A liaison office in Croatia can be set up by foreign companies that are not resident in this country in order to promote their commercial interests. The Trade Act in Croatia stipulates that foreign persons carrying out business activities may set up a liaison office in Croatia for representation, promotion, market research, and dissemination. Our specialists in company formation in Croatia can give you detailed information about the procedure of establishing a representative office in Croatia.
| Quick Facts | |
|---|---|
| The purpose of a liaison office in Croatia | Representation of an international company and its operations in the local business community in Croatia |
|
What activities can you undertake with a liaison office in Croatia? |
– business promotion with dedicated marketing campaigns, – gathering information on the business sector of interest in Croatia, – being a contact point between the parent company and clients in Croatia |
|
Requirements for opening a representative office in Croatia |
– preparing the Certificate of Incorporation of the parent company, – naming a representative officer, – opening a bank account in Croatia. |
| Can a liaison office in Croatia have commercial activities? (YES/NO) | NO |
| Contracting potential clients and partners (YES/NO) |
YES |
| Local agent required (YES/NO) |
YES |
| Attributes of a liaison officer |
– promoting the activities of the foreign company through a liaison office in Croatia, – concluding business contracts with potential clients and collaborators from the local market, – developing good communication with the parent company in terms of business matters. |
| Bank account for a liaison office in Croatia |
Necessary for the financial operations of the liaison office in Croatia |
| Minimum deposit |
Not required |
| The institution that authorizes the liaison office in Croatia | Croatian Trade Register |
| The costs of opening a representative office in Croatia |
The foreign company sustains the costs of opening a liaison office in Croatia. |
| Other formalities for opening a liaison office in Croatia |
Specific application forms must be completed. |
| Licensing requirements |
Not required |
| Time frame for opening a liaison office in Croatia |
A few days |
| Why choose our company formation agents in Croatia? |
We offer: – assistance for registration with the local authorities, – support in creating the documents, – affordable costs. |
Table of Contents
Activities performed by a liaison office in Croatia
A liaison office in Croatia is subordinated and dependent upon the foreign company that established it and it cannot develop its activity. The liaison office is not a legal entity in Croatia and its activities are completed upon the founder’s request. It acts as an intermediary between the foreign company and its business partners in Croatia, supporting the activities of the parent company. These activities may include the following:
- marketing,
- advertising,
- promotional activities,
- providing information for scientific research for foreign companies,
- creating and maintaining collaborators with local agents or contractors.
Most businessmen choose to establish a branch instead of a liaison office due to its legal status and the fact that it cannot generate any kind of income. Our agents in company registration in Croatia can advise you on the types of activities to undertake if you want to set up a representative office in this country.
We invite you to discover our infographic on this subject:
How to register a liaison office in Croatia
If you want to promote the business interests of your company in Croatia and establish a liaison office, there are several requirements to consider. A representative office in Croatia has to be registered with the Ministry of Economy. The documents needed for the registration of a liaison office in Croatia include the following:
- an application form – it contains the name of the parent company;
- the address of the liaison office;
- information about the person in charge of the liaison office (his/her name, passport number, or citizen ID number);
- the certificate of incorporation of the company issued by the competent authorities in the company’s country of origin;
- the decision to establish a liaison office in Croatia and the appointment of the person in charge of the liaison office management;
- brief description of the activities undertaken by the liaison office;
- proof of payment of the administrative fee of registering a liaison office.
Local and foreign entrepreneurs have at their fingertips various options for opening a company. But it is important that, after choosing the right structure, the services offered by our accountants in Croatia should also be considered. Thus, you will ensure that you have the necessary support regarding important procedures and tasks, such as payroll, bookkeeping, or submission of annual financial statements.
Here is a video presentation about liaison offices in Croatia:
What are the functions of a liaison office?
As mentioned earlier, a liaison office is a bridge between the parent company and potential clients in Croatia. The promotional and advertising activities of a liaison office in Croatia are the only operations that can be established and developed. There are no financial operations and there is no possibility of signing contracts or issuing invoices when having a liaison office in Croatia. A liaison office is a non-profit entity meant for marketing purposes and related aspects, so foreign entrepreneurs wanting to test a market and make business connections should direct their attention to this kind of structure. The registration of a liaison office in Croatia is not a complicated process, however, if you would like to start professionally, it is recommended to ask for the complete support of our company formation specialists in Croatia and find out more about the guidance they can provide.
The main attributes of a liaison office in Croatia
The following characteristics describe in large lines the position of a liaison office in Croatia and the main attributes that respect the international laws referring to this kind of structure:
- There are no financial operations connected to a liaison office in Croatia.
- The only activities of a liaison office in Croatia strictly refer to the promotion, advertising, and marketing strategies of a foreign company.
- A liaison office in Croatia must have a registered agent with residency in this country.
- A liaison office cannot sign contracts with potential partners and cannot issue invoices.
