Establishing a business

Establishing a business in Bosnia and Herzegovina can be time consuming. Your starting point should be a local lawyer, who you should retain and follow up with at each step of the process. New-to-market companies should find a local partner, for example a sales agent, representative or distributor.

Tax

The UK and Yugoslavia signed a Double Taxation Convention which continues to apply in Bosnia and Herzegovina.

VAT

If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Bosnia and Herzegovina, provided certain conditions are met.

VAT in Bosnia and Herzegovina is charged at a fixed rate of 17% for all goods and services. The Indirect Taxation Authority of Bosnia and Herzegovina is responsible for VAT.

Excise tax applies to oil derivatives, tobacco and beverages such as beer, wine and coffee.

Regulations

Bosnia and Herzegovina has its own set of standards known as the BAS Standard but all EU standards are recognised.

The Institute for Standardization (website in Bosnian) is the main body responsible for standards.

Product certification is required in order to make sure that the product has undergone appropriate testing and that it conforms to relevant regulations.

Labelling

Labels must contain the name of the product, the address of the importer and country of origin, net quantity, weight and/or volume of ingredients, manner of storage (transport, use, or maintenance) and relevant consumer warnings. Technically complex products must be accompanied by instructions on usage, manufacturer specifications, a list of authorised maintenance persons or businesses, warranty information, warranty period, and other applicable data.

All information must be translated into the languages of Bosnia and Herzegovina, either affixed to or accompanying the product.

Trade barriers

Check for any reported barriers to trading with Bosnia and Herzegovina.

Report any trade barriers that are affecting your business so we can help fix them.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.

Payment terms

The preferred payment terms in Bosnia and Herzegovina are documentary collections and letters of credit. The safest method is cash in advance, or an irrevocable letter of credit as a minimum.

Business customs

Business customs in Bosnia and Herzegovina is a mix of old socialist-style habits and newly-acquired business practices. However, the business culture is changing as the market is opening up. This change, most obvious in the largest business and industrial centres, has introduced new management, language, IT skills, as well as Western-style business practices. Most of today’s managers are fluent in English and are completely computer-literate.

The exchange of business cards is a common practice. While most business meetings take place in a formal setting, it is not unusual to discuss business over coffee or lunch. Local companies prefer to do business with people they know well. Business friendships are highly valued. Establishing a local presence and employing locals signal a long-term commitment to the market, and such practices are well received.