The attempts to unite European lands and peoples with a view to develop European identity harking back centuries were concluded with the foundation of the European Steel and Coal Community in the 1950s. Necessity to join the postwar Europe thus rise to the status of an equal to the economies of USA and SSSR, the superpowers of the era, led to laying the first foundation for the further development of the modern European collective identity - the single European market. The insecurity incumbent in the national markets at that time induced the states to create the single market based on the four freedoms of movement, still taking into account the diversities and discrepancies between the national systems. The need for people to move and conduct business in a free manner regardless of the national borders and for free movement of capital, goods and services would not be entirely satisfied without also enabling companies to be founded in the likewise manner. Founded in the freedom to establish companies freely, and the recognition these companies received from all member states, respectful of the right to competitiveness, the 1970s in Europe can be distinguished by the ascent of European company law. Just as the European identity is constituted on the differences of national traditions, so has the European company law, as a basic pillar of European identity, developed respecting the differences of the economic systems, always striving for the optimal response, provided by the national legislature, to the current issues. The thirty-year development of the European company law points to the application of different legal remedies in accomplishing a single goal - creating an awareness of a unified Europe marked by the freedom of an individual to live and do business unimpeded by the restrictions the national borders pose to that ideal. With the same ideal in mind we are moving towards a modernization of European company law, as intended buy the Action plan from 2003 and 2006. This will be a step in the direction of further simplification and reducing the gap between the national regulations in the field of European company law. Aiming to create a single economic space as a prerequisite to the EU membership, Bosnia and Herzegovina is obliged to harmonize the national company law with the existing European company law. A gradual implementation of the guidelines and measures defined by the Accession and stabilization agreement will provide the business entities in Bosnian market with the necessary competitiveness to efficiently and successfully operate in the single European market creating the foundation for generating the European identity in domestic markets. [ABSTRACT FROM AUTHOR]