The Ultimate Guide to Business Setup in the Brčko District (Bosnia & Herzegovina)

A hidden gem for European entrepreneurs seeking efficiency, low taxes, and flexibility

This guide will walk you through everything you need to know before registering your company in Brčko.

When it comes to choosing the right jurisdiction for your next company, most founders look toward well-known destinations such as Estonia, Cyprus, or Dubai. Yet, a small European territory — the Brčko District of Bosnia & Herzegovina — has quietly become one of the most interesting business hubs for entrepreneurs seeking tax efficiency, international legitimacy, and minimal bureaucracy.

Empowered entrepreneurship — young professionals are redefining the business landscape in Brčko District

Why Brčko District?

Brčko District is a self-governing administrative unit within Bosnia and Herzegovina — directly under the sovereignty of the state, but with its own tax and business administration, separate from both the Federation of BiH and Republika Srpska.

What makes Brčko truly unique is its neutral legal status and its efficient business registry, which allows both local and foreign entrepreneurs to set up and operate companies under some of the most favorable conditions in the Balkans.

See key advantages

• Corporate tax rate: 10% (one of the lowest in Europe)

• Dividend tax: 0% – profit distribution is completely tax-free

• Unified administration – no bureaucratic complications as in the entities

• No double taxation between entities in the region (if structured properly)

• EU-compatible legislation, yet non-EU jurisdiction (perfect for cross-border tax planning)

• Online registration process for foreign founders

• Low maintenance costs — accounting, compliance, and payroll are among the cheapest in the region

• Access to European banking (EUR accounts, SEPA transfers, online banking)

• Ideal for remote businesses — IT, consulting, e-commerce, and service-based industries

See additional advantages

• Refunds of up to 300,000 BAM per year for investments in fixed assets

• Reduction of taxable base by the amount invested in equipment and infrastructure

• Partial refund of paid interest on business loans

• Goods in transit do not need to be imported into BiH – ideal for logistics and distribution

• Free inflow of funds from almost all countries

• A LLC (d.o.o.) in Brčko District can operate without any employees

• The authorized person/director can engage themselves under a management contract, which is not subject to taxes or social contributions

Business Types Available

Foreigners can establish several types of entities, but the most common and flexible is the Limited Liability Company (D.O.O.).

Common forms:

Type	Local Name	Ideal For
Limited Liability Company	D.O.O.	Most entrepreneurs and SMEs
Sole Proprietor	Obrt	Freelancers and small consultants
Branch Office	Podružnica	Expanding existing foreign companies

Step-by-Step Process of Company Formation

Here’s how the setup process usually goes when done through Northbridge Strategy and our local partners in Brčko:

Step 1. Name reservation and documentation

We prepare your founding documents, verify name availability, and collect the necessary details — such as ownership structure, directors, and scope of activity.

Step 2. Remote Power of Attorney (POA)

Foreign owners can authorize Northbridge or a partner law firm via notarized and apostilled Power of Attorney to complete the registration without traveling to Bosnia.

Step 3. Company registration

The company is registered with the Brčko District Business Registry, which issues an official ID number, tax number, and VAT registration (if required).

Step 4. Bank account opening

We assist in opening a multi-currency business account in a local or regional bank, fully supporting EUR, USD, GBP, and CHF.

Step 5. Accounting and compliance

Once registered, your business is assigned a dedicated accounting operator, ensuring compliance with local laws, tax submissions, and payroll.

International Tax Benefits

Brčko-based companies enjoy the lowest effective corporate tax burden in the Balkans, while maintaining full access to European markets.

With the right structure, your company can:

• Legally optimize tax exposure for income earned outside Bosnia

• Receive international payments via SEPA or SWIFT networks

• Issue invoices in EUR or USD to EU clients

• Combine with EU or Serbian entities for efficient cross-border setups

This makes Brčko particularly attractive for:

• IT consultants and developers

• E-commerce sellers

• Digital agencies and online marketers

• Remote service providers

• Holding and investment vehicles

Typical Maintenance Costs

Service	Monthly cost (approx.)
Accounting & compliance	from €200 plus 17% VAT
Virtual office (registered seat)	from €60
Annual renewal (official fees, filings)	~€250
Payroll processing (optional)	from €5 per employee

Northbridge provides all-in-one packages that include registration, accounting, tax filings, and optional bank support — allowing you to run your business remotely and fully compliant.

Why Entrepreneurs Choose Brčko (and Northbridge)

At Northbridge Strategy, we help global entrepreneurs structure their business for success — blending tax optimization, international compliance, and operational simplicity.

Our team handles:

• Company incorporation

• POA legalization and document management

• Accounting and reporting

• VAT and tax compliance

• Business banking coordination

• Ongoing advisory for cross-border transactions

With offices and partners across the region, we make the entire process fast, transparent, and reliable — without bureaucracy.

How to Get Started

Setting up your company in Brčko District is easier than you think.Simply schedule a short consultation with our team to evaluate your business goals, preferred structure, and tax implications.

Book your strategy call now

Final Thoughts

The Brčko District stands at a unique crossroads of the European and Balkan markets — combining legal stability, financial flexibility, and tax efficiency that few jurisdictions can match.

Whether you are a reexporter of goods, freelancer, digital nomad, or founder managing remote teams across Europe and world, Brčko may be the perfect home for your next company.