1. Advantage of Brcko District legal system and what should be changed for better

2. Emphasized legal aspects for incentive investing After signing of Dayton peace agreement, a set of laws was passed on Bosnia and Herzegovina level with goal of creation of favorable environment for foreign investments in Bosnia and Herzegovina, First of all, those are: The Law on Central bank of Bosnia and Herzegovina which founds the Central bank of Bosnia and Herzegovina whose main goal is achieving and maintaining the stability of local currency – convertible mark, The Law on Foreign Trade Policy which on a principle of free flow of goods and services to and from Bosnia and Herzegovina regulates the basic elements of export-import system and stipulates general and special conditions for performance of economic activities by the foreign natural and legal entities in BiH, The Law on Customs Policy of Bosnia and Herzegovina, The Law on Policy of direct foreign investments, passed by the High representative for BiH on February 11, 1998. This Law has created clear and incentive legal framework for providing the benefits and protection of interests of foreign investors.

3. Emphasized legal aspects for incentive investing The Law on policy of direct foreign investments provides the foreign investors the following: The foreign investors have the authority to open an account in any of the commercial banks in BiH, in local or foreign currency, The foreign investors are authorized to employ foreign workers in accordance with the Law regulating the labour relations and employment of foreigners in BiH, Foreign investments can not be nationalized, expropriated nor confiscated or submitted to other measures with similar consequences, except if it is public interest and it is in accordance with international standards, Foreign investments are exempt from customs duties and expenses, Foreign investors may acquire ownership over real estate under the same conditions as citizens of BiH and legal entities with seat in BiH, The foreign investors have the right to freely and without a delay make the transfer of profit from operations abroad.

4. Emphasized legal aspects for incentive investing Brcko District BiH is trying to create even more favorable environment for foreign investments and it has, by using its constitutional and legal position and possibility of adoption of its own laws and other regulations, already in 2000 undertaken certain measures in order to attract foreign investors. The Assembly of the Brcko District BiH has in September 2000 passed a Decision on method for use of the entity’s regulations and determined rates in area of taxes and contributions on the way that prescribed was the use of those entity regulations in area of taxation which prescribe lower tax and other rates and certain rates were lowered.

5. Emphasized legal aspects for incentive investing In 2006, the Law on incentives to economic development in Brcko District was passed and it explicitly forbids any from of discrimination of foreign investors in procedure for obtaining benefits and incentives. Existing and newly founded companies have the right on incentive for all new investments in area of Brcko District. The benefits are consisted of the following: Exemption from utility fees, court fees for registration, compensation for expenses of connection to power, water and sewage network, compensation for paid unemployment contribution of 1,5%, compensation for salary for maternity leave in amount of 100%, compensation in amount of 50% of total duties for health insurance of employees on period of three years from the moment of obtaining the benefit, compensation for amount of new investments invested in purchase of fixed assets and up to the amount of determined and paid profit tax or income tax in period of three years from the moment of registration.

6. Emphasized legal aspects for incentive investing In 2005, the Law on registration of business entities in Brcko District BiH was passed and it prescribes urgent, unified and equally applicable procedure for registration in court register for all foreign and domestic legal entities. The Law introduces mandatory electronic records of data which are entered into court register and that provides transfer of data upon official duty in case of change of seat and other benefits. The Law prescribes a possibility for registration electronically if there is a possibility to submit and verify electronic signature, as well as the registration through mail, what was not the case so far because the applications were submitted personally, at the court office. It is important to point out that this Law prescribes that obvious mistakes in typing shall not cause the delay of registration procedure and the forms will not be subject of any form of trade, what means they will be free of charge.

7. Emphasized legal aspects for incentive investing As opposed to previous legal solutions, the Registration court submits to authorized tax body the application for registration in order to obtain tax identification number. If it is foreign investor, the application for registration shall be delivered to appropriate customs administration in order to obtain customs number. The Decision is valid on entire territory of Bosnia and Herzegovina. In the registration procedure it is certainly necessary to expand principles of exclusiveness of economic operator's company on the whole area of Bosnia and Herzegovina with the aim to improve legal safety regarding protection of economic operator's company.

8. Emphasized legal aspects for incentive investing What is local procedure and what has to be approved on state level? The procedure of registration of business subjects is done with the Basic court in Brcko District BiH, while registration of foreign investments is done on state level. The court shall by official duty deliver to the authorized tax body the application in purpose of obtaining the customs number.

9. Efficiency of courts and duration of procedures Brcko District of Bosnia and Herzegovina has already in 2000 adopted reform laws from area of judicial system and that relates to reform laws on civil procedure and administrative procedure, and in 2002 Law on bankruptcy proceedings, liquidation and compulsory settlement was adopted. These three laws significantly contributed to the improvement of efficiency of judicial system and work of courts and improvement of civil, administrative and bankruptcy procedure in the District.

10. Efficiency of courts and duration of procedures New laws prescribe concentration of evidences in court procedure, provide a procedure where parties and not the court, as it was the case previously, have to prove disputable facts in the procedure. The Law on Execution procedure of Brcko District prescribes only one remedy while entity legislation recognizes two types of remedies in execution procedure – plea and appeal, what makes the execution procedure in the District faster and efficient. The Law on bankruptcy, liquidation and compulsory settlement of the District is quite simple and it proved itself in practice as very efficient. The enchantments are desirable for improvement of existing solutions in the Law on civil procedure with goal of improvement of judiciary work dynamics and further lunge in improvement of contradictory of the procedure, as well as relief to the position of trustee in the Law on execution procedure.

11. Labour legislation – acceptability of labour legislation to foreign investors Brcko District BiH has flexible and modern labour legislation The Labour Law of Brcko District BiH provides suitable standards for protection of workers rights but it does not let the employer to, with goal of modernization and other improvements of work processes, cancel unnecessary work places, to conduct mandatory prequalification and professional training as well as other measures with goal of modernization of work processes.

12. Increase of employment Brcko Districkt BiH has marked the growth trend in employment and it is also useful to mention activities of newly founded Employment agency of Brcko District BiH which in previous year successfully implemented program for incentive of employment when more than 300 persons were employed. Similar programs are also planned for this year, what is also another benefit for foreign investors in the District.

13. Concessions, privatization and disposal of public property Recently, in the District, the Law on concessions was adopted and it offers new possibilities for attraction of foreign investors. The privatization process is in its late stage and it is considered as the most successful in Bosnia and Herzegovina, exactly because of the favorable legal framework which was originally set by the orders of the Supervisor for Brcko, and this concept was confirmed by the Assembly of the Brcko District by adoption of Law on privatization in Brcko District BiH.

14. Concessions, privatization and disposal of public property The Law on public property was passed in September 2006 by the Supervisor for Brcko and it represents unified legal framework for disposal with public property and this law brings two interesting innovations: The Mayor passes the annual plan of disposal with public property and he is obliged to include in the plan for disposal every initiative of any natural or legal entity where that entity is expressing his willingness to acquire certain real estate in the District. The Law on public property provides acquisition of property with a special agreement if there is a justified public interest fro that and especially if if disposal is in interest of economic development or it creates conditions for investments what is great opportunity for foreign investors. The Decision on public interest is passed by the Assembly of the Brcko District with majority of votes of represetatives in the Assembly of the Brcko District BiH.