Bosnia and Herzegovina: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

Setting Up a Company

Limited Liability Company (D.O.O.): Number of partners: One or more persons.
Capital (max/min): Minimum BAM 2,000
Shareholders and liability: Liability is limited to the amount contributed.
Joint-Stock Company (D.D.): Number of partners: Two or more shareholders.
Capital (max/min): Minimum BAM 20,000 for closed joint-stock companies; minimum BAM 50,000 for open joint-stock companies.
Shareholders and liability: Liability is limited to the amount contributed.
Limited Partnership: Number of partners: Minimum two.
Capital (max/min): No minimum capital.
Shareholders and liability: There must be at least 1 partner with full liability (including private property) and at least 1 partner with limited liability.
Representative Office: Number of partners: No minimum.
Capital (max/min): No minimum capital.
Shareholders and liability: A representative office does not have the status of a legal entity - It may only engage in non-profit making activities: market research, promotional and informative activities, representing the company. A representative office is restricted from signing contracts on behalf of the parent company (with the exception of foreign airlines representative offices).

Setting Up a Company	Bosnia and Herzegovina	Eastern Europe & Central Asia
Procedures (number)	13.0	5.3
Time (days)	80.0	11.8

Source: Doing Business.

Business Setup Procedures: Consult the Doing Business website, to learn about procedures to start a business in Bosnia and Herzegovina.
Consult the Foreign Investment Promotion Agency of Bosnia and Herzegovina, for a list of steps to set up a business in the country.

The Active Population in Figures

	2018	2019	2020
Labour Force	1,319,663	1,336,172	1,297,577

Source: International Labour Organization, ILOSTAT database

	2017	2018	2019
Total activity rate	55.93%	56.62%	57.74%
Men activity rate	67.53%	68.87%	68.64%
Women activity rate	44.29%	44.34%	46.79%

Source: International Labour Organization, ILOSTAT database

For Further Statistics: Bosnia and Herzegovina Agency for Statistics

Working Conditions

Legal Weekly Duration: Full time working hours are limited to 40 hours per week, with the working week lasting five days (Monday-Friday).
In case of a weather emergency, sudden increase in the volume of work or other similar cases of emergency need, an employee, at the request of the employer, is obliged to work longer hours than his/her full work hours. This overtime work is limited to 8 hours per week.
Retirement Age: 65 years (and at least 20 years of contributiing period).
Labour Laws: Consult the Doing Business Website, to obtain a summary of the labour regulations that apply to local entreprises.

Cost of Labour

Minimum Wage: In 2020, Bosnian government raised the minimum wage to BAM 520 per month (Cleiss).
Average Wage: In 2020, the average gross monthly salary was BAM 1,472 according to the Federal Statistical Office of Bosnia and Herzegovina.
Social Contributions: Social Security Contributions Paid By Employers: For the Federation of Bosnia and Herzegovina, the employer contributes 10.5% of the gross wage of the employee to the social security. In the Republic of Srpska, no contribution is paid.
Social Security Contributions Paid By Employees: The employee contributes 31% to the Federation of Bosnia and Herzegovina or 32.8% to the Republic of Srpska. Employees in the Brcko District can either choose the fund of the Federation of Bosnia and Herzegovina or fund of the Republic of Srpska.

Social Partners

Social Dialogue and Involvement of Social Partners: The law provides for the right to organise and conduct union activities without interference in both the Federation of Bosnia and Herzegovina and the Republic of Srpska. However, authorities have not imposed sanctions (only fines) against employers who obstruct union organising and activity. The major problem unions face is that the fines levied against the employers who disregard the right to organise are not significant enough to discourage employers from continuing said practises. The law in both entities also allows for the right to strike, but not until the union and employer have agreed upon what essential employees would stay at work. Rather, collective bargaining in both entities involves work agreements between the Government and workers in the public sector.
Labour Unions: Autonomous Trade Union of Agriculture, Food, Tobacco, Water industries, Trade, Catering and Tourism Workers of Bosnia and Herzegovina (PPDIVUT)
Confederation of Independent Trade Unions of Bosnia and Herzegovina (SSS BiH)
Confederation of Independent Trade Unions of Republic of Srpska (SSS RS)
Unionisation Rate: The majority of trade unions in Bosnia and Herzegovina are quite small and have limited power. This can be attributed to such factors as the country's division into three parts, ethnic and religious contrasts and a rather large informal sector. The unionisation rate is much higher in the public sector and state-owned companies than in the private sector.
Labour Regulation Bodies: Federal Ministry of Labour and Social Policy - in Federation of Bosnia and Herzegovina (in local language only)
Ministry for Labour and Social Affairs (in local language only)

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