THE TERM AND TYPES OF LEGAL CONVENTIONS FOR ECONOMIC SUBJECTS

ENTREPRENEUR is a natural person with business performing capacity who performs business activities in order to acquire profit, registered as such in accordance with the Law on registration. For all of the commitments in performing activities the entrepreneur is held accountable by means of his/her entire estate which includes the property and assets acquired in connection with the activities.

An entrepreneur performs activities under a business name which must include a name and a surname of the entrepreneur, a description of his/her principal business activity, with the addition of the term “preduzetnik“(“entrepreneur”) or the abbreviation „pr“ as well as his/her seat. The business name can also contain a special name as well as the labels which specify the business activity of an entrepreneur more closely.
 

PARTNERSHIP COMPANY is a company formed by two or more partners with unlimited joint and several liability for all the commitments of the company by means of their entire estate.

The Founding Act of a partnership company contains, specifically:
1) The name, identification number and residence of a partner who is a domestic natural person; or name, passport number or other identification number and residence of a partner who is a foreign natural person; or business name, identification number and seat of a partner which is a domestic legal entity; or business name, registration number or other identification number and seat of a partner which is a foreign legal entity;

2) The business name and seat of the company;
3) Principal business activity;
4) Distinction of type and value of the investment of each partner.

LIMITED PARTNERSHIP COMPANY is a business company formed by at least two members, out of which at least one member has unlimited joint and several liability for the commitments of the company (the general partner (“komplementar”)), and at least one member has liability to a limited extent for the amount of its original investment in the partnership (the limited partner (“komanditor)).

The Founding Act of a limited partnership company contains, specifically:
1) The name, identification number and residence of a partner who is a domestic natural person; or name, passport number or other identification number and residence of a partner who is a foreign natural person; or business name, identification number and seat of a partner which is a domestic legal entity; or business name, registration number or other identification number and seat of a partner which is a foreign legal entity;

2) The business name and seat of the company;

3) Principal business activity;

4) Distinction of type and value of the investment of each partner;

5) The label indicating separately the general partner (“komplementar”) and the limited partner of the company (“komanditor”).

LIMITED LIABILITY COMPANY  is a company in which one or more members of the company have a share in the fixed company’s capital, provided that members of the company are not liable for the company’s commitments, except as provided in the Article 18 of the Company Law.

The Founding Act of a limited liability company contains, specifically:

1) The full name and residence of all natural person members and the business name and seat of every legal person member of the company;
2) The business name and seat of the company;
3) Principal business activity;
4) The total amount of the company’s fixed capital;

5) The amount of monetary investment, that is the monetary value and description of non monetary investments of each member of the company;
6) Time of investments input, that is the time of the investment input in the fixed capital of the company;

7) The share of each member in the total amount of the fixed capital of the company expressed in percentages;

8) Determining of the company’s structure and commitments.

 
JOINT STOCK COMPANY a company whose equity capital is divided into shares of one or more shareholders who are not liable for the commitments of the company, except as provided in the Article 18 of the Company Law.

The Founding Act of a joint stock company contains, specifically:
1) The business name and seat of the company;
2) Principal business activity;
3) The amount of the equity capital, written or paid, as well as the information about the number and the total nominal value of the authorized shares, if they exist;
4) The essential elements of the issued shares of each type and class in accordance with the Law governing the capital market; while the shares which have no nominal value and must contain the amount of the base capital for which they are issued, that is the accountancy value, including any commitments, limitations and privileges associated with each class of shares;
5) Types and classes of shares and other securities that the company is authorized to issue;

6) Special conditions for transfer of shares, if any;
7) Convening the assembly of shareholders procedure;

8) Determining of the company’s structural bodies and their scope, the number of their members, closer determination of the appointment and revocation of the members, as well as the way of decision-making of the respective bodies;

9) Other issues of the Founding Act of a joint stock company which are determined by this or other specific legislation.