USEFUL INFORMATION FOR FOREIGNERS

1.Tax exemptions on foreign investments

There are a lot of tax exemptions in the Republic of Srpska when it comes to foreign investment. Foreign investors are exempt from paying tax on import of working capital as a share of foreign investor. Foreign persons may open a bank account and transfer money abroad without any limitations. Foreign persons have the same rights as citizens of the Republic of Srpska when it comes to investments in economic sector defined by existing legislature in given area.

2.Custom Policy

Import customs are determined on the basis of tariff lists wherein services and goods are classified into 21 categories, the rates ranging from 0 to 15%. Many items are exempt from customs duty for example: equipment imported on the basis of foreign investment, equipment used in the reconstruction of the Republic of Srpska, material used for the production of export products as well as capital and industrial equipment imported on the basis of business activities transferred from abroad. The value of imported goods is determined on the basis of a statement from supplier about the value of goods, with the added expenses of the transport from their place of origin to the customs territory.

3.      Free Trade Agreements between BiH and:

-         Croatia

-         State Union of Serbia and Montenegro

-         Former Yugoslav Republic of Macedonia

-         Turkey

4.      Average income

Average income in the Republic of Srpska amounts app 250 EUR.

5.      Pension and Health Insurance contributions

Represent an obligatory payment on employees’ salaries and amounts 52%.

6.      Price of water and electricity

Establishing company by foreign person

a. Foreign persons may in the Republic of Srpska:

establish a company as full ownership by foreign investor;

establish a company as mutual ownership by domestic and foreign investor;

invest in existing company;

invest in a bank or insurance;

open a store (entrepreneur);

get a concession.

Type of companies:

- Limited Liability Company (d.o.o.). Minimum initial capital in money cannot be less than 2000 KM and individual stake of each shareholder not less than 100 KM.
 

- Joint Stock Company (a.d.). Initial capital cannot be less than 50 000 KM ( for simultaneous establishment) i.e. 100 000 KM ( for successive establishment ) and nominal value of share not less than 1 KM. Initial capital of each shareholder cannot be less than 500 KM.
 

- Limited Partnership (k.d.).
 

- Partnership Company. Unlimited joint liability of company members for company’s liabilities.

2. Necessary documentation: Establishment Act (Contract or Decision) and the Statute.

3. Registration costs: app 750 EUR

Employment of foreign persons
 

Next to the conditions determined by the Law, Collective agreement and General Act of the employers, the foreign person must meet additional conditions:

-To have residence in RS/BIH;

-To have a working permit issued by the Employment Bureau.

*Working permit cannot be issued on the basis of tourist or business visa.

Foreign persons performing business activity determined by the regulations on foreign investment and authorized representative of humanitarian organization shall not be subject to acquiring of working permit.

Visa requirements

Citizens of the following countries do not require a visa for entering BiH and the Republic of Srpska:

Andorra, Australia, Austria, Belgium, Brunei, Estonia, Czech Republic Canada, Croatia, Cyprus, Denmark, Finland, France, Germany, Great Britain, Greece, Island, Ireland, Italy, Japan, Latvia, Lithuania, Lichtenstein , Luxemburg, Korea, Kuwait, , Macedonia, Malaysia, Malta, Monaco, New Zeeland, Norway, Portugal, Poland, Qatar, Slovakia, San Marino, Serbia and Montenegro, Slovenia, Spain, Sweden, Switzerland, Hungary, Holland, The Russian Federation , Turkey, USA, Vatican

Citizens of all other countries require an entry visa for entering the country. An entry visa can be obtained in diplomatic/consular departments abroad. Certified border office can also issue a visa if there are legitimate reasons for such an action.

Price of visa:

Single entry visa or transit visa = 31, 00 EUR

Multiple entry and exit visa or transit visa for a stay of up to a 90 days = 57, 00 EUR

Multiple entry and exit visa or transit visa for a stay of over 90 days = 72, 00 EUR

Main taxes

VAT - unique rate of 17% shall be applied from 1.1.2006.

Buyers (natural persons), without permanent residence in BiH have a right of VAT tax return on goods except for alcohol, alcohol drinks and tobacco products.

Final import of goods qualified as custom exemption (for foreign investors) is exempt from payment of VAT.

Income and profit tax = 10%.

.

