Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Bosnia and Herzegovina. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
|o.||Procedure||Time to Complete||Associated Costs|
|1||Stipulate a founding act and have it notarized by a notary||5 days||BAM 400|
|2||Obtain a statement from commercial bank that full amount of the capital has been paid in; pay the registration fee to the budget account of the cantonal court||1 day||no charge|
|3||Obtain the statement of tax authorities that the founders have no tax debts||1 day||BAM 15|
|4||Court registration with Municipal Courts||10 days||BAM 405 (registration fee) + BAM 150 (publishing fee)|
|5||Buy a company stamp||1 day||BAM 40|
|6||Request and obtain municipal approval on intended activities||10 days||BAM 10|
|7||Notify the commencement of the business activities to the Cantonal Inspection Authority||1 day||no charge|
|8||Apply for company identification number with the competent tax office||5 days||no charge|
|9||Open a company account with commercial bank||1 day||no charge|
|10||Enroll the employees in health insurance with Health Insurance Institute and in the pension insurance||1 day||BAM 1|
|11||Adopt and publish a rule book on matters of salary, work organization, discipline, and other employee regulations.||1 day||no charge|