Bosnia and Herzegovina

Representative offices of foreign companies may be established in all three administrative units of Bosnia and Herzegovina.

Branches of foreign legal entities may be registered in the Federation of Bosnia and Herzegovina (FBiH) and in Republika Srpska (RS). A branch does not constitute a separate legal entity and generally represents a form of permanent establishment (PE) through which a non-resident entity conducts business activities in the respective jurisdiction.

The tax treatment of branches is not explicitly regulated in a fully harmonised manner and, in practice, largely follows the permanent establishment concept under local corporate income tax legislation. However, differences in interpretation and administrative practice may arise between jurisdictions. Accordingly, professional advice is typically required when structuring branch operations.

The legislation of the Brčko District (BD) does not currently provide for the registration of branches of foreign legal entities.