Joint-stock company (d.d.) in Bosnia and Herzegovina
The d.d. is the Bosnian corporation: capital divided into shares, a board structure, and room for many investors. Here is when it makes sense — and when a d.o.o. is the smarter choice.
What a d.d. is
A dioničko društvo (d.d.) is a company whose capital is divided into shares. Shareholders are not personally liable for the company’s debts. It is the form used by banks, insurers, large industrial companies and businesses that plan to raise capital from many investors or list on the Sarajevo Stock Exchange.
A d.d. can be closed (shares held by a limited circle of shareholders) or open (shares offered to the public). Most new foreign-owned companies that choose a d.d. start as a closed company.
What it requires
- Minimum share capital of BAM 50,000 (≈ €25,500), paid before registration — Art. 125
- Statute, founding decision and share register
- Management board or executive director, plus a supervisory board
- Shares registered with the securities registry
- Annual financial statements; an external audit depending on size
d.d. or d.o.o. — side by side
For most foreign founders the d.o.o. gives the same protection with far less administration.
| Joint-stock company (d.d.) | Limited liability company (d.o.o.) | |
|---|---|---|
| Minimum capital | BAM 50,000 | BAM 1,000 |
| Owners | Shareholders, unlimited number | One or more members |
| Management | Board structure with supervisory board | One director is enough |
| Transfer of ownership | Shares, freely transferable | Share transfer by notarised contract |
| Typical use | Investors, banks, listed companies | Trading, services, holding, IT |
| Formation time | Longer: more documents and bodies | 15–30 business days |
Joint-stock company questions
What is the minimum capital for a joint-stock company in Bosnia?
In the Federation of BiH the minimum share capital of a d.d. is BAM 50,000 (about €25,500). A d.o.o. needs only BAM 1,000.
Is a d.d. the same as a corporation?
Broadly, yes. The d.d. (dioničko društvo) is the Bosnian joint-stock company — the closest equivalent of a corporation, AG or plc. Its capital is divided into shares, which can be transferred and, for open companies, listed on the Sarajevo Stock Exchange.
Can a foreigner own a d.d.?
Yes. Foreign individuals and companies can found and own a d.d. on the same terms as Bosnian citizens.
Should a small business choose a d.d.?
Rarely. A d.d. needs more capital, a supervisory board, an auditor in many cases and more formal reporting. For one to a few owners a d.o.o. gives the same limited liability at a fraction of the cost.
Can I convert a d.o.o. into a d.d. later?
Yes. A d.o.o. can be transformed into a d.d. when you need outside investors or a listing. Starting with a d.o.o. and converting later is the usual path.
Not sure which form fits?
Describe your plans and we recommend the structure in writing — with the full cost of each option.