Bosnia and Herzegovina (BiH) is a country in the Balkans region of Europe, with a growing economy and a favorable business climate. If you’re interested in starting a business in BiH, it’s essential to understand the legal requirements and procedures involved in the registration process. This guide will provide you with all the information you need to register a business in Bosnia and Herzegovina.
Table of Contents
Step 1: Choose a Business Structure
The first step in registering a business in Bosnia and Herzegovina is to choose a business structure. The most common types of legal entities in BiH are sole proprietorships, partnerships, and limited liability companies (LLCs). Here’s a brief overview of each option:
- Sole Proprietorship: This is the simplest and most common type of business entity. It’s easy to set up and operate, and the owner has full control over the business. However, the owner is personally liable for all business debts and obligations.
- Partnership: A partnership is similar to a sole proprietorship, but with two or more owners. There are two types of partnerships in BiH: general partnerships and limited partnerships. In a general partnership, all partners have equal rights and responsibilities, while in a limited partnership, there are general partners who manage the business and limited partners who contribute capital but have no management authority.
- Limited Liability Company (LLC): An LLC is a separate legal entity that offers limited liability protection to its owners. This means that the owners are not personally liable for the company’s debts and obligations. An LLC can have one or more owners (referred to as members).
Step 2: Choose a Business Name
The next step in registering a business in Bosnia and Herzegovina is to choose a business name. Your business name must be unique and not already registered in the country. You can check the availability of your desired business name by conducting a search on the Central Register of Business Entities website (https://www.cro.ba/).
Step 3: Draft and Notarize Articles of Association
Once you’ve chosen your business structure and name, you need to draft and notarize articles of association. Articles of association are legal documents that outline the company’s purpose, management structure, ownership structure, and other important details. You’ll need to have the articles of association notarized by a notary public.
Step 4: Register with the Business Register Agency
The next step in registering a business in Bosnia and Herzegovina is to register with the Business Register Agency (BRA). The BRA is responsible for maintaining the Central Register of Business Entities, which is a database of all registered businesses in the country. You can register your business online through the BRA’s website (https://www.cro.ba/).
Step 5: Obtain a Tax Identification Number
After registering with the BRA, you need to obtain a tax identification number (TIN) from the Tax Administration of the Federation of BiH or the Tax Administration of the Republic of Srpska, depending on where your business is located. You’ll need your TIN to pay taxes, open a bank account, and conduct other business activities.
Step 6: Register for VAT
If your business is going to sell goods or services in Bosnia and Herzegovina, you need to register for value-added tax (VAT). You can do this by submitting an application to the Indirect Taxation Authority (ITA) of BiH. Once registered, you’ll need to collect VAT on your sales and remit it to the ITA.
Step 7: Obtain Business Licenses and Permits
Depending on the type of business you’re starting, you may need to obtain various licenses and permits from the relevant authorities. For example, if you’re starting a restaurant, you’ll need to obtain a food service permit from the Ministry of Trade, Tourism, and Transport. You can find out what licenses and permits you need by contacting the relevant authorities or by consulting a lawyer.
Step 8: Open a Bank Account
Once you’ve completed all the necessary legal procedures, you can open a bank account for your business. You’ll need your TIN and other legal documents to open an account.
Generis Global Can Help You Register Your Business in Bosnia and Herzegovina
Starting a business in Bosnia and Herzegovina can be a complex and time-consuming process. That’s why Generis Global is here to help. Our team of experienced lawyers can guide you through the legal requirements and procedures involved in registering a business in BiH. We can help you choose the right business structure, draft and notarize articles of association, register with the Business Register Agency, obtain a tax identification number, register for VAT, and obtain the necessary licenses and permits. Contact us today to learn more about how we can help you with your business in Bosnia and Herzegovina.