Types of Companies in Bosnia and Herzegovina
Updated on Friday 11th May 2018
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The Company Law of the Federation of Bosnia and Herzegovina regulates the establishment, operation, and dissolution of businesses. The registration procedure of a company in Bosnia is done in maximum five days at the Ministry of Trade. There are a number of possibilities for foreign investors to activate in this state, benefiting from a non-discriminatorily government and a well-structured organization. The most common forms of business are the unlimited joint liability company and the limited liability company.
It is a rather unusual type of company; however, it is common in Bosnia and Herzegovina. It is established by two or more partners, local or foreign and natural persons only. There is no minimum required capital and the shareholders bear unlimited liability including their personal assets.
This entity type is established by one or more domestic or foreign natural or legal entities with the initial capital divided. The minimum required capital of a limited liability company is EUR 2,000 and it is used for small to medium-sized businesses. The founders of a limited liability company are liable for the value of his or her investment in the company.
A joint stock company is not very used in Bosnia and Herzegovina, as it is a company type designated for business at a large scale. The joint stock company can be established by one or more persons or legal entities, which can be foreign or domestic. The minimum required capital of a JSC is EUR 25.000. The liability of the partners is limited to the value of their investment in the company. The open joint stock company can list its shares on the market and sell them freely to the public.
The closed joint stock company follows the same regulations as the open one, can be established by at least one member, or legal entity which can be foreign or domestic. Also the minimum required capital is EUR 25.000 and the members' liability depends on the value of their investment in the company. The main difference is that the shares of a closed joint stock company cannot be transferred freely and may not be sold to the public.
This form of business entity may be established by at least two members who can be legal entities or persons, domestic or foreign. In a limited partnership at least one member is a limited partner and cannot be involved in management decisions, instead being liable only to the extent of his or her contribution and at least one member is the general partner being in charge with the management of the company, and having unlimited liability to the extent of his or her own personal assets. In a partnership, there is no requirement for minimum or maximum initial capital.
Create an Unlimited joint liability company in Bosnia
It is a rather unusual type of company; however, it is common in Bosnia and Herzegovina. It is established by two or more partners, local or foreign and natural persons only. There is no minimum required capital and the shareholders bear unlimited liability including their personal assets.
Open a limited liability company in Bosnia
This entity type is established by one or more domestic or foreign natural or legal entities with the initial capital divided. The minimum required capital of a limited liability company is EUR 2,000 and it is used for small to medium-sized businesses. The founders of a limited liability company are liable for the value of his or her investment in the company.
Open joint stock company in Bosnia
A joint stock company is not very used in Bosnia and Herzegovina, as it is a company type designated for business at a large scale. The joint stock company can be established by one or more persons or legal entities, which can be foreign or domestic. The minimum required capital of a JSC is EUR 25.000. The liability of the partners is limited to the value of their investment in the company. The open joint stock company can list its shares on the market and sell them freely to the public.
Closed joint stock company in Bosnia
The closed joint stock company follows the same regulations as the open one, can be established by at least one member, or legal entity which can be foreign or domestic. Also the minimum required capital is EUR 25.000 and the members' liability depends on the value of their investment in the company. The main difference is that the shares of a closed joint stock company cannot be transferred freely and may not be sold to the public.
Limited partnership in Bosnia
This form of business entity may be established by at least two members who can be legal entities or persons, domestic or foreign. In a limited partnership at least one member is a limited partner and cannot be involved in management decisions, instead being liable only to the extent of his or her contribution and at least one member is the general partner being in charge with the management of the company, and having unlimited liability to the extent of his or her own personal assets. In a partnership, there is no requirement for minimum or maximum initial capital.