Doing Business 2018 Bosnia and Herzegovina Economy Pro le of Bosnia and Herzegovina Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Bosnia and Herzegovina Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Bosnia and Herzegovina Income Category Upper middle income 86 Population 3,516,816 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 4,880 0 100 64.20 City Covered Sarajevo DB 2018 Distance to Frontier (DTF) 0 100 76.27: Czech Republic (Rank: 30) 73.18: Montenegro (Rank: 42) 71.70: Croatia (Rank: 51) 71.33: Regional Average (Europe & Central Asia) 68.02: Greece (Rank: 67) Page 3   64.20: Bosnia and Herzegovina (Rank: 86) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Bosnia and Herzegovina Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Bosnia and Herzegovina Income Category Upper middle income 86 Population 3,516,816 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 4,880 0 100 64.20 City Covered Sarajevo DB 2018 Distance to Frontier (DTF) 0 100 76.27: Czech Republic (Rank: 30) 73.18: Montenegro (Rank: 42) 71.70: Croatia (Rank: 51) 71.33: Regional Average (Europe & Central Asia) 68.02: Greece (Rank: 67) 64.20: Bosnia and Herzegovina (Rank: 86) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Bosnia and Herzegovina 1 28 37 40 55 55 62 71 82 97 Rank 109 122 137 136 166 163 175 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Bosnia and Herzegovina 100 91.87 80 65.91 65.00 67.28 60.18 61.56 60.43 59.67 58.33 60 DTF 51.77 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.13 Change:+0.02 Change:0.00 Investors Change:+0.41 Borders Change:0.00 Change:+0.35 Change:+0.82 Permits Change:0.00 Change:0.00 Change:+2.44 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.13 Change:+0.02 Change:0.00 Investors Change:+0.41 Borders Change:0.00 Change:+0.35 Change:+0.82 Permits Change:0.00 Change:0.00 Doing Business 2018 Bosnia and Herzegovina Change:+2.44 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Bosnia and Herzegovina Standardized Company Legal form Limited Liability Company Paid-in minimum capital requirement BAM 1,000 City Covered Sarajevo Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Procedure – Men (number) 12 5.2 4.9 1.00 (New Zealand) Time – Men (days) 65 10.1 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 7.7 4.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 12 5.2 4.9 1.00 (New Zealand) Time – Women (days) 65 10.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 7.7 4.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 12.0 3.4 8.7 0.00 (113 Economies) Figure – Starting a Business in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.30: Greece (Rank: 37) 90.62: Regional Average (Europe & Central Asia) 90.07: Montenegro (Rank: 60) 87.44: Czech Republic (Rank: 81) 86.39: Croatia (Rank: 87) 65.91: Bosnia and Herzegovina (Rank: 175) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 4.5 60 4 ost (% of income per capita) 50 3.5 3 40 Time (days) 2.5 30 2 1.5 20 Page 6   1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bosnia and Herzegovina Figure – Starting a Business in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 4.5 60 4 Cost (% of income per capita) 50 3.5 3 40 Time (days) 2.5 30 2 1.5 20 1 10 0.5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Stipulate a founding act and have it notarized by a notary 1 to 5 days BAM 350 Agency : Notary's O ce The Law on Registration of Business Entities requires that the Founding Act and Statute of the Company are certi ed by the public notary. Under the Notary Tari s of Federation of BiH (O cial Gazette of Federation of BiH No. 57/13) the fees for a notary processing of the Founding Act and Statute of the Company notary depend on the value of the company's share capital as follows: 1.Fee in the amount of BAM 300 if the share capital amount does not exceed BAM 50.000; 2.Fee in the amount of BAM 350 if the share capital amount is between BAM 50.000 and BAM 100.000 and 3.If the value of the concerned legal or any other activity exceeds BAM 100.000, notary is obliged to calculate the fee (in addition to the award of BAM 350) in the amount of BAM 50 for each started BAM 100.000 but not in the amount exceeding BAM 2.000. 2 Obtain a statement from commercial bank that full amount of the 1 day no charge capital has been paid in; pay the registration fee to the budget account of the cantonal court Page 7   (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Bosnia and Herzegovina Details – Starting a Business in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Stipulate a founding act and have it notarized by a notary 1 to 5 days BAM 350 Agency : Notary's O ce The Law on Registration of Business Entities requires that the Founding Act and Statute of the Company are certi ed by the public notary. Under the Notary Tari s of Federation of BiH (O cial Gazette of Federation of BiH No. 57/13) the fees for a notary processing of the Founding Act and Statute of the Company notary depend on the value of the company's share capital as follows: 1.Fee in the amount of BAM 300 if the share capital amount does not exceed BAM 50.000; 2.Fee in the amount of BAM 350 if the share capital amount is between BAM 50.000 and BAM 100.000 and 3.If the value of the concerned legal or any other activity exceeds BAM 100.000, notary is obliged to calculate the fee (in addition to the award of BAM 350) in the amount of BAM 50 for each started BAM 100.000 but not in the amount exceeding BAM 2.000. 2 Obtain a statement from commercial bank that full amount of the 1 day no charge capital has been paid in; pay the registration fee to the budget account of the cantonal court Agency : Commercial Bank The founder should pay the amount of the capital to a temporary account at one of the local banks, to be subsequently transferred to the company transaction account after its opening. 3 Obtain the statement of tax authorities that the founders have no tax 1 day BAM 15 debts Agency : Tax bureau Statement of tax authorities is required, which con rms that the entrepreneur does not have any unpaid pecuniary nes and it costs BAM 15. 4 Court registration with Municipal Courts 10 days BAM 35 (registration Agency : Municipal Court fee) + BAM 5 (filing fee) + BAM 150 By law, regulated forms must be completed. Forms are available free of (publishing fee) charge online at the website of Municipal Court of Sarajevo (http://www.oss.ba/?jezik=bos&x=1&y=73) or alternatively can be purchased at a stationery shop or at the court (BAM 15). After the court registration of the new company, the court informs the O cial Gazette to announce the prepared notice. Companies are automatically registered for membership in the chambers of economy at the state, entity, canton, and regional levels. Since 2004, membership in the Chamber of Economy of the Federation of Bosnia and Herzegovina and the Chamber of Economy of the Republica Srpska is Page 8   Statement of tax authorities is required, which con rms that the Doing entrepreneur Business 2018does not have any Bosnia andunpaid pecuniary nes and it costs BAM 15. Herzegovina 4 Court registration with Municipal Courts 10 days BAM 35 (registration Agency : Municipal Court fee) + BAM 5 (filing fee) + BAM 150 By law, regulated forms must be completed. Forms are available free of (publishing fee) charge online at the website of Municipal Court of Sarajevo (http://www.oss.ba/?jezik=bos&x=1&y=73) or alternatively can be purchased at a stationery shop or at the court (BAM 15). After the court registration of the new company, the court informs the O cial Gazette to announce the prepared notice. Companies are automatically registered for membership in the chambers of economy at the state, entity, canton, and regional levels. Since 2004, membership in the Chamber of Economy of the Federation of Bosnia and Herzegovina and the Chamber of Economy of the Republica Srpska is voluntary. 5 Buy a company stamp 1 day BAM 40 Agency : Shops dealing with stamp making After obtaining the Court's Decision on the commencement of the business activities, new company will need to make a company stamp. The stamp must contain data identical to the data in the Decision. Depending on the desired stamp design, costs range between BAM 30 and BAM 50. 6 Obtain the Certi cate of the business premises 10 days BAM 10 Agency : Municipalities The 4 municipalities making up the City of Sarajevo have reduced the cost for this procedure to BAM 10. The Company founder goes to the municipality, lls out a request form and attaches all required documents (proof of company's court registration, statement con rming that all business premises ful ll conditions mandated by the law, and noti cation about the date when the company will start with operations) and the proof of payment of the administrative fee. Then, the time necessary to obtain the resolution on intended activities takes about 10 days. 7 Notify the commencement of the business activities to the Cantonal 1 day no charge Inspection Authority Agency : Ministry of Commerce The company submits the noti cation on commencement of business activities to the Cantonal Inspection Authority and the inspectors may subsequently make supervision in terms of ful llment of all conditions for conducting of business activities. New Law on Internal Trade (O cial Gazette of FB&H, no.40/10) is enforced. It regulates that the noti cation on commencement of business activities should be submitted by the company no later than 5 days before starting to work. The following document should be submitted: court resolution on registration in the registry, statement that the company meets all legal requirements for performing trade activities and notice of the date of commencement of work. Page 9   time necessary to obtain the resolution on intended activities takes about 10 Doing days. Business 2018 Bosnia and Herzegovina 7 Notify the commencement of the business activities to the Cantonal 1 day no charge Inspection Authority Agency : Ministry of Commerce The company submits the noti