Want to start your own sole proprietorship (obrt) but not sure where to begin or which documents you need? This is a practical guide to the main registration steps in the Federation of Bosnia and Herzegovina, from choosing an activity to opening your first business bank account.
If you would like us to estimate the costs and steps for your situation, contact us before you start collecting paperwork.
Printable checklist (PDF)
An A4 checklist with tick boxes: first visit Maja at EKOFIN, meet over a coffee, then follow the guide's steps in order.
Download PDF1. Choose an activity and find business premises
The first step is finding suitable business premises, because an obrt is registered according to its seat. If the activity is planned to be carried out in residential premises, you must first check whether the chosen activity is permitted in such premises. Once you have found premises, you need to choose the activity code.
2. Collect the documents
The documents that may be required include:
| Document | When it is required | Note |
|---|---|---|
| Certificate of Bosnia and Herzegovina citizenship | In general | — |
| Certificate of legal capacity | In general | — |
| Certificate that no final court judgment, misdemeanour decision or administrative act imposing a protective measure banning business activity has been issued | In general | — |
| Proof of appropriate professional qualification | In general | — |
| Proof of the right to use the business premises | In general | E.g. a lease agreement or a land registry extract |
| Proof of employment or of an acquired right to a pension | For a supplementary or additional activity | — |
| Employment bureau confirmation if the person is registered, or a certified statement of status if not | For an obrt as the main occupation | According to the requirements of the competent authority |
| Completed statement of compliance with minimum technical and other requirements for the activity | In general | — |
| Medical certificate | If the municipality requires it | Required by some municipalities |
| Certificate of settled tax obligations | If the municipality requires it | Required by some municipalities |
3. Submit the application and receive the municipal decision
The application to establish an obrt is submitted to the competent municipal service according to the seat of the obrt. An administrative fee is paid by bank payment slip upon submission, approximately 75 KM depending on the municipality. After processing the application, the competent service issues a decision approving the pursuit of the obrt. When you are notified that the decision is ready, you collect it at the competent municipality.
4. Have a company stamp made
After collecting the decision, the next step is making a stamp, which is required for business and documentation. Approximate price: around 40 KM. Check the details to be shown on the stamp before ordering it.
5. Obtain the ID number – Tax Administration
An application for an identification number is submitted to the competent Tax Administration. Together with the completed POR-503 form, you attach:
- a certified copy of the municipal decision on establishing the obrt,
- a certified copy of the premises lease agreement or a land registry extract,
- a certified copy or the original of the agreement with an accounting agency.
Deadline for obtaining the ID number: five working days.
6. Statistics Office – classification notice
Together with the completed RPS form, you attach a copy of the decision on establishing the obrt and a copy of the ID number. The original documents are shown for inspection. Approximate deadline: about two days.
7. Registration of the obrt owner (main occupation) – form JS3100
A copy of the decision on establishing the obrt is attached to the completed form.
8. Open a business bank account
Banks may have different requirements, and the documentation most commonly includes: the obrt registration decision, the ID number, the classification notice by activity, a CIPS registration of the owner and authorised persons not older than six months, a copy of the owner's ID card, a completed and signed application with the stamp if the bank requires it, and a signed and stamped information sheet if the bank requires it. Check the exact list of documents before going to the bank.
9. Chamber of Crafts and Trades and the membership fee
Registering an obrt automatically makes you a member of the Chamber of Crafts and Trades (Obrtnička komora), which means a membership fee must be paid. This cost should be taken into account when planning your business.
Registering in the VAT system
VAT registration can be mandatory or voluntary. The obligation to register arises when a taxpayer achieves taxable turnover exceeding the legally prescribed threshold of 100,000 KM. You need to monitor your turnover and submit the application to the Indirect Taxation Authority on time. If a taxpayer has not reached the threshold, they can apply for voluntary registration.
| Mandatory registration | Voluntary registration | |
|---|---|---|
| When | When taxable turnover exceeds the legally prescribed threshold of 100,000 KM | When the 100,000 KM threshold has not been reached, at the taxpayer's request |
| Who | A taxpayer who has achieved taxable turnover above the threshold | A taxpayer who has not reached the threshold |
| Duration | — | At least 60 months, i.e. five years |
| Consequence | The application must be submitted to the Indirect Taxation Authority on time | Not a short-term decision; after the period expires, an application to deregister is possible if the prescribed conditions are met |
For mandatory registration, this guide does not state a minimum duration. Voluntary registration is not a short-term decision, so it is worth discussing with an accountant before applying.
Business books for sole proprietors
Sole proprietors who pay income tax on the basis of business books must keep:
- Income and expense book (KPR) — business income and expenses taken into account when determining income.
