Company Registration in Croatia

CompanyFormationCroatia.com offers all the necessary actions in order to incorporate a company or partnership in Croatia, it also provides all the necessary details for incorporating a branch, a subsidiary or a representative office, with complete support offered by Law Firm Ivan Župan.

 

Law Firm Ivan Župan can provide comprehensive legal services and support for local and international investors in Croatia. Ivan Župan is a young but experienced lawyer who graduated the Faculty of Law in Zagreb and who practiced as an attorney before he founded his law firm with a few lawyer partners with experience in the Commercial Law, Employment Law, industrial property rights, statutory trade issues, real estate business, Labor Law, collection of claims, administrative law and many more.

 

 

Ivan Župan is honored of being part of the Croatian Bar Association. Professional legal support and information are offered by specialists at Law Firm Ivan Župan in Croatia. The firm is part of the American Chamber of Commerce in Croatia, an important institution that addresses to international investors interested in business operations in Croatia among other things. Law Firm Ivan Župan is also affiliated to HG.org, the first website containing information and details about the legislation and the government of countries all over the world. The services provided by Law Firm Ivan Župan are vast and among these, we mention company and business formation, tax compliance, trademark registration, drafting contracts, compensation claims, land registry, debt collection, company relocation, company litigation and company dissolution among others.

 

 

We invite you to watch a short video about company formation in Croatia, presented by our specialists in company registration:

 

 

Croatian company formation is based on a series of documents such as:

 

Anyhow, it is important to keep in mind that all procedures for company formation in Croatia must be performed through a public notary. A registered office is also necessary for setting up a company in Croatia. It is also required to have a bank account and a local accountant before incorporating a company in Croatia.

 

 

 

A private limited liability company (D.O.O. – Drustvo s Ogranicenom Odgovornoscu) incorporated in Croatia is a legal entity for small and medium-size businesses formed by at least one shareholder with a minimum share capital of at least HRK 20,000 divided into stakes. As a particularity, due to the Croatian Law on Foreigners, the non-EU citizens willing to incorporate a Croatian D.O.O must provide a minimum share capital of HRK 200,000.

 

The members’ liability is limited to the amount of invested capital. In case the Croatian D.O.O is facing troubles, such as liquidation or bankruptcy, the personal assets of the members are protected. The documents standing at the base of the private limited liability company are the articles of incorporation (in case there are more than two founders) or the statement of establishment (in case there is only one founder) and must contain:

 

 

A public limited liability company (A.D.) is incorporated in Croatia by at least one founder, with a minimum share capital of approximately HRK 200,000 divided into shares and it is designed for large businesses. The similarity with the Croatian private limited liability company comes from the fact that the liability of the members is limited by the contribution to the capital. The management of this type of company is assured by the management board (with at least one manager), the supervisory board (with at least three members) and the general meeting of the shareholders. The last one is the main body for taking major decisions related to the appointment of all the other bodies of the company, the revision of the foundation deeds, the increase or decrease of capital. At the base of each Croatian A.D. sit the articles of association which contain all the internal regulations of the company.

 

A Croatian general partnership is a type of business adopted by two or more partners fully liable to cover with their personal assets the company’s debts in case of liquidation and who can benefit from the profits after paying all the specific corporate taxes. The name of the Croatian general partnership must be composed by the name of the partners followed by the termination “JTD”. No share capital is necessary to start this type of business.

 

A limited partnership is a form of business incorporated in Croatia by two or more persons with different statutes in the business. There is at least one general partner, fully liable with his assets for the company’s debts and one limited partner with liability limited by his contribution to the entity’s capital. Only the general partner may represent the partnership on the market. Just like in the case of the general partnership, there is no need to submit a minimum share capital at registration. Usually, the name of this type of partnership is formed by the general partners’ names followed by the termination “KD”.

 

 

In the beginning, the entrepreneurs must check the uniqueness of the name chosen for the business at the Financial Agency of Croatia. If the name is available, the founders must notarize the memorandum of association or the company charters along with the application for Court Registration and the director’s statement of acceptance of the appointment. All the documents must be accompanied by a certified translation into Croatian. After that, a bank account must be opened and the minimum share capital has to be deposited. The company becomes a member of the Chamber of Commerce in Croatia once all the documents are submitted. The next step of company incorporation in Croatia consists in registering at the tax administration office for paying the VAT and employee income tax. The application can be submitted at the several administrative offices located throughout Croatia. As a result of registration, the company receives a unique tax identification number.

 

The last step of the incorporation consists in the registration at the Croatian Pension Insurance Institute and the Croatian Institute for Health Insurance no later than 15 days from the incorporation. The necessary documents for company formation in Croatia consist of:

 

• • an application found at the local office where the registration takes place;
• • a proof of company incorporation in Croatia (the registration certificate);
• • the tax identification number to prove that the company is a taxpayer;
• • registration form for each employee you wish to hire in the company.

 

After company registration in Croatia is completed, the business can begin its activity after you hire an accountant. We can recommend you specialists in accounting in Croatia and other European countries, such as Romania. We can also help you with information if you want to start a business in the Netherlands or Macedonia. 

 

Steps in forming a company in Croatia

1. Choose a suitable business structure in accordance with the purposes and the activities of the company.
2. Prepare at least 3 names for your future company and verify the validity with the Croatian Company Registry.
3. Open a bank account in Croatia in order to deposit the minimum share capital and to use it for further financial transactions.
4. Prepare and submit the Articles of Association and the Memorandum, the company’s main documents, with the Croatian Company Registry.
5. Register the company with the Pension Insurance Fund in Croatia.
6. Register for tax purposes (including VAT) as soon as the certificate of incorporation is issued.

Costs for opening a company in Croatia

1. Registration fee: approximately EUR 90 for registering a company in Croatia (company registration certificate, company register procedure, etc.).
2. Virtual office cost: approximately EUR 300 per month if you would like a notable business address and an assistant for your future operations.
3. Minimum share capital: HRK 20,000 (EUR 2,700) for a private LLC or HRK 200,000 (EUR 27,000) for a public limited liability company in Croatia.
4. Company formation fee: approximately EUR 834 – Talk to our specialists for a detailed offer.
5. Accounting costs: starting from EUR 100 for bookkeeping, tax advice and many more (ask our team for a tailored offer). 

 

How can I open a branch in Croatia?

How can I open a subsidiary in Croatia?

 

What are virtual office services in Croatia?

What is a shelf company in Croatia?

 

 

As far as the economy of Croatia is regarded, the country is quite powerful and well-developed. The main income is brought in the country by fields like production, trading or tourism. Starting a company in Croatia has the advantage to benefit from rich natural resources offered by the country itself. This is the reason why the nation is situated in a top position as far as the production rates in Europe are concerned. When it comes to foreign investments, the Croatian government encourages starting companies in Croatia and offers important incentives for developing the business environment. In this way, foreign investors can find Croatia a rather comfortable destination for business incorporation and investment.

 

For more details about setting up a company in Croatia, you may contact our specialists in company formation in Croatia.