cation on commencement of business activities to the Cantonal Inspection Authority and the inspectors may subsequently make supervision in terms of ful llment of all conditions for conducting of business activities. New Law on Internal Trade (O cial Gazette of FB&H, no.40/10) is enforced. It regulates that the noti cation on commencement of business activities should be submitted by the company no later than 5 days before starting to work. The following document should be submitted: court resolution on registration in the registry, statement that the company meets all legal requirements for performing trade activities and notice of the date of commencement of work. 8 Apply for company identi cation number with the competent tax o ce 5 days no charge Agency : Tax Bureau and Federal Bureau for Statistics When ling an application for statistical and taxpayer numbers simultaneously with the competent tax authorities (according to Regulations on Obtaining ID Numbers [O cial Gazette No. 39/02]), the newly incorporated company must submit with the application form: - a photocopy of the court resolution (registration); - the contract on the lease of the business premises; - resolution of the competent municipality on the intended activities (this resolution must con rm that certain activities may be exercised at a certain address); - copy of the Director of the company's ID card; - copy of the agreement on providing the accountant services. In the application form for the ID number, it is asked to provide the information on the accountant or a company which will perform accounting activities. Newly adopted Rulebook (as published in the OG FBiH 02/10) regulates new tax registration procedures that streamlines the process for legal entities. In accordance with the new Article 8a of this Rulebook, respective court and tax administration initiate tax registration by mutual o cial correspondence and legal entities are only obliged to submit required documents (copy of court registry, 2 copies of application form including company's stamp, and copies of ID cards) after the court registration is completed. This Rulebook does not require submission of following documents (as previously requested: 1) contract on the lease of the business premises and 2) resolution of the competent municipality on the intended activities. Additionally, the company will submit an application for the classi cation based on the activities it will perform. The application form is available at Page 10   http://www.pufbih.ba/v1/public/upload/obrasci/574ca-ppl1_bs_inter2.pdf . commencement of work. Doing Business 2018 Bosnia and Herzegovina 8 Apply for company identi cation number with the competent tax o ce 5 days no charge Agency : Tax Bureau and Federal Bureau for Statistics When ling an application for statistical and taxpayer numbers simultaneously with the competent tax authorities (according to Regulations on Obtaining ID Numbers [O cial Gazette No. 39/02]), the newly incorporated company must submit with the application form: - a photocopy of the court resolution (registration); - the contract on the lease of the business premises; - resolution of the competent municipality on the intended activities (this resolution must con rm that certain activities may be exercised at a certain address); - copy of the Director of the company's ID card; - copy of the agreement on providing the accountant services. In the application form for the ID number, it is asked to provide the information on the accountant or a company which will perform accounting activities. Newly adopted Rulebook (as published in the OG FBiH 02/10) regulates new tax registration procedures that streamlines the process for legal entities. In accordance with the new Article 8a of this Rulebook, respective court and tax administration initiate tax registration by mutual o cial correspondence and legal entities are only obliged to submit required documents (copy of court registry, 2 copies of application form including company's stamp, and copies of ID cards) after the court registration is completed. This Rulebook does not require submission of following documents (as previously requested: 1) contract on the lease of the business premises and 2) resolution of the competent municipality on the intended activities. Additionally, the company will submit an application for the classi cation based on the activities it will perform. The application form is available at http://www.pufbih.ba/v1/public/upload/obrasci/574ca-ppl1_bs_inter2.pdf . Together with the application, the following documents are submitted: - two lled copies of Form PPL-1 (ID application); - photocopy of a certi cate issued by the registration authority (court, ministry); - JMBG (resident's ID number) of the director and the owner(s). 9 Open a company account with commercial bank 1 day no charge Agency : Commercial Bank According to the Article 6 of the Law on Internal Payment System "O cial Gazette of BiH", No. 48/15 / 06.24.2015. all legal entities are obliged to open transaction account within authorized organizations (banks) and use the funds on that account for their payments in accordance with the above mentioned law. Link for the legal basis: http://www.pufbih.ba/v1/public/upload/zakoni/de252-zakon-o-unutrasnjem- Page 11   platnom-prometu-sl.nov.br.48-15.pdf. JMBG (resident's Doing -Business 2018 ID number) of the Bosnia and director and the owner(s). Herzegovina 9 Open a company account with commercial bank 1 day no charge Agency : Commercial Bank According to the Article 6 of the Law on Internal Payment System "O cial Gazette of BiH", No. 48/15 / 06.24.2015. all legal entities are obliged to open transaction account within authorized organizations (banks) and use the funds on that account for their payments in accordance with the above mentioned law. Link for the legal basis: http://www.pufbih.ba/v1/public/upload/zakoni/de252-zakon-o-unutrasnjem- platnom-prometu-sl.nov.br.48-15.pdf. Due to the anti-money laundering requirements, opening account in commercial bank has to be done by the company's authorized representative in person. 10 VAT registration 30 days BAM 40 Agency : Indirect Taxation Authority Per article 57 of the Bosnia and Herzegovina Law on Value Added Tax, VAT registration is obligatory for companies whose annual supply of goods and services subject to VAT exceeds or will exceed BAM 50.000. It is necessary to submit the Request for registration into the competent VAT registry. The request is accompanied by the following documents: - Certi ed copy of the registration into the court registry; - Certi ed copy of the certi cate of registration from the Tax Administration of FB&H; - Certi ed copy of the noti cation of the Bureau for Statistics; - Certi ed copy of the Directors ID; - Certi ed copy of the card of deposited signatures from the bank in which the transaction account is opened; - Statement about the goods to be imported or exported by the rm; - Statement about the feasibility of estimated turnover and a the evidence on the realization of the same in terms of concluded business contracts; - Copy of the contract of the lease of business premises for the company seat or evidence of the ownership registered in the land registry; - Personal ID number for the responsible accountant. It is also necessary to pay the following taxes: Tax on the request for VAT registration in the amount of BAM 10; tax for issuing the Decision on registration in the VAT register in the amount of BAM 10; tax for issuing the Certi cate on registration in the VAT register in the amount of BAM 20. 11 Enroll the employees in health insurance with Health Insurance 1 day no charge Institute and in the pension insurance Agency : Tax administration According to the Article 14 of the Law on Uni ed System of Registration, Page 12   Control and Collection of Contributions (O cial Gazette of FB&H, no. 42/09 registration in the VAT register in the amount of BAM 10; tax for issuing the Doing Certi cate on Business registration 2018 in the Bosnia VAT and register in the amount of BAM 20. Herzegovina 11 Enroll the employees in health insurance with Health Insurance 1 day no charge Institute and in the pension insurance Agency : Tax administration According to the Article 14 of the Law on Uni ed System of Registration, Control and Collection of Contributions (O cial Gazette of FB&H, no. 42/09 and 109/12, as amended by "O cial Gazette of FB&H", no. 30/16), the company is obliged to register each employee at the Tax Administration one day before the commencement of work at the latest. The following document should be submitted: - court resolution on registration in the registry, - Certi cate of the Identi cation and Statistic number, - Form JS 3100. 12 Adopt and publish a rule book on matters of salary, work organization, 1 day no charge discipline, and other employee regulations. Agency : Labor Department An employer who employs more than 30 employees issues and publishes a rule book which regulates salaries, organization of work, systematization of jobs, the special conditions of employment and other issues important for the workers and the employer, in accordance with the law and collective agreement. The obligation of issuing the Rulebook is based on Article 118 of the Labour Law in the Federation of Bosnia and Herzegovina (O cial Gazette of the Federation of Bosnia and Herzegovina, number 26/16) Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage Page 13   is a legal entity. Has a licensed architect and a licensed engineer, both Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Bosnia and Herzegovina Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. Building quality control index (0-15) - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 14   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Bosnia and Herzegovina Standardized Warehouse Estimated value of warehouse BAM 418,327.60 City Covered Sarajevo Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Procedures (number) 16 16.0 12.5 7.00 (Denmark) Time (days) 193 168.3 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 17.5 4.0 1.6 0.10 (5 Economies) Building quality control index (0-15) 13.