A Bosnian company owned by your foreign company
Your existing company abroad can be the owner of a Bosnian subsidiary. It keeps the group structure clean, limits liability to the subsidiary, and can reduce how visible you are personally.
How it works
The parent company is entered in the Bosnian register as the founder of a new d.o.o.. It signs through its legal representative — usually by a power of attorney signed at a notary in the parent’s country. Nobody needs to travel.
The subsidiary has its own tax number, bank account and accounts in Bosnia. It can invoice the parent, other group companies and third parties. Transactions inside the group should be priced at market value.
Documents from the parent company
- Current extract from the commercial register of the parent company
- Decision of the parent company’s management to establish the Bosnian company
- Power of attorney signed by the parent’s legal representative
- Passport of the person who will be director in Bosnia
- Apostille (or legalisation) and sworn translation of each foreign document
Register extracts are generally accepted if issued within the last three months. We send you the exact wording for the decision and the power of attorney.
Subsidiary, branch or representative office
Three ways for a foreign company to be present in Bosnia.
| Subsidiary (d.o.o.) | Branch | Representative office | |
|---|---|---|---|
| Separate legal entity | Yes | No — part of the parent | No |
| Can trade and invoice | Yes | Yes | No — promotion and research only |
| Parent’s liability | Limited to capital | Full | Full |
| Minimum capital | BAM 1,000 | None | None |
| Recommended for | Most businesses | Specific regulated cases | Testing the market |
Corporate founder questions
Can a foreign company own 100% of a Bosnian company?
Yes. A foreign legal entity can be the sole founder and owner of a d.o.o. or d.d. in Bosnia and Herzegovina.
Subsidiary or branch — which is better?
For most businesses a subsidiary (a Bosnian d.o.o. owned by your company). It is a separate legal entity, so the parent’s liability is limited, and banks and clients in Bosnia are used to working with it. A representative office suits market research and promotion only — it cannot trade.
Does the parent company have to be audited or of a certain size?
No. Any legally existing company can be a founder, whatever its size, as long as it can prove its existence and who represents it.
Is the parent company visible in the Bosnian register?
Yes, the founding company is listed as the member. The ultimate beneficial owners behind it are reported to the bank and competent authorities as required by anti-money-laundering rules.
How are profits sent to the parent?
As dividends after the annual accounts are approved. In the Federation of BiH 5% withholding tax applies to dividends paid abroad, which a double taxation treaty may reduce.
Get a fixed quote within one business day
Tell us what you need. You receive a written quote with every cost listed — no obligation, no sales calls unless you ask for one.