TUZLA CANTON Your business partner

THE CHAMBER OF ECONOMY OF TUZLA CANTON
TUZLA CANTON
TUZLA CANTON
Your Business Partner
Tuzla Canton
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Tuzla Canton is located in the north-eastern part of Bosnia and Herzegovina,
with Tuzla as administrative center.
Basic information about Tuzla Canton
Population
477.278
Area
2.649 km²
GDP per Capita
5.253 KM – 2.686 Eur
Foreign direct investment (FDI)
4.014.473 KM – 2.052.567 Eur
Number of companies (2013)
3.429
Number of crafts (2013)
10.723
Employment (2013)
80.727
Unemployment (2013)
98.956
Average monthly net salary
738 KM – 377 Eur
Export (2013)
1.045.846.000 KM
Import (2013)
1.247.897.000 KM
Why Tuzla Canton
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Natural Resource Abundance
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Favorable Geo-strategic Position
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Region with long industrial tradition
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Skilled, available and young workforce
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Well developed transportation network
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Well developed entrepreneurial infrastructure
Natural resources
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Tuzla Canton has a variety of resources on which has developed a wide range of
industrial production.
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Coal and rock salt are the two most important mineral resources in the region.
The salt-bearing is the only of its kind in Bosnia and Herzegovina, and by the
coal reserves this space is the largest energy sector of Bosnia and Herzegovina.
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Agricultural land covers 49% of the territory of the Tuzla Canton,
 over one third of the total agricultural area of the Federation of Bosnia and
Herzegovina.
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Canton also has significant hydropower. The most important water resource is the
accumulation Modrac in Lukavac, with a volume of 100 million m³ of water and
the area of 17 km². The most important waterways are rivers Spreca, Tinja and
Drinjaca.
Main economic sectors
Energy
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The region has a large capacity to produce electricity.
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TPP Tuzla –the biggest energy capacity in Bosnia and
Herzegovina
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Installed capacity - 715 MW
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Average annual generation of
electricity – 3100 GWh
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Annual coal consumption about 3.3 million tons of coal
Future projects in energy sector
Blok 7 TPP Tuzla
 Replacement cogeneration lignite
unit
 Installed capacity - 450 MW + 270
MW of thermal energy
 Annual production - 2756 GWh
 Investments in the construction of
Unit 7 - 1499.2 million KM
TPP Banovići
 The planned installed capacity 300/350 MW
 Annual production - 2047, 5 GWh.
 Investments – 1142.6 million KM
 Construction is planned for 2015 2019.
Mining
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Geological reserves of black coal in the Tuzla basin are estimated
at 316 million tons, and of lignite to about 2.66 billion tons
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(24% of the reserves of black and about 60% of the reserves of lignite
in B&H)
Annual coal production – 4.745.000 t
7500 employees
Major companies
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RMU Banovići
JP EPBiH ZD Rudnici Kreka Tuzla
JP EPBiH ZD RMU Đurđevik
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In the area of centuries of salt exploitation, estimated of industrial salt are 4.5
million tons.
Substantial reserves of other minerals: quartz sand (geological reserves of 5.8
million and exploitational 4.3 million tons), stone aggregates (technical
construction stone at the location of Srebrenik 25 million tones, magnesite,
limestone, marl and clay).
Major companies
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Rudnici Soli Tuzla
Ingram Srebrenik
Tuzla kvarc
Terakop Tuzla
Rudnik krečnjaka Vijenac Lukavac
Rudnik nemetala Kladanj
Jata Srebrenik
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Jablan Srebrenik
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Kamenolom Stupari – Tuzlaputevi doo
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Metal and electrical industry
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Manufacture of metal structures, process equipment, transport systems, repulsivetensile devices, all kinds of cranes, construction equipment, metal doors and
windows, facade elements, agricultural machinery and motor parts and lighting.
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Alfe-Mi Ltd Živinice
Helios Banovići
Deling Tuzla
Elektroremont Banovići
Unis Tok Kalesija
Elcom Tuzla
Rudar doo Tuzla
MI Fering Gračanica
Europrost Gračanica
LivElir Gračanica
Cimos – TMD Ai
Bosna Niless Lukavac
Tvornica transportnih uređaja
Tuzla (TTU)
Livnica čelika Tuzla
Elir Nikola Tesla
Chemical and non-metals industry
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Chemical industry in Tuzla Canton
has a long tradition.
Major companies
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Besides the production which is based
on salt, there are soda and coke
production.
More recently, pharmaceutical and
cosmetic industry are developing.
