Legal forms of business
As previous announced, this article is about first steps on foundation of company in Bosnia and Herzegovina.
This section includes general information regarding the foundation of a company in Bosnia- Herzegovina, which comprises the following:
- legal framework
- legal forms of company
- Foundation act and Articles of Association of company
- business activities of company
- branch office of company
- bodies of company
- procurer of company
- termination of a company
First of all, it is necessary to indicate that Bosnia-Herzegovina is a complex state divided into two Entities and one District:
- The entity of the Federation of Bosnia-Herzegovina
- The entity of the Republika Srpska
- Brčko District of Bosnia-Herzegovina
Foundation, operation, management and termination of a business company in Bosnia-Herzegovina is regulated at the level of entities of Federation of Bosnia-Herzegovina and Republika Srpska, that is, by the Law on Business Companies of the Federation of Bosnia-Herzegovina (Official Gazette of the Federation of Bosnia-Herzegovina nº 23/1999, 45/00, 2/02, 6/02, 29/03, 68/05, 91/07, 84/08, 88/08, 07/09 and 63/10) and the Law on Business Companies of the Republika Srpska (Official Gazette nº 127/2008 and 58/2009). The procedures and adoption of decisions of the competent courts is governed by the Framework Law on Registration of Business Entities of Bosnia-Herzegovina (Official Gazette of Bosnia-Herzegovina nº 42/04), and the entity Law on Registration of Business Entities of the Federation of Bosnia-Herzegovina adopted in accordance with the mentioned Law (Official Gazette of the Federation of Bosnia-Herzegovina nº 27/05, 68/05 and 43/09) and the Law on Registration of Business Entities of the Republika Srpska (Official Gazette of the Republika Srpska nº 42/05).
Legal forms of business
In accordance above mentioned legislation, a company may be established by domestic and foreign natural and legal persons, unless otherwise provided by the law. A company may be organized in one of the following forms:
- general partnership
- limited partnership
- joint stock company
- limited liability company
In practice, a limited liability company is the most common form for the business activities in our country and all further information are related to this type of foundation.