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EuropeSoutheast EuropeBA

Bosnia and Herzegovina

AI Agent Legal Status: undefined · Autonomy: undefined

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3Score /10

Legal Framework

Bosnia and Herzegovina is not an EU member and has no specific AI legislation. The country has a complex governmental structure with two entities (Federation of BiH and Republika Srpska) with separate regulatory regimes.

Key Laws & Regulations

  • Law on Personal Data Protection
  • Company Law (varies by entity)

Business Formation

DOO is the standard entity. Company formation requires navigating the relevant entity's (Federation or Republika Srpska) regulations. The dual-entity structure adds complexity.

Tax Implications

Corporate tax rate is 10% in both entities. Relatively straightforward flat tax system despite the complex governmental structure.

Opportunities

Low tax rate and operational costs. Growing IT services sector with competent engineering talent. Low competition for AI market presence.

Highlights

10% flat corporate tax rate. Low operational costs. Growing IT outsourcing sector.

Risks & Challenges

Complex dual-entity governmental structure adds regulatory complexity. No AI framework. Limited technology infrastructure. Political fragmentation. Not an EU member or candidate.