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Global Ispat Coke Industry Lukavac
Sisecam Soda Lukavac
Solana Tuzla
Cydonia Gračanica
Zada Pharmaceutical
Dita Tuzla
Hempro Gradačac
Limpio Tuzla
Beat BH Živinice
Construction and construction materials industry
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Construction and construction
materials industry are qualified to
implement significant contracts in
residential construction,
manufacturing and service facilities,
civil and hydraulic engineering.
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Xella BH – Ytong Tuzla
Fabrika cementa Lukavac
Vatrostalac – inženjering
Širbegović Gračanica
Tehnograd company Tuzla
Luciana Lukavac
Giprom Tuzla
GPP Banovići
Tehnograd Tuzla
Cestotehnik Tuzla
Gromex Srebrenik
Textile, Leather and Footwear industry
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production of all types of men's, women's and
children's clothing, bedding, work and protective
clothing, lingerie, tablecloths and other
confectionery products has several significant
industrial capacities in Gradacac, Gracanica, Tuzla,
Srebrenik, Doboj Istok, Kladanj, Zivinice, Kalesija
and Lukavac.
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IMK Kula Gradačac
Werkkol Kladanj
Olimp Gračanica
Kanetex Gračanica
New Export Kladanj
Rentex-com Tuzla
Kombax Lukavac
Euro Galant
Fortuna Gračanica
Ligamont Lukavac
Aida Tuzla
Agriculture and the food industry
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Tuzla Canton has 133,770 hectares of agricultural
land - 93% of arable land, rest the pastures, ponds
and reeds.
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The land is underutilized, with low effects in primary
agricultural production and own production does not
satisfy the population's needs in food.
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The food industry: milling and baking industry,
meat processing, milk processing, beer, soft drinks
and mineral water, cakes and confectionery product
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Pivara Tuzla
Menprom Tuzla
Fana Srebrenik
Corn Flips Srebrenik
AgroLife Gradačac
Pilkom Gradačac
OPG Veselčić
Vegamix Živinice
Kobens Lukavac
Bony Tuzla
Inmer Gradačac
Plant Tuzla
ZZ Gračanka
Noćko Živinice
Vegafruit
Farma Spreča
Plastics industry
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PVC + ALU products (doors, fences,
construction carpentry)
Plastic Packaging Products (garbage
bags, packaging, foils)
Products for construction, heating,
plumbing and electrical installations ...
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Alpamm Tuzla
Variplast Gračanica
Herceg Srebrenik
Plamingo Gračanica
RPC Superfos – Helioplast
Gračanica
Deplast doo Tuzla
Buscherhoff - Plastikal d.o.o.
Poly doo Tuzla
Pullcom BH Gradačac
Aluplastik Živinice
Profine Živinice
Forestry and Wood processing facilities
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Forest land covers 139,000 hectares.
 Available for the annual timber cut is 215,000 m³, of
which the 66% hardwood and 34% softwood.
 In the wood processing industry is channeled 115,000
m³, and the rest is used as fuelwood, roof supports in
mines, etc.
Wood processing business have been developed in the
field of production of kitchen, school and office
furniture, interior design, bedroom furniture, carpentry,
paper packaging, room sets, production of briquettes,
panel furniture, primary processing of wood.
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H-M-M Gradačac
Jadrina Gračanica
Malagić Živinice
Konjuh Živinice
Izazov Kalesija
Elegance Tuzla
Isowood Gračanica
Grin Gračanica
CPA Kalesija
Iverex komerc Živinice
Benf company Živinice
FEN-BH Lukavac
Prima Sofa Kalesija
Extra doo Tuzla
Solid Wood Gradačac
Trade
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During the last few years, the largest number of
established businesses is in the area of ​trade.
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Now comes to the process of consolidation,
opening a capacities with a complex supply, but
also with specialized offerings, improving the
quality of supply and service quality, and process
of transparency and competition in the market is
benefit for consumers.
International trade companies are coming to the
Canton, but also some domestic companies
becoming stronger and follow trends in trade.
