To set up a coffee shop in Bosnia and Herzegovina, decide first between an obrt (sole trader) for a small, owner‑operated cafe or a d.o.o. (LLC) for liability protection and scaling; register in the relevant entity (FBiH, Republika Srpska, or Brčko), secure a tax ID (JIB), open a BAM bank account, and notarize founding acts. Obtain the hospitality activity permit from the municipality, prove minimum technical conditions (toilet access, ventilation, potable water), pass sanitary and fire inspections, implement HACCP, and install a certified fiscal cash register linked to the tax authority. Register for VAT (17%) once turnover nears 50,000 BAM in 12 months with the Indirect Taxation Authority, publish a price list, and keep daily Z‑reports. Hire staff by concluding contracts, enrolling them with health/pension funds, arranging medical exams/sanitary booklets, and scheduling training on hygiene and allergens. For music and a terrace, obtain public performance licenses from collective rights organizations and a public space occupancy permit; plan for smoke‑free interiors and outdoor seating to satisfy local tobacco rules. Choose locations with pedestrian traffic and utility capacity; if cooking, budget a grease trap and ventilation. Typical timelines: 3–6 weeks; upfront costs: notary/registration 500–1,000 BAM, fiscal device 600–1,200 BAM, permits 200–500 BAM.
