General Information

Before establishing yourself in Bosnia-Herzegovina, it is strongly recommended to consult the Bosnian Administration and to seek help from legal and tax advice well versed in this country which is still not very open to foreign investment. Most economic activities are still regulated and subject to obtaining prior authorization. It is therefore essential to obtain information from the Bosnian Chamber of Economy, the Trade and Investment Promotion Agency and the Ministry of Foreign Affairs. Taxation is very attractive for businesses (the corporate tax rate is 10%). On the other hand, pay attention to exchange regulations. Cash payment by SWIFT transfer before shipment is essential.

Means of Payment & Banking Specificities

Bank checks or checks issued by companies should be avoided. They are in any case not used in Bosnia and Herzegovina except by foreign banks which issue checks in foreign currencies payable outside Bosnia and Herzegovina. The arrangement of a Cofacé credit (to the extent of available government funding) or possibly an irrevocable and confirmed documentary credit should be considered.

Confirmation of the beliefs on Bosnia-Herzegovina is difficult to obtain. Such a commitment will be studied on a case-by-case basis depending on the counterparty, the duration of the documentary credit and the availability of the country risk line. Country risk remains high and guarantee and credit costs remain expensive.

Many operations in Bosnia and Herzegovina are handled by payment in advance, as recommended above. A clearing system for domestic transfers - GC Giro Clearing system - has been introduced.