Company Formation in Bosnia
Top 5 Advantages of company registration in Bosnia
- Very low taxation in Europe
- Ideal for business in non-EU European countries
- Not considered a tax-haven
- Advantageous for foreign investments
- Easy to incorporate and manage
How long does it take to register a company in Bosnia?
- 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 on ground by one of our advisors
What are the steps to register a company in Bosnia?
The registration process of 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 high are the corporate income tax 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
What Double-tax treaties has Bosnia?
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, United Kingdom
Status: Mid of 2021
Without VAT number
- 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 VAT number
- 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. To register as a VAT payer might be either voluntary or obligatory, depending on the turnover.
- Do you want to register the company remotely or come to Bosnia?
- What is your planned business activity?
- Is Bosnia advantageous for your business plans?
Speak to our consultants to get a free consultation and guidance on how to choose the best jurisdiction based on your business model.
Documents to provide for company registration in Bosnia
- Passport copies (a scan) 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)
Information needed to get company registration 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
- The whole incorporation process can be conducted remotely. No travel necessary. 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 your hands, 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
Accounting and auditing
- The company is required to maintain books and prepare financial statements
What are the residential requirements 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 ground. Speak now for free with one of our consultants to get your business started.
FAQs about company registration in Bosnia
- 0% tax
- Perfect to begin with
- Easy process
- Very business friendly
- Competitive tax rates
- A growing EU economy
- Very low tax
- Foreigner friendly
- Everything remote
- Lowest tax rate in the EU
- Favorable for business
- Simple and fast
- Attractive tax conditions
- Good for import/export
- Simple and quick set-up