LLC formation

Benefits of Bosnian LLC

Founding capital 1 euro
Time required for establishment 10 days.
Only the basic documentation for the establishment is needed.
It can be opened without the presence
10% corporate tax
0% dividend tax
Director of LLC doesn’t need to be citizen of Bosnia
No requirements for social charges

Tax obligations

LLC is a tax subject and all income generated through company is subjected to 10% corporate tax

There is 0% dividend tax which means that the founders of the company do not pay any tax when withdrawing dividends. This is an unusual thing for a European country and it makes Bosnia new tax paradise. Also, it is important that you know that the possibility of not paying tax on dividends does not represent any kind of tax evasion, but is fully approved by the state and does not require any additional complications for justification.

After registering a company in Bosnia, a foreigner should remember that even if the company does not conduct economic activities this does not exempt a foreigner from making tax reports (even with 0 profit) and paying other taxes, such as corporate and personal income tax on their employees.

The basis for the corporate tax is only the company’s net earnings. In other words, the corporate tax is only paid on the amount obtained when expenses are deducted from income.

In case of bankruptcy, shareholders of LLC are not obligated to pay the company’s debt with their own assets.

If you are resident of the country by which the Republic of Serbia has concluded a Double Taxation Avoidance Treaty you can optimize taxation in order to reduce operation costs.

Proces details

Preparation and notarization of documents
Company registration in the Business Registry Agency
Assistance when opening corporate bank account
Collection and submission of remaining documents for bookkeeping and further business.