Bosnia and Herzegovina has several attractive economic sectors with a long tradition and presence in international markets, which offer special advantages and opportunities for doing business.
Foreign investors have recognised that infrastructure, the construction industry, the energy sector, telecommunications, and food and beverages production are attractive for investments, as are manufacturing of clothing, textile and leather goods, production and processing of metals, and production and processing of wood.
Before highlighting some of these sectors, it is important to point out that investors will benefit most from the skilled employees they will find in Bosnia. Young people, often because of their international experience and outward look to the world, have the know-how, the drive, and the imagination to develop dynamic businesses.
Universal access to education and a large number of universities in Bosnia and Herzegovina generate a skilled workforce with experience in manufacturing as well as in management. Look beyond these and you will find the wealth of creativity and innovativeness in design, communication and media, and in other professional, business and consumer services. The quality and abundance of human capital are probably the country’s biggest assets.
Bosnia and Herzegovina has the most stable macroeconomic climate in South East Europe, characterised by sustained economic growth, stable currency and low inflation. In 2005, nominal GDP reached 8.05 billion EUR. Real GDP growth was 5.5 percent, continuing the underlying trend of growth of around 5.5-6 percent.
The currency of Bosnia and Herzegovina is the konvertibilina marka / convert¬ible mark (KM), officially designated BAM. Bosnia operates a Currency Board arrangement supervised by the Central Bank of Bosnia and Herzegovina under which the currency is pegged to the Euro at a fixed exchange rate of KM1 = Euro 0.51129.
Incentives for foreign investors:
• The Federation Law on Corporate Income Tax enables the exemption of the tax for a period of 5 years equal to the percentage of foreign capital invested in the assets of the company, provided that the foreign capital is greater than 20% of total capital. This incentive includes companies with 100% foreign capital investment. In the Federation of BiH, companies, investing their taxable profits in their own production activities and apartment building are given a tax relief in the amount of 100% of the invested value or in the amount of 75% if they invest in other activities of their company.
• Free trade zones in BiH are part of the customs territory of BiH and have status of legal entity. According to the Law on Free Trade Zones, free trade zone founders may be one or more domestic and foreign legal entities registered in BiH. Free zone users do not pay taxes and contributions, with the exception of taxes and contributions related to salaries and wages. Investors are free to invest capital in the free zone, transfer their profit and retransfer capital. The free zone establishment is considered economically justified if the submitted feasibility study and other evidence can prove that the value of goods exported from a free zone will exceed at least 50% of the total value of manufactured goods leaving the free zone within the period of 12 months.
• Investment capital is exempt from paying import customs and customs duties (with the exception of passenger cars, slot and gambling machines).
• The Law on the Policy of Foreign Direct Investments of Bosnia and Herzegovina ensures national treatment of foreign investors, i.e., foreign investors have the same rights and obligations as residents of BiH.
• Foreign investors are entitled to open accounts in any commercial bank in domestic and/or any freely convertible currency on the territory of BiH.
• Foreign investors are entitled to freely employ foreign nationals, subject to the labour and immigration laws in BiH.
• Foreign investors are protected against nationalisation, 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.
• 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.
• Foreign investors may own real estate in BiH. Foreign investors enjoy the same property rights in respect to real estate as BiH citizens and legal entities.
• Foreign investors are entitled to transfer abroad, freely and without delay, in convertible currency, proceeds resulting from their investment in BiH.
Agreements on avoidance of double taxation:
Bosnia and Herzegovina has signed Agreements on avoidance of double taxation with the following countries:
Croatia Turkey Belgium Denmark Germany
Serbia and Montenegro United Kingdom Poland Slovenia China
Pakistan Cyprus Czech Republic Iran Malaysia
Norway Italy Slovak Republic Moldova
Sweden Hungary Romania United Arab Emirates
Finland Egypt France Philippines
Preferential Export Regimes
According to the preferential export regime with the European Union, all goods of BiH origin that fulfil EU technical-technological standards and conditions, can be imported to all 27 EU countries until the end of 2010 without any quantitative restriction and without paying customs and other similar duties. BiH also has preferential regimes with USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan and Canada.
Aureus Tempus is prestigious consulting firm based in Australia, providing a range of business development services to both public and private clients. Aureus Tempus experience covers a broad range of sectors including manufacturing, telecom, energy, tourism.
We have several projects in pipeline for potential investor depending on the amount of capital that they wish to invest. Aureus Tempus has obtained exclusive rights to acquire certain state run companies that will be privatized during 2007.
Our strong background in international organisations and business management combined with our knowledge of the local laws and regulations and special arrangements with some of the local municipalities and governments can be crucial in successfully establishing new business venture in Bosnia and Herzegovina.
Should you be interested in learning more about our research and ideas we will be more than happy to provide more information or arrange a meeting in United Arab Emirates with a potential investor. We would also like to invite any potential investors to come and visit Bosnia and Herzegovina with us, to personally see the full potential of the country.
We are also willing to provide finders fee for any person or company that can connect us to a potential investor either individual or company and if successful arrangement is made.
Sincerely Yours
Elsah Hrnjic
CEO
Aureus Tempus
Contact Details:
43-29 Park Road, Corrimal
Sydney, NSW
Australia
Phone: +61-2-422 971 103
Fax: +61-2-4283 8364
Email:
Let us show you few pictures from Bosnia and Herzegovina:
Enjoy
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We would like to inform our potential investors that we are currently seeking funds to open brand new café/restaurant venture located in the centre of Sarajevo, together with boutique store for ladies luxury clothing and accessories imported from Germany and Italy.
Necessary capital that needs to be raised is one (1) million Euros (approximately 1,955,000 million BAM, Convertible Mark in local currency or 4,953,000 AUR, United Arab Emirates Dirham).
High amount of capital needed is manly due to fact property we intend to purchase for café/boutique is located in the centre of Sarajevo, next to Miljacka River that flows through the city. It is a very attractive location and most visited by pedestrians/customers.
Currently property has damaged building that will need to be demolished. Location would also be extremely suitable and profitable for high-rise residential and/or commercial building. In such scenario, additional funds would be necessary.
Our planned return on investment is between 15%-25% per year with conservative figures of customers.
Please note that since capital will be foreign investment there is NO tax on any profits for 5 years.
Also Bosnia and Herzegovina has signed agreement on avoidance of double taxation with United Arab Emirates. Therefore investors can pay tax either in Bosnia and Herzegovina (which is 30% after 5 year period) and claim a compensating tax credit in United Arab Emirates (country of residence), or pay tax in United Arab Emirates and be exempt in Bosnia where profits were gained.
Please do not hesitate to contact us or leave your contact details if you might have any questions.
Sincerely Yours
Elsah Hrnjic
Aureus Tempus Bosniana Mr Hrnjic, have you ever receive any answer on this your post?