Restrictions on foreign investment

In accordance with the Law on the Policy of Direct Foreign Investments in BiH, there are certain restrictions in the field of foreign investments. In this regard, the foreign share in the share capital of any business entity engaged in the production and sale of weapons, ammunition, explosives for military use, military equipment and media activities shall not exceed 49% of the share capital of that entity. In the case of investments in the aforementioned sectors, foreign investors must obtain prior consent from the competent authority in the respective entity. The entity's government may decide, if it deems it justified, that a foreign person's investment in certain companies engaged in the production and sale of weapons, ammunition, military explosives and military equipment is not subject to the aforementioned restriction. Restrictions applicable to domestic investments concerning the areas of public order (l'ordre public), health and environmental protection also apply equally to foreign investments.