finalizing the creation of a company is the notification of new employees in the pension and health insurance companies.
For this purpose, the founders must submit application forms for pension and health insurance, a copy of the company registration certificate and ID cards, employee health records, a copy of the employment contract and finally a staff work booklet.
Employing employees in Bosnia and Herzegovina
After completing all the activities required to set up a company in Bosnia, an entrepreneur may hire employees.
Working conditions, wages, working time and other requirements are determined by labor law.
An entrepreneur may employ an employee on an indefinite or fixed-term contract.
In the case of seasonal work, replace an absent temporary worker in limited projects or in other situations specified in collective agreements.
Working hours may not exceed 40 hours per week and when occupational status and duties require different work time, the maximum working time may be extended to 60 hours per week.
Establishment of a company in Bosnia and Herzegovina from abroad
Bosnia and Herzegovina has a complicated tax system, but it provides rather attractive conditions for foreign investors, ensures non-discrimination of foreigners.
The company can be established in Bosnia and Herzegovina by a representative who will carry out the establishment procedures.
However, the company must have a local address, and some restrictions on the company's capital flow apply depending on the characteristics of each company.
If the branch is open, it must be represented by an authorized person on the basis of a power of attorney.
Many foreign companies prefer to open a limited liability company instead of a branch due to the fact that the foreign company bears all responsibility for the operations of its branch and also has to provide capital.
Bosnian legislation provides for some restrictions on foreign direct investment in the field of arms, military equipment, explosives intended for military use and related activities.
In the sense that foreign investors can represent up to 49% of the entire investment.
For other investments, including public health and environmental protection, the same restrictions apply as for domestic investments.
How long does it take to incorporation a company in Bosnia and Herzegovina?
The process of establishing a company in Bosnia and Herzegovina can be quite complex and almost every procedure will be completed in more than a week.
Easier procedures, such as opening a bank account, purchasing a company stamp are dealt with in no more than one day.
The registration of a company with a Bosnian municipal court can last up to 15 days.
The entire establishment of the company may take up to two months.