This paper analyzes the legal structure and operations of multinational corporations (MNCs) operating across multiple legal jurisdictions. Although MNCs are legally decentralized, their management is centralized, raising questions regarding the liability of the parent company for the actions of its subsidiaries. The focus is on the legal mechanisms regulating MNCs within the Bosnian-Herzegovinian (BiH) legislation, EU legal acts, and OECD guidelines. In BiH, the legal framework is fragmented and requires harmonization between the state and entity levels. The European Union (EU) employs the Treaty on the Functioning of the EU, directives, and regulations to ensure a balance between market freedoms and legal oversight. In conclusion, the paper highlights the need to strengthen both international and domestic legal frameworks to achieve greater transparency, corporate accountability, and compliance of MNCs with global market regulations.

Multinational corporations

Legal responsibility

Regulation

European Union

Tax and transparency