Legal frame



Official name:


Bosnia and Herzegovina (abbreviation B&H)

Capital city:

Sarajevo (population 500,000)


Banja Luka, Bihać, Mostar, Tuzla, Zenica

Geographical location:

Southeast Europe, borders Croatia (932 km), Serbia (312 km) and Montenegro (215 km)


51.209 km2


3.50 million

Official languages:

Bosnian, Serbian and Croatian

Territorial-administrative arrangement:

Two entities (Federation of Bosnia and Herzegovina and Republika Srpska) and Brcko District of Bosnia and Herzegovina

Political organization:

Bosnia and Herzegovina is organized as a parliamentary democracy: two houses of Parliament (House of Representatives and House of Peoples), a three-member rotating Presidency, the Council of Ministers and the Constitutional Court


EUR 18.0 billion (2019) 

GDP per capita:

5.168 EUR  (2019)


Convertible Mark (BAM-official abbreviation; KM-everyday use)


1 EUR = KM 1.95 (fixed rate)

Time zone:

44 N, 18 E

Vremenska zona:

Central European Time CET (GMT + 1 h)

Internet domain:


International dialing code:



Bosnia and Herzegovina is a parliamentary democracy with a decentralized political and administrative structure, with several levels of political power. The state consists of two entities: the Federation of BiH and the Republika Srpska, and the Brcko District of Bosnia and Herzegovina, which is a self-governing administrative unit, under state sovereignty.

The state level of government has well-defined and limited powers, while the two entities and the Brcko District are largely autonomous in political, administrative and legal terms.

The Federation of Bosnia and Herzegovina is composed of 10 cantons, each with its own constitution, government, assembly and judiciary. Republika Srpska has a centralized structure, headed by a directly elected President.

Local self-government in the state consists of municipalities and cities, as follows: 79 in the Federation of Bosnia and Herzegovina and 63 in the Republika Srpska.

The legal framework in Bosnia and Herzegovina, although complex, due to the complex distribution of competencies of higher levels of government, offers favorable opportunities for business development and good business. In the process of reforms on the path to European integration, Bosnia and Herzegovina is currently undergoing significant changes to existing regulations, all with the aim of ensuring easier access to the market and creating better conditions for employers Srpska and potential investors.


Domestic and foreign investors interested in starting their own business in Bosnia and Herzegovina should keep in mind that different levels of government in the country are in charge of different levels of services that facilitate access to the labor market and investment in Bosnia and Herzegovina.

In this chain, the most favorable outcome is achieved when the right address is found at the local community level, from which it is then communicated to higher levels of government. Closer to the citizens is always closer to business.

  • Institutions of Bosnia and Herzegovina operate within the competencies set by the Constitution of BiH, with a legal framework governing customs, fiscal and monetary policy. More information at:

The Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina at the state level is responsible for the business environment and ensuring a single economic space, development and promotion of entrepreneurship, and has a key role in protecting Bosnia and Herzegovina exporters to foreign markets, ensuring their equal treatment. through international agreements create conditions for the export of Bosnia and Herzegovina products and services.

The Ministry of Civil Affairs of Bosnia and Herzegovina at the state level is the most important instance when it comes to status issues of citizens, especially in case of difficulties related to registration and records, protection of personal data, registration of residence and stay, personal documents and issues related to citizenship. In regular communication, the police or the internal affairs services are in charge of these issues at the local level.

The Ministry of Finance and Treasury of Bosnia and Herzegovina is responsible for fiscal policy, ie it adopts policies and regulations in the field of taxes and fees. However, the entities have their responsibilities in this area, so the entity tax administrations are in charge of corporate income tax, income, contributions, fiscal systems, financial consolidation of companies, etc. Finally, direct communication is realized through tax offices that are distributed to municipalities and cities.

  • Entities of Republika Srpska and the Federation of Bosnia and Herzegovina, and the Brčko District of Bosnia and Herzegovina, which are a key level in terms of regulation of regulations and the way companies work, workers' rights, environmental standards and health and social protection systems; More information at: www.fBosnia and
  • Cantons in the Federation of Bosnia and Herzegovina are the regional level of government with special competencies. More information at:
  • Local self-government units in both entities (municipalities and cities) are direct services to citizens and businessmen in the field of securing various permits, especially in construction, which have great potential for cooperation and support in entrepreneurial activities. For direct communication regarding the start-up of a local business, it is always best to contact the sectors or departments of the economy in municipalities and cities. More information at:
    Municipality of Breza 
    Municipality of Doboj South   
    Municipality of Kakanj   
    Municipality of Maglaj   
    Municipality of Olovo   
    Municipality of Usora   
    Municipality of Tešanj www.opć   
    Municipality of Vareš   
    City of Visoko   
    Municipality of Zavidovići   
    City of Zenica   
    Municipality of Žepče  



The judiciary in Bosnia and Herzegovina is organized through a network of:

  • municipal courts in the Federation of Bosnia and Herzegovina, ie basic courts in the Republika Srpska;
  • cantonal courts in the Federation of Bosnia and Herzegovina, ie district courts in the Republika Srpska;
  • Entity courts: Supreme Courts and Constitutional Courts of the Federation of Bosnia and Herzegovina and Republika Srpska, respectively;
  • State courts: the Court of Bosnia and Herzegovina and the Constitutional Court of Bosnia and Herzegovina.

The Law on Foreign Direct Investment Policy in Bosnia and Herzegovina stipulates that foreign investors have the same rights as domestic investors, and provides them with the same treatment, protection against naturalization (expropriation) and the right to dispose of profits, and transfer funds. Most of the business sector in Bosnia and Herzegovina is completely open to foreign ownership. In addition, many local lawyers quickly gain experience in doing business with international companies in Bosnia and Herzegovina, and provide legal advice with precise explanations and guidelines.

Due to its accession to the EU, Bosnia and Herzegovina was the first country in the region to win the Law on Freedom of Access to Information, which guarantees all individuals and legal entities the right to submit requests for access to information.

You have questions or some information for us.