INVESTMENT GUIDE 2015 THE SARAJEVO CANTON - GREAT PLACE TO WORK AND ENJOY LIFE Bosnia and Herzegovina / Federation of Bosnia and Herzegovina The Sarajevo Canton Ministry of Economy INVESTMENT GUIDE 2015 THE SARAJEVO CANTON - GREAT PLACE TO WORK AND ENJOY LIFE Introduction This investment guide in the Sarajevo Canton is desi­ Sarajevo, a cosmopolitan metropolis at the heart of Eu­ gned to provide current information to all who want to rope, is known for its rich cultural heritage and extra­ invest in the Canton, but also to business people and ordinary beauty. It is a dynamic business hub between institutions that provide support to potential investors. East and West, the city is open to all people of good will, the city of life and prosperity which has always On the following pages, we have presented basic facts won over people not only as a tourist destination, but and information about the Sarajevo Canton, why and also as a prestigious place for living. It is the city of the how to invest in the Canton, the benefits of investing, International Film Festival, events such as the Sarajevo the potential for investment, business zones, economic Winter Nights of Baščaršija, the Sarajevo Days of Poetry, indicators, opportunities for business development and Jazz festival, international sports events... investment, as well as an overview of the institutions, which provide information for investing in the Sarajevo We invite investors from all over the world to come to Canton. Bosnia and Herzegovina, to its largest market open for investment in all commercial and industrial sectors - The Sarajevo Canton is the most developed Canton of the Sarajevo Canton. Welcome to the Canton, which the Federation of Bosnia (FB&H) and Herzegovina, a provides economic, cultural and social attractiveness, significant area of concentration of economic potential development and quality of life for all citizens. (educated labor force, employment) and very profitable activities (financial services, transport and communica­ The Ministry of Economy of the Sarajevo Canton, at full tions, industry, tourism, trade). Sarajevo is an adminis­ capacity, is available to domestic and foreign investors, trative-political, economic, financial, educational and and those who want to become one, in order to work scientific- research, culture, health center, an Olympic together on active support of the local economy for city and the seat of the most important international sustainable economic development of the community institutions and organizations operating in B&H. An and beyond. international jury consisting of representatives of the Muharem Šabić, PhD, Minister European Parliament, the Council of Europe and the Eu­ ropean Commission have chosen Sarajevo Canton for the European Region in 2006. Any time is a good time to start a business in the Sarajevo . Canton Table of Content I ADMINISTRATIVE STRUCTURE OF BOSNIA AND HERZEGOVINA 12 II THE SARAJEVO CANTON 14 01. Government organization in the Sarajevo Canton 26 02. Resources and business sectors in the Sarajevo Canton 27 03. Places to visit in the Sarajevo Canton 32 III LEGAL FRAMEWORK FOR INVESTMENT 39 01. Why, who, how and in which way to invest? 39 02. How to establish a company in the Sarajevo Canton and how to invest without establishing a company 44 03. Public and private sector partnership in the Sarajevo Canton 46 IV ALLOCATION PROCEDURE OF LAND AND PERMITS FOR CONSTRUCTION 47 01. Land regulation and approval for construction 47 02. The right of ownership and right for use the construction land 52 03. Allocation of the town construction land 53 04. Allocation of the town construction land, issuing urban permit, approval for construction, use permits and registration of ownership right 54 05. The rights of foreign investors regarding disposal of construction land 54 V FISCAL FRAMEWORK OF BUSINESS SECTOR 55 01. Customs 55 02. Taxations 57 VI INVESTMENT BENEFITS 59 VII PUBLIC UTILITIES RATES FOR LEGAL ENTITIES IN THE SARAJEVO CANTON 61 VIII AGREEMENTS IN FORCE IN B&H 66 01. The Stabilisation and Association Agreement 66 02. Agreement on Free Trade 66 03. Agreements on Avoidance of Double Taxation 66 04. EFTA 67 05. Agreement on Promotion and Mutual Protection of Investments 67 IX INVESTMENT OPPORTUNITIES - INDUSTRIAL ZONES, FREE ZONES 68 X CONTACTS OF RELEVANT INSTITUTIONS AND ORGANISATIONS 102 BETTER PROSPEROUS LIFE FUTURE For a better life tomorrow, decide today. The most developed Canton in FB&H The wealth of unpolluted natural resources The Sarajevo Canton - European region in 2006 Sarajevo named as 43rd the best city to live in the world (Lonely Planet 2006) In 2009 Lonely Planet Travel Guide ranked Sarajevo among the top 10 cities in the world worth visit In April 2011 "Eurotrip" ranked