VP Law Firm • jun 13, 2024
Federation of Bosnia and Herzegovina Legislates Entrepreneurial Infrastructure
The Federation of Bosnia and Herzegovina has enacted the Law on Entrepreneurial Infrastructure, which regulates the relevant institutional framework, Entrepreneurial Infrastructure Register, support system, and administrative oversight.
This piece of legislation, which governs the totality of local and regional initiatives to facilitate entrepreneurship created under spatial and development plans by local authorities, cantons, and the central government of the Federation, will take effect on 13 June 2024 after having been published in the Official Journal of the Federation of Bosnia and Herzegovina No. 41/24.
Legislating entrepreneurial infrastructure entails:
- Defining the various elements of entrepreneurial infrastructure (entrepreneurship zones, entrepreneurship support institutions, technology and entrepreneurship centres, and free zones);
- Categorising entrepreneurship zones, the key entities intended for the development of a robust, client-oriented entrepreneurial environment in the Federation that are provided with infrastructure and given over to commercial use in accordance with spatial planning documents;
- Giving foreign investors the same rights and obligations as Bosnia and Herzegovina nationals;
- Regulating the various aspects of entrepreneurial infrastructure (including energy, utilities, transportation, and communications);
- Establishing an Entrepreneurial Infrastructure Register, to be maintained by the Federal Ministry of Development, Entrepreneurship and Sole Proprietorship (‘Ministry’);
- Regulating an incentives programme to develop entrepreneurial infrastructure funded from the Federation budget;
- Regulating the support system for enhancing entrepreneurial infrastructure (by facilitating the attraction of domestic and foreign investment, creating a business environment conducive to smart industry, and incentivising tech and green entrepreneurship);
- Requiring existing entrepreneurial infrastructure entities to apply for registration with the Ministry within 90 days after the Law takes effect; and
- Regulating penalties for misuse of funds by beneficiaries (entrepreneurial infrastructure entities and their responsible officers).
The Law seeks to promote equal opportunities by banning all forms of discrimination, accelerate entrepreneurship development, increase investment and employment, promote growth, enhance competitiveness, and regulate financial incentives.