If you’re planning to launch your business idea in Bosnia and Herzegovina, you’ve probably been thinking about the registration process and wondering how complex it is, how much it costs, and what the mandatory steps are.
Company registration is neither as expensive nor as complicated as many people think. In this guide, we provide you with practical information about how long company registration takes in Sarajevo, what the costs are, and what you need to know before you begin.
How long does company registration take in Sarajevo?
Complete registration of a limited liability company in the Sarajevo Canton takes approximately 30 days.
This timeframe includes all necessary steps for a fully operational company:
- Preparation of founding documents
- Company registration with the court
- Obtaining a tax identification number (company ID number)
- Registration of primary business activity (Statistics)
- Opening a business bank account
- Purchase and activation of fiscal cash register
After all requirements are met, your company is ready to operate.
Customs number for importing goods
If you plan to import goods in your company’s name, you’ll also need a customs number in addition to the above mentioned elements. Allow 15-20 extra days after basic registration to obtain this.
Entry into the VAT system
When establishing a company, entry into the Value Added Tax (VAT) system is voluntary. However, if you plan to achieve or do achieve annual turnover exceeding 100,000 KM, VAT registration becomes a legal obligation. If you decide on this step, expect an additional procedure with the Indirect Taxation Authority (ITA).
How much does the registration itself cost?
Besides the mandatory founding capital, which for LLCs in FBiH is a minimum of 1,000 KM (this money is deposited into a temporary account and you can later use it for business operations), the actual founding costs are approximately between 500 KM and 800 KM. These costs include notary services, court fees, stamp creation, and administrative costs.
Basic requirements for registration
Every company in BiH must have:
- Company name (unique name of your company)
- Company address (officially registered business address)
- Business activities (defined scope of operations)
- Founder(s) (person or persons establishing the company)
- Director (person authorized to manage and represent the company)
Director and employment relationship
Clients often ask us whether the director must establish an employment relationship. The answer is no, because the director can work based on a management contract. This provides flexibility and reduces administrative obligations.
Furthermore, the company is not obligated to employ any workers until there is an actual need. It can normally exist and operate only with a director who manages the business based on a management contract.
Also, it’s important to note that the founder and director can be the same person.
Role of accounting
Every company must have an authorized accounting agency that maintains and monitors the company’s bookkeeping.
Experienced business people will agree that a good accountant is 90% of the work in a company. Therefore, you should absolutely not cut corners on this item.
Quality accounting support ensures:
- Compliance with tax regulations
- Timely financial reporting
- Proper maintenance of business books
- Protection from potential penalties and problems with tax authorities
Mandatory monthly costs
When planning your budget, account for the following regular monthly costs:
- Company accounting
- Maintenance of registered address
- Maintenance of bank account
- Maintenance of fiscal cash register
How to reduce costs?
There are several ways to reduce these mandatory costs.
- The company address can be in a virtual office, if applicable to your way of working. Virtual addresses are completely legal and more financially accessible than renting physical space.
- Initially, you can use the most basic accounting services package until the company starts larger endeavors.
- Set aside enough time to compare offers from different banks and choose the one that offers you the best value for money.
- Select fiscal equipment that matches your actual needs.
Registration through a lawyer
If you don’t have time, visiting all necessary institutions causes frustration for you, or you simply want the registration process to go as smoothly and error-free as possible, you have the option to register the company through a lawyer.
They can complete all the mentioned procedures on your behalf. All you need to do is grant them power of attorney.
There is only one exception: The director must personally deposit their signature at the bank when opening the company’s business account. This is, therefore, the only step that requires your physical presence.
This registration method is particularly suitable for:
- Persons living outside Sarajevo or BiH
- Employed individuals who don’t have time to visit institutions
- Foreign nationals unfamiliar with local procedures
Registration for foreign nationals
All the mentioned requirements also apply to foreign nationals, i.e., to foreign legal entities and individuals.
Foreign founders have the same rights as domestic citizens:
- They can establish a company independently or with domestic partners
- They can be appointed as directors
- They use the same registration process
- They can register via a lawyer through power of attorney
The process for foreign nationals differs only in the need for additional documentation (e.g., certified and translated documents from their home country).
Important note: If a foreign national wants to be registered as an employed director and physically work from BiH, they will need a work and residence permit. However, if they manage the business from abroad, a work permit is not necessary, which significantly simplifies the process.
Conclusion
Company registration in Bosnia and Herzegovina is an accessible and relatively fast process. With the right professional support and good planning, your company can be fully functional and ready for success within just 30 days.
Key success factors are engaging an experienced lawyer for legal support, selecting a quality accounting agency, realistic planning of monthly costs, and understanding all legal obligations.
Do you want to establish a company in BiH? Our team provides complete legal support throughout the entire registration process – from document preparation to making your company fully operable.
Contact us for professional consultations and detailed information tailored to your specific needs.
Disclaimer:
The information contained in this article is for informational purposes only and does not constitute legal advice. Legislation is subject to change, and for specific legal situations, direct consultation with an attorney is recommended. Our law office assumes no responsibility for any decisions made based on the information presented in this text.