Sarajevo, Venice, Amsterdam, Granada and Berlin among the five most unique cities in Eu­ rope. According to the "Eurotrip", Sarajevo is a dynamic and realistic city where cultures and religions are firmly connected as a source of strength and unity The National Geographic ranked B&H in the top ten destinations in 2012 - in addition to the world's destination for rafting, hiking, skiing and other sports, B&H was chosen for its the best mountain biking trails The Sarajevo International Airport was declared the best European airport in its category (up to 1 million passengers) in 2005 Sarajevo - Olympic city in1984 10 The largest educational center in B&H (state, private and foreign educational institutions) In 2011 Educational Planning and Assessment System (EPAS), Webometrics Ranking positioned the Faculty of Economics to the 390th place out of 1000 World Universities Highly educated professionals and skilled labor force Events - Internacional Teater Festival, Festival of Small and Experimental Scences Sarajevo (MESS), the Sarajevo Winter, the Baščaršija Nights, Sarajevo Film Festival, the Sarajevo Days of Poetry, the Jazz Festival ... The Academy Award, Golden Bear etc., which were awarded to the film products of the young people of Sarajevo, who promoted the city and the country to the top of the industry in Europe and the world ... 11 Favorable conditions for rural development Industrial tradition Developed manufacturing and crafts Safe environment, proximity to markets (neighbouring countries and EU countries) Attractive policy concessions Law on the Public-Private Partnership Possible economic cooperation with foreign partners in projects of the area of: food and beverage, textile industry, wood processing and wood products, automotive industry, metal processing, industry of chemical and pharmaceutical products, energy efficiency and renewable energy, banking and financial sector, tourism (cultural and historical tourism, mountain tourism, congress tourism, health, religious tourism), construction and design, transport and communications, information and communication tech­ nologies... 12 ADMINISTRATIVE STRUCTURE OF BOSNIA AND HERZEGOVINA Bosnia and Herzegovina is located in southeastern The Federation of Bosnia and Herzegovina Europe, in the central part of the Balkan Peninsula. consists of ten cantons (administratively divided into For centuries, it has been a multicultural country with municipalities): the Unsko-sanski, Posavski, diverse landscapes and centuries of history, the area Tuzlanski, Zeničko-dobojski, Bosansko-podrinjski, Sre- where the different cultures and people from around dnjobosanski, Herzegovačko-neretvanski, Zapadno- the world met and got to know each other, do business hercegovački, the Sarajevo Canton and Canton 10. and exchange ideas. The way of living in Bosnia and Herzegovina is deeply woven into tradition, rich with The Republic of Srpska is administratively divided into its cultural and historical heritage and natural beauty. regions (Banja Luka, Doboj, Bijeljina, Pale and Trebinje), and the regions are further divided into municipalities. Bosnia and Herzegovina consists of two entities: the Fe­ deration of Bosnia and Herzegovina and the Republic of Srpska and Brčko District. J FEDERACIJA BIH ] I.Unsko-sanshikanton ] 2. Posavski kantor I 3. Tuzlanski karton I 4. Zeničko-dobojski kanton I &. Bosansko-podrinjski kanton 1 6. Sređnjobosanski kanton ] T. Hercegovačko-neretvarskI kanton ] 8. Zapadno-hercegovacki kanton ‘ i. Kanton Sarajevo ■ 10. Livanjski kanton EU REPUBLIKA SRPSKA I DISTRIKT BRČKO Image 1. Map of Bosnia and Herzegovina with drawn entity line Image 2. Cantons in the Federation of Bosnia and Herzegovina (http://bs.wikipedia.org) (http://www.euraxess.ba/bs/?sec=14) 13 Official name: Bosnia and Herzegovina (abbreviated as B&H) Capital city: Sarajevo South Eastern Europe, borders with Croatia Geographic (932km), Serbia (312km) and Montenegro The official languages are Bosnian, Croatian and Location: (215km). Serbian. English is widely used language. The currency Other major cities Banja Luka, B&Hać, Mostar,Tuzla, Zenica of Bosnia and Herzegovina is Konvertibilna Marka (KM). in B&H: The Currency code is BAM. The BAM exchange rate is di­ Area: 51.209 km2 rectly linked to the EUR, and the exchange rate is 1 BAM Population: 3.8 million Islam (44%), Orthodox Christians (32%), Roman = 0.511293 EUR, or 1 EUR is 1.955830 BAM. The BAM Religions: Catholic (17%), other (7%) exchange rate is fixed and has not changed in relation Ethnic Groups: Bosniaks, Serbs, Croat and others to the EUR. The Central Bank of Bosnia and Herzegovi­ Official languages: Bosnian, Serbian and Croatian na, which manages the monetary policy through the Administrative Two entities (Federation of B&H and Republic