In September 2024, the Government of the Federation of Bosnia and Herzegovina (FBiH) adopted several legislative proposals that significantly impact business operations. These changes aim to align with European legislation and regulate key areas of the economy, particularly trade and environmental protection. With these shifts, corporate law advisory services are essential for businesses to navigate the evolving regulatory landscape and ensure compliance.

Law on Domestic Trade

One of the most important proposals is the Law on Domestic Trade, which introduces clearer rules for regulating trade and commercial services. The law brings additional regulations for merchants, with a special focus on pricing, discount approvals, and more transparent sales during price reductions. Businesses will also need to adhere to new rules on store hours, which stipulate that shops must be closed on Sundays and holidays, except for specific cases such as bakeries, gas stations, and souvenir shops. Although these changes faced public and business community criticism during the public debate phase, the final proposal of the law still includes these provisions. Whether these proposals will be adopted in their final form despite warnings from the business community about numerous negative consequences remains to be seen.

The law also addresses online sales, recognizing its growing share in total retail transactions, which is particularly important for companies operating through online platforms.

Amendments to the Nature Protection Law

The amendments to the Nature Protection Law introduce several new provisions aligned with European Union directives, including rules on preserving natural habitats, protecting wild birds, and controlling invasive species. These changes will significantly affect companies in the energy, construction, and industrial sectors operating in protected areas. The Ministry included experts from UNDP and inspectors in drafting the law, but largely excluded serious consultations with the business community. This raises a key question: to what extent will the law negatively impact businesses, and could less restrictive solutions have been found that both protect nature and allow for uninterrupted business operations?

Formation of the Interdepartmental Commission for Just Transition

The formation of this commission is especially significant for energy sector investors, as it supports projects aligned with the European Union’s Green Plan. The commission will oversee the preparation of strategic documents for the transition to renewable energy sources, as well as the closure of coal mines in the FBiH. Plans for the gradual reduction of coal usage open opportunities for new investments in projects aimed at reducing CO2 emissions and aligning with European environmental standards.

Concerns About the Legislative Process

While the new legal solutions introduced by Federation of Bosnia and Herzegovina (FBiH) government bring significant changes, our law firm again observes that regulations in Bosnia and Herzegovina are often adopted without thorough consultations with business representatives, frequently copying EU legal provisions without realistic conditions for their implementation (or to the detriment of the private sector). For this reason, a more proactive role for the Employers’ Associations and Chambers of Commerce of the entities and the Brčko District is essential in the early stages of drafting laws. They should advocate for regulations that benefit businesses to create a more favorable legislative environment for preserving and growing economic activity in Bosnia and Herzegovina.

For more information on egislative proposals visit: Vlada Federacije Bosne i Hercegovine | Utvrđen Prijedlog zakona o unutrašnjoj trgovini

For more information on IA Law Firm’s expertise and range of services in the field of coorporate law, please visit: Corporate law | IA Lawfirm