Amendments on the Law on registration of business entities in Federation Bosnia and Herzegovina

Tax Alert,August 2014

The Law on amendments of the Law on registration of business entities in Federation BiH, which have been published in Official gazette no. 63/14, has entered into force on 14th August 2014.

The amendment introduces the possibility of registration of branches of foreign legal entities in the company registry.

The branch of foreign legal entity is recorded in the court registry of the court authorised for the region where the branch shall be seated. The law prescribes list of documents that shall be filed along with Application for registration in order to register a branch of foreign legal entity (the list includes registry excerpt of foreign legal entity, decision on establishment, appointment of branch representative, short annual financial statement of the founder and other prescribed documents).

All documents shall be filed as original and verified translation into one of official languages of BiH.
The resolution on registration of the branch of foreign legal entity is by official duty sent by the Court registry to the FBiH Tax Authority, Ministry of Foreign Trade and Economic Relations BiH and BiH Ministry of Security – Department for foreign persons (if the branch representative has foreign nationality).

Please note that the legal framework has been put in place and based on that enabled registration of permanent establishments (PE) in accordance with FBiH Law on Corporate Income Tax. Deloitte will keep monitoring how the registration will function in practice.

Additionally, we would like to inform you that the Amendment of the Law also decreases the administrative costs of the companies which conduct business activity on the territory of Federation BiH by decreasing the number of procedures and documents which require verification by notary (e.g. increase / decrease of capital of stock companies, change of business name, change of business seat, change of business activity, amendment of responsibility of company for other companies, change of company representatives and other). However, if the change relates to any of the provisions of the Foundation Act or Company Statute then such change still requires verification by notary.

If you have any questions concerning this publication, please do not hesitate to contact us:

Emir Ibišević
Deloitte Advisory Services d.o.o.
Jadranska bb, 71000 Sarajevo, Bosnia and Herzegovina
Direct: +387 33 277 560 | Fax: +387 33 277 561 | Mobile: +387 61 396 047

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