Bosnia and Herzegovina
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WHY BOSNIA AND HERZEGOVINA?
Bosnia and Herzegovina (“BiH”) is a nation in Southeast Europe with a diversified population and a rich cultural history. The nation has a wide range of commercial prospects, notably in the industries of tourism, agriculture, and manufacturing. The nation offers a variety of financial benefits to international companies in addition to its advantageous location and affordable labor expenses. BiH can attract companies wishing to grow into new markets if the correct strategy is taken.
It is ideally situated for companies wishing to grow into new markets since it sits at the intersection of important transport lines connecting Europe and Asia.
ADVANTAGES
Strategic Location
BiH is a center for commerce and investment in Southeast Europe since it is situated at the intersection of important transportation corridors. Via Croatia, Serbia, and Montenegro, the nation enjoys access to the Adriatic Sea.
Competitive Costs
In comparison to other European nations, BiH has comparatively cheap business costs. Because labor, utilities, and real estate are all reasonably priced, it is a desirable location for investors.
Investment Incentives
Foreign investors can take advantage of a variety of investment incentives that BiH provides, such as tax rebates, subsidies, and advantageous legal and regulatory frameworks.
Skilled Workforce
There are many university graduates in the fields of science and engineering, and the labor force is highly educated and skilled. The workforce is highly motivated and skilled in various fields and is prompt in the use of technology and operating complex machinery.
Free Trade Agreements
Free trade agreements between BiH and the European Union, the United States, and other nations in the area facilitate economic transactions and the export of goods.
Access to Markets
Via its free trade agreements, BiH has access to more than 650 million consumers, making it a desirable location for businesses wishing to grow their operations.
Natural Resources
Natural resources in abundance in BiH, such as lumber, coal, and minerals, offer potential for businesses in the industrial and energy industries.
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SIMPLE TAX REGIME
Corporate Tax
A corporate tax, also called corporation tax or company tax, is a type of direct tax levied on the income or capital of corporations and other similar legal entities. The tax is usually imposed at the national level, but it may also be imposed at state or local levels in some countries. Basic corporate tax rate- 30%
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Personal Income Tax
A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term progressive refers to the way the tax rate progresses from low to high, with the result that a taxpayer’s average tax rate is less than the person’s marginal tax rate. Progressive tax rate (9%-35%).
VAT
A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. VAT rate- 21%
Stamp tax
Stamp duty is a tax that is levied on single property purchases or documents. A physical revenue stamp had to be attached to or impressed upon the document to show that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp. Stamp tax- 1%
ARGENTINA COMPANIES
Corporation- minimum capital required- AR $100,000
- The corporation is managed by a board of directors (who may also be shareholders).
- They may be appointed for a fixed term not exceeding three fiscal years. In case of a plural BOD, they must appoint a chairman and a vice-chairman in their first meeting to replace the chairman in case of absence or impediment. The chairman is the legal representative of the company, and the BOD must meet at least once every three months. The bylaws must regulate the constitution and operation of the board of directors. The quorum may not be less than the absolute majority of its members.
LLP- should be adequate for developing company’s purpose
- It is managed by one or more managers (who may also be partners). They may be appointed for a fixed term or indefinitely. Customarily, managers are appointed through the bylaws for a limited term. The number of managers may be as low as one and may increase or decrease from time to time. The administration and representation of the company corresponds to one or more managers. If the management is plural, the contract may establish the functions that each manager is responsible for in the administration or impose joint or collegiate administration. In the case of silence, it is understood that all managers are legal representatives and can act on behalf of the company
Branch of a foreign company- not mandatory to allocate capital
The foreign branch in Argentina is not considered a separate legal entity, but an extension of the overseas parent company. Setting up a branch is ideal for companies who wish to establish a limited business presence in the company before making a larger investment commitment. Liability of the foreign branch rests entirely on the parent company. If the foreign branch has a permanent establishment in Argentina, then profits are liable to the Argentine Corporation tax.
The foreign branch in Argentina is not considered a separate legal entity, but an extension of the overseas parent company. Setting up a branch is ideal for companies who wish to establish a limited business presence in the company before making a larger investment commitment. Liability of the foreign branch rests entirely on the parent company. If the foreign branch has a permanent establishment in Argentina, then profits are liable to the Argentine Corporation tax.
Branch of a foreign company- not mandatory to allocate capital
Bosnia and Herzegovina (“BiH”) is a nation in Southeast Europe with a diversified population and a rich cultural history. The nation has a wide range of commercial prospects, notably in the industries of tourism, agriculture, and manufacturing. The nation offers a variety of financial benefits to international companies in addition to its advantageous location and affordable labor expenses. BiH can attract companies wishing to grow into new markets if the correct strategy is taken.
Author: Chandrawat & Partners
Topic: Doing Business in Bosnia and Herzegovina
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