Registration of FOREX and Foreign Trade Transactions in Bosnia and Herzegovina

Comprehensive legal support in the field of FOREX and foreign trade operations in BiH, focused on the lawful registration and/or de-registration of relevant transactions before the competent administrative authorities in BiH, accompanied by related legal and tax regulatory advisory services.

FOREX operations: In BiH, FOREX operations fall within the competence of the entities and the district, each of which has its own FOREX law, by-laws, and competent administrative authorities (ministries of finance / district finance directorate, as well as tax authorities – particularly in the segment of direct taxes).

For example, credit transactions within the meaning of the relevant regulations (between residents and non-residents, etc.) cover a broader scope than traditional loans – including commercial credits (deferred payments, advances, factoring, forfaiting), financial credits and loans, bank guarantees and sureties, as well as other arrangements which, by their economic purpose, have the characteristics of credit transactions. In principle, such transactions must be duly registered or reported to the competent administrative authorities, and residents are obliged to submit reports in accordance with prescribed forms and deadlines. In practice, in addition to registration, there is also an obligation to deregister credit transactions – once a credit arrangement is completed or ceases to produce legal effects, it must be removed from the records of the competent administrative authority. Furthermore, clients are often required to obtain certificates and confirmations (e.g. tax clearance certificates confirming no outstanding liabilities), while specific rules apply to the inflow and outflow of foreign currency funds, and in certain cases prior approval of the competent administrative authority may be required. In this context, particular attention should be given to transactions such as the purchase and sale of real estate, various investment transactions, etc.

Foreign trade operations: Foreign trade policy in BiH is, in principle, regulated at the state level. However, the entities and the district also play an important role. For example, in the entity – the Federation of BiH, the competent ministry of trade receives applications from legal entities for entry into the register of entities authorized to perform foreign trade operations, together with supporting documentation, and subsequently issues a certificate of registration for conducting foreign trade operations. Furthermore, the same ministry issues permits to legal entities for the transfer of funds abroad for the purpose of establishing legal entities in foreign countries (which includes not only establishment, but also acquisition of shares, purchase and increase of capital in legal entities), and maintains its own register of issued permits. In this regard, legal entities are required to pay particular attention to the obligation to report to the said ministry all relevant changes related to the issued permits, while the competent ministry forwards such information, ex officio, to the competent ministry at the level of BiH (Decision on the conditions for obtaining approval for the transfer of funds abroad for the purpose of establishing enterprises abroad, “Official Gazette of FBiH”, no. 22/98). The previously mentioned also applies, mutatis mutandis, to the issuance of permits for the transfer of funds abroad for the purpose of establishing representative offices and business units abroad (Decision on the conditions for obtaining approval for the transfer of funds abroad for the purpose of establishing representative offices and business units abroad, “Official Gazette of FBiH”, no. 22/98).

The above-mentioned obligations (registration, deregistration, etc.) in the field of FOREX and foreign trade operations constitute legal obligations of a legal entity, and failure to comply may expose both the legal entity and its responsible person to misdemeanor sanctions, and in certain cases even criminal liability.

Our One Stop Shop approach is based on a detailed understanding of applicable regulations and legal, judicial, and inspection practice, as well as clearly structured process management. We provide clients with precise guidance regarding the content and scope of required documentation, as well as the sequence of actions, including prior verification of compliance of all elements before their implementation, whereby the identification of the required legal documents is carried out in detail in accordance with the client’s registered business activities and specific business model. This contributes to the quality and legal certainty of legal documentation, while reducing the need for subsequent corrections and minimizing the risk of disputes or actions by competent inspection authorities.

Through this approach, the client benefits from a single point of contact throughout the entire process, with clear communication, efficiency, coordinated management of all activities, and regular written updates on all initiated or completed legal actions, thereby enabling systematic and efficient project implementation while simultaneously relieving the client of organizational and administrative burdens.

Further information on our services in the aforementioned field of law is available in the explanation below.

Within this One Stop Shop, we provide, inter alia, the following services:

• legal and tax regulatory advisory and analysis of applicable regulations in the field of FOREX and foreign trade operations, as well as relevant legal, judicial, and inspection practice;
• drafting and/or alignment of legal documents (agreements, applications, forms, and supporting documentation);
• provision of oral and/or written instructions for the proper implementation and application of relevant regulations in practice;
• preparation of submissions and applications to competent administrative authorities in BiH, as well as oral and/or written communication with their officials;
• obtaining certificates, confirmations, and other official documents (including registration/de-registration of relevant transactions) from competent administrative authorities, as well as full representation of the client as required.