Legislative
Legal environment in the region makes a chain of laws, subordinate regulations and Decisions. Laws and subordinate regulations are established on State, Entity and Canton level, and Decisions establish the municipalities, so that, the conditions for business and building-out and use of business objects/land vary in the municipalities.
Hereafter, we have shortly presented the procedures that follow registration of business, and building-out of objects in Federation BiH.
At the end, we gave the links showing all relevant legal rules on state and both entity levels and also were you also can download different publications related to business conditions as well building-out and use of business objects.
PRACTICE OF REGISTRATION OF BUSINESS FIRM IN FEDERATION BiH
1. Making Founding Act
2. Opening of Transient Bank Account
3. Tax Certificate
4. STATEMENTS
5. Statement of not possessing other economic subject and Statement of acceptance of the
function of Director
6. Forms for registration of the company
7. Acquirement of Court Resolution of Registration of the Company
8. Acquirement of Court Resolution of Market Inspection
9. Allocation of Statistical Number
10. Allocation of Identification Number
11. Opening-up of permanent bank account
12. Allocation of PDV (VAT-Value Added Tax) and custom number
13. PIO number (retirement and health insurance number)
Duration and costs of establishing a business
The court registration procedure of establishing a business takes 5 days according to the law (due to technical difficulties the complete procedure in practice may take up to 30-45 days).
The costs are as follows:
Administrative costs: cca. 500 EUR
Lawyer costs: cca. 500 – 1,000 EUR
* Establishment Contract has to be made by notary
Source: Agencyfora statisticf of Central Bank BiH
The currency of Bosnia and Herzegovina is the konvertibilina marka / convertible mark (KM), officially designated BAM. BiH operates a Currency Board arrangement supervised by the Central Bank of BiH under which the currency is pegged to the Euro at a fixed exchange rate of KM1 = €0.51129.
CONSTRUCTION REGULATIONS IN BOSNIA AND HERZEGOVINA
Construction regulations in Bosnia and Herzegovina are complex and differ depending in which part of the country one desires to construct something. Moreover, these regulations are not codified in a single set of standards which one can refer to, but are spread throughout various laws while numerous cross-references to other laws.
An investor who intends to build a facility or to renovate an existing facility basically has to obtain three permits. These three permits are:
1. Urban Permit;
2. Construction Permit;
3. Use Permit;
STEP 1
1. Urban Permit;
The Urban Permit (aka location information) establishes the location of the property and established existing point (which could change as the infrastructure changes) to connect to the city's infrastructure, e.g., electricity, water, telephone, etc.
STEP 2
2. Construction Permit;
The construction permit is issued on the basis of the Urban Permit and authorizes work to begin and is based on detailed plans and other documentation describing the structure, the materials, the techniques used to build, various stages of construction and how the structure will comply with the more than 140 potential pieces of legislation governing the effort.
STEP 3
3. Use permit;
The Use Permit is issued on the basis of the Construction Permit and says yes the building has complied with all regulations, is fit for occupancy, and may be registered in the land book registry.
The order is sequential, i.e. first you must obtain the urban permit, than the construction permit ant then the use permit.
USEFULL LINKS FOR LEGAL FRAME FOR DOING BUSINESS IN BiH