- Employees can be hired for a liaison office in Croatia, in complete communication with the overseas company.
One of our company formation representatives in Croatia can help you establish a liaison office in this country and can also act as a legal representative of this structure. All the aspects and formalities connected to a liaison office in Croatia can be handled by one of our specialists in company formation in Croatia.
What kind of companies can open liaison offices in Croatia?
There are no restrictions when it comes to opening a liaison office in Croatia, as long as the foreign entrepreneurs respect the applicable legislation. For example, a trucking company from abroad can decide on opening a liaison office in Croatia, if the owner of such a firm wants to verify the market and get in touch with potential customers. The same thing is available for travel agencies from abroad interested in the business market in Croatia and the development possibilities available in this country. A company dealing with technical equipment might be interested in placing the operations in Croatia but with a complete analysis in the first place.
The promotion and marketing activities of this kind of company can prove quite necessary before running any type of business in this field. It would be a lot easier to know the perspective of a market, plus the possible risks, with the help of a liaison office instead of establishing a company in the first place. A liaison office provides a good level of liberty and movement on the market, letting foreign entrepreneurs decide the business direction after preliminary analysis. Also, international companies can benefit from varied promotional activities that can be developed in Croatia with the help of a liaison office.
What are the duties of a liaison officer in Croatia?
When you want to open a representative office in Croatia, you must also consider the appointment of a liaison officer. He or she has various responsibilities, among which we mention:
- Facilitates communication between the mother company and the representative office in Croatia.
- He can attend various business meetings if they are of interest to the company he represents.
- Promote the company on the local market in Croatia to contract potential clients, collaborators, investors, etc.
- Must have negotiation skills and know how to solve delicate business situations.
- He/she is responsible for various business reports that he must present to the parent company.
- He/she must know the business direction of the company in question to be able to represent it in the local market.
- He/she is responsible for the expenses linked to a representative office in Croatia, following that reporting should be done directly to the parent company.
- Must have good organizational skills to be able to advertise the business on the Croatian market.
These are some of the responsibilities, on the one hand, but also features, on the other hand, of a liaison officer in Croatia. If you want to know more about his responsibilities, do not hesitate to contact us. We can also help you with all the formalities if you want to open a company in Croatia.
Who pays for the expenses of a representative office in Croatia?
When a liaison office is established in Croatia, all expenses are paid by the parent company. Thus, the costs and registration fees are done through the company that is to be represented in Croatia. Also, the marketing and promotion expenses are borne by the same company. In this sense, it is recommended to open a bank account in Croatia to avoid conversion costs in the case of using a foreign bank account. We recommend contacting one of our specialists to learn more about how to open a representative office in Croatia.
Differences between a branch office and a liaison office in Croatia
There are quite large differences between branch offices and liaison offices and it is important to distinguish between the two entities. While the branch office can carry out commercial activities, the liaison office does not have the right to do so. Branch offices can issue invoices, while the liaison office in Croatia cannot. With a branch office in Croatia, you can carry out your business and day-to-day activities in the local market, but with a liaison office, you can carry out marketing and promotion activities.
Depending on the business plans you have in Croatia, you can choose either to open a branch or a liaison office. Whatever the choice, we recommend our services when you want to set up a company in Croatia.
Why work with our local agents?
Foreign businessmen may encounter difficulties when they want to expand their business in the local Croatian market. Many of the ambiguities come from not knowing the legislation, which does nothing but complicate the process of company formation in Croatia, regardless of the chosen business structure. Starting from this aspect, we recommend investors turn their attention to our company formation representatives in Croatia to benefit from a simple and uncomplicated registration process.
Is a liaison office a good business idea in Croatia?
Yes, from an entrepreneurial point of view, a liaison office might represent the proper business tool that can help an investor develop in other markets too. Even if this is a non-profit entity that needs to respect a few guidelines in terms of promotion, advertising, and marketing, a liaison office can be a suitable start for your future business operations in Croatia. In terms of investments, Croatia is a preferred business destination that attracts numerous entrepreneurs each year. Sectors like tourism, manufacturing, engineering, or agriculture can be quite appealing to investors in Croatia. You can also pay attention to the following facts and data about the economy and business in Croatia:
- Croatia registered a GDP growth of around 2.6% in 2023.
- The unemployment rate stood at around 6.5% in Croatia in the same year.
- An increase in GDP in Croatia of approximately 2.5% in 2025 is expected.
- Germany and the Netherlands are two important investors in Croatia.
If the liaison office in Croatia hires personnel, it acquires the statute of an employer and it has to register with the tax authorities and with health insurance and social insurance. Under certain conditions, the VAT incurred by a liaison office in Croatia can be eligible for a refund on behalf of the foreign company that established it.
Feel free to contact our representatives in company incorporation in Croatia if you need help registering a liaison office. On the other hand, you can also ask for payroll in Croatia and the services offered by our specialists.