According to the Law on the Policy of Foreign Direct Investment in Bosnia and Herzegovina, foreign equity ownership of business entity engaged in the production and sale of arms, ammunition, explosives for the military use, military equipment and media shall not exceed 49% of the equity in that business entity.

In case of investing in the above-mentioned sectors, foreign investor must obtain prior approval from the competent body of the respective Entity. The Entity Government may decide, if it deems justified, that the share of foreign entity for certain enterprises engaged in the production and sale of arms, ammunition, explosives for military use, military equipment is not subject to the above restriction.

Restrictions applicable to domestic investment on account of public policy (l’order public), public health and protection of the environment are equally applied to foreign investment.