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.48: Greece (Rank: 58) 69.30: Montenegro (Rank: 78) 68.09: Regional Average (Europe & Central Asia) 63.00: Croatia (Rank: 126) 62.77: Czech Republic (Rank: 127) 51.77: Bosnia and Herzegovina (Rank: 166) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 9 8 Cost (% of warehouse value) 150 7 6 Time (days) 5 100 4 3 50 2 1 0 0 1 *2 3 4 5 *6 7 *8 9 10 11 12 * 13 14 15 16 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 15   component indicators. Doing Business 2018 Bosnia and Herzegovina Figure – Dealing with Construction Permits in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 9 8 Cost (% of warehouse value) 150 7 6 Time (days) 5 100 4 3 50 2 1 0 0 1 *2 3 4 5 *6 7 *8 9 10 11 12 * 13 14 15 16 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Bosnia and Herzegovina and comparator economies – Measure of Quality 13.5 13.0 13 12.5 Index score 12.0 12.0 12.0 12.0 12 11.4 11.5 11 10.5 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Dealing with Construction Permits in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain excerpt from the cadastre plan showing status of the land plot 1 day BAM 10 Agency : Municipality (Cadastre Department) To obtain a copy of the cadastre plan, BuildCo must submit a request form which is available at the Municipality. Due to internal reorganization and automation of the process in the Cadastre Department of the Municipality, the process can be completed in 1 day. 2 Obtain excerpt from the land registry book showing proper registration 1 day BAM 5 Agency : Municipal Court (Land Registry Department) The excerpt is available from the Land Registry Department of the Municipal Court. The company representative must take a queue number at the o ce Page 16   Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Doing Business 2018 Bosnia and Herzegovina Details – Dealing with Construction Permits in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain excerpt from the cadastre plan showing status of the land plot 1 day BAM 10 Agency : Municipality (Cadastre Department) To obtain a copy of the cadastre plan, BuildCo must submit a request form which is available at the Municipality. Due to internal reorganization and automation of the process in the Cadastre Department of the Municipality, the process can be completed in 1 day. 2 Obtain excerpt from the land registry book showing proper registration 1 day BAM 5 Agency : Municipal Court (Land Registry Department) The excerpt is available from the Land Registry Department of the Municipal Court. The company representative must take a queue number at the o ce counter in the morning and make a written or oral request. The excerpt will be provided on the same day (usually within 1 hour). 3 Obtain soil test and topographic survey of the land 14 days BAM 3,600 Agency : Private Licensed Company A private licensed company will conduct a soil test and a topographic survey of the land plot. Both of these have to be completed in order to develop the project. A soil test is a necessary step for development of the project. The soil investigation helps to determine the bearing capacity of the land, which helps to determine the load capability, the type and depth of foundation, in order to make sure to select a suitable construction technique. 4 Obtain urban planning consent 30 days BAM 30 Agency : Municipality (Urban Planning Department) BuildCo submits a request to the Municipality for an urban planning consent with the following required documents: • Reason for the request, including the project data and documentation required for the Urban Planning Department’s assessment • Program sketch • Preliminary (or rst draft) project design, two examples (or depending on the level of construction complexity, project proposal or program sketch) • General schemes for power installations, heating installations, re prevention and security systems, water supply and sewage systems • Excerpt from the cadastre plan, showing right to build and ownership of plot (not older than 6 months) • Excerpt from the land registry book, showing proper registration • Environmental consent, if requested • Other data, if requested • For insurance purposes, consent for re and explosion protection, issued by a competent company • Consent for the heating installations, issued by a competent company Once issued, the urban planning consent is e ective for one year, during which time BuildCo may submit a construction permit request. 5 Obtain preliminary veri cation of water supply and sewage system 28 days BAM 117 projects Page 17   Agency : Vodovod i Kanalizacije Once issued, the urban planning consent is e ective for one year, during Doing which 2018 may time BuildCo Business submit Bosnia a construction and Herzegovina permit request. 5 Obtain preliminary veri cation of water supply and sewage system 28 days BAM 117 projects Agency : Vodovod i Kanalizacije Once the urban planning consent is issued, BuildCo must submit the description of the main project plan to the municipal water and sewage authority (Vodovod i Kanalizacija). 6 Obtain preliminary veri cation of the study on re and explosion 4 days BAM 150 prevention Agency : Public Institute for Fire Protection BuildCo must submit electronically the description of the main project plan to the Public Institute for Fire Protection, an independent agency. 7 Obtain validation of the technical audit of the main project 5 days BAM 28,180 Agency : Auditing Entity Once the preliminary veri cation of the study on re prevention and explosion is obtained, BuildCo must undergo a technical audit, showing that the project was designed in compliance with the urban permit and the provisions of the Law on Spatial Planning. The auditing entity must have at least one engineer who passed the state exam and has 5 years of experience. The signature of an authorized auditor is required to con rm that the project has been revised in its entirety. The total fee for technical audits varies across municipalities, according to Municipal Decisions on the Fee Schedule for the Technical Audit of Construction. The above-stated fee applies to the Sarajevo Municipality. 8 Pay the rent fee and shelter construction fee at a commercial bank 1 day BAM 32,536 Agency : Municipality (Construction Department) The rent fee and shelter construction fee are paid at a commercial bank to the account of the Municipality's Urban Planning Department. 9 Apply for building permit 30 days no charge Agency : Municipality (Urban Planning Department) Once the fees are paid, the company must submit a request to the Urban Planning Department with the following documents: • Valid urban planning consent • Cadastre excerpt: land plot and proof of right to build • Proof of payment for purchase of the construction land • Proof of rent payments for the paid rent compensation • Consents obtained during the issuing of the urban planning permit • Consent for stated building; any other enclosures as requested by the authorities • Veri ed development project (two copies) and consents for the project documentations (Project Books 1 and 2, including the preliminary veri cations applied for in Procedures 4 to 7) There is no fee associated with the application. 10 Request marking out of the land plot 7 days BAM 15 Agency : Municipality (Urban Planning Department) The request for marking out the land plot must be submitted to the Municipality's Urban Planning Department with the construction permit and the urban planning consent. The municipal authorities mark out the land plot. The request fee depends on the annual municipal pricing decisions and Page 18   on the on-site assessment. An average price is BAM 15.00. Doing There is no fee Business associated 2018 Bosniawith the Herzegovina and application. 10 Request marking out of the land plot 7 days BAM 15 Agency : Municipality (Urban Planning Department) The request for marking out the land plot must be submitted to the Municipality's Urban Planning Department with the construction permit and the urban planning consent. The municipal authorities mark out the land plot. The request fee depends on the annual municipal pricing decisions and on the on-site assessment. An average price is BAM 15.00. 11 Notify the Municipality about the commencement of works 1 day no charge Agency : Municipality Once the marking out of the land plot is complete, BuildCo must notify the Municipality's Urban Planning Department of the start of construction no later than 8 days before work begins. 12 Request water and sewage connection 30 days BAM 500 Agency : Vodovod i Kanalizacije BuildCo must contact the municipal water and sewage authority (Vodovod i Kanalizacije) to obtain water and sewage connection. The request should include the preliminary veri cation and Project Books 1 and 2. Receive technical inspection from the Municipality 1 day no charge 13 Agency : Municipality (Urban Planning Department) No later than the inspection date, BuildCo must present the following documentation to the Board: • Excerpt from the Commercial Court Register, showing that BuildCo is properly registered • Details on the each work phase of the construction • Building permit (copy) • Performance reports veri ed by the designer of the main project plan to validate compliance with the main project plan as well as terms and conditions speci ed in the building permit • Construction diary and construction book • Proof of testing the quality of materials and equipment received from suppliers at the time of purchase • Construction mark-out plan and minutes on the performed mark out • Construction-site organization scheme • Decision on the appointed construction engineers and the supervisors • Cadastre plan The relevant municipal department must appoint an independent professional inspection board for a technical inspection within 15 days of receiving the duly submitted request for issuance of an occupancy permit. The number of board members appointed depends on the type and the complexity of the building; the board will consist of one professional for each type of construction work to be inspected (architectural/engineering, electrical, mechanical, water and sewage system, and so forth). 