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Bingo Tuzla
Omega Živinice
Piemonte Tuzla
AKM Commerce Tuzla
Drampek Tuzla (Dramar)
Tourism
Tuzla Canton Tourist Board
- Ethno Tourism
- Water tourism
- Religious tourism
- Fair tourism
- Sports tourism
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Tourist attractions:
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Accommodation:
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Husein kapetan Gradaščević Tower Gradačac
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Gradina Tower Srebrenik
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Archaeological Park - Neolithic pile settlement
in Tuzla
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Etno avlija Mačkovac
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Bosanska avlija Mala Lohinja Gračanica
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Tombstones (stećci) in Banovićima, Kladnju,
Živinicama, Kalesiji, Tuzli, Teočaku i Sapni
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Stone Spheres in Teočak
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Tourist train Ćiro
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Thermal spas Ilidža Gradačac
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Panonica lakes Tuzla
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Modrac lake Lukavac
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Rajsko lake Živinice
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Lakes Hazna i Vidara Gradačac
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Bistarac lake Lukavac
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Sniježnica lake Teočak
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Djevojačka pećina (cave) Kladanj
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Muška voda Kladanj
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Konjuh mountain
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Hotel Tuzla
Hotel Tehnograd
Motel Royal
Motel Rudar Tuzla
Pansion Miris dunja Tuzla
Golden Star hotel Tuzla
Hotel Lukavac
Hotel Senad od Bosne Lukavac
Hotel Zlača Banovići
Motel Sax Gračanica
Motel Polo Junior Kalesija
Hotel Bosna Kladanj
Motel Orion Srebrenik
Motel Gradina Srebrenik
Hotel Banja Ilidža Gradačac
Financial Services
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NLB banka dd Tuzla
Raiffeisen bank BiH
Sparkasse bank BiH
UniCredit bank BiH
Sberbank BiH
Hypo-Alpe-Adria Banka
Intesa Sanpaolo banka
Moja banka
Nova banka
Razvojna banka Federacije
BiH
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MKD Mikrofin
MKF Mi-Bospo
MKF Eki
MKF Partner
Sarajevo osiguranje
Euroherc osiguranje
Bosna Sunce osiguranje
VGT osiguranje
Transportation network
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Well developed local and regional road network
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Railway infrastructure - 187 km
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Tuzla – Doboj
Živinice – Zvornik
Brčko - Banovići
Distance to international airports with non-stop access to major European
destinations:
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Road infrastructure - 1994 km
Close to future transnational Vc corridor linking Central Europe and the Adriatic Sea
International Airport Tuzla (16 km)
Sarajevo International Airport (122 km)
Airport Nikola Tesla Belgrade (186 km)
International Airport Zagreb (340 km)
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Cross Border Orašje (B&H -Croatia) – 82 km
Cross Border Rača (B&H – Serbia) – 90 km
Port of Ploče – 303 km
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High concetration of transportation companies.
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Future projects in transportation
Regional CARGO Centar
 International Airport Tuzla (MAT)
 Activities:
 Construction of Cargo Centre
 Building Air Park
 Extending airport runway
 Building a business and logistics center
with warehouses
 Strengthening tourist agency of MAT
 Project Cost: 64 million KM
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Highway Orašje-Tuzla-Žepče
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Highway Orašje-Tuzla – 61,02 km
Highway Tuzla – Žepče (connection
to corridor Vc) – 52,13 km
Project cost:
 Highway Orašje – Tuzla 416 milion
KM
 Highway Tuzla - Žepče n/a
Transporters and Freight Forwarders
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Activ Trans Tuzla
Heroks Tuzla
Klan prevoz Gračanica
Kuna Tuzla
Transkop Tuzla
Transport Gračanica
Tuzlaprevoz Tuzla
Tuzlatransport Tuzla
Top šped Gradačac
Tomić prevoz Tuzla
Ripčetrans Srebrenik
Freight Forwarders :
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Lamišped Tuzla
Novošped Tuzla
Interšped Sarajevo
Eurošped Tuzla
D&S Tuzla
29
Fairs in Tuzla canton
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Gradačački sajam – Sajam šljive (agriculture)
Grapos – expo Gračanica (general)
Lukavački sajam turizma (tourism)
Sajam Energa Tuzla (energy)
Dani jagodičastog voća Čelić (agriculture)
Human potentials
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Population
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Tuzla Canton: 498.911 (13% of B&H population)
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70% of Tuzla canton population is age 15-64
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Labor force: cca 200.000
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Unemployed population: cca 100.000
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qualification structure:
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University degree workers 6%
High school degree workers 27%
Skilled workers (craftsmen) 36%
Unskilled workers 31%
Education:
•American University Tuzla
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University of Tuzla
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Academy of Performing Arts
Faculty of Special Education and
Rehabilitation
Faculty of Economics
Faculty of Electrical Engineering
Faculty of Physical Education and
Sport
Faculty of Pharmacy
Faculty of Philosophy
Faculty of Mechanical Engineering
Faculty of Medicine
Faculty of Law
Faculty of Science and Mathematics
Faculty of Mining, Geology and Civil
Engineering
Faculty of Technology
•International business and
informational Academy Tuzla
•Center for Adult Education
Gračanica
•The Welding Institute Tuzla
•High schools of all profiles
Starting a Business
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The Company Law of the Federation of B&H (Official Gazette of FBiH No. 23/99,
45/00, 2/02, 29/03, 68/05, 91/07, 84/08, 7/09, 63/10 and 75/13) regulate the
establishment, operation and termination of businesses in Federation of B&H.
