One of the most challenging aspects of an expansion is establishing a subsidiary. Depending on where you are and what type of entity you choose, it can take as long as a year to begin operations in Bosnia and Herzegovina.
G-P breaks down these barriers and offers an alternative. As a global Employer of Record (EOR), we’ll get you started in days, not months, without setting up new entities.
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 the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (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 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. Options include an LLC, public limited company, branch office, and representative office, but many international companies choose to establish as 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 Economic Bureau and collecting an 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 1 director and 1 shareholder who can be of any nationality and do not have to live in Bosnia and Herzegovina. You’ll also need USD 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.
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 follow the different regulations every step of the process.
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 research 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.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.