14 Request occupancy permit 30 days BAM 7,804 Agency : Municipality (Urban Planning Department) After the technical review of completed construction, BuildCo must submit a request for the occupancy permit and include the following documents: • Building permit (copy) • Cadastre plan (copy), including an exact plan of the marked nal building position Page 19   • Written statements from each contractor, stating the work has been type of construction work to be inspected (architectural/engineering, Doing electrical, Business mechanical, 2018 Bosniawater and andsewage system, and so forth). Herzegovina 14 Request occupancy permit 30 days BAM 7,804 Agency : Municipality (Urban Planning Department) After the technical review of completed construction, BuildCo must submit a request for the occupancy permit and include the following documents: • Building permit (copy) • Cadastre plan (copy), including an exact plan of the marked nal building position • Written statements from each contractor, stating the work has been properly performed according to the project design and future maintenance plans • A written report (by the construction supervisor) that all materials were of standard quality (certi ed as such by the suppliers) BuildCo submits these documents to the Urban Planning Department of the relevant municipality (the same municipal department that issued the building permit). The occupancy permit is issued upon completion of the technical inspection. It is only after the issuance of the occupancy permit that the building may be used. 15 Register the building with the Municipality's Cadastre Department 15 days BAM 180 Agency : Municipality (Cadastre Department) BuildCo must submit a request to register the building in the cadastre books at the Municipality's Cadastre Department. Along with the request, BuildCo must submit the occupancy permit, the building permit, the certi cate proving the marking out of the property construction site and other documents showing ownership over the property. During the technical review of the completed construction, the designated authority checks whether there have been any additional changes in the construction and whether the construction was built in accordance with the urban planning consent. If there were any changes, then it would be necessary to obtain a new geodetic image of the plot. Upon registration of the property in the cadastre records, the cadastre forwards an extract to the Land Registry, which will ensure that the property gets registered in the land registry books. 16 Register the building with the Land Registry Department at the District 1 day BAM 30 Court of Sarajevo Agency : Land Registry Department at the District Court Sarajevo BuildCo must submit a request to register the warehouse in the land registry books at the District Court of Sarajevo. The request form can be found in the Land Registry Department. Other required documents include: • Purchasing agreement or other document as a proof of building and land ownership • Occupancy permit • Rent and shelter fee payment certi cate BuildCo must pay BAM 60.00 for administrative expenses The Land Registry Department will register the property upon receiving the excerpt from the cadastre. Takes place simultaneously with previous procedure. Page 20   The Land Registry Department will register the property upon receiving the excerpt from the cadastre. Doing Business 2018 Bosnia and Herzegovina Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Bosnia and Herzegovina – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge; In o cial gazette. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction Page 21   Takes place simultaneously with previous procedure. Doing Business 2018 Bosnia and Herzegovina Details – Dealing with Construction Permits in Bosnia and Herzegovina – Measure of Quality Answer Score Building quality control index (0-15) 13.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge; In o cial gazette. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Page 22   Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 Liability Doing 2018 regimes and insurance Business index Bosnia and(0-2) Herzegovina 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst Page 23   time. certi cation exam. Doing Business 2018 Bosnia and Herzegovina Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 24   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Bosnia and Herzegovina Standardized Connection Price of electricity (US cents per kWh) 13.6 Name of utility JP Elektroprivreda BiH City Covered Sarajevo Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Procedures (number) 8 5.4 4.7 2 (United Arab Emirates) Time (days) 125 113.7 79.1 10 (United Arab Emirates) Cost (% of income per capita) 357.7 344.3 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 5.3 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.33: Czech Republic (Rank: 15) 76.26: Croatia (Rank: 75) 75.97: Greece (Rank: 76) 70.35: Regional Average (Europe & Central Asia) 60.18: Bosnia and Herzegovina (Rank: 122) 59.17: Montenegro (Rank: 127) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 350 120 300 100 Cost (% of income per capita) 250 80 Time (days) 200 60 150 40 100 20 Page 25   50 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bosnia and Herzegovina Figure – Getting Electricity in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 350 120 300 100 Cost (% of income per capita) 250 80 Time (days) 200 60 150 40 100 20 50 0 0 1 2 *3 4 5 6 *7 8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Bosnia and Herzegovina and comparator economies – Measure of Quality 9 8 8 7 7 6 6 Index score 5 5 5.3 5 4 3 2 1 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Getting Electricity in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain initial electric power permit from Elektroprivreda BiH 30 calendar days BAM 30 Agency : JP Elektroprivreda BiH The customer has to go to the utility and request the issuance of initial electric power permit which are basic technical conditions to check if the requested capacity is available and if there is a possible collision with existing users. Documents required are: cadastre extract, urban planning consent in certi ed copies and a rough design. 2 Request electro-energetic consent from Elektroprivreda BiH 23 calendar days BAM 50 Agency : JK Elektroprivreda BiH The customer has to request the issuance of electro-energetic consent at Page 26   Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Doing Business 2018 Bosnia and Herzegovina Details – Getting Electricity in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain initial electric power permit from Elektroprivreda BiH 30 calendar days BAM 30 Agency : JP Elektroprivreda BiH The customer has to go to the utility and request the issuance of initial electric power permit which are basic technical conditions to check if the requested capacity is available and if there is a possible collision with existing users. Documents required are: cadastre extract, urban planning consent in certi ed copies and a rough design. 2 Request electro-energetic consent from Elektroprivreda BiH 23 calendar days BAM 50 Agency : JK Elektroprivreda BiH The customer has to request the issuance of electro-energetic consent at the utility. The purpose is to specify more detailed technical conditions for the electricity connection. Documents required are: Building permit, company registration and schemes of electrical installation (project plan). . 3 Receive external site inspection by Elektroprivreda BiH 10 calendar days BAM 0 Agency : JK Elektroprivreda BiH An authorized person of the customer has to be present during the site inspection to agree with the utility on the location of the facilities (cables etc). After the site visit, the electro-energetic consent and the estimate of costs are sent to the customer. 4 Receive electro-energetic consent, submit connection application, pay 30 calendar days BAM 0 estimate and sign contract Agency : JK Elektroprivreda BiH The client has to go to the utility's main building to submit the application for connection after having received the electro-energetic consent. The client pays the estimate and signs the connection contract. 5 Await and receive external works from Elektroprivreda BiH 31 calendar days BAM 27,300 Agency : JP Elektroprivreda BiH The utility is planning and executing the external connection works. Once the works are completed, the utility will energize the connection and install the meter. The utility needs to request an excavation permit from the municipality to execute the external works. 6 Hire electrician to issue certi cate of compliance for internal wiring 8 calendar days BAM 2,550 Agency : Specialized electrician After the external connection works, the client hires a specialized electrician to issue a certi cate of compliance for the internal wiring of the warehouse. 