The biggest obstacle to foreign investment in Bosnia-Herzegovina is the complex institutional structure. In fact, the territory of the country is divided into three entities:
- Federation of Bosnia and Herzegovina;
- Serbian Republic of Bosnia and Herzegovina;
- District of Brcko.
The political and administrative structure very articulate created high barriers to foreign investment and fostered a business environment lacking transparency.
The discipline that provides direct investment rule for foreign investors the same rights to invest and reinvest the profits of their investments in all sectors of the economy in the same form and under the same conditions of residents in Bosnia-Herzegovina.
The law provides several incentives for foreign investment, for example, exemption from payment of customs duties and taxes on investment, the ability to open bank accounts in local currency or in any freely convertible currency, the right to transfer abroad profits products investment, protection against nationalization, expropriation, requisition, and similar measures, the right to freely employ foreign workers.
Bosnia and Herzegovina is party to various agreements that have led to the opening of the country to international trade and foreign investment as the agreement with Turkey, the 'free trade agreement with the countries of South Eastern Europe and the agreement of free trade-center euroepo (CEFTA), which was ratified in September 2007. In addition, with the signing of Stabilization and Association with the European Union was a further step toward opening the country and abroad toward reform. The legislation on
zones provides a range of concessions to foreign investors, with the main objective to promote the economic development of the country. In Bosnia-Herzegovina, there are four operational zones: Vogošac, Visoko, Mostar, Slobomir.
Many Italian companies are already operating in Bosnia-Herzegovina, especially through outward processing in areas such as woodworking, manufacturing of shoes, packs and clothing, metalworking
Source: ICE
Links:
www.mfa.gov.ba
www.dei.gov.ba
www.fipa.gov.ba
www.komorabih.com
www.komorars.ba
www.kfbih.com
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