Company Formation in Bosnia

Procedure to prepare the registration of a company in Bosnia

The registration process for a company in Bosnia is very simple. The experts of LegalBison will assist you throughout every step of it:

• Initial consultation and agreement;
• Payment of the full invoice;
• [IF REMOTELY]: Notarization of POA by client;
• Preparation of registration documents;
• Document signed at the notary;
• Official register validity: immediately.

How long does it take to form a company in Bosnia?

• Usually, the company formation process in Bosnia takes 10-15 days;
• The registration can theoretically be done in a couple of days if you decide to visit us in Bosnia and get assistance from one of our local advisors.

Can I form a company in Bosnia remotely?

The whole incorporation process can be conducted remotely. No travel is necessary, but notarization of documents is necessary.

• A Power of Attorney (POA) from (all) partners/shareholders is needed;
• The POA is sent to you by us based on the services you want;
• You have to certify the POA by a notary and, in some cases, legalize it by apostille (some countries need full legalization);
• Once you have the POA on you, we double-check, and you send us the original form (physical document!) via courier to our address;
• Bosnia is part of the Hague Convention of the Apostille.

Necessary information to begin with company formation in Bosnia

• 3 options of your desired name for the company and a company contact email address;
• Names, addresses, and emails of all shareholders and board members;
• Short description of your company’s activity.

Without a VAT number in Bosnia

• Your company will not be eligible to receive VAT refunds, which means everything bought is 17% more expensive (important: B2B payments between two VAT-exempt companies are not more expensive);
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs.

With a VAT number in Bosnia

• The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism;
• Monthly tax returns have to be filed even if no transactions occur;
• The standard VAT rate is 17%;
• Any company engaged in the supply of goods and services that exceeds a turnover of 50,000 BAM (approximately 25,6k EUR) has to register for VAT;
• Financial services are exempt from VAT in Bosnia;
• VAT has to be paid every calendar month.

Before we help you to apply for a VAT number, you should carefully think about the advantages and obligations that go along with it. Registering as a VAT payer might be either voluntary or obligatory, depending on the turnover.

Required documents to provide to register a company in Bosnia

• Passport copies (scans) of shareholder/s and director/s, also beneficiary owner if applicable;
• A Power of Attorney (in case of a remote company registration);
• Certified company documents (in case at least one of the shareholders is going to be a foreign company).

Taxation of companies in Bosnia

The corporate income tax rate in the Federation of Bosnia and Herzegovina is 10%.

• Dividend payments are taxed at a 5% rate;
• Interests and royalties are taxed at a 10% rate.

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DTAA signed by Bosnia for companies

Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion.

Albania, Algeria, Austria, Azerbaijan, Belgium, China, Croatia, Cyprus, Czech Republic, Egypt, Finland, France, Germany, Greece, Hungary, Iran, Ireland, Italy, Jordan, Kuwait, Macedonia, Malaysia, Moldova, Netherlands, Norway, Pakistan, Poland, Qatar, Romania, Serbia and Montenegro, Slovakia, Slovenia, Spain, Sri Lanka, Sweden, Turkey, United Arab Emirates, and the United Kingdom.

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Accounting and audit requirements for a company in Bosnia

A Bosnian company is required to maintain books and prepare financial statements.

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Economic substance and residency requirements for companies in Bosnia

Any company in Bosnia shall register a head office within Bosnia.

LegalBison offers help with all of the above requirements. We assist and are local on the ground. Speak now for free with one of our consultants to get your business started.

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