7 Receive site visit by municipal commission 1 calendar day BAM 0 Agency : Municipality A commission for an external joint site inspection is organized by the municipality. This procedure is not applicable to low-voltage cables, but for medium-voltage cases it is required. After the site visit, the commission drafts a protocol. A cost is levied for the external connection, and the amount depends on the estimated value of the facility. The land surveyor of the municipality who is part of the commission will request the certi cate Page 27   issued by the Institute for Construction of the Canton Sarajevo proving that After the external connection works, the client hires a specialized electrician Doing to issue a certi Business 2018cate of compliance Bosnia and for the internal wiring of the warehouse. Herzegovina 7 Receive site visit by municipal commission 1 calendar day BAM 0 Agency : Municipality A commission for an external joint site inspection is organized by the municipality. This procedure is not applicable to low-voltage cables, but for medium-voltage cases it is required. After the site visit, the commission drafts a protocol. A cost is levied for the external connection, and the amount depends on the estimated value of the facility. The land surveyor of the municipality who is part of the commission will request the certi cate issued by the Institute for Construction of the Canton Sarajevo proving that the cables have been recorded in the cadaster, as well as the elaboration of implemented surveying works produced by the private land surveying company. The customer should be present during this visit. 8 Receive visit by Elektroprivreda BiH to energize the connection 3 calendar days BAM 0 Agency : JP Elektroprivreda BiH Once the works are completed and after the site visit of the commission of the municipality, an authorized person from the utility will come and energize the connection. At the same time, the meter installed by the private electrical contractor hired by the utility, will also be inspected and sealed. Takes place simultaneously with previous procedure. Details – Getting Electricity in Bosnia and Herzegovina – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 2.3 System average interruption frequency index (SAIFI) 0.6 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Page 28   Takes place simultaneously with previous procedure. Doing Business 2018 Bosnia and Herzegovina Details – Getting Electricity in Bosnia and Herzegovina – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 2.3 System average interruption frequency index (SAIFI) 0.6 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.elektropr ivreda.ba/eng/page/ price-of-electricity Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 29   What the indicators measure Case study assumptions If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Bosnia and Herzegovina Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value BAM 418,327.60 City Covered Sarajevo Page 30   Bosnia and Europe & OECD high Doing Business 2018 Bosnia and Herzegovina Standard Property Transfer Property value BAM 418,327.60 City Covered Sarajevo Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Procedures (number) 7 5.3 4.6 1.00 (4 Economies) Time (days) 24 20.4 22.3 1.00 (3 Economies) Cost (% of property value) 5.2 2.5 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 12.5 19.8 22.7 29.00 (Singapore) Figure – Registering Property in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.68: Czech Republic (Rank: 32) 76.02: Regional Average (Europe & Central Asia) 71.44: Croatia (Rank: 59) 65.76: Montenegro (Rank: 76) 61.56: Bosnia and Herzegovina (Rank: 97) 49.67: Greece (Rank: 145) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 6 20 5 Cost (% of property value) 4 15 Time (days) 3 10 2 5 1 0 0 1 *2 3 4 5 6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 31   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bosnia and Herzegovina Figure – Registering Property in Bosnia and Herzegovina – Procedure, Time and Cost Time Cost 6 20 5 Cost (% of property value) 4 15 Time (days) 3 10 2 5 1 0 0 1 *2 3 4 5 6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Bosnia and Herzegovina and comparator economies – Measure of Quality 30 25.0 25 22.5 19.8 20 17.5 15 12.5 Index Inde 10 4.5 5 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Registering Property in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the land registry extract as proof of ownership 1 day BAM 5 Agency : Municipal Court in Sarajevo (Land Registry O ce) (simultaneous with Procedure 2) The seller requests and obtains the land registry excerpt from a competent court land registry o ce as proof of ownership and to check the property against encumbrances. In practice, the excerpt must be obtained by the seller before starting the transaction formally. This information needs to be obtained in hard copy and be sealed to have legal validity. 2 Parties obtain the court extract certifying that company representatives 5 days BAM 5 (each request) are authorized to act on behalf of each company (simultaneous with + BAM 10 per page Agency : Municipal Court in Sarajevo (Companies Registry) Procedure 1) (Court Extract, about Page 32   4-5 pages each) Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Doing Business 2018 Bosnia and Herzegovina Details – Registering Property in Bosnia and Herzegovina – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the land registry extract as proof of ownership 1 day BAM 5 Agency : Municipal Court in Sarajevo (Land Registry O ce) (simultaneous with Procedure 2) The seller requests and obtains the land registry excerpt from a competent court land registry o ce as proof of ownership and to check the property against encumbrances. In practice, the excerpt must be obtained by the seller before starting the transaction formally. This information needs to be obtained in hard copy and be sealed to have legal validity. 2 Parties obtain the court extract certifying that company representatives 5 days BAM 5 (each request) are authorized to act on behalf of each company (simultaneous with + BAM 10 per page Agency : Municipal Court in Sarajevo (Companies Registry) Procedure 1) (Court Extract, about 4-5 pages each) Both the seller and the buyer submit the request for obtaining the court extract certifying the person authorized to act on behalf of each company to the court that keeps the Registry of Commercial Companies. The parties have to provide the set of registration documents, which prove that the person who will sign on behalf of the company is authorized to do it. 3 Notarization of sale-purchase agreement 1 day BAM 500 Agency : Notary Parties provide the notary with the land registry excerpt (obtained in Procedure 1) as well as with a court excerpt (obtained in Procedure 2). The presence of both parties is necessary at the notary's o ce or veri cation of the signatures should be based on a special power of notary. The notary needs to be provided with the following documents: (1) The land registry excerpt as well as the copy of the cadastre plan proving the ownership over the property; (2) The extract from the company’s court registry certifying the person is authorized to act on behalf on the company and to sign the purchase agreement; (3) The approval of the founder (i.e. the General Assembly or Supervisory Board if applicable) for selling the property in case that the value of the property exceeds the amount of 1/3 of the company’s book value. A new Notary Tari was passed on July 2013 (and replace previous one No. 71/07) and the same e ected to the decreasing of cost of notarization of sale-purchase agreement.. Thus, the notary fee depends on the value of the property and is calculated as follows: When the value of the subject of a legal transaction or other o cial action is over 100,000 BAM, notary is, besides the fee of 350,00 BAM, obliged to charge an additional fee of 50,00 BAM for every started 100.000,00 BAM in the part in which the value of the o cial action exceeds 100.000,00 BAM, but in the amount not greater than 2.000,00 BAM. 4 Submit the request for an evaluation of the property for tax purposes 1 day no cost Agency : Municipal Tax Authority This Procedure can be done by a lawyer or by the buyer and/or the seller. The documentation shall include a copy of sale contract (obtained after Procedure 3). Parties le the request for the evaluation of the real estate regarding the payment of the tax for the transfer of the ownership on real estates at the competent municipal Tax Authority. The deadline for ling the Page 33   which the value of the o cial action exceeds 100.000,00 BAM, but in the Doing amount greater than not 2018 Business andBAM. 2.000,00 Bosnia Herzegovina 4 Submit the request for an evaluation of the property for tax purposes 1 day no cost Agency : Municipal Tax Authority This Procedure can be done by a lawyer or by the buyer and/or the seller. The documentation shall include a copy of sale contract (obtained after Procedure 3). Parties le the request for the evaluation of the real estate regarding the payment of the tax for the transfer of the ownership on real estates at the competent municipal Tax Authority. The deadline for ling the request is 15 days from the veri cation of signatures on the sale agreement. 5 On-site inspection of a property 5-15 days no cost Agency : Tax O ce Commission Upon submission of the purchase agreement the tax o ce commission performs on-site inspection of the real estate and takes notes from that inspection. Based on the notes, the tax o ce adopts an o cial decision on tax duty of the tax payer (in practice it is always the buyer). 6 Payment of transfer tax at the commercial bank 1 day 5% of property value Agency : Commercial Bank (transfer tax) The transfer tax of 5% came into e ect on April 8th, 2005, following an amendment to the Law on Transfer Tax of the Real Estates and Rights as published in the O cial Gazette of Canton Sarajevo on March 31st, 2005. The transfer tax is paid, usually by the buyer, at a commercial bank in favor of the municipal budget. The tax has to be paid according to the tax authority's instructions within 15 days from receiving payment instructions from the tax authority. 