Registering a company is a one-time cost. Keeping it is a yearly one. For a small foreign-owned d.o.o. without employees, these are the costs to plan for.
Fixed running costs
| Cost | Typical amount | Notes |
|---|---|---|
| Registered address / virtual office | from €60 per month | Required: every company needs a seat in Bosnia |
| Accounting and tax filings | from €150 per month | Required: double-entry books and annual statements |
| Bank account | ≈ €5–20 per month | Depends on the bank and package |
| Corporate administration | from €90 per month | Optional: authorities, changes, deadlines |
A small company without employees therefore costs roughly €2,500–3,600 per year to run properly, depending on whether you add administration support.
Taxes
Taxes depend on results, not on the company existing:
- corporate income tax — 10% of profit (Art. 31, Law on Corporate Income Tax of the FBiH); no profit, no tax;
- VAT — only once turnover passes BAM 100,000 a year, or if you register voluntarily;
- withholding tax on dividends paid abroad — 5% in the Federation of BiH, possibly reduced by a tax treaty.
More detail in our guide to taxes for foreign owners.
Local and occasional costs
- Cantonal and municipal fees, such as the fee for displaying a company name, depend on the activity and location. For a small service company they are modest.
- Company changes — new director, new address, capital increase — cost court and notary fees each time.
- Certified extracts and translations when a bank or partner abroad asks for them.
If you employ staff
Each employee adds salary, income tax and social contributions, and monthly payroll filings. A foreign employee also needs a work permit and residence permit.
What happens if you do nothing
A company that stops filing does not simply disappear. Missed annual statements and tax returns lead to fines, a blocked bank account and, eventually, problems for the director personally. If you no longer need the company, it should be closed properly through liquidation.
Our packages cover the first 6 or 12 months of address, accounting and administration in one price, so the first year is predictable.
Sources
- Law on Corporate Income Tax of the FBiH — Art. 31, Art. 38
- Law on Value Added Tax of BiH — Art. 23, Art. 57
- Financial Information Agency (FIA) — where annual financial statements are filed