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Doing Business in Bosnia Herzegovina
 
 
 

General

The Company Law of the Federation of Bosnia & Herzegovina (Official Gazette of FBiH No. 23/99, 45/00, 2/02, 6/02, 29/03, 68/05, 91/07 i 84/08) and the Company Law of Republic of Srpska (Official Gazette of RS No. 127/08) regulate the establishment, operation and termination of businesses in Bosnia & Herzegovina.

The court registration procedure of establishing a business takes 5 days and the registration at the Ministry of Trade and Economic Relations of Bosnia & Herzegovina takes 10 days, according to the law (due to technical difficulties the complete procedure in practice may take up to 30-45 days).

The common forms of business organisation found in Bosnia & Herzegovina are Unlimited Joint Liability Company (d.n.o.); Limited Partnership (k.d.); Limited Liability Company (d.o.o.) and Joint-stock company (d.d.).

Forms of Business Organisation

Federation of Bosnia & Herzegovina

Unlimited Joint Liability Company (d.n.o.)
Founded by the establishment contract of two or more partners, domestic or foreign, natural persons only. Founders are liable to use all their assets, including personal property. There are no requirements for minimum or maximum contributions.

Limited Liability Company (d.o.o.)
Founded by the establishment act or establishment contact by one or more domestic/foreign natural and/or legal entities with initial capital divided in a parts. A member in a limited company is liable for the value of his/her investment in that company. Minimum initial capital is BAM 2,000.

Limited Partnership (k.d.)
Company founded by the establishment contact of two or more domestic/foreign natural and/or legal entities. There must be at least one partner with full liability (including private property) and at least one partner with limited liability, the liability being limited by the value of his share in that company. There are no requirements for minimum or maximum initial capital.

Joint-Stock Company (d.d.)
Legal entities founded by the establishment contract of one or more domestic/foreign natural or legal shareholders with initial capital divided into shares. Open joint-stock company is a legal entity (banks and insurance companies or company with minimum initial capital of BAM 4,000,000, and 40 shareholders at least) whose shares may be publicly listed. Closed joint-stock company is a legal entity, whose shares are distributed among a limited number of shareholders. The minimum initial capital is BAM 50,000.

Republic of Srpska

Unlimited Joint Liability Company (d.n.o.)
Founded by the establishment act of two or more domestic/foreign natural and/or legal partners who commit to do certain activity under the same company name, with their own unlimited solidary liability for company commitments. There are no requirements for minimum or maximum contributions.

Limited Liability Company (d.o.o.)
Founded by the establishment act of one to hundred domestic/foreign natural and/or legal entities. A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the value of his/her investment in that company. Minimum initial capital is BAM 2,000.


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