7 Apply for registration at the Land Registry 3-9 days BAM 30 Agency : Municipal Court of Sarajevo (Land Registry O ce) Parties submit the application and other documentation for the transfer of the ownership to the competent court land registry o ce. Time length of the Procedure is not prescribed by the law; however, the Procedure can take less less than indicated above time frame when the party sends the urgency letter. Registry is now completely computerized and all data on companies is now stored in electronic form, so issuing of the court extract requires only printing of already stored data on concrete company. The land registry will forward information to the Cadastre. The documentation shall include: (1) Purchase agreement (2) Certi cate of tax payment Takes place simultaneously with previous procedure. Details – Registering Property in Bosnia and Herzegovina – Measure of Quality Answer Score Quality of the land administration index (0-30) 12.5 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Municipal Court Sarajevo-Land Registry O ce In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 Page 34   Takes place simultaneously with previous procedure. Doing Business 2018 Bosnia and Herzegovina Details – Registering Property in Bosnia and Herzegovina – Measure of Quality Answer Score Quality of the land administration index (0-30) 12.5 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Municipal Court Sarajevo-Land Registry O ce In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Cadastre registry (for each Municipality in Sarajevo Canton) In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of Freely accessible 1.0 immovable property registration in the largest business city? by anyone Is the list of documents that are required to complete any type of property transaction Yes, on public 0.5 made publicly available–and if so, how? boards Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available– boards and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a Yes, in person 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Page 35   Link for Doing online access: Business 2018 Bosnia and Herzegovina Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://www.fgu.c om.ba/sr/492.ht ml Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 5.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer. Page 36   property transaction (e.g., checking the compliance of contracts with requirements of the law)? Doing Business 2018 Bosnia and Herzegovina If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a The Municipal property worth 50 times gross national income (GNI) per capita and located in the Court in Sarajevo largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). Page 37   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Bosnia and Herzegovina Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Strength of legal rights index (0-12) 7 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 6 6.3 6.6 8.00 (34 Economies) Page 38   Credit registry coverage (% of adults) 41.5 22.2 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Bosnia and Herzegovina Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Strength of legal rights index (0-12) 7 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 6 6.3 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 41.5 22.2 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 12.1 42.8 63.7 100.00 (23 Economies) Figure – Getting Credit in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.00: Montenegro (Rank: 12) 70.00: Czech Republic (Rank: 42) 65.00: Bosnia and Herzegovina (Rank: 55) 64.58: Regional Average (Europe & Central Asia) 55.00: Croatia (Rank: 77) 50.00: Greece (Rank: 90) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Bosnia and Herzegovina and comparator economies 14 12 12 10 Index score 8 7 7 6.6 6 5 4 3 2 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Legal Rights in Bosnia and Herzegovina Strength of legal rights index (0-12) 7 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 39   Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Doing Business 2018 Bosnia and Herzegovina Details – Legal Rights in Bosnia and Herzegovina Strength of legal rights index (0-12) 7 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? Yes Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Bosnia and Herzegovina and comparator economies 8 7 7 6.3 6 6 6 5 Index score 4 2 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Credit Information in Bosnia and Herzegovina Page 40   0 2018 BosniaCroatia Bosnia and Herzegovina Doing Business Czech Republic and Herzegovina Greece Montenegro Europe & Central Asia Details – Credit Information in Bosnia and Herzegovina Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No Yes 1 Are both positive and negative credit data distributed? Yes Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes Yes 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0 Can banks and financial institutions access borrowers’ credit information online (for example, Yes Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 6 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 1,005,131 Number of firms 300,328 26,922 Total 300,328 1,032,053 Percentage of adult population 12.1 41.5 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 41   transactions; Available legal remedies (damages, Percentage of adult population 12.1 41.5 Doing Business 2018 Bosnia and Herzegovina Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 4.7 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 6.6 6.4 Page 42   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Bosnia and Herzegovina Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 4.7 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 6.6 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.33: Croatia (Rank: 29) 64.31: Regional Average (Europe & Central Asia) 63.33: Greece (Rank: 43) 61.67: Montenegro (Rank: 51) 58.33: Bosnia and Herzegovina (Rank: 62) 58.33: Czech Republic (Rank: 62) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Bosnia and Herzegovina and comparator economies – Measure of Quality Bosnia and Herzegovina 7 6 3 6 8 5 Croatia 7 6 5 9 8 6 Czech Republic 5 6 2 7 6 9 Greece 8 4 7 7 7 5 Montenegro 9 8 5 3 6 6 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Europe & Central Asia 7.4 4.6 7 5.5 7.2 6.8 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Bosnia and Herzegovina – Measure of Quality Answer Score Page 43   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Bosnia and Herzegovina Details – Protecting Minority Investors in Bosnia and Herzegovina – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 4.7 Extent of disclosure index (0-10) 3 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) No disclosure 0.0 obligation Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 6 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively No 0.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 5 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 1.0 the defendant relied on Can the plainti request categories of documents from the defendant without No 0.0 Page 44   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Bosnia and Herzegovina Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 1.0 the defendant relied on Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7 Extent of shareholder rights index (0-10) 8 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of No 0.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected No 0.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 6 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Page 45   Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Bosnia and Herzegovina Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 7 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 46   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Bosnia and Herzegovina Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) Post ling Index leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Payments (number per year) 33 16.5 10.9 3 (Hong Kong SAR, China) Page 47   return, but within the tax assessment period. Doing Business 2018 Bosnia and Herzegovina Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Payments (number per year) 33 16.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 411 218.4 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 23.7 33.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 47.68 65.20 83.45 99.38 (Estonia) Figure – Paying Taxes in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.26: Czech Republic (Rank: 53) 76.97: Greece (Rank: 65) 76.67: Montenegro (Rank: 70) 75.78: Regional Average (Europe & Central Asia) 70.90: Croatia (Rank: 95) 60.43: Bosnia and Herzegovina (Rank: 137) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Bosnia and Herzegovina and comparator economies – Measure of Quality 100 90.75 90 80 75.70 70.49 70 65.20 61.20 Index score 60 47.68 50 40 30 20 10 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Paying Taxes in Bosnia and Herzegovina Total tax and contribution Payments Notes on Time rate (% of Notes Tax or mandatory contribution (number) Payments (hours) Statutory tax rate Tax base profit) TTR onPage 48   Doing Business 2018 Bosnia and Herzegovina Figure – Paying Taxes in Bosnia and Herzegovina and comparator economies – Measure of Quality 100 90.75 90 80 75.70 70.49 70 65.20 61.20 Index score 60 47.68 50 40 30 20 10 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Paying Taxes in Bosnia and Herzegovina Total tax and contribution Payments Notes on Time rate (% of Notes Tax or mandatory contribution (number) Payments (hours) Statutory tax rate Tax base profit) on TTR Social security contributions 1 online 81 10.5% gross 11.84 salaries Corporate income tax 12 68 10% taxable 8.40 profits Forestry tax 5 0.07% turnover 1.24 Contribution for professional 0 jointly 25% for every average 0.92 rehabilitation and employment disabled person that net of disabled persons must have been salary in employed FBiH Local property tax 1 4 BAM per 0.46 square meter Contribution for protection 0 jointly 0.5% net 0.39 against natural and other salaries disasters Water protection 0 jointly 0.5% net 0.39 salaries Signage fee 1 200 BAM 0.02 Fuel tax 1 included 0.00 small into fuel amount price Employee paid - Social security 0 jointly 31% gross 0.00 withheld contributions salaries VAT 12 262 17% value 0.00 not added included Totals 33 411 23.7 Page 49   VAT 12 262 17% value 0.00 not Doing Business 2018 Bosnia and Herzegovina added included Totals 33 411 23.7 Details – Paying Taxes in Bosnia and Herzegovina – Tax by Type Taxes by type Answer Profit tax (% of profit) 8.4 Labor tax and contributions (% of profit) 13.5 Other taxes (% of profit) 1.7 Details – Paying Taxes in Bosnia and Herzegovina – Measure of Quality Answer Score Post ling index (0-100) 47.68 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 40.0 20 Time to obtain a VAT refund (weeks) 19.0 69.45 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 75% - 100% Time to comply with a corporate income tax audit (hours) 30.0 47.71 Time to complete a corporate income tax audit (weeks) 14.9 53.57 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, Page 50   border a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Bosnia and Herzegovina Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 51   of agriculture or industry, national security agencies and any other Doing Business 2018 Bosnia and Herzegovinagovernment authorities. Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Time to export: Border compliance (hours) 5 28.0 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 106 191.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 4 27.9 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 92 113.8 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 6 25.9 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 109 185.1 111.6 0.00 (27 Economies) Time to import: Documentary compliance 8 27.3 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 97 94.7 25.6 0.00 (30 Economies) Figure – Trading across Borders in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.72: Greece (Rank: 29) 91.87: Bosnia and Herzegovina (Rank: 37) 88.75: Montenegro (Rank: 44) 83.96: Regional Average (Europe & Central Asia) 100.00: Czech Republic (Rank: 1) 100.00: Croatia (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Bosnia and Herzegovina – Time and Cost Time Cost 9 106 109 8 8 97 92 100 7 6 80 6 Time (hours) Cost (USD) 5 5 4 60 4 3 40 2 20 1 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 52   Doing Business 2018 Bosnia and Herzegovina Figure – Trading across Borders in Bosnia and Herzegovina – Time and Cost Time Cost 9 106 109 8 8 97 92 100 7 6 80 6 Time (hours) Cost (USD) 5 5 4 60 4 3 40 2 20 1 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Bosnia and Herzegovina Characteristics Export Import Product HS 94 : Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed HS 8708: Parts furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated and accessories signs, illuminated name​plates and the like; prefabricated buildings of motor vehicles Trade partner Germany Germany Border Slavonski Brod border crossing Slavonski Brod border crossing Distance (km) 215 215 Domestic 4 4 transport time (hours) Domestic 296 296 transport cost (USD) Details – Trading across Borders in Bosnia and Herzegovina – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 4.7 70.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 2.5 36.0 Import: Clearance and inspections required by customs authorities 4.3 85.0 Import: Clearance and inspections required by agencies other than customs 0.5 0.0 Import: Port or border handling 2.9 23.5 Page 53   (USD) Doing Business 2018 Bosnia and Herzegovina Details – Trading across Borders in Bosnia and Herzegovina – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 4.7 70.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 2.5 36.0 Import: Clearance and inspections required by customs authorities 4.3 85.0 Import: Clearance and inspections required by agencies other than customs 0.5 0.0 Import: Port or border handling 2.9 23.5 Details – Trading across Borders in Bosnia and Herzegovina – Trade Documents Export Import Commercial invoice Commercial invoice Packing list EUR 1 - Certificate of origin EUR 1 - Certificate of Origin Customs import declaration Export License Certificate of quality Customs export declaration Packing list Proof of bank payment Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction Page 54   over Proof of bank payment Doing Business 2018 Bosnia and Herzegovina Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value BAM 14,957.00 Court name Sarajevo Municipal Court, Commercial Division City Covered Sarajevo Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Time (days) 595 489.9 577.8 164.00 (Singapore) Cost (% of claim value) 36.0 26.2 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 10.5 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.60: Croatia (Rank: 23) 66.75: Montenegro (Rank: 42) 65.38: Regional Average (Europe & Central Asia) Page 55   of judicial processes Quality Business Doing index (0-18) 2018 Bosnia and Herzegovina 10.5 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.60: Croatia (Rank: 23) 66.75: Montenegro (Rank: 42) 65.38: Regional Average (Europe & Central Asia) 59.67: Bosnia and Herzegovina (Rank: 71) 58.21: Czech Republic (Rank: 91) 50.19: Greece (Rank: 131) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Bosnia and Herzegovina – Time and Cost Time Cost 1800 40 36.0 1580 1600 33.8 35 Cost (% of claim value) 1400 30 26.2 25.7 1200 Time (days) 21.5 25 1000 20 800 650 15.2 14.4 595 611 577.8 15 600 489.9 545 10 400 200 5 0 0 Bosnia and Herzegovina Croatia Czech Republic Europe & Greece Montenegro OECD high income Central Asia Figure – Enforcing Contracts in Bosnia and Herzegovina and comparator economies – Measure of Quality Bosnia and Herzegovina 2 3.5 0 5 Croatia 2.5 3.5 2 5 Czech Republic 2 3 3 1.5 Greece 2.5 4.5 2 3 Montenegro 2 3.5 1 5 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 Page 56   14 Bosnia and Herzegovina Croatia Czech Republic Europe & Greece Montenegro OECD high income Central Asia Doing Business 2018 Bosnia and Herzegovina Figure – Enforcing Contracts in Bosnia and Herzegovina and comparator economies – Measure of Quality Bosnia and Herzegovina 2 3.5 0 5 Croatia 2.5 3.5 2 5 Czech Republic 2 3 3 1.5 Greece 2.5 4.5 2 3 Montenegro 2 3.5 1 5 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Bosnia and Herzegovina Indicator Time (days) 595 Filing and service 30 Trial and judgment 385 Enforcement of judgment 180 Cost (% of claim value) 36.0 Attorney fees 25 Court fees 8 Enforcement fees 3 Quality of judicial processes index (0-18) 10.5 Court structure and proceedings (-1-5) 5.0 Case management (0-6) 3.5 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.0 Details – Enforcing Contracts in Bosnia and Herzegovina – Measure of Quality Page 57   Alternative dispute resolution (0-3) 2.0 Doing Business 2018 Bosnia and Herzegovina Details – Enforcing Contracts in Bosnia and Herzegovina – Measure of Quality Answer Score Quality of judicial processes index (0-18) 10.5 Court structure and proceedings (-1-5) 5.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 3.5 1. Time standards 0.5 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? No 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 58   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Bosnia and Herzegovina 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.0 1. Arbitration 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public Yes order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 59   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Bosnia and Herzegovina Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 37.9 38.0 71.2 93.1 (Norway) Time (years) 3.3 2.3 1.7 0.4 (Ireland) Page 60   Cost (% of estate) 9.0 13.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Bosnia and Herzegovina Bosnia and Europe & OECD high Indicator Herzegovina Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 37.9 38.0 71.2 93.1 (Norway) Time (years) 3.3 2.3 1.7 0.4 (Ireland) Cost (% of estate) 9.0 13.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 15.0 10.8 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Bosnia and Herzegovina and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.69: Czech Republic (Rank: 25) 68.70: Montenegro (Rank: 37) 67.28: Bosnia and Herzegovina (Rank: 40) 55.59: Greece (Rank: 57) 55.11: Croatia (Rank: 60) 54.19: Regional Average (Europe & Central Asia) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Bosnia and Herzegovina – Time and Cost Time Cost 4 17.0 18 3.5 3.5 3.3 14.5 16 3.1 13.1 14 3 Cost (% of estate) Time (years) 2.3 12 2.5 9.0 2.1 9.0 9.1 10 2 8.0 1.7 1.4 8 1.5 6 1 4 0.5 2 0 0 Bosnia and Herzegovina Croatia Czech Republic Europe & Greece Montenegro OECD high income Central Asia Figure – Resolving Insolvency in Bosnia and Herzegovina and comparator economies – Measure of Quality Bosnia and Herzegovina 6 3 3 3 Page 61   Croatia 4 3 2 3 Bosnia and Herzegovina Croatia Czech Republic Europe & Greece Montenegro OECD high income Central Asia Doing Business 2018 Bosnia and Herzegovina Figure – Resolving Insolvency in Bosnia and Herzegovina and comparator economies – Measure of Quality Bosnia and Herzegovina 6 3 3 3 Croatia 4 3 2 3 Czech Republic 5.5 2.5 2 3 Greece 5.5 2.5 1 3 Montenegro 6 2.5 2 3 OECD high income 5.4 2.8 2.3 1.9 Europe & Central Asia 4.4 2.6 2.1 1.8 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Bosnia and Herzegovina and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 70 67.0 60 49.3 50 37.9 38.0 40 32.7 33.6 30 20 10 0 Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Details – Resolving Insolvency in Bosnia and Herzegovina Indicator Answer Explanation Proceeding foreclosure It is very likely that, based on information provided in case study assumptions, BizBank will initiate foreclosure, as Mirage can neither obtain a new loan from any other financial institution nor renegotiate its current loan with BizBank. Additionally, Mirage expects to have negative net worth and operating losses in both following years. Having these facts in mind, it is unlikely that any reorganization plan could be approved by the court. Therefore, the proceedings will be continued as foreclosure which will result with the sale of the hotel. Outcome piecemeal