Ease of Doing Business in

Bosnia and Herzegovina

Bosnia and Herzegovina Download Profile (1898.1KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 3,810,416
GNI Per Capita (US$) 4,680
City covered Sarajevo



DB 2017 Rank



DB 2017 DTF (% points)

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Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 81 79 down
63.87 63.07 down
Starting a Business 174 175 up
65.09 63.60 up
Dealing with Construction Permits 170 168 down
52.54 51.54 up
Getting Electricity 123 120 down
60.05 60.00 up
Registering Property 99 97 down
61.54 61.52 up
Getting Credit 44 42 down
65.00 65.00
Protecting Minority Investors 81 78 down
55.00 55.00
Paying Taxes 133 151 up
60.08 55.15 up
Trading across Borders 36 36
91.87 91.87
Enforcing Contracts 64 63 down
60.60 60.60
Resolving Insolvency 41 40 down
66.93 66.42 up

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 174

DB 2016 Rank: 175

Change in Rank: up1

DB 2017 DTF (% points): 65.09

DB 2016 DTF (% points): 63.60

Change in DTF (% points): up1.49

Indicator Bosnia and Herzegovina Europe & Central Asia OECD high income
Procedure – Men (number) info_outline 12.0 4.9 4.8
Time – Men (days) info_outline 65.0 10.2 8.3
Cost – Men (% of income per capita) info_outline 13.5 4.7 3.1
Procedure – Women (number) info_outline 12.0 4.9 4.8
Time – Women (days) info_outline 65.0 10.2 8.3
Cost – Women (% of income per capita) info_outline 13.5 4.7 3.1
Paid-in min. capital (% of income per capita) info_outline 13.4 4.0 9.2
No. Procedure Time to Complete Associated Costs

Stipulate a founding act and have it notarized by a notary

Agency: Notary's Office

The system of Notary was introduced in May 2007: The Law on Enterprises of FBiH; The Law on Notary of FBiH. The amended Law on Enterprise determines that all legal entities are required to harmonize business activities in accordance with a new Standard Classification of Activity. The Law on Notary requires all documentation needed for registration of a company to be prepared and certified by the public notary.

Under the Notary Tariffs of Federation of BiH (Official Gazette of Federation of BiH No. 57/13) the fees for a notary processing of the Founding Act and Statute of the Company notary depend on the value of the company's share capital as follows:
1.Fee in the amount of BAM 300 if the share capital amount does not exceed BAM 50.000;
2.Fee in the amount of BAM 350 if the share capital amount is between BAM 50.000 and BAM 100.000 and
3.If the value of the concerned legal or any other activity exceeds BAM 100.000, notary is obliged to calculate the fee (in addition to the award of BAM 350) in the amount of BAM 50 for each started BAM 100.000 but not in the amount exceeding BAM 2.000.
Between 1-5 days BAM 350

Obtain a statement from commercial bank that full amount of the capital has been paid in; pay the registration fee to the budget account of the cantonal court

Agency: Commercial Bank

The founder should pay the amount of the capital to a temporary account at one of the local banks, to be subsequently transferred to the company transaction account after its opening.
1 day no charge

Obtain the statement of tax authorities that the founders have no tax debts

Agency: Tax bureau

Statement of tax authorities is required, which confirms that the entrepreneur does not have any unpaid pecuniary fines and it costs BAM 15.
1 day BAM 15

Court registration with Municipal Courts

Agency: Municipal Court

By law, regulated forms must be completed. These forms may be purchased at a stationery shop or at the court (BAM 15), to be prepared according to the regulations on registering legal entities in the court register. After the court registration of the new company, the court informs the Official Gazette to announce the prepared notice.

Companies are automatically registered for membership in the chambers of economy at the state, entity, canton, and regional levels. Since 2004, membership in the Chamber of Economy of the Federation of Bosnia and Herzegovina and the Chamber of Economy of the Republica Srpska is voluntary.

Forms for registration of the company are available online, free of charge. Forms for Municipal Court in Sarajevo are available
at www.oss.ba
10 days BAM 405 (registration fee) + BAM 150 (publishing fee)

Buy a company stamp

Agency: Shops dealing with stamp making

The electronic version of the forms is available on the website of some of the competent courts, for e.g. for the Municipal Court in Sarajevo, the forms are available on the web site www.oss.ba.
1 day BAM 40

Obtain the Certificate of the business premises

Agency: Municipalities

The 4 municipalities making up the City of Sarajevo have reduced the cost for this procedure to BAM 10.