Type of Company
Number of founders
Minimum initial capital
Unlimited Joint Liability
Company (DNO)
two or more partners, domestic
or foreign, natural persons only
None
Limited Liability
Company (DOO)
one or more domestic/foreign
natural and/or legal entities
2.000 KM (min.100 KM per
founder)
Limited Partnership (KD)
two or more domestic/foreign
natural and/or legal entities
None
Joint Stock Company
(DD)
one or more domestic/foreign
natural or legal shareholders
4.000.000 KM – open
(minimum 40 shareholders)
50.000 KM – closed
Steps for establishing a business
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1.STEP - Establishment Contract (by notary)
2.STEP - Payment of initial capital
3.STEP - Registration at the competent court (municipality/district commercial court)
4.STEP - Making a company stamp
5.STEP - Opening a bank account in a commercial bank
6.STEP - Registration of the company and staff at the Tax Administration
7.STEP - The statement of the company founder about fulfilemnt of all requirements
for starting activity (submit to the competent inspection department)
No.
Steps
Cost
1
Establishment contract/decision (notary)
BAM 300
2
Payment of basic capital at a bank
BAM 2000
3
Registration of the company at the competent court
BAM 405 (registration fee) + BAM 150 (publishing fee for
an advertisement in the Official Gazette of Federation of
Bosnia and Ferzegovina)
4
Manufacturing the stamp
BAM 20 – 50
5
Opening a bank account
No charge
6
Registration at the tax administration
No charge
7
Municipality notification
BAM 15 (administrative fee)
8
Lawer costs
BAM 600
Investment locations
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The total area of business zones in Tuzla Canton is 518.39 hectares and in
these business areas operate a total of 313 businesses.
Business zones in Tuzla Canton
City
Name
Status
Surface (ha)
Number of businesses
Tuzla
Razvojnopoduzetnička zona
Tuzla
Privredni kompleks poslovna zona
„Brnjik“
Poslovna zona „Luke“
i Poslovna zona
„Starača“
Poslovna zona
Gračanica
Industrijska zona 1 i 2
Zone in the phase of
establishment
16
-
The existing business
zones
29
3
Zone in the phase of
establishment
20 + 32
-
234
187
42,7
35
12
11
16
12
24,4
-
Čelić
Doboj Istok
Gračanica
Gradačac
Kalesija
Kladanj
The existing business
zones
The existing business
zones
Industrijska zona
The existing business
Kalesija
zones
Poslovna zona
The existing business
Kalesija Gornja
zones
Poslovna zona „Ravni Zone in the phase of
Stanovi“
establishment
Business zones in Tuzla Canton
City
Lukavac
Sapna
Srebrenik
Teočak
Živinice
Name
Status
Industrijska zona
The existing business
Lukavac
zones
Industrijsko-poslovna Zone in the phase of
zona 1 (IP 1)
establishment
„Špionica I“ Općina The existing business
Srebrenik
zones
Poslovna zona „Janja“ Zone in the phase of
establishment
Poslovna zona Maline The existing business
zones
Poslovna zona Ciljuge 2 Zone in the phase of
establishment
Poslovna zona Kasarna The existing business
Ljubače
zones
Poslovna zona Novi The existing business
grad
zones
The existing business
Poslovna zona
zones
Aerodrom Ciljuge
Surface (ha)
Number of businesses
14,4
1
2
-
30
10
0,5
-
5,5
26
9,4
0 PS
38 parcels
18,85
4
5,6
22
6,04
2
Business incubators and technology parks
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RPC Tuzla
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BIT Center Tuzla – Business innovation and technology
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74 SMEs incubated in the period 2004-2014
