Are you ready to take the next step in your business? Perhaps you are considering relocating your stuff or getting more IT power from other countries to ensure the stability of your business plan? When you think about Bosnia and Herzegovina, there are many advantages why you should consider this country.
Location and environment
Bosnia and Herzegovina has a favorable geographical position – at the crossroads between West and East, Mediterranean and Continent, and two hours of flight away from European business centers. Moreover, Bosnia and Herzegovina have extraordinary natural potentials and resources to interest foreign investors.
Bosnia and Herzegovina are divided into two Entities – the Federation of Bosnia and Herzegovina and the Republika Srpska, which are politically autonomous to an extent, and the Brčko District, which is jointly administered by both. The Entities have their constitutions.
According to the latest World Bank annual ratings, Bosnia and Herzegovina is ranked 90 among 190 economies in the ease of doing business. However, the rank of Bosnia and Herzegovina deteriorated to 90 in 2019 from 89 in 2018. Nevertheless, the emerging economy, the European country Bosnia and Herzegovina, is a great place to shop for your business. According to The World Bank, the economy with a steady growth of over 3.5% also allows for lower costs of running a business and labor.
Bosnia and Herzegovina has educated and motivated labor with a long tradition of industrial production. Her workforce is highly qualified and motivated, with good knowledge of foreign languages. Companies in BiH have a rich tradition of successful participation in international projects worldwide. The Law on Foreign Direct Investments in BiH provides foreign investors with national treatment, i.e., foreign investors have the same rights and obligations as residents of Bosnia and Herzegovina.
There is no difference between domestic and foreign investors regarding the legal status of foreign investment in BiH. Bosnia and Herzegovina recognize the importance of attracting foreign investors, appreciating the management, commercial knowledge, and fresh capital they bring in. Therefore, foreign investors are entitled to additional guarantees that do not extend to domestic investors. For example, rights acquired through capital investments are not reduced by law or other regulations.
Bosnia and Herzegovina is an ideal meeting place for investors and business people worldwide and is the perfect point to connect people from East and West, as it offers a well-disciplined workforce and a stable currency.
Profit and capital
There are no restrictions on the return on profits or capital investments. Also, there are no restrictions on the transfer of profits abroad after payment of tax liabilities, including 10% of both income tax and 5% withholding tax if foreign nationals, if applicable.
Tax losses can be carried forward for a maximum of five years. Foreign investors can transfer the profit from the capital invested in BiH or the income from the sale of shares or stakes after settling outstanding liabilities. They can move the money after the sale. The profit of a foreign contractor participating in capital projects in BiH can be transferred abroad.
What can StorsenDigital do in Bosnia and Herzegovina?
StorsenDigital is an International outsourcing service provider with head office in Prague and delivery operations in Bosnia, Serbia, and Bulgaria. We provide services to EU and US customers in the BSS area, finance, Human capital, logistics, IT, and Global business solutions.
StorsenDigital’s most significant capital is a proven record of staging world-class integrated operations across the Czech Republic and Eastern European countries. Between them, there is also Bosnia and Herzegovina.