Bosnia and Herzegovina Company Formation & Entity Choice

Entity types, capital and incorporation

The most common business vehicle is the limited liability company (d.o.o.). Registration is done at the competent court / registry in the relevant entity and involves notarisation, capital deposit, and registrations with the tax authority and municipality.

• Limited liability company — Drustvo s ogranicenom odgovornoscu (d.o.o.) — the most common form for SMEs and foreign investors (FBiH / RS Companies (Business Entities) Laws)
• Joint stock company — Dionicko drustvo (d.d.) — used for larger enterprises and public companies (FBiH / RS Companies (Business Entities) Laws)
• Sole proprietorship — Samostalni preduzetnik / obrt — individual trader, no separate legal personality (Entity Laws on Crafts / Self-Employment)
• Minimum share capital (d.o.o.) — 2,000 BAM (approx. EUR 1,000) (FBiH / RS Companies (Business Entities) Laws (https://www.usemultiplier.com/bosnia-herzegovina/company-registration))
• Minimum share capital (d.d.) — 50,000 BAM (joint stock company (approx — confirm per entity)) (FBiH / RS Companies (Business Entities) Laws)
• Incorporation steps — Notarise founding act, deposit initial capital, register with the competent court, obtain company stamp, open a bank account, register with the tax administration and municipality (FIPA — How to Establish a Business in BiH (https://www.usemultiplier.com/bosnia-herzegovina/company-registration))
• Notarisation requirement — Founding act and registration documents must be certified by a public notary (Law on Notaries (https://www.usemultiplier.com/bosnia-herzegovina/company-registration))
• Incorporation timeline — Approximately 10 to 15 business days for court registration (FIPA — How to Establish a Business in BiH (https://www.usemultiplier.com/bosnia-herzegovina/company-registration))
• VAT registration threshold — 100,000 BAM (Mandatory once taxable turnover exceeds this amount; voluntary registration possible below the threshold) (Law on Value Added Tax (BiH))
• Core annual compliance — Annual financial statements, corporate income tax return (by end of March), monthly VAT returns, and monthly payroll/contribution filings (approx — confirm deadlines per entity) (FBiH / RS Accounting and Tax Laws)