The most time-consuming aspect of an expansion is establishing a subsidiary. Depending on where you are and what type of entity you choose, your company could be forced to wait as long as a year to begin operations in Bosnia and Herzegovina. In that time, you’re likely to lose the chance to hire certain employees. You could also lose business deals, and you’ll have to deal with Bosnia and Herzegovina subsidiary laws.
G-P breaks down these barriers using our suite of global expansion services. We offer Bosnia and Herzegovina subsidiary outsourcing that will help you get started working faster in a new country. Plus, we act as the Employer of Record, so all responsibility for compliance will fall on our shoulders instead of yours.
How to Set Up a Bosnia and Herzegovina Subsidiary
If you don’t have a preference about which region of Bosnia and Herzegovina you want to work in, we recommend researching the different subsidiary laws in both FBiH and RS. You can also work with a lawyer, consultant, or accountant who is an expert in Bosnia and Herzegovina subsidiary laws. They can recommend the best location that has favorable costs, timelines, and more.
Next, you need to analyze your business goals for operating in the country. Every type of subsidiary has its own Bosnia and Herzegovina subsidiary laws that will impact how you can work. For example, incorporating as a limited liability company (LLC) will give you the freedom to work in the country almost like a local company, but incorporating as a branch won’t give you as much flexibility. Your options include an LLC, public limited company, branch office, and representative office, but many foreign companies choose to establish an LLC.
The steps to set up your company as an LLC are:
- Drafting an act of establishment including information and intentions
- Notarizing an act of establishment
- Registering with the municipality courts and tax administration
- Visiting the Municipality Bureau of Economic and collecting official service permission
- Opening a local bank account
- Obtaining registration from the court and tax administration, ID documents, and signatures of those who can access the account
Bosnia and Herzegovina Subsidiary Laws
It’s very important to remember that Bosnia and Herzegovina’s subsidiary laws vary by entity and which region you’re in — FBiH or RS. However, the general regulations include one director and one shareholder who can be of any nationality and do not have to live in Bosnia and Herzegovina. You’ll also need $1,150 in minimum paid-up share capital to complete the registration process.
Benefits of Setting Up a Bosnia and Herzegovina Subsidiary
Incorporating in Bosnia and Herzegovina will allow you to work in the country legally and reap the benefits of an international expansion. Many companies choose to incorporate as an LLC because it provides additional benefits, such as protecting the parent company from the subsidiary’s actions and letting the subsidiary work independently.
However, your company will get more benefits through Bosnia and Herzegovina subsidiary outsourcing. We can use our subsidiary to hire employees who work for you, add them to our compliant payroll, and make sure they get the compensation and benefits they deserve. You won’t have to worry about complying with Bosnia and Herzegovina’s subsidiary laws either — we’ll manage the risk for you.
Other Important Considerations
The most important thing you need if you decide to set up your own Bosnia and Herzegovina subsidiary is an expert in the country’s laws. This person can make sure you’re staying compliant and even make recommendations on how to comply with the different regulations through every step of the process. If you don’t want to hire a lawyer or a consultant, you can also assign a current employee to learn all of Bosnia and Herzegovina’s subsidiary laws.
We also recommend working with your team to figure out how much it will cost to set up your own subsidiary. Your accounting department should give you an idea of the fees involved with each step of the process. Plus, you’ll need to factor in the costs of traveling back and forth to Bosnia and Herzegovina.
Let G-P Help With Your Expansion
G-P is here to help you during your expansion to Bosnia and Herzegovina. Contact us today to learn more about Bosnia and Herzegovina subsidiary outsourcing.