The Company founder goes to the municipality, fills out a request form and attaches all required documents (proof of company's court registration, statement confirming that all business premises fulfill conditions mandated by the law, and notification about the date when the company will start with operations) and the proof of payment of the administrative fee. Then, the time necessary to obtain the resolution on intended activities takes about 10 days.
10 days BAM 10

Notify the commencement of the business activities to the Cantonal Inspection Authority

Agency: Ministry of Commerce

The company submits the notification on commencement of business activities to the Cantonal Inspection Authority and the inspectors may subsequently make supervision in terms of fulfillment of all conditions for conducting of business activities.

New Law on Internal Trade (Official Gazette of FB&H, no.40/10) is enforced. It regulates that the notification on commencement of business activities should be submitted by the company no later than 5 days before starting to work. The following document should be submitted: court resolution on registration in the registry, statement that the company meets all legal requirements for performing trade activities and notice of the date of commencement of work.
1 day no charge

Apply for company identification number with the competent tax office

Agency: Tax Bureau and Federal Bureau for Statistics

When filing an application for statistical and taxpayer numbers simultaneously with the competent tax authorities (according to Regulations on Obtaining ID Numbers [Official Gazette No. 39/02]), the newly incorporated company must submit with the application form a photocopy of the court resolution (registration) and the contract on the lease of the business premises, resolution of the competent municipality on the intended activities (this resolution must confirm that certain activities may be exercised at a certain address), and a copy of the Director of the company's ID card and a copy of the agreement on providing the accountant services.

Newly adopted Rulebook (as published in the OG FBiH 02/10) regulates new tax registration procedures that streamlines the process for legal entities. In accordance with the new Article 8a of this Rulebook, respective court and tax administration initiate tax registration by mutual official correspondence and legal entities are only obliged to submit required documents (copy of court registry, 2 copies of application form including company's stamp, and copies of ID cards) after the court registration is completed. This Rulebook does not require submission of following documents (as previously requested: 1) contract on the lease of the business premises and 2) resolution of the competent municipality on the intended activities.
5 days no charge

Open a company account with commercial bank

Agency: Commercial Bank

All new businesses must open a company account with commercial bank. Due to the anti-money laundering requirements, opening account in commercial bank has to be done by the company's authorized representative in person.
1 day no charge

VAT registration

Agency: Indirect Taxation Authority

Per article 57 of the Bosnia and Herzegovina Law on Value Added Tax, VAT registration is obligatory for companies with the annual profit over BAM 50.000. It is necessary to submit the Request for registration into the competent VAT registry. The request is accompanied by the following documents:

- Certified copy of the registration into the court registry;
- Certified copy of the certificate of registration from the Tax Administration of FB&H;
- Certified copy of the notification of the Bureau for Statistics;
- Certified copy of the Directors ID;
- Certified copy of the card of deposited signatures from the bank in which the transaction account is opened;
- Statement about the goods to be imported or exported by the firm;
- Statement about the feasibility of estimated turnover and a the evidence on the realization of the same in terms of concluded business contracts;
- Copy of the contract of the lease of business premises for the company seat or evidence of the ownership registered in the land registry;
- Personal ID number for the responsible accountant.

It is also necessary to pay the following taxes: Tax on the request for VAT registration in the amount of BAM 10; tax for issuing the Decision on registration in the VAT register in the amount of BAM 10; tax for issuing the Certificate on registration in the VAT register in the amount of BAM 20.
30 days BAM 40

Enroll the employees in health insurance with Health Insurance Institute and in the pension insurance

Agency: Tax administration

Law on Unified System of Registration, Control and Collection of Contributions (Official Gazette of FB&H, no. 42/09 and 109/12) regulates completely new system of registration. In accordance with the Article 14 of this Law, the company is obliged to submit the application for registration for every new employee, within seven (7) days from the date of commencement of work. The following document should be submitted: court resolution on registration in the registry, Certificate of the Identification and Statistic number and Form JS 3100.

1 day no charge

Adopt and publish a rule book on matters of salary, work organization, discipline, and other employee regulations.

Agency: Labor Department

The procedure applies to employers who hire more than 15 workers. The company’s body authorized to issue internal regulations shall pass these rulebooks and does not have to submit them anywhere.
1 day no charge