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Ease of Doing Business in

Bosnia and Herzegovina

Bosnia and Herzegovina Download Profile (1777.9KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 3,810,416
GNI Per Capita (US$) 4,680
City covered Sarajevo

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
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
2
63.87 63.07 down
0.80
Starting a Business 174 175 up
1
65.09 63.60 up
1.49
Dealing with Construction Permits 170 168 down
2
52.54 51.54 up
1.00
Getting Electricity 123 120 down
3
60.05 60.00 up
0.05
Registering Property 99 97 down
2
61.54 61.52 up
0.02
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 133 151 up
18
60.08 55.15 up
4.93
Trading across Borders 36 36
-
91.87 91.87
-
Enforcing Contracts 64 63 down
1
60.60 60.60
-
Resolving Insolvency 41 40 down
1
66.93 66.42 up
0.51

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

DB 2017 Rank:

170

DB 2016 Rank:

168

Change in Rank:

down2

DB 2017 DTF (% points):

52.54

DB 2016 DTF (% points):

51.54

Change in DTF (% points):

up1.00

STANDARDIZED WAREHOUSE
Estimated value of warehouse BAM 373,935
City Sarajevo
Indicator Bosnia and Herzegovina Europe & Central Asia OECD high income
Procedures (number) info_outline 15 15.1 12.1
Time (days) info_outline 179 160.7 152.1
Cost (% of warehouse value) info_outline 18.5 4.2 1.6
Building quality control index (0-15) info_outline 13 11.3 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain excerpt from the cadastre plan showing status of the land plot

    Agency: Municipality (Cadastre Department)

    To obtain a copy of the cadastre plan, BuildCo must submit a request form which is available at the Municipality. Due to internal reorganization and automation of the process in the Cadastre Department of the Municipality, the process can be completed in 1 day.

    1 day BAM 10
    * 2

    Obtain excerpt from the land registry book showing proper registration

    Agency: Municipal Court (Land Registry Department)

    The excerpt is available from the Land Registry Department of the Municipal Court. The company representative must take a queue number at the office counter in the morning and make a written or oral request. The excerpt will be provided on the same day (usually within 1 hour).

    1 day BAM 5
    3

    Obtain urban planning consent

    Agency: Municipality (Urban Planning Department)

    BuildCo submits a request to the Municipality for an urban planning consent with the following required documents:
    • Reason for the request, including the project data and documentation required for the Urban Planning Department’s assessment
    • Program sketch
    • Preliminary (or first draft) project design, two examples (or depending on the level of construction complexity, project proposal or program sketch)
    • General schemes for power installations, heating installations, fire prevention and security systems, water supply and sewage systems
    • Excerpt from the cadastre plan, showing right to build and ownership of plot (not older than 6 months)
    • Excerpt from the land registry book, showing proper registration
    • Environmental consent, if requested
    • Other data, if requested
    • For insurance purposes, consent for fire and explosion protection, issued by a competent company
    • Consent for the heating installations, issued by a competent company

    Once issued, the urban planning consent is effective for one year, during which time BuildCo may submit a construction permit request.

    30 days BAM 30
    4

    Obtain preliminary verification of water supply and sewage system projects

    Agency: Vodovod i Kanalizacije

    Once the urban planning consent is issued, BuildCo must submit the description of the main project plan to the municipal water and sewage authority (Vodovod i Kanalizacija).

    28 days BAM 117
    * 5

    Obtain preliminary verification of the study on fire and explosion prevention

    Agency: Public Institute for Fire Protection

    BuildCo must submit electronically the description of the main project plan to the Public Institute for Fire Protection, an independent agency.

    4 days BAM 150
    6

    Obtain validation of the technical audit of the main project

    Agency: Auditing Entity

    Once the preliminary verification of the study on fire prevention and explosion is obtained, BuildCo must undergo a technical audit, showing that the project was designed in compliance with the urban permit and the provisions of the Law on Spatial Planning. The auditing entity must have at least one engineer who passed the state exam and has 5 years of experience. The signature of an authorized auditor is required to confirm that the project has been revised in its entirety. The total fee for technical audits varies across municipalities, according to Municipal Decisions on the Fee Schedule for the Technical Audit of Construction. The above-stated fee applies to the Sarajevo Municipality.

    5 days BAM 28,180
    * 7

    Pay the rent fee and shelter construction fee at a commercial bank

    Agency: Municipality (Construction Department)

    The rent fee and shelter construction fee are paid at a commercial bank to the account of the Municipality's Urban Planning Department.

