Starting a business can be a challenging and stressful period, as it comes with new responsibilities, legal requirements, and administrative procedures. Many people are unsure where to begin, and the complex bureaucratic system in Bosnia and Herzegovina, which requires numerous documents and processes, adds an additional challenge. To simplify the process for you, we have prepared a detailed guide that walks you through all the key steps needed to successfully establish a company or business in Sarajevo.
1. Choosing the Legal Form of Your Business
Before you begin the registration process, you need to decide what type of business entity you want to establish. The most common options are:
- Sole Proprietor (obrt, s.p.) – Suitable for smaller business activities with lower setup costs.
- Limited Liability Company (d.o.o.) – The most common form for small and medium-sized enterprises.
- Joint-Stock Company (d.d.) – Designed for larger business entities with higher capital.
2. Securing a Business Address
According to the law of the Federation of Bosnia and Herzegovina, it is mandatory to have a registered business address when establishing a company. If you do not have an adequate space or do not want to use your private residence for registration, Cosmohub offers you the most affordable solution in Sarajevo – the possibility of registering your company at our address.
Who is this ideal for?
This option is perfect for startups, freelancers, and remote companies that do not require a permanent physical office. Instead of spending resources on renting a traditional office, you can significantly reduce costs by registering your company in a coworking space, with access to additional services as needed.
What does this mean for you?
For the lowest price in town, we provide you with a business address, and you choose additional services based on your needs. Establishing your business in a coworking space allows you to reduce rental costs while still having access to a workspace whenever necessary.
To meet different needs, we have created three packages:
- VIRTUAL ESSENTIAL – Business registration at our address, mail reception, and notification upon mail arrival.
- VIRTUAL EXTRA – Business registration at our address, mail reception, notification upon mail arrival, and use of meeting rooms for up to six hours per month.
- VIRTUAL ADVANCED – Business registration at our address, mail reception, notification upon mail arrival, scanning of received mail, use of meeting rooms for up to ten hours per month, and three working days of coworking space usage.
3. Checking Business Name Availability
Your company name must be unique and is verified in the Business Register of the Municipal Court in Sarajevo. You can check availability online via the court’s website or in person at the registry office.
4. Drafting the Founding Document
For a d.o.o., the founding document can be:
- Founding Act (if the company is established by one person)
- Partnership Agreement (if the company is established by multiple people)
The document must be notarized.
5. Depositing Initial Capital
The minimum initial capital for a d.o.o. is 1,000 KM and must be deposited into a temporary bank account.
6. Registering the Business with the Municipal Court
To register your business, you will need the following:
- Founding Act/Partnership Agreement
- Proof of initial capital deposit
- Proof of business address (rental agreement or property deed)
- Certificate of no outstanding debts for the founders
- Identification documents of the founders
The registration process takes 7 to 14 days.
7. Creating a Company Stamp
Once your company is registered, you will need to create an official company stamp, which is required for administrative purposes.
8. Opening a Business Bank Account
After receiving the registration certificate, you must open an official business bank account and transfer the initial capital from the temporary account to the company’s permanent account.
9. Tax Registration and VAT Registration
Your company must be registered with the Tax Administration of the Federation of Bosnia and Herzegovina to obtain a Tax ID Number. If your annual revenue exceeds 50,000 KM, you are required to register for VAT.
10. Employee Registration for Pension and Health Insurance
If your company has employees, you must register them for mandatory pension and health insurance within 15 days.
11. Starting Your Business Operations
Once all formalities are completed, you can begin business operations! It is highly recommended to hire an accountant to manage the company’s financial and tax obligations.
You can complete the business registration process independently or hire a legal expert to streamline the process. The time and resources invested will be well worth it if you have a clear business plan and strategy.
