How to start a business in Bosnia & Herzegovina as a foreigner (2026)
Starting a business in Bosnia & Herzegovina as a foreigner: moderate.
Bosnia and Herzegovina permits 100% foreign ownership in most sectors, with a 49% cap only in defence/arms and media. However, the country's fragmented governance, two entities (Federation of BiH with 10 cantons, and Republika Srpska) plus Brčko District, means registration procedures, minimum capital rules, and costs differ significantly by jurisdiction, adding meaningful complexity. The US State Department's 2024 Investment Climate Statement flags an overly complex and non-harmonised registration framework that is vulnerable to corruption, though formal timelines are short once documents are prepared.
Legal framework
Law on the Policy of Foreign Direct Investment in Bosnia and Herzegovina (1998, state-level); Company Law of the Federation of BiH; Law on Business Companies of Republika Srpska; administered by FIPA (state), cantonal/municipal courts (FBiH), and APIF (RS)
Key points: starting a business in Bosnia & Herzegovina
Foreign ownership limits
Foreign investors may own 100% of a company in virtually all sectors. Foreign equity is capped at 49% only in entities producing or selling arms, ammunition, explosives for military use, military equipment, and in media companies; prior entity-level approval is required in those sectors.
Minimum share capital
In the Federation of BiH, the minimum paid-in capital for a d.o.o. (LLC) is BAM 1,000 (~€511), with each shareholder contributing at least BAM 100. In Republika Srpska the symbolic minimum is BAM 1 (less than €1). Proof of deposit in a temporary bank account is required before court registration.
Registration steps and timeline
Core steps are: (1) name reservation, (2) notarisation of founding act, (3) capital deposit and bank certificate, (4) court/APIF registration (3-5 days in RS via APIF; up to 5 days in FBiH courts), (5) company seal, (6) municipal activity approval (~10 days in FBiH), (7) tax-ID and statistics-number enrolment. End-to-end timeline is typically 15-20 days.
Dual-entity jurisdictional complexity
Registration requirements are not harmonised across the state. The Federation of BiH's 10 cantons each maintain different business regulations; Republika Srpska applies a single entity-wide regime via APIF; Brčko District has its own rules. Investors must navigate the correct jurisdiction for their chosen location.
Costs
In the Federation of BiH, administrative fees are approximately €500 and notary/lawyer fees add €500, €1,000. In Republika Srpska total administrative and notary costs are approximately €150. Brčko District administrative and notary costs are approximately €1,000.
Online registration and equal treatment
The Federation of BiH operates an electronic registration system allowing online filing. Foreigners are treated equally to domestic investors under the 1998 FDI Law; rights granted cannot be revoked by subsequent legislation, and investors may opt into any more-favourable later regime.
Sources
- investmentpolicy.unctad.org/investment-laws/laws/35/bosnia-and-herzegovina-foreign-investment-law
- fipa.gov.ba/doc/brosure/HOW%20TO%20ESTABLISH%20A%20BUSINESS%20IN%20BH.pdf
- fipa.gov.ba/informacije/posao/koraci/?id=120
- fipa.gov.ba/publikacije_materijali/brosure/Starting%20and%20operating%20business%
- 2021-2025.state.gov/reports/2024-investment-climate-statements/bosnia-and-herzegovina
- dlapiperrealworld.com/law/index.html?c=BA&t=corporate-vehicles
- expanship.com/ba/blog/incorporation-requirements-in-bosnia-and-herzegovina
- fipa.gov.ba/novosti/vijesti/default.aspx?id=16925&langTag=en-US
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