COREDO > Company Formation in Bosnia and Herzegovina

Company Formation in Bosnia and Herzegovina

Why Register a Company in Bosnia and Herzegovina

Bosnia and Herzegovina is a promising Balkan jurisdiction with a low 10% corporate tax rate, affordable operating costs, and growing interest from international investors. The country offers a strategic location near the EU market, access to qualified workforce, and favourable conditions for businesses in manufacturing, IT, logistics, tourism, and industry.

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Types of Companies in Bosnia and Herzegovina

Local legislation allows foreign entrepreneurs to register various legal forms of business entities.

d.o.o. (društvo s ograničenom odgovornošću)

limited liability company. The most common form of doing business in the country. A company can be founded by both natural persons and legal entities, with a maximum of 50 members. The minimum share capital in the Federation of Bosnia and Herzegovina is BAM 2,000 (approximately EUR 1,000), and the full amount must be paid upon registration. In Republika Srpska, the minimum capital can start from BAM 1. The company may carry out all activities not prohibited by law, although certain sectors (insurance, banking, brokerage) require a licence.

d.d. (dioničko društvo)

joint-stock company. Suitable for large projects requiring substantial investment and a broad range of shareholders. Shares are freely tradable and can be listed on the stock exchange.

Limited partnership (komanditno društvo)

combines at least one general partner with unlimited liability and one or more limited partners (komanditors) who are liable only up to the amount of their contribution. This form is used when several partners collaborate with different levels of involvement in management.

General partnership (javno trgovačko društvo)

implies unlimited joint liability of all partners for the company’s obligations.

Branch (podružnica) of a foreign company

is registered without minimum capital requirements and allows a foreign legal entity to conduct business in Bosnia and Herzegovina directly. A branch is not a separate legal entity — the parent company bears liability for its obligations.

Most foreign investors choose the d.o.o. form as the most flexible, predictable, and least administratively burdensome.

Registration Specifics

The parliamentary republic of Bosnia and Herzegovina consists of three relatively autonomous entities: the Federation of Bosnia and Herzegovina, Republika Srpska, and the Brčko District. Each entity has its own federal and local laws, which adds a certain complexity to the registration and operation of businesses. Key legislative acts include the Framework Law on Registration of Business Entities and the Law on Commercial Companies.

Company Registration Procedure

To establish a company in Bosnia and Herzegovina, founders must choose a unique name and prepare the founding protocol and articles of association. Next, they must collect documents from directors and shareholders, appoint a general director, and determine the share capital amount. The prepared set of documents is submitted to the municipal court at the company’s registered office address, with payment of registration and state fees. All documents submitted to government authorities must be notarised.

After registration is completed, the company’s data is entered into the Commercial Register. A bank account must then be opened at a local bank, and the company must be registered with the tax authorities.

Required Documents

The following documents are needed for company registration:

the founding protocol and articles of association;

identity documents of the founders and directors;

proof of the registered office address;

a resolution appointing the director;

confirmation of share capital payment.

All documents in foreign languages must be translated and notarised.

Registration Timeline

Registration of a new legal entity in Bosnia and Herzegovina typically takes one to two weeks, provided a complete set of documents is available. In certain cases, the process may take additional time depending on the chosen registration region and the specifics of the business activity.

Service Fees

The cost of company formation services in Bosnia and Herzegovina depends on the chosen legal form, the registration region, and the scope of additional requirements. To receive a customised quote, contact our specialists — we will prepare a detailed commercial offer tailored to your specific situation and business objectives.

Tax System

Bosnia and Herzegovina offers one of the most attractive tax systems in the region. The corporate income tax (CIT) rate is 10% in both the Federation of BiH and Republika Srpska — one of the lowest in Europe. Tax is calculated on a self-assessment basis.

The standard value-added tax (VAT) rate is 17%. Mandatory VAT registration is required when annual turnover reaches BAM 100,000. Indirect taxes, including VAT, are administered at the state level, while direct taxes are administered at the entity level.

Tax incentives are available for businesses: companies investing more than 50% of their profits in production equipment receive a 30% corporate tax exemption. The country has also concluded DTA agreements with more than 40 states.

Employer social contribution rates are approximately 10.5% of the payroll. Employee contributions are significantly higher (31%), which should be considered when planning labour costs.

The tax system of Bosnia and Herzegovina operates on a territorial principle with certain specifics regarding the taxation of passive income; professional advice is recommended when structuring a group of companies.

Our Experts

The COREDO team has been operating since 2016 and possesses deep expertise in company registration across various European jurisdictions.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Has been with the COREDO team since June 2017, responsible for legal support of corporate projects and company registration.

Basang Ungunov

Lawyer. Has been with the COREDO team since June 2022, specialising in legal support for company registration and structuring across various jurisdictions.

Frequently Asked Questions

Does the founder need to be a resident of Bosnia and Herzegovina to register a company?

No, Bosnia and Herzegovina does not impose residency requirements on founders or directors. Foreign nationals can register a company on the same terms as the country’s residents.

What is the minimum share capital for an LLC (d.o.o.) in Bosnia and Herzegovina?

The minimum share capital depends on the registration region. In the Federation of Bosnia and Herzegovina, it is BAM 2,000 (approximately EUR 1,000), while in Republika Srpska it starts from BAM 1. The full capital amount must be paid upon registration in the Federation of BiH.

How long does company registration take?

Registration of a new legal entity typically takes one to two weeks, provided a complete set of correctly prepared documents is submitted.

What is the corporate tax rate in Bosnia and Herzegovina?

The corporate income tax (CIT) rate is 10% and applies in both the Federation of BiH and Republika Srpska. For comparison, in most EU countries the rate is 19–25%. Additionally, companies investing more than half of their profits in production equipment are eligible for a partial tax exemption — making the jurisdiction attractive for manufacturing businesses.

What is the difference between registering in the Federation of BiH and Republika Srpska?

Each entity has its own legislation. The main differences concern the minimum share capital, payment requirements, and specific administrative procedures. Our specialists will help you choose the optimal registration region for your company.

Contact Us

COREDO specialists provide full support for company registration in Bosnia and Herzegovina — from document preparation to tax registration. We have been operating since 2016 and help entrepreneurs build successful businesses in Europe.