- Turnover book (KP) — recording of the daily turnover achieved by the obrt.
- Receivables and payables records (EPO) — tracking receivables from customers and payables to suppliers.
- Fixed asset inventory list — equipment, computers, furniture and other assets; purchase value, depreciation and remaining value.
Note: sole proprietors registered as VAT payers have additional obligations to keep VAT records.
Frequently asked questions about opening an obrt
1. How much does it cost to open an obrt and what are the monthly running costs?
Start-up costs:
| Item | Approximate amount |
|---|---|
| Obtaining documents, fees and certifications | 30–50 KM |
| Municipal registration fee | about 75 KM |
| Making the stamp | about 40 KM |
| Total | approximately 130–170 KM |
Monthly costs depend on the taxation method, contributions, possible VAT, bookkeeping, fiscalisation and other obligations, so it is best to make an individual estimate before opening. Amounts are approximate and may differ.
2. How long does it take to open an obrt?
From collecting the documents to receiving the decision, being assigned the ID number and completing the other initial procedures, it takes approximately 15–30 days. The duration depends on the competent institutions and the completeness of the documentation.
3. Can I open an obrt if I am already employed?
Yes. An employed person can register an obrt as a supplementary or additional occupation, provided the legal requirements are met. For a supplementary occupation, the owner carries out the obrt personally, for a maximum of 20 hours per week. For an additional occupation, the obrt is carried out through an obrt manager who must be employed by the owner and meet the prescribed requirements.
Pensioners are not subject to the 20-hour weekly limit for a supplementary occupation.
4. Can I open an obrt if I am a student or unemployed?
An unemployed person can register an obrt if they meet the general and special requirements for the specific activity. For students, the specific status and the regulations on the activity and insurance should be checked. Full-time student status should not automatically be treated as a ban on registering an obrt without checking the applicable regulations.
5. Do I need separate business premises or can I work from home?
For certain activities, operating from residential premises is permitted. This depends on the type of activity and the conditions prescribed for it. Before registering, check whether the chosen activity can be carried out at your home address.
6. What if my obrt has no income? Do I still have to pay contributions?
If the obrt is registered as your main occupation, contribution obligations do not stop automatically just because there is no income. If you do not plan to actively run the obrt, see the answer to the next question about dormancy and closing an obrt.
7. How do I close an obrt or put it on hold?
To stop carrying out an obrt, the first step is to contact the competent municipal service. After that, you need to deregister the ID number with the tax administration and deregister the owner using form JS3100. An obrt can be put on hold by application to the municipal service, but while the suspension lasts the owner cannot register with the employment bureau, which means health insurance is not available to them.
8. Can a freelancer or IT professional work through an obrt and invoice clients abroad?
Yes, it is possible to provide services to clients abroad through an obrt. When registering the activity, the sole proprietor should mark foreign trade operations. Use a foreign currency account to receive payments from abroad.
9. Do I need an accountant or can I keep the business books myself?
A sole proprietor can keep the business books themselves if they meet their legal obligations and ensure that business events are recorded correctly and the required returns are filed. Even so, engaging an accounting agency can be more practical and safer, especially because of tax deadlines, contributions and possible penalties for irregularities.
10. How much does an accountant for an obrt cost?
The price of bookkeeping services depends on the type of activity, the number of documents, the number of employees, VAT status and the scope of work. For an exact price, it is best to request an individual quote based on the specific needs of the obrt.
Request a quote for your obrt.
11. Can I hire an employee and what are my obligations?
Yes, a sole proprietor can hire employees. The specific amount of obligations is not fixed because the minimum wage changes every year, and it also depends on contributions and the type of contract. The cost is calculated individually.
12. How does lump-sum taxation of an obrt work?
A sole proprietor who wants to pay income tax as a lump sum submits to the Tax Administration of FBiH an Application for determining the monthly lump-sum amount — form ZMP-1055. The right to a lump sum belongs to sole proprietors who carry out craft and related activities on their own, without employing other persons, and to sole proprietors who carry out old and traditional crafts, on their own or with at most two employees.
| Activity | Monthly lump sum |
|---|---|
| Craft and related activities without employees | 70 KM |
| Old and traditional crafts | 30 KM |
| Passenger transport with one vehicle | 50 KM |
| Freight transport with one vehicle with a load capacity of up to 8 tonnes | 80 KM |
| Retail trade by personal work outside a shop | 70 KM |
The lump sum is paid by the 15th of the month for the previous month.
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Note: the content is for information purposes. The amounts stated are approximate, and requirements and procedures may differ between municipalities and cantons. Before registering, check the current requirements with the competent institutions or contact us.
See also: Opening an obrt with EKOFIN · All our services · Contact and location