The largest number of companies in the Republic of Srpska falls into the category of small and medium-sized enterprises (SMEs) and most of them are organized in the form of limited liability companies, usually with the prescribed minimum share capital. The economic sector and its actors still face many difficulties and obstacles in their functioning. Unfavourable business environment is characterized by high operating costs caused by high taxes and contributions, a number of fiscal and parafiscal charges, various fees, bureaucracy, unfavorable loans, debt collection dispute, smuggling, illegal work, corruption... The aim of this paper is to analyze the effects of the reforms made in the field of business registration, such as the introduction of one-stop business registration system and the exemption from judicial and administrative fees during the first registration, as well as their impact on improving the overall business environment in the Republic of Srpska.