ABOUT BOSNIA AND HERZEGOVINA

Amongst all the countries in Europe, Bosnia & Herzegovina (often abbreviated as BiH), is a country located in Southeastern Europe, on the Balkan Peninsula. It is a geographically diverse nation, known for its mountainous terrain, rich history, cultural confluence, and vibrant cities, with a small coastline on the Adriatic Sea. The capital of Bosnia & Herzegovina is Sarajevo, which is its largest and most populated city, serving as the country’s primary economic, cultural, and political hub, a city renowned for its resilience and unique blend of East and West. According to the report of the World Bank, Bosnia & Herzegovina has been classified as an Upper Middle-Income Nation. The currency of Bosnia & Herzegovina is the Convertible Mark (BAM), which is pegged to the Euro (€1 = BAM 1.95583). As of today’s exchange rates (June 2025), 1 Convertible Mark is approximately 45.93 Indian Rupees. The population of Bosnia & Herzegovina is estimated to be around 3.2 million in 2024. Its neighbouring countries are Croatia to the north and west, Serbia to the east, and Montenegro to the southeast. The official languages of the country are Bosnian, Serbian, and Croatian, which are mutually intelligible. English is increasingly spoken, especially among younger generations and in urban centers, but less universally than in Western European nations. The majority of the population practices Islam (predominantly Sunni), Orthodox Christianity (Serb Orthodox), and Roman Catholicism (Croat Catholics), reflecting its diverse ethnic and religious landscape. Currently, Bosnia & Herzegovina has several international airports, with Sarajevo International Airport (SJJ) being the primary international gateway. Other international airports include Banja Luka (BNX), Mostar (OMO), and Tuzla (TZL), offering growing air connectivity. While BiH has a very short coastline (approx. 20 km), it primarily relies on the Croatian port of Ploče for sea access, due to a special agreement. It also has inland river ports on the Sava River (e.g., Brčko) for riverine transport.

The standard corporate income tax rate in Bosnia & Herzegovina is a highly competitive 10%. This low corporate tax rate is a significant incentive for foreign investors. Due to its complex administrative structure (consisting of the Federation of BiH, Republika Srpska, and Brčko District), tax regulations can vary slightly, but the general rate remains low. BiH also offers benefits in its several free zones, where companies can enjoy customs and tax benefits. Furthermore, there are specific investment incentives aimed at promoting employment and investments in certain strategic sectors, along with a network of double taxation treaties. Opesh Group of companies will be helping you in the completing Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Bosnia & Herzegovina is becoming more streamlined, though navigating its administrative complexities requires careful due diligence. The Foreign Investment Promotion Agency of BiH (FIPA) is the primary governmental body dedicated to attracting and facilitating foreign direct investment. A foreign investor who is planning to start his business in Bosnia & Herzegovina can form various company types, with the most common and flexible structures being a Limited Liability Company (Društvo sa ograničenom odgovornošću or d.o.o.) or a Joint-Stock Company (Dioničko društvo or d.d.). The d.o.o. is generally the most popular choice for foreign investors due to its simplicity and flexibility, allowing 100% foreign ownership with a relatively low minimum share capital (e.g., BAM 1,000 in FBiH). The legal framework in BiH is undergoing harmonization with EU standards as part of its accession process, aiming for a more predictable and investor-friendly environment.

In Case an investor is planning to establish a d.o.o. in Bosnia & Herzegovina or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Bosnia & Herzegovina and we will also guide you about how to follow the procedure while formulating your company in Bosnia & Herzegovina.

Types of Business which can be started in Bosnia & Herzegovina-

• Tourism & Hospitality: Bosnia & Herzegovina boasts immense untapped potential in tourism, from historical and cultural sites (Sarajevo, Mostar) to nature and adventure tourism (skiing, rafting, hiking). Opportunities exist in hotel development, eco-tourism, and specialized tour operations.
• Energy (Hydropower & Renewables): The country has abundant water resources, making hydropower a key sector, with significant potential for further development. There are also growing opportunities in solar and wind energy projects.
• Wood Processing Industry: With vast forest resources, BiH has a strong tradition in wood processing. Opportunities include sustainable forestry, furniture manufacturing, and production of high-quality timber products for export.
• Agriculture & Food Processing: Fertile land and diverse climate zones support various agricultural products. Opportunities lie in organic farming, food processing (e.g., fruits, vegetables, dairy, meat), and export of agricultural goods.
• Metal Industry: BiH has a long history in metallurgy. Opportunities exist in basic metal production, metal processing, and manufacturing of metal components for automotive and other industries.
• Information & Communication Technology (ICT): A rapidly growing sector driven by a skilled, relatively cost-effective workforce. Opportunities are in software development, IT outsourcing, and digital solutions for local and international markets.
• Infrastructure & Construction: Ongoing needs for modernizing infrastructure (roads, railways, energy) create opportunities for construction companies and related services.

