Liquidation is a procedure that may be initiated for various reasons as prescribed by the provisions of the Law on Liquidation Procedure of the Federation of Bosnia and Herzegovina. However, the most common case of initiating a liquidation procedure is the decision
Liquidation is a procedure that may be initiated for various reasons as prescribed by the provisions of the Law on Liquidation Procedure of the Federation of Bosnia and Herzegovina. However, the most common case of initiating a liquidation procedure is a decision made by the company's founder. The liquidation procedure can only be conducted over a legal entity that is solvent. If it is established that the legal entity is insolvent, then bankruptcy proceedings are initiated instead.
As a rule, the liquidator should be appointed from among the existing members of the legal entity’s management body. However, the initiation and full conduct of the liquidation procedure may be entrusted to an attorney through a special power of attorney.

The bodies involved in the liquidation procedure are the liquidator and the liquidation judge.

The duties of the liquidator include presenting to the court an inventory of the assets and liabilities of the legal entity undergoing liquidation, finalizing ongoing business operations, collecting receivables, liquidating the company’s assets, and settling any outstanding creditors. The liquidation procedure is conducted before the court in which the legal entity subject to liquidation is registered. The procedure itself is initiated by submitting a petition to commence liquidation proceedings.

Uz prijedlog se dostavlja sljedeća dokumentacija:

 founder’s decision on the termination of the company’s operations

 founder’s decision on the appointment of the liquidator

 founding act of the company (Decision on Incorporation or Memorandum of Association)

 tax registration certificate for the company

 certificate issued by the Tax Administration of the Federation of BiH confirming that there are no outstanding debts

 certificate issued by the Indirect Taxation Authority confirming that there are no outstanding liabilities based on indirect taxes

  if the company is not registered in the Unified Register of Indirect Taxes, it is necessary to obtain a certificate confirming this

 liquidation balance sheet and income statement

 certificate of account status issued by the bank

 notification on the classification of the legal entity according to its activity

 payment slip in the amount of BAM 100.00 as court fee for initiating the liquidation procedure

 any other relevant documents, if necessary

Based on a power of attorney granted by the company’s founder, the attorney would prepare the necessary resolutions, communicate with the relevant authorities and the bank to obtain required documentation, submit the petition for initiating the liquidation procedure, and represent the client before the court throughout the conduct and conclusion of the liquidation process. Upon receiving the petition, the judge appoints a liquidator and schedules a hearing at which a decision to initiate the liquidation procedure is made. This decision is then published in the Official Gazette of the Federation of Bosnia and Herzegovina. The purpose of this publication is to notify any potential creditors and invite them to file their claims against the legal entity undergoing liquidation.

After the statutory deadline following the publication of the notice has passed, the judge schedules a new hearing at which the creditors are invited to appear. If any claims have been submitted, they must be settled. If the company is not solvent and cannot satisfy the claims, the liquidation procedure is terminated and bankruptcy proceedings are initiated.

If there are no creditor claims, or if all submitted claims have been settled, the judge issues a decision on the conclusion of the liquidation procedure. This decision is published in the Official Gazette of the Federation of Bosnia and Herzegovina. After the statutory deadline following the publication expires, the judge submits the decision to the Business Entities Register for the purpose of deleting the liquidated legal entity, which represents the final step in the liquidation process.