“Life” of companies as the most common form of business entities – comparative overview Ermin Redžić, BA

Legislation Bosnia and Herzegovina: Federation of Bosnia and Herzegovina: Law on Business Organizations (Official Gazette of FBiH 81/15) Republika Srpska: Law on Business Companies (Official Gazette RS 127/08, 28/09, 100/11, 67/13) Croatia: Law on Companies (Official Gazette No. 111/93, 34/99, 121/99, 52/00, 118/03, 107/07, 146/08, 137/09, 125/11, 152/11, 111/12, 68/13, 110/15) Serbia: Law on Business Companies (Official Gazette RS No. 36/11, 99/11, 83/14, 5/15) Montenegro: Law on Business Organizations (Official Gazette MN No. 6 / 02,17 / 07, 80/08, 40/10, 36/11, 40/11)) Slovenia: Law on Business Standards in Business Premises (SRS List of Municipal Offices, Std. 18/74, 34/88, List of Workers List RS, Item 32/00, 102/02 - US Decision in 87/11 - ZMVN-A) Macedonia: ЗАКОН ЗА СМЕТКОВОДСТВОТО ЗА НЕПРОФИТНИТЕ ОРГАНИЗАЦИИ (Службен весник на РМ бр.24/03)

Eu recommendations EU recommendations require that the registration of economic entities becomes an administrative function rather than a means of legal control over the private sector, especially before the start of business. Business control of business entities is in practice left to other instruments (by regular inspection, contract compliance, effective bankruptcy proceedings, through the effective functioning of judicial bodies).

ECRF – European commerce registers’ forum Agencies and state bodies play a key role in registering (starting) business entities and keeping an efficient registry. Bearing in mind that business in Europe is increasingly integrated and that the state borders on its territory are no longer barriers, there is a significant increase in the need for international cooperation between the bodies responsible for registration of companies. The first initiative to establish wider and deeper cooperation between European economic registers was undertaken by the Registry of Companies of the Republic of Latvia in 1998, when the first conference was organized. This initiative was followed by another conference of European Registrars held in Sweden in 1999, attended by representatives from 21 European countries (including representatives of Eastern European countries), which offered participants the opportunity to participate in joint research and exchange of ideas and expertise.

How to Establish a Business? In four simple steps

FOUR BASIC STEPS 1. CHOICE OF COMPANY NAME 2. PREPARATION OF DOCUMENTATION 3. SUBMISSION OF DOCUMENTS - REGISTRATION PROCEDURE 4. REVIEWING DOCUMENTS AND OPENING THE BUSINESS ACCOUNT

SPEED AND GROWTH Source: Glas Srpske

peed is not always a virtue Source: Poslovni.hr

GOLDEN MIDDLE Source: business-magazine.ba

Advantages and disadvantages

EVIDENCE WITHOUT BACKGROUND - UTOPIA WITHOUT PRIOR Source: AlJazzera

Statistics - short overview Number of active companies

Broj registrovanih privrednih društava Država Broj registrovanih privrednih društava Austrija 413.929 BiH 34.965 Bugarska 339.175 Crna Gora 25.955 Češka 1.026.355 Estonija 82.769 Francuska 3.492.052 Grčka 765.956 Hrvatska 172.698 Italija 3.819.956 Mađarska 531.121 Makedonija 57.148 Njemačka 2.795.899 Poljska 2.059.967 Rumunija 695.108 Slovačka 446.471 Slovenija 141.118 Srbija 86.138 Turska 3.210.972 2015 year Sorce: EUROSTAT and national statistical institutes

Number of registered companies Country Number of registered companies BiH 34.965 Montenegro 25.955 Croatia 172.698 Macedonia 57.148 Slovenia 141.118 Serbia 86.138

Termination of companies LIQUIDATION AND BANKRUPTCY

SPEED IS IMPORTANT BUT NOT A VERDICT Source: Poslovni.hr

2014 year Source: BLIC

2017 year Source: BLIC

The Ratio of Beginning and Termination Source: SURS Slovenija

“If you're trying to create a company, it's like baking a cake “If you're trying to create a company, it's like baking a cake. You have to have all the ingredients in the right proportion.” Elon Musk