Ownership rights

Any foreign investor is registered as domestic business body. The foreign company has the same rights as domestic company or citizen including ownership rights in the Republic of Srpska.

Transfer of ownership

A sales contract should be delivered for evaluation to determined Tax Office in the area where the property is located. Sales tax in the Republic of Srpska amounts 3% of the estimated property value. Once taxes are paid, the contract is officially certified (in the court) and is delivered to the Register of real-estate to have the owner’s name and registration changed.

TRANSPORT:

The Republic of Srpska has developed transit infrastructure.

Motorway:

Ljubljana - Zagreb - Banja Luka - Sarajevo - Mostar - Ploče

Ljubljana - Zagreb - Šamac - Brčko District - Tuzla - Sarajevo - Ploče

Railway:

Zagreb - Banja Luka - Sarajevo - Ploče (daily)

Bosanski Novi - Banja Luka - Doboj - Beograd (daily)

Airport:

Mahovljani ( 22 km away from Banja Luka) with destinations towards Sarajevo, Zagreb, Belgrade, Frankfurt, Vienna and other international airports.

CUSTOMS AND BORDER CROSSINGS:

Border crossings:

Novi Grad, Kostajnica, Kozarska Dubica, Gradiška, Bosanski Brod, Šamac, Rača, Pavlovića most, Karakaj Zvornik, Klobuk, Vraćanovići-Deleusna, Dobrun, Zubci, Nudo, Ivanica.

Customs crossings:

Novi Grad, Dubica, Gradiška, Bosanski Brod, Rača, Pavlovića most, Karakaj , Klobuk, Vraćanovići-Deleusna, Dobrun.

CLIMATE:

Area of Banja Luka is located at 164 meters above sea level and belongs to the moderate continental climate belt with Pannonian-steppe climatic influence. Average temperature is 10,7 ⁰C, January temperatures around 0,8 ⁰C and July temperatures around 21,3 ⁰C.

WORKING HOURS:

In offices business hours usually run from 8:00 AM to 4:00 PM Monday - Friday. Business offices are mainly closed on Saturdays except for private offices that work until 1:00 PM and banks. Cash-machines are available in Banja Luka city center.

Groceries and clothes stores are open every working day and Saturday from of 7:00 AM until 8:00 PM and some are also open on Sunday.

PUBLIC HOLIDAYS            

New Year, January 1 and 2

National holiday, January 9

International Labor Day, May 1 and 2

Day of victory over fascisms, May 9

National holiday, November 21

USEFUL ADRESSES:

1. Chamber of Commerce and Industry of Banja Luka region

Đure Daničića 1/II,

78 000 Banja Luka, BiH

Tel.: (+387 51) 215 987

Fax: (+387 51) 215 510

www.komorabl.inecco.net

2. Chamber of Commerce and Industry of the Republic of Srpska

Đure Daničića 1/II,

78 000 Banja Luka, BiH

Tel.: (+387 51) 215 833

Fax: (+387 51) 215 565

www.komorars.ba

3. Ministry for economic relation and coordination RS

Vuka Karadžića 4,

78 000 Banja Luka, BiH
Tel.: (+387 51) 331 430

Fax: (+387 51) 331 436

www.vladars.net

4. Ministry of foreign affairs BiH

Musala 2,

71 000 Sarajevo, BiH

Tel.: (+387 33) 218 100

Fax: (+387 33) 472 188

www.mvp.gov.ba

5. Tourist organization City of Banja Luka

Bana Lazarevića 6,

78 000 Banja Luka, BiH

Tel.: (+387 51) 349 910

Fax: (+387 51) 349 911

http://www.banjaluka-tourism.com/eng/index.html

EATING OUT IN BANJA LUKA

Alas

            Braće Mađžar 42

            Cuisine: sea food

            Tel.: 051 211 678

Ambasador

            Kralja Petra I Karađorđevića 1

            Cuisine: international

            Tel.: 051 213 119

            Kazamat

            Kastel

            Cuisine: tradicional / international

            Tel.: 051 312 394

            Ognjište

            Josipa Pančića 2

            Cuisine: traditional

            Tel.: 051 307 195

            Stari mlin

            Bogdana Marića 14

            Cuisine: traditional/international

            Tel.: 051 213 399

 Chamber of Commerce and Industry of Banja Luka region