    1 day BAM 32,092
    8

    Apply for building permit

    Agency: Municipality (Urban Planning Department)

    Once the fees are paid, the company must submit a request to the Urban Planning Department with the following documents:
    • Valid urban planning consent
    • Cadastre excerpt: land plot and proof of right to build
    • Proof of payment for purchase of the construction land
    • Proof of rent payments for the paid rent compensation
    • Consents obtained during the issuing of the urban planning permit
    • Consent for stated building; any other enclosures as requested by the authorities
    • Verified development project (two copies) and consents for the project documentations (Project Books 1 and 2, including the preliminary verifications applied for in Procedures 4 to 7)

    There is no fee associated with the application.

    30 days no charge
    9

    Request marking out of the land plot

    Agency: Municipality (Urban Planning Department)

    The request for marking out the land plot must be submitted to the Municipality's Urban Planning Department with the construction permit and the urban planning consent. The municipal authorities mark out the land plot. The request fee depends on the annual municipal pricing decisions and on the on-site assessment. An average price is BAM 15.00.

    7 days BAM 15
    10

    Notify the Municipality about the commencement of works

    Agency: Municipality

    Once the marking out of the land plot is complete, BuildCo must notify the Municipality's Urban Planning Department of the start of construction no later than 8 days before work begins.

    1 day no charge
    11

    Request water and sewage connection

    Agency: Vodovod i Kanalizacije

    BuildCo must contact the municipal water and sewage authority (Vodovod i Kanalizacije) to obtain water and sewage connection. The request should include the preliminary verification and Project Books 1 and 2.

    30 days BAM 500
    * 12

    Receive technical inspection from the Municipality

    Agency: Municipality (Urban Planning Department)

    No later than the inspection date, BuildCo must present the following documentation to the Board:

    • Excerpt from the Commercial Court Register, showing that BuildCo is properly registered
    • Details on the each work phase of the construction
    • Building permit (copy)
    • Performance reports verified by the designer of the main project plan to validate compliance with the main project plan as well as terms and conditions specified in the building permit
    • Construction diary and construction book
    • Proof of testing the quality of materials and equipment received from suppliers at the time of purchase
    • Construction mark-out plan and minutes on the performed mark out
    • Construction-site organization scheme
    • Decision on the appointed construction engineers and the supervisors
    • Cadastre plan

    The relevant municipal department must appoint an independent professional inspection board for a technical inspection within 15 days of receiving the duly submitted request for issuance of an occupancy permit. The number of board members appointed depends on the type and the complexity of the building; the board will consist of one professional for each type of construction work to be inspected (architectural/engineering, electrical, mechanical, water and sewage system, and so forth).

    1 day no charge
    13

    Request occupancy permit

    Agency: Municipality (Urban Planning Department)

    After the technical review of completed construction, BuildCo must submit a request for the occupancy permit and include the following documents:
    • Building permit (copy)
    • Cadastre plan (copy), including an exact plan of the marked final building position
    • Written statements from each contractor, stating the work has been properly performed according to the project design and future maintenance plans
    • A written report (by the construction supervisor) that all materials were of standard quality (certified as such by the suppliers)

    BuildCo submits these documents to the Urban Planning Department of the relevant municipality (the same municipal department that issued the building permit). The occupancy permit is issued upon completion of the technical inspection. It is only after the issuance of the occupancy permit that the building may be used.

    30 days BAM 7,804
    14

    Register the building with the Municipality's Cadastre Department

    Agency: Municipality (Cadastre Department)

    BuildCo must submit a request to register the building in the cadastre books at the Municipality's Cadastre Department. Along with the request, BuildCo must submit the occupancy permit, the building permit, the certificate proving the marking out of the property construction site and other documents showing ownership over the property.

    During the technical review of the completed construction, the designated authority checks whether there have been any additional changes in the construction and whether the construction was built in accordance with the urban planning consent. If there were any changes, then it would be necessary to obtain a new geodetic image of the plot. Upon registration of the property in the cadastre records, the cadastre forwards an extract to the Land Registry, which will ensure that the property gets registered in the land registry books.

    15 days BAM 180
    15

    Register the building with the Land Registry Department at the District Court of Sarajevo

    Agency: Land Registry Department at the District Court Sarajevo

    BuildCo must submit a request to register the warehouse in the land registry books at the District Court of Sarajevo. The request form can be found in the Land Registry Department.

    Other required documents include:
    • Purchasing agreement or other document as a proof of building and land ownership
    • Occupancy permit
    • Rent and shelter fee payment certificate

    BuildCo must pay BAM 60.00 for administrative expenses

    The Land Registry Department will register the property upon receiving the excerpt from the cadastre.

    1 day BAM 30

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 13.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge; In official gazette. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Passing a certification exam. 2.0