Main institutions that support SMEs in Bosnia and Herzegovina are at the entity level:
Federation of Bosnia and Herzegovina
Federal Ministry of Development, Entrepreneurship and Craft
Republic Agency for the Development of Small and Medium Enterprises
Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina (BiH) is a State Agency established with the mission to attract and maximize the flow of foreign direct investment into Bosnia and Herzegovina, and encourage existing foreign investors to further expand and develop their businesses in BiH.
FIPA provides data, information, analysis and advice on the business and investment environment, including:
- the legal framework for foreign direct investment
- investment incentives
- economic and business trends
FIPA identifies and presents available investment opportunities:
- investment projects in the development-phase or ready for implementation
- companies in the process of privatisation
- local companies seeking foreign partners
FIPA assists both potential investors and those that have already invested in the country through:
- effective networking with both the public and private sector
- linking with governmental and non-governmental institutions to facilitate investment and business development
- cooperation with local, regional and international organisations to promote and enhance the investment environment
More info: http://www.fipa.gov.ba/
Benifits of BiH for potential investors
Law on the Policy of Foreign Direct Investments of Bosnia and Herzegovina (Official Gazette of BiH, 17/98, 13/03 and 48/10) ensures:
Ø National treatments of foreign investors, i.e., foreign investors have the same rights and obligations as residents of BiH.
Ø Foreign investors are entitled to open accounts in any commercial bank in domestic and/or any freely convertible currency on the territory of BiH.
Ø Foreign investors are entitled to freely employ foreign nationals, subject to the labour and immigration laws in BiH.
Ø Foreign investors are entitled to transfer abroad, freely and without delay, in convertible currency, proceeds resulting from their investment in BiH
Ø Foreign investors may own real estate in BiH. Foreign investors enjoy the same property rights in respect to real estate as BiH legal entities.
Ø Foreign investors are protected against nationalization, expropriation, requisition or measures having similar effects; such measures may take place only in the public interest in accordance with the applicable laws and regulations and against the payment of an appropriate compensation, i.e. compensation that is adequate, effective and prompt.
Ø The rights and benefits of foreign investors granted and obligations imposed by the Law on the Policy of Foreign Direct Investment (mentioned above) cannot be terminated or overruled by subsequent laws and regulations. Should a subsequent law or regulation be more favourable to foreign investors, the investor will have the right to choose the regime by which the investment will be regulated.
-Bosnia and Herzegovina has the most stable currency in the South East Europe, which is directly linked to the Euro. Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement with full coverage in freely convertible foreign exchange funds under fixed exchange rate KM 1: EUR 0.51129 .
– Access to the market of EU, SEE, EFTA and Turkey without custom duties
-Bosnia and Herzegovina has a very well-educated population with excellent foreign language skills, and in a same time very price-competitive.
– Bosnia and Herzegovina has one of the lowest rates of VAT (17%) in the region and Europe, as well as the very acceptable corporate tax rates that are also among the lowest in the region and Europe (10%).
– The lowest price of the electricity in EU; Leasing production building: 1 EUR/m² – 10 EUR/m² per month; Price of construction land: 15 EUR/m2 – 700 EUR/m2
– Equipment of the foreign investor being imported as part of share capital is exempt from paying customs duties (with the exception of passenger vehicles, slot and gambling machines).
How FIPA encourage the development of country
– Providing of all information related to BiH business environment
– Servicing potential and existing investors
– Organizing site visits for potential investors
– Aftercare services – Improving business environment by identifying the main legal barriers to FDI, creating recommendations for its removal and taking part in its implementation