Country Profile

Official name: Bosnia and Herzegovina (BiH)
Area:  51, 209, 2 km2 (51, 197 km2 land, 12, 2 km2 sea)
Population: 3.5 million
Age structure:  0-14 years: 15.3% , 15-64 years: 70.3%,  65 years and over: 14.2%

GDP:  14.6 milijardi EUR (2015)
GDP per capita: 3,821 EUR  (2015)
Currency: Konvertibilna Marka (BAM – official; KM – common use)
Exchange rate: 1 EUR = KM 1,95 (fixed exchange rate)
Tax jurisdictions: There are two main tax jurisdictions in BiH: the Federation of BiH (FBiH), with 10 cantons, and the Republika Srpska (RS).
Latitude/longitude: 44 N, 18 E
Time zone: CET (GMT + 1 hour)
Internet domain:  .ba
Int. telephone code:  +387

Population growth rate: -0.0023% (2015 est.)
Capital city: Sarajevo
Other major cities: Banja Luka, Bihac, Mostar, Tuzla, Zenica
Religions: Muslim (50,7%), Orthodox Christian (30,74%), Roman Catholic (15,18 %), Others (3,35%)
Ethnic groups: Bosniaks, Serbs, Croats and others
Languages: Bosnian, Serbian, Croatian (all official)
Administrative organization: BiH comprises of two entities: the Federation of BiH and Republika Srpska. Formally part of both entities is the Brčko District, a multi-ethnic self-governing administrative unit.
Government structure: BiH is a parliamentary democracy with a bicameral parliament (House of Representatives and House of Peoples), a three-member rotating presidency, a Council of Ministers, and Constitutional Court.

Legal Framework on Foreign Investment

The legal framework for foreign investment in BiH is structured in such manner that it makes no difference between domestic and foreign investment. When a foreign investor establishes or participates in the establishment of a company in BiH, it acquires rights and assuming the obligations under the same conditions and has the same status as domestic investors. 
Foreign investments in BiH is regulated by three laws:
  1. The BiH state Law on the Policy of Foreign Direct Investment regulates the basic policies and principles of the participation of foreign investors in the economy of BiH.
  2. The entity’s laws on Foreign Investment (Law on Foreign Investment of the Federation of BiH and Law on Foreign Investments of RS) regulate rights, obligations and benefits of foreign investors, forms of foreign investments, procedures of approval registration of foreign investments and determine bodies competent for approval of registration of foreign investments.
Forms of foreign investments according to the laws:
  • Establishment of a legal entity fully owned by a foreign investor;
  • Establishment of legal entity with joint venture;
  • Investment in the existing legal entity;
  • Special forms of investments

Restrictions on foreign direct investments in BiH

According to the Law on the Policy of Foreign Direct Investment in BiH, foreign equity ownership of business entity engaged in the production and sale of arms, ammunition, explosives for the military use, military equipment and media shall not exceed 49% of the equity in that business entity.
In case of investing in the above-mentioned sectors, foreign investor must obtain prior approval from the competent body of the respective entity. The entity Government may decide, if it deems justified, that the share of foreign entity for certain enterprises engaged in the production and sale of arms, ammunition, explosives for military use, military equipment is not subject to the above restriction.
Restrictions applicable to domestic investment on account of public policy (l’order public), public health and protection of the environment are equally applied to foreign investment.

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