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7 Steps to Open a Craft Business

According to the Law on Crafts and Related Activities of the Federation of Bosnia and Herzegovina, "craft" is the independent and permanent performance of permitted and registered economic activities in the primary, supplementary, or additional profession, carried out by individuals with the purpose of achieving profit through production, trade, or service provision in the market. Read the entire Law HERE.

You can find out which documents are required in each service and also get insight into the cost of each item individually.

Part 1

Are You Ready?
Step 1 - Submitting an application for opening a craft business at the competent municipal office

To start the process of opening a craft business, you need to first contact the competent municipal office where you submit the required documentation, including: Professional qualifications required for the activity (professional qualifications are not required for agricultural crafts), Certificate of citizenship, Certificate of business capacity (which can be obtained from the Center for Social Work), Medical certificate, Certificate from the municipal court stating that you do not have any measures or bans on conducting a craft, and Certificate of settled tax obligations (Tax Administration).
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Note for Step 1
Note: If you are opening a craft business as a supplementary profession, you will need a certificate of employment issued by your employer, and for business or residential premises, a certified statement of compliance with minimum technical conditions is required. After submitting the application, you will receive a decision on the opening of the craft business within 7 days.
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Step 2 - MAKING A SEAL

After receiving the decision on the craft business, you need to make a seal. The seal should contain the same information as provided in the decision. The cost of making a seal is approximately 40 BAM, and the procedure takes up to 48 hours.
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Step 3 - REGISTRATION
After making the seal, there are new administrative obligations. The business owner is then required to request an ID number and a Notice of classification of the business entity according to activity codes from the Tax Administration. To apply for these documents, you need to fill out a special form, attach a copy of the decision issued by the municipal office, and a copy of your ID card. The issuance of these documents takes up to 24 hours.
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Step 4 - OPENING A TRANSACTION ACCOUNT AT THE BANK
After obtaining the documents from the Tax Administration, the next step is to open a transaction account at the bank. The documents required by banks from clients are approximately the same. You need to submit, along with the application, a certified copy of the decision on conducting the business, a certified copy of the ID number and Notice of classification of the business entity according to activity codes, a certified copy of the CIPS, and a statement that there is no account with a measure of prohibition of disposal of funds.
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Part 2

You've Finished Most of the Work
Step 5 - Employment Registration
To legalize the business of the craft, it is necessary to register the owner as an employee, unless it is a supplementary profession. The Law on the Unique System of Registration, Control, and Collection of Contributions stipulates that every employer is obliged to register employees in the unified system of the tax administration. This is done by filling out form JS 3100, which you can find by clicking HERE

In the case of a supplementary profession, the craft owner does not have to be an employee.
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Step 6 - Applying for Fiscalization
The process of fiscalization may take the longest time in the craft business registration process, and it is also the most expensive investment that the entrepreneur must make at the beginning. Applying for fiscalization is done immediately after registering employees or the owner. Initially, until the completion of the procedure for fiscalization, the craft owner can operate without a fiscal cash register. However, it represents the most significant financial expense, and for a new cash register with a warranty and ready-made software, you will pay on average between 600 and 700 BAM.
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Step 7 - REGISTRATION FOR VAT (not necessary)
After registering the craft business, the owner decides whether to register for VAT. If the annual turnover is expected to be less than 50,000 BAM, the owner is not required to register for VAT, although it can be done voluntarily. The fee for registration in this system is 15 BAM, plus additional costs for copying and notarizing documents attached to the registration form.
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The End
CONGRATULATIONS, you have collected all the necessary information!
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What are the additional costs?

If it is not a supplementary profession, the craft owner is required to pay monthly contributions and pension insurance expenses, totaling approximately 350 BAM. There are also additional monthly fees, costs of utility fees, and the purchase of a fiscal cash register if your business operates in a registered premise other than your home.

For smooth operations, it is necessary to find a good accountant who will charge around 50 BAM for smaller tasks and up to 150 BAM for larger tasks.

In some banks, there may be monthly account maintenance fees.

Your craft business can cost up to 500 BAM per month.
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