Drafting constitutional documents

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The Law envisages several forms of companies that may be incorporated with the purpose of performing various business activities. According to the FBiH Companies Act, possible business organisations are: companies with unlimited solidary liability, limited partnerships, joint stock companies and limited liability companies.

Limited liability companies are the most common business organisation (abbreviation: LLC; abbreviation in local language: d.o.o.).

Each member of the limited liability company has a share in the company’s capital and is liable for the operations of the company only up to the amount of his or her share. Founder may be a single or several domestic or foreign private individuals or legal persons. LLCs are founded on the basis of Articles of Incorporation that must be created before incorporation.

Constitutional documents, regardless of the type of the company, must be prepared thoroughly and comply with all relevel regulations.

Articles of Incorporation is the very first step in the procedure, called Decision on Incorporation, if an LLC is founded by one entity only and Contract on Incorporation, if an LLC is founded by more than one entity.

Articles of Incorporation shall inter alia include the following data:

name and surname and address of the founder,
original capital amount (minimal amount prescribed by the Law is KM 1,000),
information on the Director,
name of the company,
headquarters and activity,
rights and obligations of the company members etc.

In addition to Articles of Incorporation, all LLCs must have the Statute – a document that is based on the Articles of Incorporation and that becomes the primary act of the company once it is incorporated.

* The article is of an informative nature for the purpose of understanding a specific legal problem. It's not allowed to use the content without the permission of the LJUBIC Law Firm.

Articles of Incorporation is the very first step in the procedure, called Decision on Incorporation, if an LLC is founded by one entity only and Contract on Incorporation, if an LLC is founded by more than one entity.

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