physical infrastructure and advisory services for SMEs, networking,
education and promotional activities
place for ICT business to grow
42 SMEs incubated since opening in 2005.
physical infrastructure and advisory services for SMEs, networking,
education and other services according to SMEs needs
MTTC d.o.o. Gračanica - Center for Advanced Tehnologies
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Technology park
Virtual tools design and virtual engineering
Tax system
Categories
Tax rate
Value Added Tax (PDV)* (lowest in the region)
17%
Corporate Income Tax* (lowest in the region)
10%
Personal Income Tax
10%
Property tax
depends on the
type
Social security contributions paid by the employer and employee
68%
Excise tax
depends on the
tariff
Corporate Income Tax
Romania
Hungary
Poland
Ukraine
Czech
16%
19%
19%
19%
19%
Croatia
Russia
B&H
10
%
20%
Personal Income Tax
B&H Czech Romania
10
%
15
%
16
%
Ukraine
17
%
Slovakia
Serbia
19%
Do
20%
20%
Slovakia
23%
Slovenia
Poland
Croatia
32%
Do
40%
Croatia
Hungary
25%
27%
Do
50%
VAT
B&H Macedonia Ukraine
17
%
18
%
20
%
Slovakia
Czech
Poland
Romania
20
%
21
%
23
%
24%
Tax benefits
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Law Corporate Income Tax
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taxpayer, who in the year for which the corporate income tax is being
determined, has achieved 30% of their total revenue by export to be
exempted from the tax payment for that year.
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The taxpayer who in the period of five consequent years invests into
production in the value of minimum 20 million BAM, on the territory of the
Federation of Bosnia and Herzegovina, is being exempted from the payment
of corporate income tax for the period of five years beginning from the first
investment year, in which minimum four million BAM must be invested.
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If the taxpayer, in the time period of five years, does not achieve the prescribed census
for investment, he loses the right of tax exemption, and the unpaid corporate income tax
is determined in accordance with the provisions of the Law on Corporate Income Tax
augmented for penalty interest payable for untimely paid public revenues.
The taxpayer who employs more than 50% of disabled persons and persons
with special needs longer than one year is being exempted from the payment
of corporate income tax for the year in which more than 50% disabled
persons and persons with special needs were employed.
Incentives for foreign investors
Law on the Policy of Foreign Direct Investments of Bosnia and Herzegovina
(Official Gazette of B&H, 17/98, 13/03 and 48/10) ensures:
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National treatment of foreign investors, i.e, foreign investors have the same
rights and obligations as residents of B&H.
Foreign investors are entitled to open accounts in any commercial bank in
domestic and/or any freely convertible currency on the territory of B&H.
Foreign investors are entitled to freely employ foreign nationals, subject to
the labor and immigration laws in B&H.
Foreign investors are protected against nationalization, expropriation,
requisition or measures having similar effects; such measures may take place
only in the public interest in accordance with the applicable laws and
regulations and against the payment of an appropriate compensation, i.e.
compensation that is adequate, effective and prompt.
Foreign investors are entitled to transfer abroad, freely and without delay, in
convertible currency, proceeds resulting from their investment in B&H
Foreign investors may own real estate in B&H. Foreign investors enjoy the
same property rights in respect to real estate as B&H legal entities.
The most important foreign investments in Tuzla canton
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Global Ispat koksna industrija Lukavac
Sisecam Soda Lukavac
Fabrika cementa Lukavac
Xella Tuzla
CIMOS - TMD Ai Gradačac
German Gourmet Dairy Zott Gradačac
Lactalis BH
Traktionssysteme Bosnia doo Tuzla
NLB banka dd Tuzla
Tuzla canton
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Government of Tuzla canton
Ministry of Agriculture, Forestry and Water
Management
Ministry of Industry, Energy and Mining
Ministry of Physical Planning and
environmental protection
Ministry of Trade, Tourism and Transport
Ministry of Development and Entrepreneurship
Ministry of Finance
Ministry of Labour, Social Affairs and return
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•Chamber of Economy of Tuzla Canton
•Chamber of Crafts of Tuzla Canton
•Tuzla Canton Tourist Board
•Northeast regional development association NERDA
•Association of Employers Tuzla Canton
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Banovići municipality
Čelić municipality
Doboj – Istok municipality
Gračanica municipality
Gradačac municipality
Kalesija municipality
Kladanj municipality
Lukavac municipality
Sapna municipality
Srebrenik municipality
Teočak municipality
Tuzla city
Živinice municipality
With current and new partners, the economy of Tuzla
Canton wants intensive business cooperation with mutual
benefits, especially through direct investments in joint
projects, industrial cooperation, privatization, opening
new markets, and knowledge and technology transfer.
THE CHAMBER OF ECONOMY OF
TUZLA CANTON
Trg slobode b.b., 75000 Tuzla
Tel. +387 35 258-260 // Fax: +387 35 258-271
komora@kpktz.ba
www.kpktz.ba