Advantages of Starting Business in Bosnia & Herzegovina-

• Competitive Corporate Tax Rate: A low 10% corporate income tax rate is highly attractive for businesses.
• Strategic Geographic Location: Positioned as a gateway to both the EU and the wider Balkan region, with established free trade agreements.
• Competitive Labor Costs: Relatively lower labor costs compared to Western European countries, combined with a skilled workforce.
• Rich Natural Resources: Abundant in forests, water, and certain mineral resources, providing raw materials for various industries.
• Untapped Tourism Potential: Significant opportunities in developing and promoting its diverse tourism offerings.
• EU Accession Path: Candidate status for EU membership signals a commitment to reforms and eventual integration into the larger EU market.
• Bilateral & Multilateral Agreements: Benefits from Free Trade Agreements (e.g., CEFTA) and a Stabilization and Association Agreement (SAA) with the EU.
• Growing Market: A market that is developing and modernizing, offering new niches and demand.

Business Opportunities for Indians in Bosnia & Herzegovina-

There are excellent business opportunities in Bosnia & Herzegovina for new investors who are planning to start their business abroad. Bosnia & Herzegovina’s emerging market status, competitive costs, and potential for EU integration present interesting avenues for Indian companies looking for growth in Southeastern Europe. Indian investors with strengths in IT services (especially software development, outsourcing, digital solutions for local businesses), Renewable Energy projects (hydropower, solar, wind), Agriculture & Food Processing (modernizing practices, food export), Wood Processing & Furniture manufacturing, Pharmaceutical distribution, and Tourism infrastructure development, can find significant potential for investment and strategic partnerships.

Imports & Exports-

Many goods are imported and exported from Bosnia & Herzegovina. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Bosnia & Herzegovina:

• Base metals and articles thereof (e.g., aluminum, iron and steel)
• Wood and wood products (e.g., timber, furniture)
• Machinery and mechanical appliances
• Footwear
• Textiles
• Electricity

Major items which are imported in Bosnia & Herzegovina:

• Machinery and mechanical appliances
• Mineral fuels and oils
• Vehicles
• Electrical equipment
• Chemical products
• Foodstuffs

Major items traded between Bosnia & Herzegovina and India (data is generally very limited):

• Exports from Bosnia & Herzegovina to India: Likely very niche, primarily specific metal products, wood products, or raw materials.
• Imports in Bosnia & Herzegovina from India: Pharmaceuticals, textiles, chemicals, machinery, and some consumer goods.

Manufacturing-

Manufacturing in Bosnia & Herzegovina is a key sector, benefiting from a competitive labor force and a strong industrial heritage. Opportunities exist in metal processing (basic metals, finished products, automotive components), wood processing and furniture manufacturing, textiles and apparel, food processing, and production of electrical machinery. The sector is increasingly looking towards modernization and integration into European supply chains.

Mining-

The mining business in Bosnia & Herzegovina is significant, particularly for certain resources. The country possesses considerable reserves of coal (mainly lignite), which is crucial for its energy production. Other important mineral resources include iron ore, bauxite (for aluminum production), lead, zinc, and salt. While not as diversified as some larger mining nations, these resources provide a basis for industrial activity and present opportunities for investment in extraction, processing, and related industries.

Major Indian companies which are currently working in Bosnia & Herzegovina-

Due to its emerging market status and geographical distance, large Indian conglomerates typically have a limited direct physical presence in Bosnia & Herzegovina. However, interest is growing, and indirect engagement or smaller-scale investments can be observed:

• Pharmaceutical Distribution: Indian pharmaceutical products are distributed in the BiH market through local partnerships.

• IT Services: Some Indian IT companies might engage in outsourcing projects or provide specialized software solutions to Bosnian companies.

• Infrastructure & Energy Consultancies: Indian firms with expertise in these sectors might engage in consulting roles for proposed projects.

• Trade: General trading companies may be involved in import/export of specific goods.

• GDP = $26.8 billion (nominal, 2024 est.)

• GDP Growth = 2.4% (2024 est.), 3.1% (2025 forecast by IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. However, BiH is actively implementing reforms to improve its business environment and legal framework as part of its EU accession process.

• GDP per Capita = $8,375 (nominal, 2024 est.)

Thanks for reading this Article. Watch our Video and know more about Bosnia & Herzegovina. For any Business Enquiry Join Millionaire Program and change everything in life and Business.. Call/ WhatsApp +91- 8094607111.