A small farm shop in Republika Srpska: what the Law on Trade requires

The Republika Srpska Law on Trade sets out who may run a shop, what the premises must be like and what may be sold without registration. It concerns family farms, small producers and hospitality businesses that want to open a shop next to their farm or hospitality premises.

Selling at a market and selling your own produce without registration are covered in the articles on selling at a green market and on direct sale of your own farm produce. This text covers only the conditions for a shop.

In short

• Companies and sole traders registered for trade may carry out trade (Article 13). A sole trader may start work once the municipal or city administration issues the registration decision, and a company once it is registered with the competent court (Article 18).
• Reselling bought-in goods is trade. You need a registered trade activity and documents showing where the goods came from (invoice, delivery note).
• A registered agricultural holding may sell fruit, vegetables and other produce from its own production without registering a business, but at a market (Article 81). The law does not say this clearly for a permanent shop on the farm, so ask the market inspector before you open.
• The premises must meet building, urban planning, sanitary and fire-safety rules. The occupancy permit decision is the proof (Article 15).
• Fine for trading without registration: sole trader 1,000 to 5,000 KM, company 3,000 to 15,000 KM, private person 800 to 4,000 KM (Article 117).

Who it applies to

The law applies to companies and sole traders in trade. It also applies the trader's duties to companies and sole traders registered for production when they sell their own products, and to registered farms when they sell their farm produce on the market (Article 13, paragraph 3). So a producer who sells only their own products must still follow the rules on premises, prices and labels below.

What to do

1. Decide what you will sell. Article 81 speaks of fruit, vegetables and other farm produce from your own production on the holding. Ask the market inspector whether this includes processed products. Processing has its own rules (see the articles on cheese, rakija and honey). Bought-in goods are outside the exemption.
2. If you will also sell bought-in goods, register as a sole trader with the municipal administration (the city administration in Trebinje) and register retail trade as your activity. A company registers with the competent court (Article 18). If you are already registered for production and sell only your own products, ask the registration office whether the shop also needs retail trade added to your registration. Steps and costs are in the article on registering a sole trader or company.
3. Check the premises. They must be built in line with the regulations and have an occupancy permit. Food sold unpackaged or processed is also subject to food regulations, described in separate articles.
4. Display the business name exactly as registered and the type of shop, for example a classic or specialised shop (Article 25).
5. Post the opening hours (Article 27). Shop hours are set by the municipal or city assembly, so you must keep to the hours fixed in your municipality (Article 26).
6. Goods must carry a product declaration in one of the languages in official use, and the selling price must be shown as the final price including tax (Articles 89 and 90). Issue a fiscal receipt or another proper receipt for every sale (Article 95). Who is exempt from fiscal cash registers is in the article on fiscalisation; complaints and the complaints book are in the article on consumer protection.
7. Keep a trade book at every sales point and record purchases and sales of goods in it (Article 97). This duty does not apply to farms and private persons selling under Article 81 (Article 97, paragraph 8).
8. Sales staff must have at least completed secondary school. They must wear uniform work clothing and a visible tag with their name and surname (Articles 16 and 17). The law defines sales staff as people employed by the trader (Article 9). If the owner does the selling, ask the market inspector how these rules apply.
9. Alcohol and tobacco must not be sold to anyone under 18, and a notice of this ban must be displayed at the point of sale (Article 28).
10. Free tastings are allowed in the shop or in front of it, if a sign marks them as tastings (Article 30, paragraph 5).

Penalties and inspection

Supervision is done by the Republička uprava za inspekcijske poslove (Republic Administration for Inspection Affairs) through the republic market inspector and the market inspectors in municipalities and cities (Article 110). An inspector can order irregularities to be corrected, ban trading until they are corrected, and temporarily seize goods that have no documents of origin or are sold by an unregistered person (Articles 111 and 112). A shop run by an unregistered person can be temporarily closed and sealed (Article 114).

Deadlines and amounts

• Trading without the required registration (Article 117): company 3,000 to 15,000 KM, sole trader 1,000 to 5,000 KM, private person 800 to 4,000 KM.
• Breaches such as premises and equipment, secondary school for sales staff, business name, keeping to the opening hours, selling alcohol or tobacco to minors, declaration, prices and the trade book (Article 119): company 1,000 to 5,000 KM, sole trader 300 to 1,500 KM.
• Lesser breaches, for example staff work clothing, shop type or opening hours not posted, no notice of the ban on sales to minors, or no receipt issued (Article 120): company 800 to 4,000 KM, sole trader 200 to 1,000 KM.
• A private person who sells farm produce at a market contrary to Article 81: 150 to 800 KM (Article 121).

Where to go

• The municipal or city administration, department for business or registration of activities: the sole-trader registration decision and the opening hours that apply in your municipality.
• The market inspector in the municipal or city administration, or the Republička uprava za inspekcijske poslove: to check whether your premises and range of goods meet the conditions and whether a farm shop needs a registration.
• Ministarstvo trgovine i turizma Republike Srpske (Ministry of Trade and Tourism of Republika Srpska). The minister sets the minimum technical conditions for shops and the types of shop in a rulebook (Article 38, paragraph 3). Before fitting out the space, ask the ministry for the current text of the rulebook and the technical conditions for your premises.

Laws and sources

• Law on Trade (Službeni glasnik Republike Srpske br. 105/19)