Abstract
The economic system and economic companies represent the main components of the economy of each country. Stable and internationally competitive economic societies represent the strength and support of social activities and favorable socio-economic conditions for the life of every resident of a social community. The development of economic activity depends on various factors. One of them is the legislation regulating the establishment, operation and termination of business companies. Nevertheless, legislation can be a driver of economic activities, but also a huge brake on their development, which, among other things, is reflected on the activities of domestic companies in international frameworks. It is precisely the change of legislation in Bosnia and Herzegovina that is the basic prerequisite for the establishment of a European company, as a new form of Europe- an company, which, in the broadest sense of the word, is one of Bosnia and Herzego- vina’s obligations on the way to full membership in the European Union. Key words: European Company, legislative framework, harmonisation of national legislation
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