Sole Proprietorship as a form of business has many advantages. First of all is the low cost for registration and dissolution of the company and also, Sole Proprietorship gives you the opportunity to pause or work seasonally.
Below are explained the steps required to register a Sole Proprietorship in Bosnia and Herzegovina:
Step 1: Submission of necessary documents to the competent Municipal Office and payment of municipal taxes for the establishment of Sole Proprietorship
Documentation required for the registration of proprietorship is (slightly) different in the Federation of B&H and in the Republika Srpska.
In the Federation, the necessary documents which the owner (founder) for the establishment of sole proprietorship should provide are:
– Certificate of citizenship or ID Card copy
– Certificate of business capacity
– Medical Certificate
– Certificate of good conduct from the competent Court
– Certificate on paid tax obligations from the competent Municipal Tax Administration Office
The Republika Sprska does not require the Certificate on paid tax obligations but it is necessary to have the equipment, staff and adequate space, unless the nature of the activity or activities do not require these.
Step 2: Obtain Resolution on performed activities
Once you have submitted the required documents, it is necessary to wait for a maximum of 7 to 10 days to obtain the Resolution.
Step 3: Preparation of Seals
Once you obtained the Resolution on business activities, the first thing needed to do is to obtain an official seal.
– Data (contact information) on the seal must be identical to those data on the Resolution.
– The seal’s prices varies from 30 to 50 BAM, depending on the type.
– This process takes about a day.
Step 4: Registration in the Municipal Tax Administration office, obtain an ID number and Activity Codes
When you get the seal, you have to collect the other related documents.
– ID (identification) number
– Notification of Classification pursuant to the Activity Codes issued by the Tax Authority.
To obtain these documents it is necessary to fill in a special form, as well as enclose a copy of the Resolution and a copy of the proprietorship owner’s ID.
This process takes about a day.
Step 5: Open a Bank Account
To open a bank account is necessary to fill in the application, the signature sample form and enclose the necessary documents for the bank. Here you can find a list of documents required by Raiffeisenbank dd – certified copy of business capacity, certified copy of ID number and the Notification of Classification pursuant to the activity codes, a certified copy of proprietorship owner’s CIPS residence registration, a certified declaration of non-existence of any accounts subject to ban or disposal of funds.
The procedure to open a bank account, if are submitted all the required documents, takes about a day.
Step 6: Registration of employment relationship between owners and workers
The following step is the obligation to register the employment of owners and workers, unless it is a supplementary activity so the owner does not need to be employed. To complete this obligation, it is necessary to fill out the form JS 3100. This obligation is completed in one day.
Step 7: Application for initial fiscalization
Thereafter it is necessary to apply for initial fiscalization. All companies are required to have a fiscal cash register. The Municipal Tax Administration Office on its website has published a list of activities for fiscalization taxpayers in order to facilitate people’s orientation in regulations.
In contrast to earlier procedures, the cost of a fiscal cash register is the most expensive, on average of 700 BAM (device + connection).
Step 8: Registration in the VAT system (conditionally)
After registration, the Sole Proprietorship owner will decide to register in the VAT system or not. If the owner provides an annual turnover more than 50.000 BAM – must be registered in the VAT system, but if an annual turnover less than 50.000 KM is planned – does not have to be registered in the VAT system, or may voluntarily register in it.
The registration fee in the VAT system is 15 BAM + costs of copying and costs for document verification that should be enclosed to the application form.
At the end, we bring you a list of all the costs you have to pay for the establishment and registration of a Sole Proprietorship.
Paperwork ______________60 BAM
Tax ____________________82 BAM
Seal__________________ 30 – 50 BAM
ID number______________30 BAM
Bank Account____________ 30 BAM
VAT system (conditionally)__ 15 BAM + costs