sale If BizBank initiates foreclosure, the hotel will be sold in order to settle the Mirages obligation toward BizBank. Time (in years) 3.3 It takes 3.3 years to finish foreclosure proceedings in Bosnia and Herzegovina. Most delays in the proceeding are due to the sale of the immovable property. Steps for sale of movable property are simpler. Generally, movable property could be sold by bankruptcy Page 62   Bosnia and Herzegovina Croatia Czech Republic Greece Montenegro Europe & Central Asia Doing Business 2018 Bosnia and Herzegovina Details – Resolving Insolvency in Bosnia and Herzegovina Indicator Answer Explanation Proceeding foreclosure It is very likely that, based on information provided in case study assumptions, BizBank will initiate foreclosure, as Mirage can neither obtain a new loan from any other financial institution nor renegotiate its current loan with BizBank. Additionally, Mirage expects to have negative net worth and operating losses in both following years. Having these facts in mind, it is unlikely that any reorganization plan could be approved by the court. Therefore, the proceedings will be continued as foreclosure which will result with the sale of the hotel. Outcome piecemeal sale If BizBank initiates foreclosure, the hotel will be sold in order to settle the Mirages obligation toward BizBank. Time (in years) 3.3 It takes 3.3 years to finish foreclosure proceedings in Bosnia and Herzegovina. Most delays in the proceeding are due to the sale of the immovable property. Steps for sale of movable property are simpler. Generally, movable property could be sold by bankruptcy administrator either directly in negotiations with the third party or at a public auction. The main steps in the foreclosure proceedings (for sale of immovable property) are: 1. assessment of the immovable property value; 2. sale of the immovable property. The sale of the property is conducted by the court. 3. payment of the price and transfer of the immovable property to the buyer. There are 3 main reasons for delay during the sale of immovable property: • the slowness of the courts that lead the sale procedure; • the complexity of the court procedure for sale of the immovable property, which slows the sale procedure. For example, the immovable property cannot be sold below 1/2 of the assessed value at the first court hearing for the sale, respectively below 1/3 of the assessed value at the second court hearing for the sale of the property. Only at the third court hearing for the sale, the immovable property might be sold without any limitations regarding the assessed value. • potential objections of the secured creditor’s claim by a third party. In this case third party initiates separate litigation proceeding where he/she proves that the creditor does not have secured claim. This litigation might take a year or more. Cost (% of 9.0 Most of the expenses will be used to pay fees. estate) Recovery rate (cents on the 37.9 dollar) Details – Resolving Insolvency in Bosnia and Herzegovina – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 15.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization Page 63   What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 dollar) Doing Business 2018 Bosnia and Herzegovina Details – Resolving Insolvency in Bosnia and Herzegovina – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 15.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 6.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 3.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Page 64   Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive Doing at least as Business much as 2018 what they Bosnia and would obtain in a liquidation? Herzegovina Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 65   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Bosnia and Herzegovina Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Bosnia and Herzegovina Answer Hiring Page 66   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Bosnia and Herzegovina Details – Labor Market Regulation in Bosnia and Herzegovina Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) 36.0 Maximum length of xed-term contracts, including renewals (months) 36.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 232.5 Ratio of minimum wage to value added per worker 0.4 Maximum length of probationary period (months) 6.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 25.0 Premium for work on weekly rest day (% of hourly pay) 15.0 Premium for overtime work (% of hourly pay) 25.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 20.0 Paid annual leave for a worker with 5 years of tenure (working days) 20.0 Paid annual leave for a worker with 10 years of tenure (working days) 20.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Page 67   Third-party Doing approval Business 2018 if nine workers Bosnia andare dismissed? Herzegovina No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? No Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 2.0 Notice period for redundancy dismissal for a worker with 5 years of tenure 2.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 2.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 2.0 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 7.2 Severance pay for redundancy dismissal for a worker with 10 years of tenure 14.4 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 7.2 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 365.0 Receive 100% of wages on maternity leave? No Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 8.0 Business Reforms in Bosnia and Herzegovina In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Bosnia and Herzegovina implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Labor Market Regulation: Bosnia and Herzegovina adopted legislation that decreased wage premiums for overtime, weekly holiday, night work, and increased minimum wage. DB2017 Starting a Business: Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited liability companies and increasing the e ciency of the notary system. Paying Taxes: Bosnia and Herzegovina made paying taxes easier by abolishing the tourist community fee. Page 68   Minimum contribution period for unemployment protection (months)? 8.0 Doing Business 2018 Bosnia and Herzegovina Business Reforms in Bosnia and Herzegovina In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Bosnia and Herzegovina implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Labor Market Regulation: Bosnia and Herzegovina adopted legislation that decreased wage premiums for overtime, weekly holiday, night work, and increased minimum wage. DB2017 Starting a Business: Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited liability companies and increasing the e ciency of the notary system. Paying Taxes: Bosnia and Herzegovina made paying taxes easier by abolishing the tourist community fee. DB2014 Paying Taxes: Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with disabilities—though it also temporarily abolished the forestry tax. DB2013 Registering Property: Bosnia and Herzegovina made it easier to transfer property between companies by computerizing the commercial registry. Getting Credit: Bosnia and Herzegovina made access to credit information more di cult by stopping the private credit bureau’s collection of credit information on individuals. Paying Taxes: Bosnia and Herzegovina eased the administrative burden of ling and paying social security contributions by implementing electronic ling and payment systems. DB2012 Starting a Business: Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple noti cation of commencement of activities and by streamlining the process for obtaining a tax identi cation number. Dealing with Construction Permits: Bosnia and Herzegovina made dealing with construction permits easier by fully digitizing and revamping its land registry and cadastre. DB2011 Registering Property: Bosnia and Herzegovina reduced delays in property registration at the land registry in Sarajevo. Paying Taxes: Bosnia and Herzegovina simpli ed its labor tax processes, reduced employer contribution rates for social security and abolished its payroll tax. DB2010 Dealing with Construction Permits: Bosnia and Herzegovina improved its construction permitting system by reducing the time needed to register a new building at the courts and land cadastre. DB2009 Dealing with Construction Permits: Bosnia and Herzegovina made dealing with construction permits easier by speeding up procedures at the cadastre and land book registry and reducing the cost of a new telephone connection. Registering Property: Bosnia and Herzegovina speeded up property registration by computerizing les at the land registry in Sarajevo. Page 69   Paying Taxes: Bosnia and Herzegovina made paying taxes easier and less costly for companies by reducing the corporate income procedures at the cadastre and land book registry and reducing the cost of a new telephone connection. Doing Business Registering Bosnia 2018Bosnia Property: and Herzegovina and Herzegovina speeded up property registration by computerizing les at the land registry in Sarajevo. Paying Taxes: Bosnia and Herzegovina made paying taxes easier and less costly for companies by reducing the corporate income tax rate, exempting pro t distributions (including dividends) from taxes and allowing tax losses to be carried forward for 5 years. Resolving Insolvency: Bosnia and Herzegovina improved the insolvency process by strengthening professional requirements for bankruptcy trustees. DB2008 Trading across Borders: Bosnia and Herzegovina made trading across borders easier by enacting a new customs law, establishing a new customs administration and implementing an electronic data interchange system. Page 70   Trading across Borders: Bosnia and Herzegovina made trading across borders easier by enacting a new customs law, establishing 2018 administration a new customs Doing Business and implementing an electronic data interchange system. Bosnia and Herzegovina Page 71